What is the
current state of the sector four years after
the Russian crisis of 98. Could you please
update us on the shape of the industrial sector,
particularly those industries closely dependent
on external trade?
Foreign trade and industry of course is
the main area for the government to develop.
First of all it is connected to the macroeconomic
indicators of Kyrgyzstan, thus export is
very important for us. The big task for
us is to create currency influx for the
country. We are now to expand our export
base to neighboring countries. We are making
big efforts in this field for example we
are cooperating with the World Trade Organization,
Eurasian Union and Shanghais Cooperation
Organization in economic development. The
priority is to increase the exports by 10
% in the coming three years.
The main direction of our trade activity
is directed towards China. We are also planning
to expand our exports to Russia, Kazakhstan
and Uzbekistan. Unfortunately we have complicated
land block location as far as transportation
is concerned. It is difficult to transport
products to European countries, to Japan
or to America. Since we have long range
of border with China we are planning to
develop economic relations with China. As
for cooperation with United States, European
and other developed countries we will be
consumers of their technologies and financial
resources. The point is that Kyrgyz Republic
is located within in three hours of flight
distance from 3 billion people like in China,
India, Africa, Uzbekistan, Russia and Kazakhstan.
We are just in the center. Of course the
development of trade relations is a big
priority for us. I can say that opportunities
in trade are unlimited.
We live in a globalize world and most
countries have to specialize in manufacturing
particular goods. What are Kyrgyzstan's
industrial priorities? Where do they think
this realm will be in coming years?
We have several priorities. The first one
of all is the mining industry. For us mining
is one of big priorities. If you have noticed
we are surrounded with mountain that are full
of useful ores that include all chemicals
of the Mendeleev table. We mine copper, mercury,
zinc and gold. Our mountains are very rich,
but bigger opportunities are in mining coal.
For example the ore coal will last for 200
years under intensive use. As for electric
power we have very powerful mountainous rivers.
We generate about 14 billion kilowatt per
hour. Potentials of those rivers are about
140 billion kilowatt per hour. Where will
we spend our electric power and coal? During
former Soviet Union Kyrgyzstan supplied with
coal neighboring countries like Kazakhstan
and Uzbekistan. Now we have opportunity to
supply China with coal. We signed a big agreement
about developing relations in the sphere of
power. We are also planning to build electric
lines to China, mainly to Kashgar and from
Kashgar to Pakistan. We are working on negotiations.
I hope that in the near future we will supply
China with electric power. Even today we can
already supply from 1 to 2 billion kilowatt-hours
to China without increasing the power potential
that and without any additional investments
need it. I should say that we started oil
mining development in Kyrgyzstan in cooperation
with Chinese National oil Corporation. Today
we get from 75 up to 100 thousand tons of
crude per year. We are assuming that we can
make up to 2-3 million tons in the near future.
We have oil in the country. It is very difficult
to extract it because it is on the mountains
on 4000 meters latitude. It is difficult to
reach but still possible. We will be trading
oil and gas.
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Our traditional
partner is Russia. This is also one of the
main directions for our economy to go on.
We work very intensively with Russia on equipment
supply for us. All our plants and enterprises
are equipped with Russian productions. Our
engineers know very well the Russian standards.
Since we were one country before. Especially
we cooperate with Russian in the field of
machine engineering.
Our second priority is the development of
light industry. This is mainly textile production.
Here also we cooperate with our Russian
partners. We are working actively in the
field of food processing industry. Another
big direction is our cooperation with Kazakhstan.
Here we trade with building materials, cement,
glass etc. The some concerns Uzbekistan.
We trade with agricultural production and
building materials.
Since you mentioned cooperation, and
considering that its the major priority
of industrial sector and foreign trade.
What's your particular ministry doing to
attract foreign investment to the light
manufacturers as well as to the heavy industry?
We are deeply analyzing the situation.
We have directly contacted with managers
of enterprises. We don't make any separation
between state and private organizations.
We equally work with all of them. We get
responses from their side. We try to formulate
these proposals, complaints and reflect
them in government resolutions or draft
resolutions. The point is we have here 3
levels o problems. The first one is the
tax problem, the second is so-called administrative
interference in business affairs and the
third is the most important issue, what
do we want to do? Either to deal with industrialization
or socialization. It's hard to solve these
problems and find a balance.
What message would you send to our readers,
all potential investors, and to those who
are interested in the development of Kyrgyzstan´s
industrial sector?
I want to say the main point. As for industry
and foreign trade I can talk for hours in
details. . The geopolitical location of
Kyrgyz Republic is very advantageous. The
fact that we are neighboring with China,
India and Afghanistan is very attractive
from the supply markets' point of view.
As for Kazakhstan and Uzbekistan, they are
potential suppliers of raw materials for
us. Certainly they are also potential markets
for our goods. Russia, Europe and America
etc are sources of financial and technological
resources.
Actually after that our concept is very
simple. There are many opportunities from
business development point of view. Any
businessman can find very interesting projects
here.
Besides trade and manufacturing sector a
very big potentials exist in development
of financial services and informational
technologies. For example here Japanese
adviser Mr. Takiharov is working and we
always wonder of those opportunities that
Kyrgyzstan has. Again I would to clarify,
than main things are mining branch, light
industry, food processing industry, machine
building, energy, financial services and
informational technology. It is in short
I have told you. I hope you understood.
If you had more time I would tell you more
detailed.
Note: WINNE cannot be held responsible
for the content of unedited transcriptions.
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V.I.P. INTERVIEWS
