OREANDA-NEWS. November 19, 2009. Brief remarks by Ulanbek Akmatbaev, General Manager of “Reemtsma-Kyrgyzstan” OJSC, the First Deputy Chairman of the IBC Management Board.

Good morning ladies and gentlemen,
First of all, let me thank the Ministry for Economic Regulation of the Kyrgyz Republic for the excellent organization of today’s forum and for the invitation to attend this meeting and speak on behalf of the International Business Council. I am pleased to welcome here the participants of the trade-economic forum “Kyrgyzstan-China” on behalf of the International Business Council (IBC) which is a business association, established in December 2000, consisting of a wide range of local and international businesses which have created thousands of jobs and have a combined investment of over one billion USD in the Kyrgyz economy.

Among the corporate and associate members of the IBC there are over 125 large, medium and small businesses, largest investors, key employers and taxpayers in the Kyrgyz economy, such as the Kumtor Operating company, Gazpromneft Asia, Reemtsma-Kyrgyzstan and Hyatt Regency Bishkek, as well as many others.

As well as promoting the common interests of business investors and providing members with relevant information and advice to support their business operations, IBC’s mission is to make the Kyrgyz Republic a more attractive investment location by promoting good business legislation and efficient business practices, working in partnership with the government of the Kyrgyz Republic and other local and foreign organizations. IBC actively supports the economic reform process and ensures that private sector investors are represented in Government policy activities.

IBC also has strong recognition amongst the International Finance Institutions, Embassies, and Donor Agencies as a key player in the process of reform. IBC works cooperatively with government and other local and international organizations to fight against corruption and to change laws and practice that impede social or economic justice. In particular, IBC is a part of the Investment Council under the President of the Kyrgyz Republic K. Bakiev, where the investment community has a unique opportunity to raise any problematic issue at the highest level. Anyone who can confirm the commitment to support the IBC mission and conduct business activities in accordance with good business legislation and efficient business practice is welcome to join the IBC.

Given the role played by China in the foreign trade of the Kyrgyz Republic, one can fully appreciate the importance attached to the outcomes of this meeting on the part of the leaders of the Central Agency for development, innovations and investments, Ministry of economic regulation of the Kyrgyz Republic and the Chamber of industry and commerce. According to the MER, China is the third most important trade partner of the Kyrgyz Republic. The ministry acknowledges however that traditionally the trade balance has been in favor of the People’s Republic of China. In 2008 alone, imports from China have exceeded the export from Kyrgyzstan in 13 times! Also, traditionally, the Kyrgyz Republic exports raw materials, metals, hides, etc. while the potential for exporting the manufactured goods or deeply processed products from the Kyrgyz Republic to China is hardly explored. Yet, the Kyrgyz Republic has goods to offer even to such a  highly saturated market as China.

For years now, but with little success, the issue export of products to China is dealt with by the only national cigarette producer in the Kyrgyz Republic - the “Reemtsma-Kyrgyzstan” OJSC. This company that has the production capacity to manufacture up to 12,5 bln cigarettes per year which substantially exceeds the overall country’s consumption has been originally designed as the export-oriented, primarily to the countries of the Central-Asian region. This enterprise has been certified by ISO 9000.01 and ISO 14000.01 international quality and environmental safety standards. As a result, local cigarettes and pipe tobacco are successfully eхported to most of the countries of the Central Asia and Mongolia. Indeed, the People’s Republic of China with its over 1 bln population is one of the most attractive but also hardly-accessible markets for any manufacturer due to various market and non market-nature obstacles.

I believe that such forums allow to address quite many issues faced by entrepreneurs and gain support in the continued development of the mutual cooperation.

Please let me wish successful and fruitful negotiations at this forum.