Kyrgyz authorities are convinced that the republic can benefit from the ban imposed by Russia on agricultural imports from the European Union and several other countries.
Following Moscow's decision to prohibit the import of agricultural products from the EU and a number of Western countries, plans for a significant increase in supplies to Russia began to take shape in Bishkek. The Ministry of Economy of Kyrgyzstan reported that during negotiations with the Russian side, they managed to achieve the cancellation of several restrictions that were previously in place. However, for now, this is only a matter of intentions, as no official decrees or other written decisions have been issued on this matter.
Russia promised to reduce barriers
As explained to DW by Danil Ibraev, Deputy Minister of Economy of Kyrgyzstan, since the republic is not a member of the Customs Union, there are still many problems related to technical regulations, the movement of goods across the border, and direct access to the Russian market. "The Deputy Prime Minister of the Russian Federation Igor Shuvalov assured us that these obstacles would be removed. This was a statement about further actions, and we are already trying to implement all of this," Ibraev noted.
One of the main issues remains the certification of products. Conclusions issued by Kyrgyz laboratories do not meet the standards of the Customs Union, and therefore are not recognized in Russia.
The potential of Kyrgyz farmers
According to the Ministry of Agriculture of Kyrgyzstan, the country could increase its supplies to Russia, primarily of vegetables and fruits. For example, Kyrgyzstan annually grows about 1 million tons of vegetables, nearly 1.5 million tons of potatoes, and about 250,000 tons of fruit and berry crops. At the same time, only 20 to 35 percent of this produce is sold on the local market, with the rest going for export.
For the Russian market as a whole, these volumes are not large, so Kyrgyz officials have begun working directly with target regions. "We are currently negotiating with the Sverdlovsk and Orenburg regions, as well as with the Khabarovsk Territory, to at least agree to recognize the certificates issued by our laboratories," said Jumabek Asylbekov, head of the Food Security and Agro-Marketing Department of the Ministry of Agriculture of Kyrgyzstan, to DW.
The ban on the import of Kyrgyz meat into Russia remains
Kyrgyzstan could also export meat and dairy products, but there is still a categorical ban on the import of meat from the republic to Russia, which was introduced back in 2007. Restrictions on dairy products are periodically imposed by Kazakhstan, through which the route from Kyrgyzstan to Russia passes.
Significant difficulties arise with the transportation of goods. Given Kyrgyzstan's lack of access to the sea, the cheapest method could be delivery by rail. However, first of all, as stated on August 21, 2014, during a meeting of government representatives with local agricultural producers, the Kyrgyz national railway company has no refrigerated cars, which means that perishable products cannot be delivered. Secondly, large batches are required for shipping cargo by train. Therefore, Kyrgyz producers are forced to resort to road transport, which is more expensive.
An operational headquarters has been established to assist in the export of Kyrgyz products to the Russian Federation
On Thursday, August 21, 2014, Kyrgyz officials, together with the Trade Representation of Russia in Bishkek, held a meeting with local farmers and leaders of processing enterprises. The head of the Russian trade representation, Vladimir Nekrasov, noted that Russia welcomes Bishkek's intention to increase food exports and announced that an operational headquarters has been established based on the Kyrgyz-Russian Economic Council to facilitate direct contacts between Kyrgyz agricultural producers and wholesale buyers in Russia. He also noted that it would be very difficult for suppliers to break into the Russian market individually.
"Kyrgyz producers cannot, for example, supply products to retail chains in Russia, as there are strict conditions regarding the regularity of supplies year-round and in the required volumes. Therefore, the creation of logistics centers is necessary," Nekrasov said.
"Mechanisms for unhindered supply of our products to Russia have not yet appeared..."
The head of one of the Kyrgyz farms, Sagynbek Omorov, believes it is too early to talk about removing barriers to the supply of agricultural products to Russia. "I attended a meeting with representatives of our government and the trade representative of Russia, but we were only given general information. Specific mechanisms for the unhindered supply of our products to Russia have not yet appeared," the farmer told DW. During the summer, he sends several truckloads of strawberries to Kazakhstan daily. Part of the produce eventually goes to Russia, albeit illegally. "We unite with other farmers and send a convoy of agricultural products daily. We pay duties in Kazakhstan, as they are higher in Russia. Therefore, for now, it is easier for us to send everything to Kazakhstan and then transport some part illegally to Russia. At the same time, we often have to pay various illegal fees," Omorov notes.
Not before next year
Kyrgyz economist Aylchi Sarybaev believes that all efforts should be made to encourage Bishkek's intentions to increase exports to Russia. However, he cautions against expecting this to happen quickly. "A lot of effort and organizational measures will be required. Production will need to be partially reoriented," the expert told DW in an interview.
In his opinion, local agricultural producers are unlikely to mobilize this year. Therefore, a significant additional influx of Kyrgyz products into Russian markets can be expected no earlier than next year.
Alexander Tokmakov, "Deutsche Welle"