By Abdul Kerimkhanov
Prime Minister of Kazakhstan Bakhytzhan Sagintayev signed a resolution approving the draft agreement between the governments of Kazakhstan and Kyrgyzstan on trade and economic cooperation in the field of oil and oil products supply, Kazakh media reports on December 24.
The draft agreement was approved on the basis of the agreement on the EAEU dated May 29, 2014 and the agreement on the accession of Kyrgyzstan to the agreement on the EAEU dated December 23, 2014, based on interest in deepening the mutually beneficial cooperation between countries in the supply of oil and oil products and ways of Eurasian economic integration.
Minister of Energy of Kazakhstan Kanat Bozumbayev, as indicated in the document, is authorized to sign on behalf of the Kazakh Government an agreement between the Government of Kazakhstan and the Government of Kyrgyzstan on trade and economic cooperation in the supply of oil and oil products, allowing changes and additions that are not of a fundamental nature.
“The authorized organizations that ensure the planning and organization of the transportation of goods classified in the group 27 of the TN VED of the EAEU, within the framework of this agreement are: National Company Kazakhstan Temir Zholy JSC, KTZh-Freight Transport JSC, National Company Kyrgyz National Enterprise Temir Zholu,” says a document published on December 24.
According to the agreement, the parties each year, until December 31, 2018, are required to draw up a balance of domestic consumption production, a supply of imports and exports of goods in Kyrgyzstan, including the volumes of supplies of oil and oil products from Kazakhstan and Russia to Kyrgyzstan.
"Goods provided for by the list of goods classified in the group 27 of the Commodity nomenclature of foreign trade activities of the EAEU, supplied from the Republic of Kazakhstan to the Kyrgyz Republic in accordance with this agreement, without collection of export customs duties in Kazakhstan, are not subject to export, as well as export to third countries," mentioned in the information.
Diplomatic relations between Kazakhstan and Kyrgyzstan were established on August 27, 1992.
In January – May 2018, mutual trade increased by 9.8 percent, comparing to the same period of last year.
Kyrgyz and Kazakh authorities plan to increase trade between countries. The main goal is to increase bilateral trade to $ 1 billion by 2020.
Kyrgyzstan supplies electricity, dairy products, vegetables and fruits, live cattle, garments, glass to Kazakhstan. Oil and oil products, wheat, coal, wheat flour, vegetable oil, inorganic chemicals, mineral raw materials, flat iron and stainless steel are imported from Kazakhstan to Kyrgyzstan.
As many as 824 joint ventures have been established in Kazakhstan, which operates in the following areas: wholesale and retail trade, manufacturing, professional, scientific and technical activities, construction, services.
Abdul Kerimkhanov is AzerNews’ staff journalist, follow him on Twitter: @AbdulKerim94
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