Trade and Economic Cooperation

Kazakhstan is one of the main trading partners of Kyrgyzstan. 

In 2018 the volume of mutual trade turnover amounted to $842,4 million, and in comparison with 2017 increased by 6,7%.

In January-April 2019 the trade turnover between the Kyrgyz Republic and the Republic of Kazakhstan amounted to 283,6 million US dollars which is 12,7% higher than for the same period of the previous year.

Food products and agricultural products, electricity and vehicles were exported from Kyrgyzstan. From Kazakhstan grain and oil products, coal, ferrous and non-ferrous metals, and chemicals were imported into our country.

According to the National Statistics Committee of Kyrgyzstan, Kazakhstan ranks fourth in terms of investment in our country with a share of 7,7%. The top three countries are China, Canada and Russia.

Since the establishment of diplomatic relations between our countries a sufficient amount of Kazakhstan’s investments has been invested in Kyrgyzstan. The most priority economic activities for investment are financial activities (46,6%); trade, repair of cars, household goods and personal items (43,8%); real estate operations, rental and provision of services to consumers (8,2%); manufacturing industry (5%); mining industry (7,2%); transport and communications (1,9%).

Currently 247 joint ventures with participation of Kyrgyz capital are registered in Kazakhstan. The enterprises are mainly engaged in the wholesale and retail trade, construction, car sales, cattle breeding, grain and leguminous crops cultivation, including seed production, cotton thread manufacturing, and other types of publishing.

In the Kyrgyz Republic 334 joint ventures with the participation of Kazakh capital were registered (financial activities, food production, trade, car repairs, household goods and personal items, transport and communications, construction, etc.).

Relations between the regions of Kyrgyzstan and Kazakhstan are developing. Interregional cooperation is becoming a significant factor in expanding bilateral trade, economic, investment, and cultural and humanitarian cooperation.

In recent years, relations have been established and twinning agreements have been signed between the four regions of Kyrgyzstan and Kazakhstan. These are Issyk-Kul and Almaty regions, Osh and Karaganda regions, Dzhambul and Talas regions and Chui and South Kazakhstan regions, as well as the capitals of the two countries - Bishkek and Astana.

On August 17, 2018 the 7th meeting of the Kyrgyz-Kazakhstan Intergovernmental Council was held in the city of Astana. The meeting was chaired by the Prime Minister of the Kyrgyz Republic M.Abylgaziev and the Prime Minister of the Republic of Kazakhstan B.Sagintayev. The Head of the Government of the Kyrgyz Republic emphasized that trade relations are a promising and profitable direction in cooperation between the Kyrgyz Republic and the Republic of Kazakhstan, designating as an objective the increase in trade between the Kyrgyz Republic and the Republic of Kazakhstan to 1 billion US dollars. 

On January 28, 2019 the Prime Minister of the Republic of Kazakhstan B.A.Sagintayev received the Ambassador Extraordinary and Plenipotentiary of the Kyrgyz Republic to the Republic of Kazakhstan Zh.M.Kulubaev.

During the meeting, a wide range of issues of bilateral cooperation in the trade, economic, cultural and humanitarian spheres, the tourism industry, as well as in the field of digitalization and the development of smart cities were discussed. In addition, issues of interregional and cross-border interaction were considered.

On February 27-28, 2019 the Vice Prime Minister of the Kyrgyz Republic J.Razakov paid a working visit to the Republic of Kazakhstan, during which he held meetings with the Prime Minister of the Republic of Kazakhstan A.Mamin and the Vice Prime Minister of the Republic of Kazakhstan J.Kasymbek veterinary, phytosanitary and water-energy cooperation.

Following the meeting, the following were signed:

-Protocol of the meeting between the Vice Prime Ministers of the Kyrgyz Republic and the Republic of Kazakhstan;

- Roadmap for quarantine phytosanitary control.

On March 29, 2019 the Decision of the Council of the Eurasian Economic Commission №26 “On the results of the assessment of the veterinary-sanitary control system of the Kyrgyz Republic” was adopted.

Taking into account the information of the Kyrgyz Republic on the elimination of deficiencies identified as a result of visits by representatives of authorized bodies of the Member States of the Eurasian Economic Union in the field of veterinary medicine and the Eurasian Economic Commission in order to assess (audit) the veterinary and sanitary control system of the Kyrgyz Republic, and to implement paragraph 2 Decisions of the Supreme Eurasian Economic Council of May 8, 2015 № 6 “On the abolition of sanitary-quarantine, veterinary-sanitary and quarantine phytosanitary control (supervision) on the Kyrgyz-Kazakh section of the state border ”, the Council of the Eurasian Economic Commission decided:

1. To approve the results of the assessment of the veterinary-sanitary control system of the Kyrgyz Republic.

2. This Decision shall enter into force after 30 calendar days from the date of its official publication.

The veterinary system of the Kyrgyz Republic is recognized as equivalent to the norms of the Eurasian Economic Union. The Vice Prime Minister of the Kyrgyz Republic J. Razakov said this in an interview with media representatives following a meeting of the Eurasian Intergovernmental Council of the Eurasian Economic Union, which was held on April 30, 2019 in Yerevan, Republic of Armenia.

“At the council level of the Eurasian Economic Commission, where I am the representative from the Kyrgyz side, a decision was signed according to which the veterinary system of the Kyrgyz Republic was recognized as equivalent to the requirements of the Eurasian Economic Union. Since the entry of the Kyrgyz Republic into the EAEU, this has been a problematic issue. Because of this, domestic producers could not fully sell their products in the territory of the EAEU. With the signing of this decision, local manufacturers can freely sell their products on the territory of the integration association,” - he stressed.

Vice Prime Minister J.Razakov noted that since the entry of the Kyrgyz Republic into the EAEU, much work has been done to bring the veterinary system in line with the standards established by the organization. “All our laboratories were equipped with modern equipment. During this time, three meetings of the commission were held, which evaluated our veterinary system. As a result, the commission recognized that our system is equivalent. This is the most important decision that allows Kyrgyz producers to work calmly and export their products to neighboring countries,”summarized Vice Prime Minister J. Razakov.

At the invitation of the Minister of Foreign Affairs of the Kyrgyz Republic, Ch.Aidarbekov, on May 20, 2019, the Minister of Foreign Affairs of the Republic of Kazakhstan, B.Atamkulov, paid an official visit to Kyrgyzstan.

The heads of the foreign affairs agencies of the two countries in a narrow and expanded composition thoroughly discussed a wide range of topical and current issues in Kyrgyz-Kazakh relations. They emphasized the commitment of the Parties to further deepening mutually beneficial cooperation between the Kyrgyz Republic and the Republic of Kazakhstan in the spirit of allied relations and strategic partnership. They expressed mutual interest in maintaining a regular political and economic dialogue at the level of heads of state, parliaments, governments and regions of the two countries. We exchanged views on issues of interaction within the framework of international organizations and regional associations.

The ministers also reviewed the implementation of the agreements reached at the level of the heads of state and government of the two countries, and also discussed the organization of bilateral and multilateral foreign policy events, visits and summits planned for the current year.

Particular attention was paid to economic cooperation, the removal of barriers in mutual trade and the implementation of cargo transportation, the improvement of the work of some checkpoints on the Kyrgyz-Kazakh state border, and cooperation in tourism and other fields.

Before the start of the negotiations, the Foreign Ministers of the two countries visited the Ak-Zhol (KR) and Korday (RK) checkpoints, got acquainted with the activities of the checkpoint and discussed issues of its reconstruction. The meeting was attended by leaders and responsible representatives of the relevant state bodies of Kyrgyzstan and Kazakhstan, who informed about the ongoing work aimed at modernizing the checkpoint. The relevant departments of the two countries agreed to coordinate all the necessary documents in the near future, so that at the end of the tourist season, work will begin at the specified checkpoint.

Following the visit, the following were signed:

- The cooperation program between the Ministry of Foreign Affairs of the Kyrgyz Republic and the Ministry of Foreign Affairs of the Republic of Kazakhstan for 2019-2020;

-Protocol between the Government of the Kyrgyz Republic and the Government of the Republic of Kazakhstan on areas of activity of border representatives.

On July 12, 2019, the Prime Minister of the Republic of Kazakhstan, A.U.Mamin, paid an official visit to the Kyrgyz Republic, within the framework of which the 8th meeting of the Kyrgyz-Kazakh Intergovernmental Council, as well as bilateral meetings in a narrow and narrow, took place under the chairmanship of the Prime Minister of the Kyrgyz Republic and the Republic of Kazakhstan. extended compositions.

The parties discussed issues of developing trade and economic cooperation, cooperation in the water and energy sector and industrial cooperation, and strengthening cultural and humanitarian ties.

Prime Minister of the Republic of Kazakhstan A.Mamin was received by the President of the Kyrgyz Republic S.Zheenbekov.

Following the results of the official visit of the Prime Minister of the Republic of Kazakhstan A.Mamin to the Kyrgyz Republic, the following were signed:

- Memorandum of Understanding and Cooperation in the Field of Agricultural Trade between Elet Agroholding Limited Liability Company and Continental Agro Trade Limited Liability Partnership;

- Memorandum of Understanding and Cooperation in the Field of Agricultural Trade between the Heitong Limited Liability Company and the Continental Agro Trade Limited Liability Partnership;

- Memorandum of Understanding and Cooperation in the Field of Agricultural Trade between the Continental Agro Trade Limited Liability Partnership and the Dordoi Bazary Limited Liability Company;

-Agreement on cooperation between the Global Jamgyr Mining Limited Liability Company, the AAEngineering group Limited Liability Partnership and the Kazakh Export Export Insurance Company Joint-Stock Company;

- Memorandum of cooperation between the Guarantee Fund Open Joint-Stock Company and the Damu Entrepreneurship Development Fund Joint-Stock Company;

-A plan of action for bilateral economic cooperation and tax administration between the State Tax Service under the Government of the Kyrgyz Republic and the State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan;

- Memorandum of cooperation in the implementation of infrastructure projects in the field of construction and design of roads between the Ministry of Industry and Infrastructure Development of the Republic of Kazakhstan and the Ministry of Transport and Roads of the Kyrgyz Republic;

- The Protocol on amendments to the Agreement between the Government of the Kyrgyz Republic and the Government of the Republic of Kazakhstan on the procedure for the stay of citizens of the Kyrgyz Republic on the territory of the Republic of Kazakhstan and citizens of the Republic of Kazakhstan on the territory of the Kyrgyz Republic dated May 11, 2012;

-Protocol of the 8th meeting of the Kyrgyz-Kazakh Intergovernmental Council.

In the frames of the first state visit of  the President of the Republic of Kazakhstan K.Tokayev to the Kyrgyz Republic on November 27, 2019 a special emphasis was given to enhancing cooperation in the trade, economic and investment sphere, supporting entrepreneurs of both countries in their business activities, including representatives of small and medium-sized businesses, progressive implementation of joint projects in industry, agriculture, processing sector and others sectors of the economy.

An agreement was reached on the organization of logistics centers on the Kyrgyz-Kazakh state border for the further development of cross-border trade.

The decision to modernize and change the mode of operation of checkpoints in the Chuy and Issyk-Kul region (Ak-Zhol, Ak-Tilek, Karkyra) and the resumption of the checkpoint in the Talas region (Kichi-Kapka) will create favorable conditions for maintaining friendly, kindred and trade relations between residents of the border area.

The Presidents of Kyrgyzstan and Kazakhstan confirmed the relevance of continuing coordination of efforts aimed at expanding comprehensive economic cooperation within the EAEU, including increasing the dynamics of Eurasian integration processes, pursuing a coordinated policy in the application of sanitary, veterinary and phytosanitary measures, increasing the competitiveness of industrial complexes, and fully disclosing volume, without barriers, exemptions and restrictions, the potential of common markets for goods, services, capital and labor.

Useful links about the trade and economic, investment potential of the Kyrgyz Republic: https://invest.gov.kg/https://export.gov.kg/ruhttp://gkpen.kg/http://www.ppp.gov.kg/en/.