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Business mission for Russian companies exporting to Kyrgyzstan organised by Ministry of Economic Development and EXIAR

Russian Agricultural Machinery and Equipment Day – a business mission featuring Russian manufacturers – was held on 16 May 2014 in Bishkek. The event was organised by the Ministry of Development of the Russian Federation and the Russian Federation's trade mission in Kyrgyzstan.

The business mission took place as part of Aiyl-Argo 2014, an international agro-industrial exhibition. The business mission was sponsored by the Russian Agency for Export Credit and Investment Insurance (EXIAR), and the event operator was the Russian Agricultural Machinery Manufacturers' Association (Rosagromash).

First Deputy Prime Minister Taiyrbek Sarpashev welcomed participants at the event. During his address, he noted that agriculture and cooperation in the financial and banking sectors were among the most promising areas for strengthening trade and economic ties between Kyrgyzstan and Russia.

Sarpashev also drew attention to the fact that 85–90% of agricultural vehicles in his country were dated or obsolete. "For this reason, updating our fleet is a government priority. We are already seeing results in this area. Russia has a flexible support system for farmers through leasing. The government of Kyrgyzstan is interested in attracting Russian investment to develop the bank leasing system", he said.

Other representatives speaking at the event included Andrey Krutko, Ambassador Extraordinary and Plenipotentiary of the Russian Federation in Kyrgyzstan; Konstantin Kuzmichev, Deputy Director of the Ministry of Economic Development's Department of Interacting with Customs Union Bodies and of Economic Cooperation with CIS Countries; Alexey Bezdenezhnykh, Director of Customer Relations at EXIAR; and Evgeny Korchevoy, Director of Rosagromash.

The event included a round table discussion moderated by Vladimir Nekrasov, Russia's Trade Representative in Kyrgyzstan. During the session, Director of Customer Relations Nadezhda Lesovaya gave a presentation covering the support available to exporters and banks financing exports. She also expounded on the company's experience working on a project to deliver Trolza trolleybuses to Kyrgyzstan, already operating on the streets of Bishkek.

Presentations were also given by representatives of some of Russia's leading banks, including the Eurasian Development Bank, Novikombank, and Nefteprombank. These focused on the economic feasibility of working together with the country, and plans to do so. Indeed, a great deal of interest was expressed in providing credits for Russian exports of manufactured products.

Particular attention was given to presentations by the state-owned Aiyl Bank and RSK Bank Kyrgyzstan, which took place as part of a larger series of talks given by representatives of Kyrgyz banks. Aiyl Bank specialises in leasing shipments of agricultural equipment to landowners in the country, while RSK Bank implements government development programmes in agricultural processing industries and credits for the agricultural sector. Both banks are market leaders in their respective sectors, and boast impressive financial results.

The meeting was also attended by representatives of major Russian exporters, including Rostselmash, Klever, Eurotechnika, Melinvest, Belagromash-Service and the Rubtsovsky Components Plant. In addition, representatives from - among others - Novikombank, Aiyl Bank and RSK Bank spoke on available products and services.

Russian Agricultural Machinery and Equipment Day 2014 ended with a networking event, enabling entrepreneurs from both countries to hold individual discussions on areas of interest, as well as to exchange personal views on bilateral cooperation in exporting Russian-made industrial products.

It is anticipated that the business mission will not only result in new export contracts being signed, but also in agreements to implement joint projects involving Russian manufacturers and suppliers of agricultural equipment, and Kyrgyz entrepreneurs. These will be underpinned by Russian financing secured with insurance guarantees from EXIAR.

Over 50 companies took part in the business mission, including export-oriented companies manufacturing agricultural machinery and processing equipment, and major Russian and Kyrgyz banks providing export finance.

The Russian Agency for Export Credit and Investment Insurance (EXIAR) was established in 2011 as an open joint-stock company. EXIAR’s mission is to support Russian high-tech exports by insuring export credits against commercial and political risks, as well as Russian investments abroad against political risks. Vnesheconombank is the sole shareholder of EXIAR. The agency's charter capital is RUB 30 billion.

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