Kyrgyz Signed The Development Fund Agreement With Russia

Recently, the Deputy Minister of finance of Kyrgyzstan, bon Gong jokoff and Stoll Chuck, Vice Minister of finance of Russia, jointly signed the intergovernmental agreement on Kyrgyz Republic and Russian Federation on the development fund of Kyrgyz Russia in Bishkek.

The establishment of the Kyrgyz Russian Development Fund aims to help the Kyrgyz economy, which is about to join the customs union of Russia and the white Kazakhstan, as soon as possible, to adapt itself to the new conditions of participation in the integration process of Europe and Asia.

It will be used for projects that are beneficial to both Kyrgyzstan and Russia.

Processing industry, agriculture and mortgage loans.

It is reported that

The fixed capital is US $500 million, the first sum of US $100 million will arrive in 2014, and another $400 million will arrive before May 29, 2015.

In addition, Russia will also be responsible for attracting a total of $500 million in preferential loans for the fund, which is equal to the terms of the International Development Association and without the guarantee of the government of Kyrgyzstan.

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Russia is actively inviting foreign clothing brands to build factories in Russia.

Viktor Yevtukhov, Vice Minister of industry and trade, said that the government's support plan will partly subsidize the cost of raw materials, technology upgrading and new investment projects.

It is understood that the new factory will also enjoy tax relief policies for a long time until 2025.

In addition, the Russian Ministry of industry and trade guarantees that invited firms will enjoy market share in the form of government procurement orders.

Yevtukhov, Vice Minister of industry and trade of Russia, said it is important to establish cooperative relations with large chain retailers and explore the source of raw materials.

In the external market, Russia's high-tech value-added products have a wide range of prospects, such as industrial textiles and non-woven fabrics.

At present, the industry's market sales account for about 30% of the total industry sales.

In addition, in the past 5 years, Russia's non-woven production has increased 8 times, while the EU market, especially in Germany, has accounted for 50% of the growth of industrial textiles.

Despite slowing economic growth, Russia's consumer goods manufacturing industry has continued to grow.

According to statistics from Russian Ministry of industry, Russia's industrial output increased by nearly 5% in 2013.

In addition, in the first 9 months of this year, the output value of Russian clothing industry increased by 7%, while the industrial growth rate of the same period was only 0.7%.

At the same time, with Russia's accession to the WTO and the abolition of tariffs, leather production decreased by 10.5% and leather products dropped by 20%.

To solve this problem, the Russian government issued a ban on semi finished leather export in August this year.

In addition, the Russian Ministry of industry and trade is studying a similar ban on export of raw skins.

Yevtukhov said the ban was mainly due to shortages of Russian raw skins and manufacturers' demand for raw hide.

At present, most synthetic fibers in Russia need to be imported, though domestic production has made great progress.

For example, Shakhty in Rostov region has large projects for producing blended fibers, but the production of new fashion fabrics is still lagging behind.

Yevtukhov said: "Russia is the main producer of oil and natural gas, so the possibility of developing chemical fibers and yarns is very high, including the development of production chains through high-end petrochemical industry."