Trade and Investment in Kyrgyzstan – Tien Shan Legend

It’s not often I see a brand of mineral water that sends a frisson down my spine.  But it happens in a meeting with the Deputy Economy Minister in Bishkek, the capital of Kyrgyzstan, when we discuss economic prospects for the mountainous and beautiful ex-Soviet Republic.

The name of the mineral water, bottled in Kyrgyzstan, is ‘Tien Shan Legend’.  Sounds a brilliant brand to me.

I visited the Deputy Economy Minister, together with the Prime Minister’s Office, IFI representatives, business people (including British, Turkish and others) and the National University during a visit to Kyrgyzstan recently to explore trade and investment opportunities.

Kyrgyzstan is a country with immense potential.  Blessed with one of the most democratic political systems in the former Soviet Union and impressive freedom of speech (see eg the Russian text of my interview with business newspaper Delo No 1), the country is a mecca for eco-tourists with its stunning mountain scenery and yak-herders inhabiting mountain plateaus such as that surrounding Lake Son Kul, at 3,500m.

At the same time, Kyrgyzstan’s difficult geography, which makes some travel within the country as well as to neighbouring states comparatively difficult, has meant it has made a slow start to building up its economic development.

Some of the business people I met in Kyrgyzstan told me that it was an easy place to do business compared with some other former Soviet Republics, noting eg that it was straightforward to secure a work permit.  Others told me that the business climate remained difficult and that while the legal framework was excellent, implementation was an issue.

During my visit I also met Turkish business people.  Turkey views Kyrgyzstan as a strategic partner:  There are already 17 flights a week to Istanbul and Turkey has invested heavily in schools and universities in Kyrgyzstan and in major construction projects.  The latter offer opportunities for British companies wishing to partner with major Turkish construction firms.

I was impressed by the quality of students I meet at the international relations faculty of the National University, with their great English and sharp questions.  The latter included whether it would be a good idea for Kyrgyzstan to join the Moscow-led Customs Union.  I replied that this must be a matter for the people of Kyrgyzstan but that this had been a fiercely-debated issue in Ukraine during my previous posting in Kyiv.

With steady economic growth from a low base, there are good opportunities to do business in Kyrgyzstan as well as challenges.               I blogged about both, particularly relating to the mining industry, in February.  Our Embassy in Bishkek and our Trade and Investment team here in Istanbul are ready to help British entrepreneurs wanting to do business there or investors from Kyrgyzstan who want to do business in the UK.  You can contact judith.farnworth@fco.gsi.gov.uk  in Bishkek or ally.gunduz@fco.gov.uk in Istanbul.  We look forward to hearing from you.