A package of contracts signed in Russia

Sept 18. Kazpravda. Moscow

By Olga Kazantseva

A package of contracts signed in RussiaA number of agreements and memoranda on the implementation of large investment projects were signed during the visit of the South Kazakhstan delegation to Moscow.

On Monday, the Embassy of Kazakhstan in the Russian Federation organized a «round table» on «Investment Opportunities in South Kazakhstan region and promising areas of cooperation under the Customs Union». The Ambassador Extraordinary and Plenipotentiary of Kazakhstan to Russia- Galym Orazbakov, the deputy governor of South Kazakhstan region Saparbek Tuyakbaev, the Chairman of the Association of Financial and Industrial Groups ( AFPG) of Russia Oleg Soskovets, vice-president of the Moscow Chamber of Commerce Suren Vardanyan, the chairman of the Directors Board of the  »Corporation of the Moscow region» Igor Vdovin and other businessmen attended the business-forum at the hotel «Metropol» in Moscow.

Representatives of the most successful companies of the South Kazakhstan informed the Russian colleagues about their activities and discussed prospects of cooperation with potential partners.

Galym Orazbakov noted that more than 70 Russian subjects actively cooperate with Kazakh partners; more than 200 inter-regional cooperation agreements were signed in various sectors. The South Kazakhstan region has certain «preferences» due to several factors: the southernmost part of the Customs Union, the fertile land, where a lot of fruit and vegetables are grown, which have to be delivered to the markets of Russia and Belarus. He also pointed that SKO is an industrial region, which has the largest mining and processing businesses.

The Chairman of the Association of Financial and Industrial Groups (AFPG) of Russia Oleg Soskovets emphasized the important role of the South Kazakhstan delegation and its mission, which opens up new horizons for cooperation; the CU gives an opportunity for clear and accessible work in improving industrial and economic performance of the countries, regardless of the boundaries.

The deputy governor of SKO- Saparbek Tuyakbaev detailed on the economic and investment potential of one of the most successful regions in Kazakhstan, which has a significant industrial, labor and scientific potential, a variety of sources and hundreds of companies, which have a significant impact on the development of the national economy. Investment projects and business contacts connect the region with more than a hundred countries. The 688 enterprises with foreign stakes are involved in the agricultural sector, energy, engineering and construction industries. A favorable investment climate is provided by a focused work of local authorities, businessmen and the main thing — intellectual and professional potential of its residents. It was also noted, that in 2012 the volume of SKO exports to Russia has trebled and that Kazakhstan is interested in the development of close cooperation.

During the forum, Talgat Alpysbayev and Igor Vdovin signed a coop agreement between the social-entrepreneurial corporation «Shymkent» and Moscow region development Corporation, which envisages the construction of a large-scale logistics center in Moscow suburbs, facilitating food supply in Moscow region. According to Saparbek Tuyakbaev, South Kazakhstani businessmen are ready to invest up to 250 million dollars in the creation of a center as they are interested in expanding the market of agricultural products.

That the products manufactured by Southern Kazakhstanis will be in demand in the Russian metropolis was convincingly demonstrated by the first day of the fair of SKO organic foods at prices 30-40 % lower than the average in Moscow. The idea of establishing the center was approved by Moscow region’s administration.

The visit resulted in the signed memoranda: on  understanding in cooperation in  tourism between the Russian Union of Tourism Industry and the Association «Center for Tourism Development of the South Kazakhstan Region»; on cooperation between the LP «Shymkent Innovation» and LLC «Arman» (St. Petersburg); on cooperation between the LP «Shymkent Innovation» and LLP «Soil Grip» as well as with “Innovative Energy” and the company «KNPP -engineering»; on cooperation between the LLP «Kazakh Testil International» and “Business engineering”; of intent between «Ekorosstroy» by «MashPromLizing GmbH» and LLC «Tech 21? and a protocol of intent on the implementation of projects for the construction of roadside service facilities on the territory of South Kazakhstan region between the «SP «Dostlik» and a Russian private investor.

According to preliminary estimates the total value of transactions in traditional and alternative energy, engineering, tourism, roadside service, waste processing and other industries is about 300 million dollars.

In the business part of the “round table”, the Kazakh companies’ investment projects of JSC «Alageum Electric» (a leader in electrical industry in Kazakhstan) and JSC «KazExpoGarant» were presented.