Expanding the scope of cooperation

Oct 08. Kazpravda


Expanding the scope of cooperationTurkey is among ten major trade partners of Kazakhstan upon the results of 2012.

It is well known that Turkey was not only the first country to recognize the independence of Kazakhstan, but also the first state that began to directly assist in lifting domestic economy, openly sharing their experiences and investments. Today, Turkey is among top ten major trading partners of Kazakhstan, — said chairman of the investment committee of the Ministry of Industry and New Technologies Erlan Hairov, speaking at the Kazakh-Turkish business forum «Astana — Istanbul. Expanding the boundaries of cooperation” recently held in the capital.

– At the end of 2012, Turkey was among ten major trading partners of Kazakhstan, ahead of such countries as Germany, USA, Japan and Korea — said E. Hairov.

Indeed, the Turkish business is actively presented in the republic. It is an indisputable fact that the new capital of Kazakhstan was constructed with direct participation of the leading construction companies from Turkey.

-The volume of Turkish investments in the Kazakh economy today is about two billion dollars, and the amount of investment from Kazakhstan to Turkey is about $ 500 million. But I think that after the recently adopted law in Turkey, allowing investment in real estate, Kazakhstani monetary flows will increase significantly — added Hairov.

One of illustrative examples of Kazakh investment in Turkey is the work of the TRG Petrol Ticaret Rompetrol group (a subsidiary of Rompetrol Group, which, in turn, is an overseas department of the JSC «NC» KazMunaiGas «).

Speaking at the business forum, CEO of TRG Petrol Ticaret Rompetrol group Talgat Chinikeev informed on their plans of entering the Turkish market of petroleum products through the purchase of a local distribution company.

– It is a very promising retail market of petroleum products in Turkey for us. After all, the oil refinery «Petromidia», which is now in 100% ownership of Kazakhstan, is located on the Black Sea in Romania, and we need new markets for our products. And Turkey is beneficial for us from a geographical point of view, which means that transport costs will be negligible, — said T. Chinikeev.

In addition, Turkey is attractive for Kazakh companies due to high growth rates of fuel consumption. Thus, the forecast for average annual growth of oil consumption in Turkey is around 4%, and by 2025, domestic consumption in the country is projected at 50 million tons. While today domestic consumption in Turkey is 19.6 million tons of oil a year, and 5.9 million tons of Turkish products are exported to other markets.

But despite the active development of the Kazakh-Turkish cooperation, the parties have much to strive for. According to official data, the volume of trade in the last year between the two countries approached to $ 4 billion. However, as known, the heads of the two countries set a new challenge for governments — to raise this figure by almost two and a half times, that is up to 10 billion dollars.

That is why the participants of the forum discussed such issues as creation of necessary conditions, removing barriers as soon as possible in order to achieve the set objective. Chairman of MINT Investment Committee Erlan Hairov called on Turkish businessmen not only to export raw materials from Kazakhstan, but also to build new facilities in the republic.

– The main export from Kazakhstan is raw material. I offer the Turkish companies to refine it here and build refineries. The products will be in demand, especially in the conditions of the Customs Union and its big market with the population of 180 million people — said E. Hairov.

Meanwhile, President, Member of the Board of one of the largest Turkish companies Turkuaz Zeki Pilge, in an interview to “Kazakhstanskaya Pravda” said that some banking laws prevent the Turkish construction companies to do business in Kazakhstan.

– In particular, there was some difficulty in obtaining loans by Turkish companies in Kazakhstan because of internal banking rules and regulations. However, in the framework of the forum, these barriers have been partially removed by the joint efforts of Turkish banks with Russia’s Sberbank – said Z. Pilge.

As it turned out, one of the largest banks in Turkey — DenizBank joined the Russian Sberbank and such merger thanks to strong position of the Russian bank in Kazakhstan will seriously ease doing business in the republic.

Speaking at the forum in Astana, deputy chairman of Sberbank of Russia Sergei Gorkov said that this synergy will only increase opportunities for business cooperation not only of three countries — Russia, Kazakhstan and Turkey, but also others where the branches of Sberbank of Russia operate. The confirmation of that was the signing of four memoranda on cooperation: between the subsidiary of JSC “Sberbank”, DenizBank and TRG Petrol Ticaret Rompetrol group. The memorandum provides support of Rompetrol group at its entering the market of Turkey.

Also the memorandums were signed between JSC «Sberbank» and Association «KATIAD»; between JSC «Sberbank» and the group of companies Turkuaz; between JSC «Sberbank» and DenizBank.