BISHKEK, SEPT. 25 2015 (The Conway Bulletin) — Alluding to concerns about the impact of the Kremlin-lead Eurasian Economic Union, Kyrgyzstan’s deputy PM Vladimir Dil said cheap products from Russia and Kazakhstan have been flooding the market.
Many politicians and government officials in Kyrgyzstan were sceptical in August about the benefits of joining the trade block that includes Russia, Kazakhstan, Belarus and Armenia. Some said that the Kremlin views the Eurasian Economic Union as a political project and that it pressured Kyrgyzstan, which has become increasingly reliant on Russia for economic and military support, into joining.
Now Mr Dil has stepped out and seemingly openly criticised the Eurasian Economic Union.
“We are seeing a very large flow of goods from Kazakhstan and Russia to our side. The changes in the exchange rates of the rouble and the tenge has turned goods in markets of our allies far cheaper than ours,” Mr Dil said. He didn’t explicitly mention the Eurasian Economic Union but the inference was clear. Kazakhstan cut its peg to a US dollar towards the end of August. The Kazakh tenge immediately lost around a quarter of its value.
A large drop in the value of the tenge and entry to the Eurasian Economic Union, it appears, has exposed Kyrgyzstan to cheap imports.
ENDS
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(News report from Issue No. 250, published on Oct. 2 2015)