JULY 28 2014 (The Conway Bulletin) – Kazakh officials travelled to Bishkek to patch up their differences before Kyrgyzstan’s expected entry into the Customs Union of Belarus, Kazakhstan and Russia in 2015.
The meeting, attended by Kazakh deputy PM Bakitzhan Sagyntayev and Kyrgyz PM Djoomart Otorbayev ended positively with Kazakhstan pledging up to $200m in grants for Kyrgyzstan’s entry into the Union and discussing a possible electricity-for-water swap this winter.
But relations between the two sides have been unusually thorny in recent months.
Since April 14, Kazakh Customs Officials have been holding up wagons carrying petrol from the Russian energy giant Rosneft to Kyrgyzstan. Kazakh officials say they are simply complying with a government ruling banning all petrol exports from Kazakhstan. Kyrgyz officials have said that they are being obtuse.
Kazakh and Russian firms are expected to further dominate Kyrgyzstan’s domestic economy when Bishkek becomes a member of the Customs Union, which is morphing into the Eurasia Economic Union, either at the end of this year or the start of next year.
The Customs Union/Eurasian Economic Union will harmonise trade customs procedures and increase tariffs against non-members such as China. This all increases Kyrgyzstan’s reliance on Kazakhstan, making this week’s meeting even more important.
ENDS
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(News report from Issue No. 193, published on July 30 2014)