There are several options for cooperation with foreign investors in the world practice — from legal to semi-criminal. Rustam Burnashev, a Professor at the Kazakh-German University, told what Kyrgyzstan would choose in conditions of political instability.
A rally of employees of Bozymchak mining complex, which is owned by Kazakh investors, was held in Bishkek on December 11. About 200 people participated in the rally, demanding resumption of the work of the enterprise, which has been frozen since October 7.
According to the expert, «risks of presence of foreign business in zones of instability are increasing and, naturally, any company will try to minimize them.»
«In regards to Kyrgyzstan and its constant conflicts with foreign businessmen, there is an additional vector of development of relations. For example, if decisions are made aimed at keeping foreign investors in the country, then switch to non-traditional mechanisms for solving problems will be used,» he said.
Several practices are common in the global business experience.
Rustam Burnashev
«There is a standard international practice when a company applies to arbitration courts. If something similar happens in the relations of Kyrgyzstan with foreign partners, they will obviously win the case. There is a purely technical issue further — procedures and mechanisms for refund. This is a traditional model that works for all countries,» the professor said.
According to him, business takes such a step when «economic activity becomes impossible.» But there are other options as well.
«For example, assessing risks and losses, investors or companies agree to change the format of their presence in the country. We have seen this picture in relations between Kyrgyzstan and the largest investor mining gold at Kumtor mine, and in Kazakhstan, when oil companies agree to change the terms of agreements.»
To predict such an outcome in the conflicts in the mining industry in Kyrgyzstan, the expert is sure that «it is necessary to conduct a serious risk assessment and calculate the consequences of a particular scenario.»
«The third format is forceful. Probably, it can be demonstrated by China in Kyrgyzstan. This is when investors are ready to defend their investments by force. The fourth option is a semi-criminal format, when relations with investors turn into a conversation «according to the unwritten rules,» Rustam Burnashev noted.
The procedures for transformation of power in Kyrgyzstan, which were launched this year, have questioned their legitimacy.
Rustam Burnashev
«The October events went beyond the legal framework for an outside observer. Therefore, the desire of persons working in the country to look for options for saving investments is quite justified. If for this it is necessary to switch to a language that the interlocutor understands, the parties will be able to agree. But the problem is that even such agreements guarantee absolutely nothing in conditions of political instability,» Rustam Burnashev believes.
