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Karazhanov: It is beneficial to create crises around investors in Kyrgyzstan

«Artificially created crises and non-working laws are an excellent ground for building relationships in which investors make endless concessions and depend on the interests of a narrow circle of people,» a political scientist from Kazakhstan Zamir Karazhanov said, commenting on the situation around two largest mines in the Kyrgyz Republic.

According to the expert, «participation of the Russian leader Vladimir Putin in opening of production facilities or enterprises is not for nothing.»

«This is demonstration of strengthening of cooperation and economic ties between the two countries. Participation of the Russian President Vladimir Putin in the launch of production at Jerooy mine is a demonstration of support for Russian investors. However, in terms of Kyrgyzstan, this does not guarantee security and inviolability,» he said.

The system of relations between the state apparatus and foreign business is still not built in Kyrgyzstan.

Zamir Karazhanov

«Investors are in an interesting position in the Kyrgyz Republic. I have said many times: any business, including foreign, can defend itself. To do this, it is necessary to strictly comply with the legislation regulating its activities and pay taxes on time. Numerous observers will monitor their activities and enforce the rules. As for Kyrgyzstan, this rule either does not work, or only partially works,» he said.

With the attention paid to gold mining and foreign companies, it is impossible to blatantly violate laws, evade taxes, disregard recommendations and continue to work.

Zamir Karazhanov

«Endless checks for the sake of checks show that their real goal is not control, but pressure on foreign business. This is because the laws do not work in the republic. The judiciary is not independent, unbiased and impartial. Therefore, investors who work in Kyrgyzstan have their hands tied. They cannot defend their rights and interests. This situation is very convenient for the authorities,» the political scientist believes.

Despite the promises of the top officials of the state to approach assessment of the work of foreign companies in the Kyrgyz Republic with an open mind, it is hard to believe in it.

Zamir Karazhanov

«As long as there is no clearly determined system for protection of investors’ rights in Kyrgyzstan, the situation will repeat. Artificially created crises, on the one hand, and non-working laws, on the other, are an excellent basis for building dependent relationships in which investors will make endless concessions and remain dependent on the interests of a narrow circle of people,» he says.

Such an attitude towards a strategic enterprise, which remains budget-forming for the Kyrgyz Republic, is at least irresponsible and short-sighted.

Zamir Karazhanov

«If a foreign business is not sure about the future, it will behave like a temporary worker. That is, to extract the maximum profit in a short time, to phase down production and leave the country. If the state wants investors to invest in development of the region, support the population and allocate money to the budget, it is necessary to build long-term and mutually beneficial relations,» the expert added.

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