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Agreement of Centerra with government can attract new investors to Kyrgyzstan

«The less conflict fields, the better the dialogue, the sooner the positive investment climate in the country is formed and it becomes more attractive for foreign partners,» head of the Association of Markets, Service and Trade Enterprises Sergei Ponomarev said, commenting on the agreements reached between the Kyrgyz government and Centerra.

«All major world investors, before investing money, assess the situation. Yes, in developed countries the margin is higher, but there are fewer risks, including political ones. If the agreement is reached, it is signed, then there can’t be any «wiggles». In developing countries, profits are greater, but there are also more risks,» Sergei Ponomarev said.

And, of course, he notes, if the current government manages to solve all the main issues with Kumtor, it will be a signal for other investors, including those who left the country or never started their projects, observing the situation just around Kumtor.

«Moreover, the agreement reached can seriously affect the value of shares of Centerra at the stock exchange. Of course, this, like the return and attraction of new investors, is not a one day process, but all this can be achieved. Such a turn of events — in particular, on shares, will be beneficial for all shareholders, including us,» the expert notes.

According to him, if we continue in the same vein, making business more predictable, it is clear that investors who looked at Kyrgyzstan with distrust will reconsider their estimates.

«For the sake of justice, let’s note that the Cabinet of Ministers is a collective body primarily. At the same time, it is impossible to belittle the role of the Prime Minister. And the result of joint work should be the implementation of all agreements reached on Kumtor and other facilities,» he said.

«The government can be thanked for having found common ground with Centerra, and at the same time the desire of the new government to work in the same vein, to increase the pace. Recently Minister of Economics Novikov met with the business community, we discussed what steps to take. There was an interesting dialogue. I think we will find a common language with the government,» Sergei Ponomarev notes.

In his opinion, «now there is a chance for many interesting ideas that previously seemed impossible to implement.» «I can’t praise in advance and say that the government is good at new directions, but what is being said is already good. And if it is proved not only in words, but also in practice, for the economy of Kyrgyzstan it will only benefit,» the expert said.

The main agreements of the Government of Kyrgyzstan and Centerra:

— the company allocates $ 50 million to the newly created Fund for Nature Development;

— $ 10 million — for the modernization and technical equipment of the Cancer Center of the Republic;

— an increase in the annual environmental payment to $ 3 million;

— the funds of the Trust Recultivation Fund are transferred from the UK to the financial institutions of Kyrgyzstan with an annual replenishment of $ 6 million to the amount necessary for the subsequent reclamation of the mine after its closure. It is not less than $ 69 million;

— settlement of all disputes on mutual claims in the courts of Kyrgyzstan and international arbitration.