Deputy PM: Azerbaijan can produce high-tech products for Eurasian market in Kyrgyzstan - INTERVIEW

In recent years, relations between Azerbaijan and the Kyrgyz Republic have experienced a qualitative rise. Trade, economic, and humanitarian cooperation between the two Turkic-speaking states is expanding, opening new prospects for strategic collaboration.

On the sidelines of the 29th session of the UN Framework Convention on Climate Change Conference (COP29) in Baku, Deputy Chairman of the Cabinet of Ministers of the Kyrgyz Republic Edil Baisalov has shared his assessment of the current level of relations between the two countries in an exclusive interview with Report. The interview discusses increasing mutual trade volume, attracting Azerbaijani investments in various sectors of Kyrgyzstan's economy, and prospects for cooperation within international organizations such as the Organization of Turkic States.

- How do you assess the current state of trade and economic relations between Kyrgyzstan and Azerbaijan?

- The first 30 years of our independence were difficult. During the transition economy, we faced serious socio-economic challenges. Therefore, in the past, Kyrgyzstan couldn't become a significant trading partner for Azerbaijan. However, over the past three years, under President Sadyr Japarov's leadership, we have significantly strengthened our economy. State revenues have tripled, and the national economy has doubled. Today, we observe growing cooperation and intensive contacts between our leaders. However, despite these achievements, the current level of interaction doesn't reflect our full potential. We are confident that we need to seek new opportunities for expanding cooperation.

- What steps are being taken to increase mutual trade volumes?

- Over the past year or two, our countries have made significant progress: delegations have been exchanged, joint exhibitions held, and memorandums signed. Azerbaijan produces many goods of interest to Kyrgyzstan. Additionally, we can learn much from Azerbaijan, especially in agriculture and industry.

- Azerbaijani investors are already participating in several projects in Kyrgyzstan, including hotel construction at Issyk-Kul. Are there preferences or benefits for Azerbaijani investors? Which sectors of Kyrgyzstan's economy would you recommend for Azerbaijani investments besides tourism?

- Of course. Besides preferential regimes in free economic zones, we are ready to discuss individual tax conditions and other forms of direct financial support for each specific project. Regarding promising investment areas, I would highlight hydropower. We have many rivers, and some sites for hydroelectric power plant construction are still available. Renewable energy sources are also worth considering. For example, for solar power plants, our mountainous regions provide higher solar radiation intensity than traditional solar regions like Middle Eastern deserts. Wind power plants also have significant potential.

In addition to energy, I strongly recommend Azerbaijani entrepreneurs to consider our country for manufacturing consumer goods, especially textiles. Kyrgyzstan has a qualified workforce, which makes this sector particularly profitable. Furthermore, we have opportunities to organize the production of high-tech products oriented toward the Eurasian Union market, of which we are a member. This opens access to large markets of member countries. Agriculture, logistics, and energy are other promising sectors for joint ventures. We are open to cooperation and ready to discuss any investment proposals.

- How do climate changes affect Kyrgyzstan's tourism sector?

- Climate changes certainly have a significant impact on the ecosystem, often leading to its degradation. However, for some regions, these changes create new opportunities, and Kyrgyzstan is no exception. In many areas of our country previously considered unsuitable for agriculture, crops like grapes and tomatoes are now successfully grown, which was impossible before. Similarly, climate changes have contributed to tourism development. While Kyrgyzstan's tourism sector previously focused on guests from Europe and America, today we're seeing an influx of tourists from the Middle East. Arab families facing extremely high temperatures in their countries, where summer temperatures can reach 55 degrees, increasingly choose Kyrgyzstan as a vacation destination. They come with multiple generations and rent accommodations in mountain regions, where the climate is much milder. Some of these families, after 3-4 years of visiting the country, begin buying property in Kyrgyzstan. We see a similar trend among wealthy residents of India. Considering this demand, three new cities are being built, specifically adapted for such tourists and investors. Thus, climate changes, despite their overall negative effect, have opened new prospects for tourism development and attracting investors to Kyrgyzstan.

- Water resource scarcity is a pressing issue in Central Asia. How relevant is this problem for Kyrgyzstan?

- The issue of water scarcity and depletion of water resources is indeed acute for Central Asia, however, Kyrgyzstan is in a more favorable situation. We have sufficient water resources of our own, and their volume will last for at least the next hundred years. Nevertheless, we face the challenge of effective management of these resources. Kyrgyzstan recognizes its responsibility to downstream countries, as our waters provide vital needs for tens of millions of people. In this regard, next year we plan to allocate 300-400 million US dollars to improve water resource management. These funds will be used to modernize irrigation systems, construct and restore infrastructure, including daily consumption basins and canals. Additionally, drip irrigation will be actively implemented as one of the most effective methods of water use in agriculture. Thus, despite relative prosperity with water resources, Kyrgyzstan is making significant efforts for their rational use and ensuring sustainable water supply for the entire region.

- What are the prospects for cooperation between our countries within international organizations, such as the Organization of Turkic States? Which initiatives do you consider priority?

- Currently, our country holds the chairmanship in the Organization of Turkic States, and we recently hosted the summit of Turkic states. The respected President of Azerbaijan, Ilham Aliyev, also participated. Our leaders emphasized the need to intensify cooperation in all areas. We are proud to be in this brotherly union together with Azerbaijan. The Organization of Turkic States is gradually transforming from a "presidents' club" format into a full-fledged international association capable of solving important regional and global challenges. I am confident that this organization has great potential for coordinating our international policy. Experience shows that our countries share a common vision on many key international agenda issues. This is not surprising, as we, being members of one family, often evaluate ongoing events similarly. In this regard, it is particularly important to deepen the coordination of our actions in the international arena to jointly promote common interests. The development of economic, transport and cultural initiatives, strengthening energy cooperation, and creating new joint projects - all these can become priority areas within the Turkic Union.

- How do you assess the organization level of COP29?

- Last year, when supporting the candidacy of brotherly Azerbaijan to host this event, we had some concerns: would the country be able to organize such a large-scale event? However, what we saw evokes not only respect but also pride in Azerbaijan. This event is far more than just a two-week conference. Throughout the year, extensive preparation was carried out, with hundreds of related events. I personally participated in some of them, which took place in different world capitals. In this regard, I want to express my admiration for the government and leadership of Azerbaijan for their high level of organization, negotiation skills, and worthy representation of the global agenda.