- KOSTANAY REGION
- PASSPORT OF THE REGION
The Exporters Council of Kostanay region has discussed issues of state support at its meeting. According to the statistics sounded during the meeting, the regional foreign trade in 2017 amounted to 2 billion 31 million dollars increasing by 24.6%. “According to the results of 7 months of 2018 and in comparison with the same period of the last year, the export of goods increased by almost 70% and amounted to 947 million dollars. Kostanay region trades with more than 90 countries of the world, while the main countries to which our products are delivered are Russia (53%), China, Tajikistan, Uzbekistan and Iran”, said Regional Akim Arkhimed Mukhambetov.
According to the head of the region, KazakhExport Export Insurance Company JSC, whose chairman, Ruslan Iskakov, has been invited to the regional Council to meet with local exporters, has greatly assisted in the development of export capacity.
Kostanay companies had the opportunity to learn about the measures of state support provided by KazakhExport. “Our task is to provide financial insurance services at each stage of the export cycle. This means that any enterprise at one time or another is faced with various problems entering foreign markets for the first time. New distributors are not willing to pay them, do not trust such a company and often ask to sell them goods on installment terms. And very often it happens that our companies are not paid to the end. We have a product that helps to minimize such losses,” says Iskakov.
- For example, the local company Bayan Sulu has been actively developing its network of distributors for several years, and every time finding a new buyer it comes to us. We always provide insurance coverage. This allowed the company to develop its network of customers abroad without loss.” R. Iskakov notes that if there are planned contracts and there is a demand for products, the exporting company can safely seek for help and financial support from KazakhExport. By the way, the export achievements of Kostanay Bayan Sulu JSC are really impressive. Nowadays Bayan Sulu products are in demand and successfully sold in 13 countries. Over 80% of exports go to Russia.
According to company president Timur Sadykov, the volume of production and sales of products increased from 31 thousand to 53 thousand tons per year for the period from 2015 to 2017. Export has increased from 8,400 tons to 18,200 tons. As it turned out, Allur Group also employs the services of KazakhExport. Our cooperation started last year. “We started cooperation with KazakhExport in 2017. We see interest and demand for our cars in Russia and Central Asia. By the end of the year, it is planned to sell 326 cars worth more than 1.5 billion tenge. We received support from KazakhExport. We don’t know a country where companies can take such a risk. This is a unique mechanism”, said Andrey Lavrentyev, the Chairman of the Board of Allur Group JSC. Next year Allur Group plans to export 7.5 thousand cars of Kazakhstan assembly. If earlier, according to A. Lavrentyev, the main buyers were nearby cities of Russia, then this year JAC cars will be exported to the central regions of the Russian Federation - to St. Petersburg, Moscow and Western Siberia. “We believe that the growth trend of Kazakhstan auto exports will continue according to the numbers and the analytical reports,” concluded Lavrentyev.
In addition to Lavrentyev’s words Regional Akim A. Mukhambetov noted that if in 2016 the company produced 2-3 thousand cars, in 2017 it was almost 6 thousand cars and this year the number reached to 11 thousand cars. Next year, as the head of the region informed, Allur Group intends to release 25 thousand cars. Another local client of KazakhExport is Grain Industry agricultural holding. The company consists of four interrelated enterprises that carry out the full cycle of beef production: from growing and harvesting fodder to transformation of cattle breeding and final grain feeding of animals. The company intends to gradually increase the volume of beef production with the further supply of products to domestic and export markets. According to the General Director of the company Daulet Akhmetkaliyev, in June of this year, KazakhExport Export Insurance Company and Agrarian Credit Corporation signed a joint regulation on financing of applications aimed at diversifying of the economy by increasing the volume of production of export-oriented products. “In August, KazakhExport together with Agrarian Credit Corporation supported our project on increase of the existing feeding facilities from 8 thousand to 20 thousand cattle stalls.
The project is financed through Agrarian Credit Corporation in the framework of AgroExport loan program. “KazakhExport provided insurance of the loan”, said Akhmetkaliyev. According to the general director of the holding, such a step has allowed an increase in production of export-oriented beef under the “Made in Kazakhstan” brand. “Today our company's products are represented in the export markets of Russia and Uzbekistan. The export geography of Kazakhstan products continues to expand, and in turn we must ensure the supply of competitive products”, says D. Akhmetkaliyev.
In conclusion of the meeting of the Council of Exporters, Regional Akim A. Mukhambetov emphasized the region’s intentions to increase the export of products of local companies and appealed to the management of KazakhExport with a request to further support Kostanay exporters.