State-owned trading company established in Kyrgyzstan

A Trading Company has been established in the Kyrgyz Republic, it will be able to conduct operations without supplying goods to the country.

By order of the Cabinet of Ministers dated August 23 of this year, a Trading Company with 100% state participation in the authorized capital has been established in Kyrgyzstan. The founder is the Ministry of Economy, the press service of the office reports.

The company was established with the purpose of monitoring trade flows involving Kyrgyz companies whose goods do not enter the territory of the Kyrgyz Republic.

“The establishment of a Trading Company should streamline the above-mentioned trading activities and will serve as a tool for monitoring financial transactions for these types of trade deals,” the Ministry of Economy noted.

According to the Charter, the main tasks of the trading company are to carry out international trade, organize and control financial transactions, including currency transfers, settlements with foreign counterparties, manage currency risks and ensure financial stability.

Against the background of the resolution adopted on September 4, 2024 by the National Bank of the Kyrgyz Republic, which states that:

“Financial organizations cannot accept payment orders for execution and make settlements under contracts, the subject of which are goods, works and services coming from foreign countries or to foreign countries without actual delivery to the territory of the Kyrgyz Republic, except for authorized state-owned companies determined by the Cabinet of Ministers.”

The one-year restriction does not apply to individuals and legal entities that supply goods, works and services to the territory of the Kyrgyz Republic, as well as to supplies carried out through e-commerce (for personal use).

According to the Ministry of Economy, the Trading Company has the right to carry out trading operations without actual delivery to the territory of the Kyrgyz Republic. Companies that previously carried out trade in this format will have to carry out operations through the created company.

“The measure will allow regulating trade flows without actual delivery to the territory of the Kyrgyz Republic. It should also be noted that the interaction of the Trading Company will be carried out with all commercial banks without any restrictions,” the ministry summarized.