United nations industrial development organization (UNIDO)

Mr Director General,

Ladies and gentlemen,

The UNIDO Programme for Country Partnership (PCP) is a unique system for providing assistance to the member states’ inclusive and sustainable industrial development. This new UNIDO model is based on an in-depth analysis of the beneficiary countries’ industrial development priorities, the implementation of the required reforms in close cooperation with the beneficiary countries’ governments, and with the involvement of the expert and financial potential of state and public institutions.

The PCP model corresponds to the provision of the 2030 Agenda for Sustainable Development for strengthening and promoting Global Partnership for Sustainable Development. We are convinced that global prosperity can be achieved only through the mobilisation of all available resources and the efforts of the government, the private sector, civil societies and the UN system. Russia has been working to promote this model through action rather than in word. In 2017, we contributed to the implementation of the PCP model in Ethiopia aimed at creating a technical and institutional potential for increasing production and developing aquaculture and fishery value chains in Ethiopia.

We believe that the PCP model should be applied to more geographical areas, including the Commonwealth of Independent States (CIS). We support Kyrgyzstan’s application for PCP participation.

Russia and Kyrgyzstan are long-time strategic partners and allies within the Eurasian Economic Union (EAEU). Kyrgyzstan is Russia’s major trade and economic partner. Their mutual trade reached $1.2 billion in 2016.

Kyrgyzstan’s EAEU partnership offers many advantages. The lifting of the customs, sanitary and phytosanitary restrictions is promoting the development of close integration ties in trade, industry and agriculture. Russia is helping Kyrgyzstan adjust its economy to the EAEU requirements, including by providing assistance for the modernisation of its customs infrastructure and customs checkpoints.

Russia is also helping Kyrgyzstan modernise its economy by promoting the development of the private sector and competitive production. Russia has invested $500 million in the Russian-Kyrgyz Development Fund, which has been established for the above purpose. The Fund has been established to invest in promising projects with the potential for a multiplier effect. Projects worth $200 million are being implemented with the Fund’s assistance.

In addition, we have allocated $225 million as budget stabilisation grants to Kyrgyzstan. We are also implementing a programme to write off Kyrgyzstan’s sovereign debt, which helps release funds needed for vital programmes, including socioeconomic ones.

We are also supporting Kyrgyzstan by supplying duty-free petrochemicals. We supplied over 1 million tonnes of petrochemicals to the country in 2016.

Russian companies are actively involved in the development of Kyrgyzstan. For example, Gazprom’s large-scale project to deliver gas and connect users to gas supply networks is designed to enhance the accessibility of affordable energy in Kyrgyzstan. Total investment in the country’s gas transportation and distribution network is estimated at 100 billion roubles. The share of users connected to gas supply networks will increase from 22 per cent to 60 per cent.

Another focus is on training Kyrgyzstani personnel in various spheres, including industry. Over 16,000 Kyrgyzstanis are studying at Russian universities, and 5,000 of them receive Russian state scholarships.

We believe that Kyrgyzstan should also receive assistance and support from international organisations. We are working with UNIDO to implement two major projects in Kyrgyzstan: “Promoting community level job creation and income generating activities through the development of cost-effective building materials production in Kyrgyzstan” and “Linking the Tourism Industry to Productive Activities in the Issyk-Kul Region of the Kyrgyz Republic.” Kyrgyzstan is also involved in the Russia-financed UNIDO regional CIS project to improve the standards of industrial statistics.

In our opinion, Kyrgyzstan’s participation in the Programme for Country Partnership will help make broader use of the country’s industrial potential and attract more donors and investors. Russia has allocated over $500,000 to the UNIDO Partnership Trust Fund to draft a programme for Kyrgyzstan’s sustainable industrial development in 2017-2020 and the PCP framework for Kyrgyzstan. We are working with other potential participants and donors. The International Institute for Applied Systems Analysis (IIASA) and the UNDP Resident Representative in the Kyrgyz Republic have expressed support for applying the PCP model in Kyrgyzstan.

It is notable that the Kyrgyzstani authorities are committed to promoting inclusive and sustainable industrial development in the country. We are convinced that Kyrgyzstan’s participation in the PCP will facilitate the sustainable socioeconomic development of the country, which is a friend of Russia, as well as Central Asia as a whole.