Potential 60% Increase in Delivery Costs for Goods to Russia via Kyrgyzstan
The cost of delivering goods to the Russian Federation through Kyrgyzstan may increase by 60 percent, according to a report by Economist.kg. The National Bank of the Kyrgyz Republic has introduced new conditions for participants in foreign economic activity, leading to difficulties for Russian importers.
One of the new conditions is a ban on making payments under contracts for goods shipped to foreign countries if their actual delivery to the territory of Kyrgyzstan is not provided. This decision has effectively blocked the channel for transit payments for goods from third countries to Russia via Kyrgyzstan. Importers are now forced to find alternative payment methods, as transporting goods through Kyrgyzstan incurs additional customs and tax costs, resulting in a 1.5-3 percent increase in logistics costs at each stage of the delivery process. This ultimately makes deliveries less profitable for importers.
Since September 25, all payment orders for contracts involving goods, works, and services that previously transited through Kyrgyzstan now require a commitment to deliver to the territory of the republic. Only trading companies authorized by the Cabinet of Ministers are exempt from this requirement. These measures were implemented in response to requests from international financial organizations to safeguard the economic security of the country.
Overall, the new conditions imposed by the National Bank of the Kyrgyz Republic are expected to have a significant impact on the cost and feasibility of delivering goods to the Russian Federation through Kyrgyzstan.
