The impact of situation related to the civil disturbances and the establishment of the state of emergency in Kazakhstan on the export market of non-commodity goods and services | Company News | Export insurance company «KazakhExport»

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The impact of situation related to the civil disturbances and the establishment of the state of emergency in Kazakhstan on the export market of non-commodity goods and services

Situation is connected with disorders and being under the state of emergency in the Kazakhstan does not have an impact on the request of the foreign countries to engage with the Kazakh exporters- Export Insurance Company “KazakhExport» JSC, Ruslan Iskakov.

The head of the national export insurance company KazakhExport Ruslan Iskakov made a comment about situation connected with disorders and being under the state of emergency in the Kazakhstan how it will have an impact on the export market of the non-resource goods and services.

- How many insurable events have been set against export contracts in times of the state of emergency?
- At present insurable events connected with the state of emergency are not among our clients. Starting this year we have been paid insurance benefit in favour of one exporter of the wheat-flour from risk of nonperformance obligations under a contract – importer did not pay timely payment of the received goods. The insurable event was set at the end of 2021 year and it did not connect with the events in our country.

- What difficulties were confronted exporters with?
In a part of production processes most our clients worked as normal and did not stop their work. Shipping and goods delivery was made also without stoppage.
Of course, the main problem for them was Internet default; there were difficulties with the transfer of currency due to it and with the product payment and prepayments receiving for exported product.

Briefly it may have negative impact on company`s business lowly, but we underwrite risks in this regard and keep in contact with businessmen for the early response. We think such events are not many, because of disorders peak happened to 5-6 January, and at the first week of year the organizations avoid to plan conducting the important operations. For example, exporters that are oriented on the Russia did not make and await any payments exactly due to holidays last up to 10 January.

For our part it was taken decision upon untimely payment of the insurance premiums by our clients do not stop the activity of the insurance coverage all over running contracts for a duration the state of emergency period.

- Were there any nervousness among importers?
- There were nervousness. Our foreign representatives in Uzbekistan, Tatarstan, Kyrgyzstan, Tajikistan and Russia kept in touch with us all those days and informed importers about events. In spite of current situation, starting this year we have been insured export contracts in favour of 19 importers from Russia, Poland, Uzbekistan and Oman on the delivery of Kazakh drinks, meat, tomatoes and armature.

- How will reflect these events on the foreign countries willing to collaborate with Kazakh exporters?
- Current situation showed how it is important for other states the stable environment in our country. For many of them Kazakhstan is the important partner strategically. It is referred to resource and non-resource sector. The export of just non-resource goods and services good turnover more recently. It has increased the delivery of oil, meat, pasta in the CIS region. Home wheat and flour provide the need of Tajikistan in bread largely. Our metallurgy product covers demand many big business of Russia. Also engineering industry, chemical industry, agriculture, electrical equipment productions are demanded.

In 2021 year KazakhExport gave support Kazakh exporters to the sum of 204 milliard tenge, it is for 50 % more than in 2020 year. In 2022 year we are planning to increase this volume up to 250 mlrd. I think considered new points Kazakh exporters will conquer many foreign markets.