March 22, 2023

Kyrgyzstan: Investor visas may now be issued for 5 or 10 years

Dear Colleagues,  

Please be informed that the amendments specifying the conditions for obtaining and validity of investment visas have been introduced into the Law of the Kyrgyz Republic "On External Migration".

Which document introduces the changes?

Law of the Kyrgyz Republic No. 41 dated February 24, 2023

What are the changes?

From March 15, 2023, investment visas are issued to foreign nationals for a period of:

·        5 years if the investor contributed to the country's economy monetary and material values equivalent to at least 10 million soms (about USD 115,000);

·        10 years , if the investor contributed to the country's economy monetary and material values equivalent to at least 20 million soms (about USD 229,000).

Who will be affected?

Foreign citizens who plan to invest in the economy of Kyrgyzstan

At the same time, the investor can contribute to the country's economy in foreign currency.

To issue an investor visa, it is necessary to obtain a document confirming the contribution to the economy of the Kyrgyz Republic from the authorized state body of Kyrgyzstan for the promotion of investments.

It has been over a year since Russia first declared the “independence” and “sovereignty” of the non-government controlled areas of Donetsk and Luhansk in Ukraine and the subsequent full-scale invasion of Ukraine. Since that time, Canada and its allies, including the United States, the United Kingdom, and the European Union, have been engaged in an unprecedented campaign to apply punitive economic measures, largely through sanctions, to Russia, Belarus, and the Russian-occupied regions of Ukraine. Given the size of the Russian economy (estimated as the 11th largest in the world in 2021), the integration of Russia and its banks in the international financial system, and the level of commercial trade and investment between Russia and Western nations, these measures targeting Russia constitute the most significant and complex international sanctions regime in modern history.

As we pass the one year mark of Russia’s further invasion of Ukraine, all signs point to continued geopolitical instability in the region and further expansion of aggressive international sanctions and trade control measures. It is therefore an appropriate time to not only take stock of the scope of the measures that have been applied over the last year, but also to highlight the challenges that Canada’s broad sanctions response has created for those doing business abroad, address what can be expected during the balance of 2023, and outline the steps companies can take to mitigate their risk exposure and ensure compliance going forward.

1. Key Lessons Learned

The aggressive rollout of sanctions measures against Russia by the Western allies throughout 2022 provided many challenges and lessons for Canadian companies in the context of sanctions implementation and compliance. Some of the key ones include:

• Multiple sanctions regimes are at play – The activities of any company doing business abroad will likely engage the sanctions regimes of multiple jurisdictions. For Canadian companies this means that in addition to Canada’s sanctions measures, they must also consider the application of US, UK, and EU measures, some of which may be extraterritorial, as well as those of other countries which may apply depending on jurisdictional touchpoints. In some cases, Canadian companies must also consider the risk of exposure to countermeasures threatened or imposed by the sanctions target, i.e. Russia.
• Although the Western allies’ measures are described as being “coordinated”, there are often significant differences in scope -  In many cases, Canada’s sanctions are more aggressive than those of its allies such that what may be wholly permissible in the United States or other Western countries is prohibited by Canada. One example is Canada’s sanctioning of certain Russian banks and other parties who are not sanctioned, or not sanctioned to the same extent, by US, UK, or EU authorities or who are subject to winding-down exemptions or general licenses by these countries, which Canada does not employ. Another example is Canada’s services prohibitions which apply to 30 categories of services, in stark contrast to the more limited measures of its allies. Given these differences, in every instance that requires sanctions diligence, Canadian sanctions measures, including listings, should be examined alongside the measures of other jurisdictions, as compliance with foreign sanctions regimes against Russia would not automatically mean that the Canadian sanctions requirements are satisfied.
• Lack of published guidance continues to present significant challenges for risk assessment and compliance – Unlike other Western jurisdictions, Canada has not publicly issued substantive guidance on the interpretation of its sanctions measures. Uncertainties continue to persist on a range of issues, including, for example, the application of sanctions to entities owned or controlled by designated persons, the meaning of “facilitate, directly or indirectly, transactions related to dealings” involving listed persons, the application of sanctions to dealings in publicly traded debt and equity securities of designated Russian and Belarussian entities, the scope of the services prohibitions, and the meaning of “a person in” Russia or Belarus for purposes of supply prohibitions on goods, technology and services. As we’ve previously discussed, this absence of guidance has been noted in at least one judicial decision examining the issue of entities owned or controlled by designated persons, with this decision relying on foreign guidance published by Western allies to attempt to fill the void. Because of this, the Canadian government has been overwhelmed with inquires and sanctions permit requests seeking clarification on the interpretation of these broadly worded prohibitions. Notably, Canada has announced its intention to invest $76 million to strengthen Canada’s capacity to implement and enforce sanctions. This includes establishing a dedicated bureau at Global Affairs Canada to address sanctions issues.
• Transactional due diligence is more important than ever – Rigorous sanctions and trade controls diligence is now expected and demanded in M&A, corporate finance, as well as regular commercial transactions and relationships, which includes a thorough screening of counterparties and others directly or indirectly involved in the transaction and those who own or control them, understanding the target’s potential exposure to sanctioned jurisdictions and listed persons, and ensuring that targets have effectively implemented sanctions compliance policies and controls. In some cases, because of compliance risks and monitoring costs or the potential reputational exposure, firms have decided to withdraw or refrain from activities involving Russia, Belarus or the occupied regions of Ukraine, regardless of whether they are strictly required to do so under applicable sanctions. In the current geopolitical environment, given both the legal and reputational impact of these concerns, sanctions compliance has become a priority for the boards and senior management of organizations with international operations.
• Sanctions measures are extraterritorial, and apply beyond just imports into and exports from Canada or other activities within Canada – The sanctions prohibitions apply to “persons in Canada” and “Canadians outside Canada”. The activities of a Canadian individual or entity anywhere in the world are subject to the jurisdiction of these Canadian measures. Although frequently announced or referred to as “import bans” or “export bans”, these measures apply more broadly to Canadians located anywhere in the world who may be sourcing items from or supplying items to Russia or “persons in Russia”.  This includes Canadians located in countries that have different or more relaxed measures in place when it comes to dealing with Russia or Belarus. Whether it involves a Canadian company operating abroad or a Canadian national employed by a foreign entity or sitting on its board of directors, they fall within the jurisdiction of Canadian sanctions law and are prohibited from engaging in these activities even if the goods, services, or technology at issue have no connection to Canada.

To continue reading LINK>>

Authors

1. John W. Boscariol
2. Oksana Migitko
3. Gajan Sathananthan

Uzbekistan’s mining leaders’ investment debut in London

Currently, mining represents 7.5% of all expected foreign direct investment and credits in Uzbekistan. Almost all the planned foreign investment in mining is concentrated in Uzbekistan's two state-owned mining groups – Almalyk and Navoi Mining companies. The combined contribution of Almalyk and Navoi mining companies to the Uzbek economy in 2022 Is expected to be $4.6 billion, which is equivalent to 31% of the entire state's income for 2022. These contributions are far greater than the equivalent payments received from state oil and gas companies. Over the next three years, the Uzbek state aims to secure up to $ 6.7 billion in loans from foreign and domestic financial institutions to finance the modernisation and expansion of these companies. The ongoing modernisation is focused on increasing mineral reserves and resources and improving operational efficiency at all production stages. A key pillar of this Uzbekistan's mining strategy is to substantially increase the percentage of raw materials that are processed for both domestic and overseas industries, notably the automotive and consumer electronics industries.

Uzbekistan is undergoing a series of reforms to accelerate the transition to a market economy. While Russia and China remain Uzbekistan’s key trade and investment partners, there are indicators that the Government is actively seeking alternative partners to develop its mining sector. The syndicated loan of $1.2 billion in July 2022 agreed with the group of international banks and Navoi Mining company is a significant step in opening opportunities for attracting finance and capital from Western and Global investment markets.

Uzbekistan is open to foreign investors and since 2019 has implemented significant reforms to its mining industry. At the start of the reforms, the Government anticipated there would be more interest from the major global mining groups to acquire exploration licenses. This did not happen partly because the exploration licenses and existing mining assets put up for auction were not sufficiently attractive. Global investors were also cautious and wanted to assess the actual impact of a succession of important legislative changes affecting the mining industry and investor protection rights that have been enacted over the past three years.

Experts foresee that FDI activities will scale up after the business transformation and initial public offerings of our Navoi and Almalyk Mining Companies expected in 2025 or 2026.

MINEX Eurasia conference became the first international event introducing the transformation of two major mining companies from Uzbekistan Navoi Mining and Metallurgical Company (NGMK) and Almalyk Mining and Metallurgical Company (AMMC).

In May 2023 MINEX Forum is planning to organise a trade and investment event in Tashkent.

Read full report here.

View other articles:

Introduction: https://2022.minexeurasia.com/uzbekistans-mining-leaders-investment-debut-in-london/

Evgeny Antonov: https://2022.minexeurasia.com/large-scale-transformation-of-navoi-mining-metallurgical-company/

Lyubov Egorova: https://2022.minexeurasia.com/ngmk-mineral-base-strategy/

Abdula Azizov: https://2022.minexeurasia.com/almalyk-mining-metallurgical-complex-on-the-road-to-transformation/

Did you know that on average, companies that export have 120% greater sales than non-exporters, are 13% more productive and experience double the rate of growth?

Ontario’s “First Steps in Exporting” program helps companies that are new to exporting familiarize themselves with key steps in growing your international sales in the U.S. and beyond.

In this three-part series, trade experts from the Government of Ontario and professional service providers will guide you through everything you need to know to get started in global markets:

Module 1 Export Readiness, Market Research and Market Entry Strategy Thursday, September 22 from 10:00am – 11:30am

Module 2 Trade Finance, Freight Logistics and Digital Asset Protection Thursday, September 29 from 10:00am – 11:30am

Module 3 International Distribution, Trade Events and eCommerce Thursday, October 6 from 10:00am – 11:30am

Each module is 90 minutes in length, one module per week for three weeks, and designed with new exporters in mind to help you expand your business.

Register here

Hatch commends the governments of Canada and Germany for their leadership in accelerating the global clean energy transition with announcements for the battery metals and hydrogen markets.

August 26, 2022

Joe Lombard, Hatch’s Global Managing Director of Metals, with Prime Minister Justin Trudeau at this week’s Canada-Germany Business Summit.

This week, the governments of Canada and Germany came together to discuss two key areas of cooperation as we move towards a net-zero future, announcing partnerships to advance the countries’ battery metals and hydrogen markets. 

These announcements position both countries as leaders in these markets. As an active participant in both the battery metals and hydrogen sectors, and as an organization focused on building practical solutions to combat climate change—with presence and projects throughout both Canada and Europe and around the globe— Hatch looks forward to continuing to partner with governments and organizations throughout these two countries and beyond to provide innovative and sustainable solutions. 

Supporting a hydrogen supply chain

Prime Minister Justin Trudeau and Chancellor Olaf Scholz announced a new partnership between Canada and Germany to establish a transatlantic hydrogen supply chain. 

Hatch congratulates both governments for their leadership in accelerating efforts to deploy hydrogen in the green energy transition. Hatch believes that to achieve our global goal of a low carbon future, hydrogen will play an important role. A future with hydrogen will allow for largely separate energy systems— electricity and natural gas—to become an integrated and complementary energy network.

EverWind Fuels LLC has engaged Hatch to support the engineering design of the initial phases of their storage terminal, located in Point Tupper. The project will develop the site to be a regional green hydrogen hub for Eastern Canada by using wind power to create hydrogen and ammonia, which will then be exported using the site’s significant existing infrastructure, including a deep-water port capable of accommodating some of the largest vessels in the world. Ahead of the announcements from the Canadian and German governments, EverWind and Uniper also announced the signing of a memorandum of understanding for Uniper to purchase green ammonia from EverWind. That ammonia would be shipped to Germany, where it can be used as fuel to replace natural gas or converted back into hydrogen.

Both governments noted the opportunity for development in the Atlantic region of Canada, with Chancellor Scholz stating, "In the long run, the real potential lies in green hydrogen from the wind-rich, thinly populated Atlantic provinces.” Hatch fully agrees and we look forward to working with EverWind and other clients to bring this vision to life.

Partnering for battery materials

Also announced this week during Chancellor Scholz’s visit to Canada was the signing of a cooperation agreement between Canada and German carmakers Volkswagen and Mercedez-Benz for Canada to provide battery materials such as lithium, nickel, and cobalt. This agreement will help both companies with their electric-vehicle expansion strategies. Both companies will work with partners to convert Canada’s minerals into batteries at factories in both Europe and North America.

Hatch is at the forefront of the battery market, providing full-service solutions along the entire value chain from business advisory to mining and processing battery-grade chemicals, to battery cell manufacturing and application, and, finally, to battery recycling. With our extensive metallurgical and implementation expertise, as well as technology offerings, we're partnering with our clients across Europe and around the globe improve their business case, helping them make more informed decisions. 

“We are thrilled about the announcements this week that will position Canada and Germany as leaders in hydrogen and battery materials. We see the tremendous opportunities for both countries and Hatch as we lead the world in our net-zero goals and are proud to be working on these ground-breaking projects,” shared Joe Lombard, Global Managing Director, Metals, Hatch. 

Hatch possesses world-class engineering capabilities across the full hydrogen and battery materials landscapes. Our engineering experience gives first-of-a-kind projects their best chance at success. We work with technology manufacturers and research partners to constantly pursue state-of-the-art solutions in both industries as we work towards a future shaped by a sustainable global society.

To learn more about Hatch’s full-service solutions across the battery value chain, visit  Battery market solutions.

Learn more about how we’re building practical solutions to the combat climate change by visiting Climate Change and Sustainability.

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For more information, or if you are looking to connect with one of our technical experts to discuss our net-zero initiatives, please contact: 

Lindsay Janca
Global Director, Public Relations
Tel: +1 905 403 4199
Email: media@hatch.com

About Hatch

We are entrepreneurs with a technical soul. Whatever our clients envision, our teams can design and build. With over six decades of business and technical experience in the mining, energy, and infrastructure sectors, we know your business and understand that your challenges are changing rapidly. We respond quickly with solutions that are smarter, more efficient and innovative. We draw upon our 9,000 staff with experience in over 150 countries to challenge the status quo and create positive change for our clients, our employees, and the communities we serve. 

Find out more on www.hatch.com.

The Harbour Air ePlane team is excited to announce that the first direct all-electric point to point test flight has been completed. The historic De Havilland Beaver has been completely retrofitted in 2019 to operate using 100% electricity flew 45 miles in 24 minutes.  The aircraft left their terminal on the Fraser River adjacent to YVR and landed in Pat Bay adjacent to YYJ.  This is a major milestone in the advancement of all-electric commercial flights.

Take-off was at 0812 with ample reserve power upon landing at 0836.

“I am excited to report that this historic flight on the ePlane went exactly as planned” said Kory Paul, Harbour Air’s Vice President of Flight Operations and one of the company’s test Pilots. “Our team as well as the team at magniX and Transport Canada are always closely monitoring the aircraft’s performance and today’s flight further proved the safety and reliability of what we have built”.

The ePlane will stay in Victoria to support Harbour Air’s partnership with the BC Aviation Museum, who is hosting an Open House on Saturday August 20th from 10am until 4pm, before returning back to Harbour Air’s Aerospace Maintenance Facility at YVR.

For further information on this project, please follow Harbour Air’s Going Electric page at Harbour Air ePlane Updates

More information available at: https://harbourair.com

PDAC has announced deadline dates for presentation application - this is your chance to take part and present at the World’s Premier Mineral Exploration & Mining Convention in 2023! 

APPLY HERE >>

CECC would be happy to engage with you if you are applying from Eurasia! Please email us at toronto@canadaeurasia.com to get assistance with your applications, business program organization or exhibiting on the ground at PDAC.

Tashkent, Uzbekistan (UzDaily.com) -- On 30 June, a solemn ceremony was held in Tashkent to launch the TradeUZ.com project, the first National e-commerce platform in Central Asia.

The project was implemented by the Ministry of Investment and Foreign Trade of the Republic of Uzbekistan in cooperation with the Ministry of Trade, Industry and Energy of the Republic of Korea (MTIE) and the Korea Institute of Technology Development (KIAT).

The electronic platform will allow small and medium-sized exporting companies from Uzbekistan to easily find trusted and successful foreign partners online to organize the export of their products. And behind this - the expansion of the geography of deliveries, the growth of exports and the development of the country's economy as a whole.

Speaking at the opening ceremony, Deputy Minister of Investments and Foreign Trade B. Rakhimov noted that the successful launch of the TradeUZ platform is ultimately designed to make a significant contribution to strengthening Uzbekistan's position as a country that sets high dynamics for the development of e-commerce in Central Asia. Gratitude was expressed to the Ministry of Trade, Industry and Energy of Korea, the Korea Institute of Technology Development for their assistance in the implementation of such an important project.

To date, TradeUZ.com has information on about 3,000 Uzbek exporters, 10,000 foreign buyers, and more than 30,000 goods.

This project is called the next step towards deepening cooperation between our countries. It will serve to increase the volume of exports of competitive Uzbek products with high added value, and hence the development of the country's economy, - B. Rakhimov emphasized, - and expressed hope that the parties will continue to work in an effort to unlock the untapped potential in the field of digital technologies.

• €17.8 million investment to upgrade irrigation system in the Osh region

• Support for climate-resilient, sustainable agriculture 
• New employment opportunities and economic inclusion

The European Bank for Reconstruction and Development (EBRD) is supporting the Kyrgyz Republic’s efforts to upgrade the irrigation system in the Fergana Valley – the country’s main agricultural area – and make it more climate resilient.

A €17.8 million investment will finance construction work and upgrades to the system used to transport water to irrigated fields in the Osh region of the Kyrgyz Republic. The funds will facilitate essential upgrades to water intakes, main canals and the distribution network. They will also help reduce water losses, electricity consumption and CO2 emissions.

The improved irrigation system will promote sustainable and climate-resilient crop farming and facilitate the creation of jobs in the southern part of the country, where most of the mainly rural population is employed in agriculture.

The project is part of the EBRD’s Green Economy Transition (GET) approach, under which the Bank plans to scale up its climate and environmental finance to more than 50 per cent of EBRD annual investment by 2025. The GET approach is important in the Kyrgyz Republic, one of Central Asian countries particularly affected by hazards related to climate change.

Minister of Finance of the Kyrgyz Republic Almaz Baketayev said: “I would like to thank the EBRD for supporting the development of this water supply system. The support will facilitate delivery of vital water resources to irrigation sites, specifically in the Aravan district”.

Ayten Rustamova, EBRD Regional Head for the Kyrgyz Republic, Tajikistan and Turkmenistan, said: “By financing this project we are promoting more efficient water use, contemporary cultivation practices and sustainable farming. The project will improve food security in Central Asia and enable the creation of new job opportunities in the country’s most populous area.”

As part of the project, the EBRD will also help the SWRA develop training programmes for farmers, supporting the economic inclusion of women.

To date, the EBRD has invested €855 million through 208 projects in the Kyrgyz Republic, with the majority of investments supporting private entrepreneurship. More than €60 million has been invested in 24 water projects across the country to date.

Source: https://www.ebrd.com/news/2022/ebrd-finances-upgrade-to-irrigation-system-in-kyrgyz-republic.html