The Trade Agreement with Russia will significantly affect the investment climate in South Ossetia

Thu, 12/12/2013 - 09:20
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The Trade Agreement signed between South Ossetia and Russia will be the basis for building further economic relations with Russia, said a Chairman of the Union of Entrepreneurs, MP Marina Dzigoeva in her interview with the news agency "Res".

According to her, the agreement will allow to legalize the procedure of transit of goods between the two countries and facilitate the exchange of goods and cargo.
"I think it will also greatly contribute to attract investments. With regard to the reduction of prices – this is a remote prospect yet,"- said Dzigoeva.
She has also noted that it is now necessary to analyze the tactics of both the agreement and those acts that have to be elaborated following the agreement.
According to the Deputy Chairman of the Parliamentary Committee on Budget and Taxes Vadim Tskhovrebov, implementation of the trade agreement will definitely attract foreign investments into the Republic.
"In the process of drafting the agreement, many Russian businessmen were interested in the processing of agricultural products in South Ossetia. The question is to produce these products. This agreement, in my view, is the mini-treaty of accession of South Ossetia to the Customs Union. The only thing- products from Belarus and Kazakhstan will not enjoy such benefits as products from Russia, from where we import more than 90 % of the products. This will greatly facilitate the life of entrepreneurs who, in turn, I hope, will not raise the prices for foodstuff and products of the first necessity,"- he said.
The MP is sure that in the coming year in the Republic will be established a number of new processing facilities, respectively, will be created new jobs.
"It promises us good prospects for the development of the processing industry in South Ossetia", - said Tskhovrebov.
According to him, the signing of the trade agreement was preceded by hard work.
"The initiative of elaboration of such a document belongs to me and a Member of Parliament, an experienced economist Gennady Kokoev. We voiced this idea, brought it to the leadership of the Republic. This agreement gives us a great deal. Our entrepreneurs, farmers, freely, without additional costs will be able to cross the Russian border, transporting their goods,"- said Tskhovrebov.
According to him, this document will reduce the prices for fuel and lubricants.
It is also necessary to clarify how the agreement in the long term can affect the prices for gas and electricity.
Head of the Parliamentary Committee on Industry, Transport, Communications and Natural Resources Gennady Kokoev, in turn, has noted that with the implementation of the trade agreement between South Ossetia and Russia products of agriculture and industry in South Ossetia will enter the Russian market.
"The signing of this agreement is one way of building a well-functioning economy in terms of foreign relations. As for the internal consequences of this agreement, it means removing the problem of unemployment, creating new jobs and improving employment. In addition, the agreement provides for the possibility of attracting foreign investment to South Ossetia and the formation of internal investment," - said the MP.
According to him, the agreement largely removes and eliminates customs risks. Thus, people will be engaged in normal economic activities.
It should be reminded that the Russian State Duma has ratified a trade agreement on the duty-free importation of goods, signed between South Ossetia and Russian Federation in March, 2013.
The document provides for the establishment between the two countries duty-free import of goods with preservation of seizure on some of the most considerable commodity items, and the collection of import duties on a number of products in the cases stipulated by Russian legislation. In this case, the import duties are not applied to gasoline and diesel fuel, intended for consumption in the limited volume in the territory of South Ossetia.

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