The EAEU expressed its readiness to implement National Commodity Distribution Network
On August 12, 2021, Deputy Chairman of the Board of the Eurasian Development Bank A. S. Isenov spoke at the Board of the Ministry of Trade and Integration of the Republic of Kazakhstan.
Amangeldy Isenov said that the Bank has a Technical Assistance Fund that provides effective assistance to the fulfillment of its mission by financing activities for the preparation and implementation of investment projects, supporting regional integration programs, conducting interstate, country, industry and innovation research aimed at economic growth, the formation and development of the market economy of the Bank's Participants, expanding trade and economic ties between them, as well as other activities, related to the Bank's activities and aimed at fulfilling its mission.
At a meeting of the Supreme Eurasian Economic Council, President of the Republic of Kazakhstan Kassym-Jomart Tokayev announced the initiative "On the need to study the possibility of creating a common commodity distribution network with interested EAEU countries".
"In this regard, this year, after discussing the terms of reference with the Ministry of Trade and Integration, the Eurasian Economic Commission, the Bank, together with an external consultant, started implementing a project to form the Concept of the Eurasian Commodity Distribution System. The work is carried out both in the EAEU countries, and in the Republic of Tajikistan (an EDB member country), the Republic of Uzbekistan (a potential EAEU member country), " A. Isenov said.
At the same time, the study of the Eurasian Development Bank includes a comprehensive cross-country analysis of the following components: analysis of trade turnover, trade balances of food products, existing infrastructure, determination of transport and logistics corridors and requirements for the functioning of wholesale distribution centers, development of proposals for the creation of a single digital platform and for the harmonization of legislation in the EAEU countries to create a Single commodity distribution system.
In his opinion, the commodity market of the EAEU countries needs a well-established market, logistics and storage and distribution infrastructure from a conceptual and technical point of view, which would ensure its uninterrupted functioning and the ability to manage commodity flows in the agro-industrial complex.
The national commodity Distribution Network will be part of the Eurasian Commodity Distribution Network in the future, the Bank is ready to be the main participant in the implementation of this project.
"Firstly, as a financial institution, that is, to consider the possibility of financing the stages of creating a National commodity distribution network, and secondly, I am ready to provide technical assistance in conducting research on the creation of a National commodity distribution Network of the Republic of Kazakhstan, which will include a network of wholesale distribution centers in the Republic of Kazakhstan and border infrastructure," said Deputy Chairman of the Board of the Eurasian Development Bank A. S. Isenov
The development of the Eurasian Commodity distribution System and the National Commodity Distribution Network of the Republic of Kazakhstan will allow to comprehensively solve a number of strategic issues of Kazakhstan that contribute to its sustainable development. Among the key ones is increasing the competitiveness of producers of agricultural and food products. The reduction of costs and losses in the production, processing, storage and transportation of goods will be achieved by optimizing the supply chains and upgrading the infrastructure.
An important incentive for development will be the creation of new and optimization of existing export channels, including in the direction of the EAEU countries. In turn, an increase in productivity and access to new markets contribute to a better stabilization of food prices and an increase in producers ' incomes.