RESTRICTED
WORLD TRADE WT/ACC/KGZ/9/Add.1
4June1997
ORGANIZATION(97-2349)
Working Party ontheAccession Original: English
oftheKyrgyz Republic
ACCESSION OFTHE KYRGYZ REPUBLIC
Questions andReplies
totheMemorandum ontheForeign Trade Régime
(Document WT/ACC/KGZ/3)
Addendum
Asindicated indocument WT/ACC/KGZ/9 thereply toquestion 8,reproduced hereunder,
hasbeenprovided bytheauthorities oftheKyrgyz Republic.
_______________
II. ECONOMY, POLICIES AND FOREIGN TRADE
II.2 Economic Policies
II.2(e) Competition policies
Question 8.
What istheoutcome ofthereview ofthenotification of"natural" monopolies asstate trading
entities, andtheother three "permitted monopolies" (WT/ACC/KGZ/5/Add.2 Question 12)?
Answer:
Please notethatKyrgyzgas andKyrgyzmunaizat merged according toPresident Decree No.30
of29January 1997. Thenewcompany iscalled Kyrgyzgasmunaizat andislisted asanatural monopoly
andapermitted monopoly. Inaddition, Kyrgyzjilkommunsojuz isnolonger classified asanatural
monopoly.
Natural Monopoly Notification Under Article XVII oftheGATT 1994
1.Kyrgyz Energy Holding
Company: engaged in
production, transmission,
distribution, andsaleofelectric
power energy.Kyrgyz Energy Holding doesnothaveexclusive rights
toimport andexport electric power. There areno
regulatory restrictions orbarriers forprivate traders to
beengaged intheimport andexport ofpower energy.
However, there arenoprivate traders currently.
Because Kyrgyz Energy Holding currently has
100percentmarket share intheimport andexport of
power energy, itwillbenotified under Article XVII of
GATT 1994.WT/ACC/KGZ/9/Add.1
Page2
2.Kyrgyzgasmunaizat: engaged in
theimport, storage, andsaleof
oilproducts, natural gas,and
liquefied natural gas;andthe
operations oftheonlynatural
gaspipeline inKyrgyzstan used
onlyforimport.Anyperson mayimport natural gasandliquefied
natural gas. Kyrgyzgasmunaizat doesnothaveany
exclusive rights fortheimport orexport ofnatural gas
andliquefied natural gas.
Natural Gas:
Kyrgyzgasmunaizat imports approximately 50percent
ofthenatural gasconsumed intheKyrgyz Republic.
Liquefied Natural Gas:
Theshare ofKyrgyzgasmunaizat intheimport of
liquefied natural gasisapproximately 38percent.
Kyrgyzgasmunaizat willnotbenotified under Article
XVII ofGATT.
3.Kyrgyzalco: Please seeresponse
toQuestion 2(c)ofdocument
WT/ACC/KGZ/10.Please seeresponse toQuestion 2(c)ofdocument
WT/ACC/KGZ/10. Kyrgyzalco willbenotified under
Article XVII ofGATT.
4.Kyrgyztamekesi: Please see
response toQuestion 2(b)of
document WT/ACC/KGZ/10.Please seeresponse toQuestion 2(b)ofdocument
WT/ACC/KGZ/10. Kyrgyztamekesi willbenotified
under Article XVII ofGATT.
5.Ministry ofTransport &
Communications/Kyrgyztelecom
:Kyrgyztelecom isastructural
subdivision oftheMinistry of
Transport andCommunications.
Kyrgyztelecom provides
international andlongdistance
communication services and
operates alllocaltelephone
networksItdoesnotimport orexport anygoods. Therefore, it
willnotbenotified under Article XVII ofGATT.
6.Ministry ofTransport and
Communications/Kyrgyzrailroad
:passenger andgoods
transportation through railroad
within andoutside theRepublic.Itisnotengaged intheimport orexport ofgoods
itself. Itprovides transport services forimporters and
exporters. Therefore, itwillnotbenotified under
Article XVII ofGATT.
Permitted Monopolies Notification Under Article XVII oftheGATT 1994
1.Jalal-Abad OilProcessing Plant:
refineryItimports crude oil.Itisnottheonlyexporter.
2.Kyrgyzgasmunaizat: engaged in
theimport andsaleofoil
products.Themarket share fortheimport ofoilproducts by
Kyrgyzgasmunaizat isapproximately 35percent.
Therefore itwillnotbenotified under Article XVII of
GATT foroilproducts.
3.Production Association
Kyrgyzkomur: mining and
export ofcoal.Noexclusive orspecial rights orprivileges forexport
ofcoal. Therefore, itwillnotbenotified under Article
XVII ofGATT.WT/ACC/KGZ/9/Add.1
Page3
4.TheNational AirCompany
"Kyrgyzstan AbaJoldoru": air
transport ofpassengers, goods,
mail.Itisnotengaged intheimport orexport ofgoods
itself. Itprovides transport services forimporters and
exporters. Therefore, itwillnotbenotified under
Article XVII ofGATT
5.State Concern "Uchkun":
printing servicesItonlyimports rawmaterials forownproduction.
Therefore, itwillnotbenotified under Article XVII of
GATT.
6.State Concern "Akyl": printing
servicesItonlyimports rawmaterials forownproduction.
Therefore, itwillnotbenotified under Article XVII of
GATT.
7.State Concern "KyrgyzAltyn":
mining, processing, import, and
export ofgold, antimony, and
mercury.Noexclusive rights toexport gold, antimony, or
mercury. Therefore, itwillnotbenotified under
Article XVII ofGATT.
During thenexttwoyears, thegovernment willberestructuring mostoftheabove companies.
Notification maynotbenecessary forsomeofthesecompanies ifmarket conditions andstructure change
prior toaccession.
Theresponses totheState-trading questionnaire forKyrgyz Energy Holding, Kyrgyzgasmunaizat,
Kyrgyzalco,Kyrgyztamekesi,Kyrgyzkomur,andKyrgyzaltynareprovidedinAttachmentAtodocument
WT/ACC/KGZ/10.