The LDPR Initiative May Strike a Blow to Kyrgyzstani Tailors

Наталья Маркова Economy
VK X OK WhatsApp Telegram
The LDPR initiative could hit Kyrgyzstan's tailors


Leonid Slutsky, head of the LDPR, has proposed introducing VAT on imported light industry goods if there are Russian analogues available. Although this initiative is aimed at Western and Asian brands, it could negatively impact Kyrgyzstan, which is one of the closest allies within the Eurasian Economic Union.

The textile industry in Kyrgyzstan plays an important role in supplying clothing to the Russian market, and for local producers, exports to Russia are the main sales channel. This market operates on the principles of free movement of goods within the EAEU. The introduction of new tax restrictions or quotas of 30% for "purely Russian" goods on marketplaces could create artificial barriers for Kyrgyz goods, which traditionally compete in the mid and low price segments.

Slutsky emphasizes the need to form a "fair market" where foreign producers must pay taxes on par with Russian ones. However, experts warn that the ambiguity of the wording could result in companies from member states of the union also being subject to tax measures. If the initiative does not take into account preferences within the EAEU, it could not only increase the cost of clothing for Russians but also undermine economic ties with Kyrgyzstan, where textile enterprises have invested in quality and logistics for many years to access the Russian market.

Additionally, the LDPR proposes to reduce marketplace commissions only for those producers who use Russian raw materials. This could put Kyrgyz companies working with imported fabrics at a disadvantage on major online platforms such as Wildberries and Ozon.
VK X OK WhatsApp Telegram

Read also: