Conference to explore potential in Central Asia

The main trade group promoting business relations between Canada and Central Asia sees China’s recent infrastructure investment initiative in the region — which observers liken to the construction of a modern Silk Road — as a major opportunity for Vancouver’s resource sector.

That’s why the Canada Eurasia Russia Business Association (CERBA) will be hosting its Vancouver International Conference, held on the margins of the annual Association of Mineral Exploration Roundup, at the Deloitte Conference Centre downtown on Jan. 24.

This year’s edition — the group’s sixth — will focus a large part on the opportunities linked with Beijing’s One Belt One Road plan as it stretches across the Eurasian continent, said Tatiana Domilovskaya, regional director of CERBA’s Vancouver chapter. Such an initiative opens the door for small- and medium-sized businesses to gain access to markets such as Kazakhstan and Mongolia, she said, which would not otherwise be available.

“(With OBOR), we need to emphasize the strong interest in such projects from large financial and industrial corporations, international development banks and other public and private institutions, that help to reduce factors of risk and uncertainty particularly for smaller companies trying to penetrate less developed market places,” Domilovskaya said.

OBOR has attracted and confounded observers since its announcement by Chinese leaders in 2013, with some noting its purpose of investing in building transportation infrastructure linking Asia and Europe as ambitious and yet lacking in specifics.

CERBA officials noted, however, that such an initiative can bring B.C. firms’ attention to Central Asia — a rare occurrence when compared to other markets like East and Southeast Asia, as well as Latin America.

Former Canadian ambassador to Russia John Sloan, who is now a board member in CERBA’s Vancouver chapter, said B.C.’s resource sector — with experiences in environmental, human habitat and indigenous population relations — may offer expertise that could be highly valuable to transportation projects involving OBOR in Central Asia.

Officials point to the establishment last May of the Canada-Kazakhstan Business Council as a sign that momentum may already be moving in that direction.

“Although the Canadian presence in the Kazakhstan economy is quite obvious in many market sectors, there is still much room for expansion,” Sloan said in a statement. “This is especially true when you include the resource-rich neighbouring countries such as Uzbekistan, Kyrgyzstan, Azerbaijan, et cetera.”

Observers often note, however, that Central Asia remains a challenging investment target for many B.C. firms due to its often-fluid geopolitical situations, political/social cultures and pure distance from Canada.

But Domilovskaya said: “It is true that Central Asian countries need a special approach when it comes to business activity. We need to remember that there are many differences in comparison to Canada or the United States, including different business ethics and mentality. Therefore it is extremely important to have an experienced navigator, who might be able to point to right behaviours and safe directions.”