Kyrgyzstan Business & Economy - The Times Of Central Asia

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Gold Mining

Kyrgyzstan Launches Gold Mining Project at Togolok Deposit

Kyrgyzstan has launched development of the Togolok gold deposit, in what officials describe as the first large-scale mining project since independence to be implemented entirely using domestic resources. Kumtor Gold Company said its subsidiary, Kumtor Operating Company, has begun work on the deposit, located in the remote, high-altitude Jeti-Oguz district of the Issyk-Kul Region. The Togolok deposit was first discovered in 1978. It lies in a mountainous area with harsh weather conditions and steep terrain. The nearest settlement, Ak-Shyirak village, is located nearly 3,200 meters above sea level and about 35 kilometers from the site. The deposit is approximately 560 kilometers from Bishkek. Kumtor Operating Company received a license to develop Togolok in August 2023, and a feasibility study completed a year later confirmed the project’s commercial viability. Preparatory work has included expanding narrow access roads to accommodate heavy trucks, building a new bridge over the Kaichy River, and constructing housing facilities for 85 workers. Kanimet Toktosunov, chairman of the board of Kumtor Operating Company, said mining operations began this spring. “Stripping operations are currently underway, and first ore extraction will begin in the coming months,” Toktosunov said. “Eight large mining trucks, two excavators, a loader and a grader for road maintenance have already been delivered to the site.” To support construction of the mining complex, Kumtor held an international tender and selected China Nerin Engineering Co., Ltd. as the contractor. The parties signed an agreement in April 2026 for the construction of industrial facilities needed to launch production. The company said the project is expected to become a milestone for Kyrgyzstan’s mining sector and add to the country’s industrial capacity. Kumtor Gold Company, fully owned by state-owned Kyrgyzaltyn, operates the Kumtor mine, Kyrgyzstan’s largest gold deposit, located in the Issyk-Kul Region at an altitude of around 4,000 meters. One of the world’s largest high-altitude gold mines, Kumtor was nationalized in 2021 after previously being operated by Canada’s Centerra Gold. According to Kyrgyzaltyn, the company produced 12,081 kilograms of gold in 2025, generating revenue of $1.434 billion and net profit of more than $706 million, while paying $246.5 million in taxes and other payments. Gold remains Kyrgyzstan’s main export commodity. In 2025, the country exported 6.2 tons of gold worth $682.8 million, accounting for nearly 24% of total exports, according to official data and previous reporting by The Times of Central Asia.

Railway Construction

Balykchy-Cholpon-Ata Railway Construction Begins in Kyrgyzstan

On June 14, Kyrgyzstan launched construction of the new Balykchy-Cholpon-Ata railway, a project aimed at extending rail access along Lake Issyk-Kul’s northern shore and strengthening Balykchy’s role as a transport hub. At present, the railway connecting Bishkek with Lake Issyk-Kul ends in Balykchy, at the western edge of the lake. Passengers traveling onward to Cholpon-Ata, the main resort city on the lake’s northern shore, must continue by road. The new Balykchy-Tamchy-Cholpon-Ata railway will stretch 86 kilometers. The line will pass through the village of Tamchy, home to Issyk-Kul International Airport, and is expected to become part of a multimodal transport and logistics hub on the lake’s shore. The Eurasian Development Bank said in August 2025 that it would provide a $275,000 technical-assistance grant for a preliminary feasibility study for the Balykchy-Cholpon-Ata railway, a project it estimated at about $500 million. At a launch ceremony for the project, President Sadyr Japarov said the project would support the country’s economy, tourism, and transport infrastructure. “Once fully operational, the project will be capable of transporting up to 5 million tons of cargo annually. It is especially significant given the large-scale investment initiatives currently underway on the shores of Issyk-Kul. The new railway will facilitate the delivery of construction materials and other cargo, contribute to the development of the region’s tourism potential, and expand passenger transportation,” Japarov said. Official figures cited at the ceremony showed rail freight volumes in Kyrgyzstan reached 10 million tons in 2025, up 36% about 7 million tons in 2021. Rail passenger journeys over the same period rose from 255,000 to 432,000, an increase of about 70%. The figures point to growth from a low base: 432,000 journeys works out at roughly 1,180 per day nationwide. The project adds to a series of rail and logistics schemes centered on Balykchy. The city lies on the key corridor linking Bishkek with Naryn and the Torugart Pass on the Chinese border. On May 28, the city opened a new international trade and logistics center, Altyn Logistic, aimed at strengthening transport links between China, Central Asia, and wider post-Soviet markets. Balykchy is also the starting point of the Balykchy-Kochkor-Kara-Keche railway, a 186-kilometer line under construction since 2022. The route is expected to connect the northern rail network with Kochkor and the Kara-Keche coal deposit in Naryn region, one of the main coal suppliers for Bishkek’s thermal power plant. Kyrgyz officials have also linked the Balykchy-Kochkor-Kara-Keche line to plans for wider rail integration with the China-Kyrgyzstan-Uzbekistan railway, which is under construction. If those projects are completed, Balykchy would become a more important junction in a network connecting northern Kyrgyzstan with routes through Naryn, Jalal-Abad, and onward to Uzbekistan. Balykchy also remains the main rail gateway to the Issyk-Kul resort area. The national railway company, Kyrgyz Temir Jolu, has introduced luxury and VIP compartment cars on the Bishkek-Balykchy line, while last year the route was extended to the Balykchy Beach stop, giving passengers direct access to the lakeshore during the summer season. In 2025, the...

AIRUN CEO Chingiz Arziev on Building Kyrgyzstan’s Sovereign AI

The Times of Central Asia was delighted to interview Chingiz Arziev, CEO of AIRUN a Kyrgyzstan-based company developing AI infrastructure for the Kyrgyz language. AIRUN’s technology includes a large language model, speech recognition, text-to-speech tools, AI translation, and digital avatars designed for use in government, education, media, business, and public services. Chingiz Arziev spoke to TCA about the challenge of building AI for a low-resource language, why digital sovereignty matters for Kyrgyzstan, and how the company hopes to take its experience to other countries facing similar language and technology challenges. TCA: To begin with, can you tell us a little about yourself: where you grew up, what you studied, and how you first became interested in technology? Chingiz Arziev: I was born and raised in Bishkek, Kyrgyzstan. My interest in technology started very early. Around the age of nine, I discovered design software: Photoshop, Illustrator, and CorelDRAW. I was not only learning how to use them, but also comparing their interfaces and trying to understand what made one product more intuitive than another. At around 14, I became interested in motion design, 3D graphics, and digital sculpting. I studied Adobe After Effects, Blender, and ZBrush. Whatever software I was learning, I was always interested in the same thing: user experience. Already by the age of 16, I had started learning HTML and CSS to begin building websites and landing pages. Looking back, the common thread has always been understanding how technology works and how it can solve real problems for people. TCA: Was there a particular moment when you realized that artificial intelligence could become a serious field for you personally? Chingiz Arziev: I have always been drawn to advanced engineering and emerging technologies. In 2015, I became deeply involved in the blockchain space. The architectures, protocols, and decentralized systems being developed at the time felt completely new and inspiring. But even that did not compare to what happened during the AI boom of 2022. I still remember the day I sent my first prompt to ChatGPT. For me, that was the moment everything changed. I immediately saw the direction technology would take over the next 20 years. After that, I spoke about artificial intelligence everywhere. I talked about how AI would transform industries, reshape professions, automate routine work, and fundamentally change the labor market. Many friends and colleagues thought I was exaggerating. But I had spent years following companies such as Boston Dynamics, Tesla, Unitree, and DJI. Because of that, I saw a broader picture. Artificial intelligence would not develop in isolation. It would advance alongside robotics, autonomous systems, and automation. After sending that first prompt to ChatGPT, I knew I wanted to dedicate my career to artificial intelligence. TCA: How did the idea for AIRUN first come about, and what problem were you trying to solve? Chingiz Arziev: For countries with low-resource languages, the need for sovereign AI has existed for a long time. The challenge was never the idea itself. The challenge was execution, expertise, infrastructure, and...

Middle Corridor

Kyrgyzstan and Georgia Seek Black Sea Link for CKU Railway

Kyrgyzstan and Georgia placed Black Sea access at the center of their transport agenda during Georgian Prime Minister Irakli Kobakhidze's official visit to Bishkek on June 11-13. In talks with President Sadyr Japarov at Yntymak Ordo, the new presidential palace complex, on June 12, the two sides linked their cooperation to the China-Kyrgyzstan-Uzbekistan railway, known as CKU, and to Georgia's role in the Trans-Caspian route between Central Asia and Europe. The visit was the first official trip to Kyrgyzstan by a Georgian head of government since the two states established diplomatic relations 34 years ago. "Special attention was paid to linking the China-Kyrgyzstan-Uzbekistan railway with Georgia's port infrastructure," Japarov said after the talks. He called cooperation in this sector "one of the priority areas" in relations between the countries. That focus gave the visit a wider regional dimension, as landlocked Kyrgyzstan still lacks a direct rail link with China. Georgia offers access to Black Sea ports and sits on the South Caucasus section of the Middle Corridor. If the CKU line becomes operational, Bishkek wants cargo moving from China through Kyrgyzstan and Uzbekistan to connect with routes across the Caspian Sea, Azerbaijan, and Georgia. Kobakhidze linked the same issue to Tbilisi's transit goals. "We emphasized the importance of developing the Middle Corridor," he said, adding that the route needs more cargo flows. He said Georgia was closely following the CKU and was pleased that the project was "progressing rapidly," because it would strengthen links between Central Asia and the South Caucasus. The two sides signed a joint statement and a package of bilateral documents after the talks. The agreements covered aviation authorities, state property management, veterinary cooperation, education, justice, sport, radiation safety, foreign ministry cooperation for 2027-2028, and customs cooperation. The customs document provides for advance exchanges of information about goods and vehicles moving between the two countries. That aspect may prove the most practical for freight, since cargo routes depend on data exchange, border processing, and predictable clearance times. The CKU railway has moved from a decades-long plan to active construction. The financing agreement signed in Bishkek set the project cost at $4.7 billion. About half will be financed through a 35-year Chinese loan to the joint project company. China holds a 51% stake in the company, while Kyrgyzstan and Uzbekistan each hold 24.5%. The planned line runs from Kashgar in China through Kyrgyzstan to Andijan in Uzbekistan. The Kyrgyz section represents the most difficult part of the route. It is about 305 kilometers long, with 50 bridges and 29 tunnels planned. More than 5,000 people and about 5,600 pieces of specialized equipment were involved by late March, with tunnel excavation, earthworks, and bridge construction already under way. Transport Minister Talantbek Soltobaev said on June 10 that work was in progress on sections totaling up to ten kilometers. Japarov has outlined 2030 as a target for the launch. The project would give Bishkek a rail role it has never had. Kyrgyzstan has no through rail route linking China with...

Renewable Energy

Central Asia’s Renewable Energy Boom Faces Growing Grid Challenges

Central Asia is rapidly expanding its renewable energy sector, with solar power emerging as one of the key drivers of the region’s energy transition. However, a new report by the Eurasian Development Bank (EDB) warns that accelerated deployment of renewable energy, without matching investment in grid infrastructure, reserve capacity, storage systems, and market reforms, could increase systemic risks and raise overall electricity costs. The warning comes as electricity demand across Central Asia continues to grow steadily. The region’s population now exceeds 80 million, and power consumption is rising by 3% to 6% annually. According to the EDB, electricity demand could increase by nearly 40% by 2030, reaching 370 billion kilowatt-hours annually, up from approximately 270 billion kilowatt-hours today. Governments across the region have announced ambitious renewable energy targets for the coming decade. Uzbekistan plans to install more than 25 gigawatts of renewable energy capacity by 2030, including solar and wind generation. Kazakhstan aims to commission 8.4 gigawatts of renewable energy by 2035, while Kyrgyzstan plans to add 3.65 gigawatts of solar capacity and 400 megawatts of wind power over the same period. Tajikistan is targeting 2 gigawatts of solar and wind generation by 2030, while Turkmenistan has announced plans for 300 megawatts of solar power capacity. Yet the region’s transition toward cleaner energy sources presents a growing challenge: electricity demand is increasing faster than power systems are adapting to accommodate large volumes of variable renewable generation. Solar energy production peaks during daylight hours, creating fluctuations that conventional power systems must manage. In the morning, before solar panels begin generating at full capacity, electricity demand is largely met by hydropower plants and thermal generation fueled by coal or natural gas. As solar output rises during the day, conventional plants must reduce generation or temporarily shut down. After sunset, when electricity consumption remains high but solar production falls to zero, conventional generators must rapidly increase output to stabilize the system. These abrupt shifts create operational challenges and increase costs for grid operators. According to the EDB’s report, Power Sector of Central Asia: Modernization and Energy Transition, the main obstacles to integrating renewable energy are technical and institutional, not simply financial. If sudden drops in solar or wind generation caused by weather changes are not immediately offset, power systems risk instability and, in extreme cases, blackouts. As renewable capacity expands, grids require more flexible generation, larger reserve margins, energy storage systems, and more sophisticated operational management tools. The report notes that renewable generation is being introduced faster than supporting infrastructure can be developed. In many countries, transmission networks were not designed to accommodate a high share of variable energy sources. Weather forecasting systems also remain insufficiently accurate to support reliable real-time balancing of renewable output. Market reforms have lagged as well. Capacity markets, reserve markets, and tariff systems in several Central Asian countries have yet to evolve in ways that encourage investment in flexible backup generation and storage technologies. As a result, the report argues, the real system-wide cost of renewable energy may...

EU Air Safety List

Kyrgyz Airlines See EU Flight Ban Lifted After Two Decades

The European Commission has removed all air carriers certified in Kyrgyzstan from the EU Air Safety List, ending restrictions first imposed in 2006. The decision opens a route back into European Union (EU) airspace for airlines certified in Kyrgyzstan. Regular flights cannot start on the delisting alone. Each airline will still need aircraft suited to European routes and approval to operate under EU rules. The change came through the EU’s 48th update to the Air Safety List. After the update, 154 airlines remain banned from EU skies. The list also identifies 16 countries where the EU says national aviation authorities lack adequate safety oversight. Airlines certified in Kyrgyzstan were added to the list in October 2006 under Commission Regulation (EC) No 1543/2006. That decision followed a European expert mission to Kyrgyzstan from September 10 to 15, 2006. The EU found that the country’s civil aviation authority lacked enough capacity to apply and enforce safety standards under the Chicago Convention. It also found that most of the carriers inspected held Kyrgyzstan-issued air operator certificates but did not have their principal place of business in the country. The 2006 decision placed all air carriers certified by Kyrgyzstan’s aviation authorities under a blanket ban. Last September, The Times of Central Asia reported that 16 carriers from Kyrgyzstan were still on the list, out of 169 banned airlines worldwide. Kyrgyzstan moved through the final stage of the EU review process over the past year. Last October, the State Civil Aviation Agency under the Cabinet of Ministers of the Kyrgyz Republic held a technical meeting with the Commission. In February, the agency submitted evidence on the revised Kyrgyz Air Code, along with new rules for airline certification and recertification. An EU assessment team visited Kyrgyzstan from March 23 to 27. It examined how the new legal framework worked in practice and reviewed the recertification of airlines. The team also checked the SCAA’s oversight of operators and visited AeroStan Air Company LLC and Avia Traffic Company. The Commission Implementing Regulation credited the agency with significant progress in applying the revised Air Code and related aviation legislation. The new legal framework gave it an acceptable basis for certification and oversight. The EU still identified weaknesses. Recurrent training and document control were not yet consistent enough, while oversight procedures needed clearer standardization. Some aircraft safety checks still require attention, including non-destructive testing at approved maintenance organizations. Kyrgyzstan reduced the number of active operators before the EU decision. Between December 2025 and February 2026, all certified air carriers went through a full reassessment. Active air operator certificates fell from 21 to eight. The SCAA said only carriers able to meet the new safety and regulatory requirements kept their certificates. The decision followed the EU Air Safety Committee meeting in Brussels from May 19 to 21. By then, Kyrgyzstan had closed 19 of 23 observations from the March assessment and seven of 12 recommendations. The remaining items were described as being at an advanced stage. The removal has renewed attention...