Kyrgyzstan Business & Economy - The Times Of Central Asia

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Civil Aviation

Kyrgyzstan to Launch Direct Flight Between Bishkek and Urumqi

Kyrgyzstan’s Aero Nomad Airlines will launch a new direct route between Bishkek and Urumqi, the capital of China’s Xinjiang Uygur Autonomous Region, further expanding air connectivity between the two neighboring countries. According to the airline, the inaugural flight is scheduled for August 3 and will be operated using an Airbus A320 aircraft. The airline said the route would support trade and investment and encourage tourism and cultural exchanges between Kyrgyzstan and China. Xinjiang already has established air connections with Kyrgyzstan. In November 2025, China Southern Airlines resumed direct flights between Urumqi and Osh, Kyrgyzstan’s second-largest city. Earlier this year, Airports of Kyrgyzstan JSC also announced the launch of a new route between Osh and Kashgar, another major city in Xinjiang, to be operated by Chengdu Airlines. Xinjiang serves as Kyrgyzstan’s principal gateway to China. Most bilateral trade passes through the region via the Torugart and Irkeshtam border crossings, the two fully operational road links between the countries. According to Chinese Ambassador to Kyrgyzstan Liu Jiangping, bilateral trade reached a record $27.2 billion in 2025, representing a 20% increase compared with the previous year. Growing commercial ties have also been supported by institutional cooperation. In June 2024, the Kyrgyzstan-China Trade and Economic Cooperation Center opened in Urumqi, Xinjiang, to facilitate business contacts, promote investment opportunities, and support joint projects between companies from both countries. Kashgar is the Chinese starting point of the China-Kyrgyzstan-Uzbekistan railway, one of the region’s largest infrastructure projects. The planned line would connect western China with Central Asia. The Bishkek-Urumqi service adds another transport link between Kyrgyzstan and China as bilateral trade grows and work continues on the railway.

AI-92 Gasoline

Kyrgyzstan Seeks to Boost AI-92 Gasoline Production as Fuel Supply Pressures Persist

Kyrgyzstan is seeking to increase domestic production of AI-92 gasoline by upgrading surplus low-octane AI-80 fuel. The country continues to face rising fuel prices and supply uncertainty because it relies heavily on imports from Russia. Kyrgyz Petroleum Company (KPC) has issued a tender for chemical additives needed to produce AI-92 gasoline from AI-80 fuel. The company operates an oil refinery in Manas, formerly Jalal-Abad, in southern Kyrgyzstan. The facility can process 500,000 tons of crude oil annually. The refinery mainly produces AI-80 gasoline. Domestic demand for this grade has virtually disappeared, leaving significant stockpiles. Earlier this year, the government authorized exports of domestically produced AI-80 gasoline and diesel fuel to Tajikistan and Afghanistan. The move comes as Kyrgyzstan faces growing pressure from disruptions in the Russian fuel market. Russia supplies more than 90% of Kyrgyzstan’s imported petroleum products. It has imposed temporary restrictions on gasoline exports after Ukrainian drone attacks on oil-processing facilities reduced refinery output. Kyrgyzstan imports approximately 1.2 million tons of petroleum products annually. Domestic refineries currently satisfy only about 5% of national demand, while total annual fuel consumption is estimated at 1.6 million tons. KPC’s refinery is undergoing a $410 million modernization project designed to reduce the country’s dependence on imported fuel. SPEC Engineering, based in the United States, is carrying out the work. External investors are providing $200 million, and Kyrgyzstan’s government is contributing $110 million. Kyrgyzneftegaz, KPC’s parent company, is providing the remaining $100 million. When the project is completed at the end of 2027, the refinery is expected to begin producing AI-92 and AI-95 gasoline that meets K-4 and K-5 Eurasian Economic Union environmental standards. At the launch of the project in September 2024, President Sadyr Japarov said the refinery met only 6.5% of Kyrgyzstan’s demand for high-quality gasoline and diesel fuel. He said its share would rise to 32% after the upgrade. The Manas refinery is one of Kyrgyzstan’s two largest refining facilities. The other is the Junda refinery in Kara-Balta, also known as the Zhongda refinery. It is being upgraded, with completion scheduled for August 2026. As previously reported by The Times of Central Asia, Kyrgyzstan has recently eased its temporary fuel price controls in an effort to stabilize supplies. The government introduced emergency regulation of fuel prices on May 25. Benchmark import prices were set at $860 per ton for AI-92 gasoline and $940 per ton for AI-95 gasoline. The benchmarks for diesel fuel and liquefied petroleum gas were $950 and $575 per ton, respectively. However, a resolution signed on July 7 by Chairman of the Cabinet of Ministers Adylbek Kasymaliev removed AI-95 gasoline from the list of socially significant goods subject to state price regulation. It also abolished the caps on retail fuel prices set earlier. The government said the changes were intended to ensure uninterrupted fuel supplies after AI-95 temporarily disappeared from filling stations in Bishkek.

Almaty-Issyk-Kul Flights

Direct Flights Between Almaty and Lake Issyk-Kul Resume

Kyrgyzstan’s state-owned Asman Airlines will resume seasonal direct flights between Almaty, Kazakhstan’s largest city, and Lake Issyk-Kul, Kyrgyzstan’s leading summer tourist destination. One-hour flights will begin on July 10 and arrive at Issyk-Kul International Airport in the village of Tamchy on the lake’s northern shore. The service will operate twice a week, on Mondays and Fridays, in partnership with tour operator Kompas, Asman Airlines’ official partner in Kazakhstan. Round-trip fares start at $120. Asman Airlines currently operates three Dash 8 Q400 aircraft, Canadian-made short-haul turboprop planes capable of carrying up to 80 passengers over distances of up to 2,000 kilometers. The aircraft are used on domestic routes across Kyrgyzstan after the airline recently restored air links between Bishkek and several remote regional centers. Lake Issyk-Kul remains one of the most popular summer destinations for tourists from across Central Asia, particularly residents of Almaty looking for short weekend trips. The Almaty-Tamchy route is expected to make travel easier for visitors from southern Kazakhstan by significantly reducing travel time during the peak holiday season. By road, the journey from Almaty to Issyk-Kul currently covers more than 460 kilometers via Bishkek and usually takes around eight hours. Efforts to shorten the overland route are continuing. As previously reported by The Times of Central Asia, Kazakhstan and Kyrgyzstan have been advancing a long-discussed highway project intended to directly connect Almaty with Issyk-Kul. Although the two locations are only about 80 kilometers apart in a straight line, mountain ranges force travelers to make a long detour through the Kyrgyz capital. Issyk-Kul has also become more accessible to travelers from Kazakhstan’s capital. According to Kazakhstan’s Ministry of Transport, FlyArystan began regular flights between Astana and Issyk-Kul on July 3. The flights operate twice a week, on Mondays and Fridays, using an Airbus A320. On July 8, Asman Airlines also launched a seasonal direct service between Tashkent, Uzbekistan’s capital, and Lake Issyk-Kul.

Fuel Imports

Fuel Squeeze Leaves Kyrgyzstan Competing for Costly Alternatives

Kyrgyzstan is moving to secure alternative fuel supplies from China and Belarus as disruptions in Russia’s refining sector expose Bishkek’s dependence on a single supplier. The new arrangements may ease immediate pressure, but they also show how costly and limited Kyrgyzstan’s options remain. First Deputy Chairman of the Cabinet of Ministers Daniyar Amangeldiyev said China has confirmed a contract to supply the first 3,000 tons of jet fuel, while negotiations are under way for an additional 5,000 tons of diesel fuel. The government has also signed agreements with Belarus covering 3,000 tons of jet fuel and approximately 10,000 tons of diesel. On July 1, the Council of the Eurasian Economic Commission (EEC) extended the zero customs duty regime within the Eurasian Economic Union (EAEU) for gasoline, diesel fuel, aviation fuel, marine fuel, and other petroleum products for another year. EEC Minister of Trade Andrey Slepnev said the previous zero rates had expired on June 30 and that proposals from several member states to extend them were quickly coordinated. “The zero rates have been extended for another year,” he said. That buys time but does not remove the main risk. Russian refining disruptions, seasonal demand, and export controls could still reduce the flow of petroleum products to Kyrgyzstan. Imports from alternative suppliers are also likely to come at higher prices and on less favorable terms than those traditionally offered by Moscow. Russia has been Kyrgyzstan’s primary fuel supplier for decades. The country began receiving Russian petroleum products at preferential prices on October 10, 2000, when the prime ministers of Russia and Kyrgyzstan, Mikhail Kasyanov and Amangeldy Muraliev, signed an intergovernmental agreement in Astana governing indirect taxation in bilateral trade. Since then, Kyrgyzstan has received basic petroleum products duty-free at domestic Russian prices. In 2011, then-adviser to the Kyrgyz prime minister Farid Niyazov told the news outlet 24.kg that Russia would supply all petroleum products to Kyrgyzstan indefinitely without export duties, except aviation fuel. “At present, Russia’s export duty on these fuel products is $245 per ton. You can imagine how much we would otherwise have to pay for fuel,” he said. The 2000 bilateral agreement was terminated in 2015 after Kyrgyzstan joined the EAEU. Since then, the country has operated under the union’s common customs rules as well as bilateral agreements with Russia. This has left Kyrgyzstan heavily dependent on a single supplier. According to official statements and industry estimates, more than 90% of the country’s fuel consumption for households and agriculture is currently covered by Russian imports. Despite Russian Deputy Prime Minister Alexander Novak’s assurances that domestic fuel reserves remain sufficient, shortages began to emerge in Russia in early June. Russia has since moved to tighten exports further as refinery disruptions have continued. As a result, Kyrgyzstan’s Cabinet of Ministers has begun searching for alternative suppliers while introducing daily monitoring of existing fuel deliveries. Rising gasoline and diesel prices had already prompted the government to introduce temporary state regulation of motor fuel prices in late May. It has since rolled...

Fuel Supply

Kyrgyzstan Eases State Fuel Price Controls as Supply Shortages Persist

Kyrgyzstan has partially rolled back its temporary state regulation of motor fuel prices, removing AI-95 gasoline from price controls and abandoning plans to impose maximum retail fuel prices in an effort to stabilize supplies. As previously reported by The Times of Central Asia, the Kyrgyz government introduced temporary state regulation of fuel prices on May 25 amid continued increases in gasoline and diesel prices, driven largely by the country’s dependence on imports from Russia. The government had approved subsidies for imports of gasoline, diesel fuel, and liquefied petroleum gas through September 30, 2026, while setting benchmark import prices at $860 per ton for AI-92 gasoline, $940 per ton for AI-95 gasoline, $950 per ton for diesel fuel, and $575 per ton for liquefied petroleum gas. Under a new resolution signed on July 7 by Chairman of the Cabinet of Ministers Adylbek Kasymaliev, AI-95 gasoline has been removed from the list of socially significant goods subject to temporary state price regulation. The decision effectively cancels the state price controls introduced just two weeks earlier. It follows reports that AI-95 gasoline had disappeared from several filling stations in Bishkek. The July 7 resolution also abolishes the maximum allowable retail fuel prices established under the May 25 decree. According to the government, the changes are intended to ensure uninterrupted fuel supplies to consumers. The policy adjustment comes as Russia continues to tighten fuel exports. In recent weeks, several Russian regions have imposed restrictions on gasoline sales following reduced refinery output caused by Ukrainian drone strikes on oil-processing facilities. Moscow has already restricted gasoline exports and imposed a temporary ban on jet fuel exports. Kyrgyzstan remains heavily dependent on imported fuel. The country imports approximately 1.2 million tons of petroleum products annually, while domestic refineries meet only about 5% of national demand. Total annual fuel consumption is estimated at 1.6 million tons, with more than 90% supplied by Russia. First Deputy Prime Minister Daniyar Amangeldiyev told the 24.kg news agency that the government is actively diversifying fuel imports through negotiations with Turkmenistan, Uzbekistan, European suppliers, Türkiye, China, Russia, Belarus, and Azerbaijan. According to Amangeldiyev, China has confirmed a contract to supply the first 3,000 tons of jet fuel to Kyrgyzstan, while negotiations are underway for an additional 5,000 tons of diesel fuel. The Kyrgyz government has also signed agreements with Belarus covering 3,000 tons of jet fuel and approximately 10,000 tons of diesel fuel. The reversal shows how quickly price controls can collide with supply constraints in a market still heavily dependent on Russian fuel.

Fuel Exports

Kazakhstan Weighs Kyrgyz Fuel Request as Export Ban Extension Looms

Kazakhstan is considering Kyrgyzstan’s request for gasoline supplies following an official appeal from Bishkek, Deputy Energy Minister Kaiyrkhan Tutkyshbayev has said. At the same time, the Kazakh government plans to extend its ban on fuel exports until May 2027. In late June, Russia, which supplies around 90% of Kyrgyzstan’s fuel imports, imposed a full ban on exports of gasoline and jet fuel. In early July, Kyrgyzstan’s Ministry of Energy announced that it had begun negotiations with several countries to diversify fuel imports. Speaking after a government meeting on July 7, Tutkyshbayev confirmed that Kazakhstan had received an official request from Bishkek. “We have received an official request from the Kyrgyz side, and it is currently under consideration,” Tutkyshbayev said. “All decisions will be made with due regard to Kazakhstan’s national interests and domestic market balance. However, I can state officially that fulfilling such a request would not lead to higher fuel prices within Kazakhstan. We will review the request in the near future and provide our response.” The deputy minister did not specify the volumes requested. As previously reported by The Times of Central Asia, Kyrgyzstan has also sent official requests to the relevant authorities in Russia, Belarus, Azerbaijan, Uzbekistan, and Turkmenistan as part of efforts to secure alternative fuel supplies following Russia’s export restrictions. Tutkyshbayev also said Kazakhstan’s Energy Ministry had not received an official Russian request for fuel supplies, despite Reuters reporting earlier that Moscow was in talks to import about 50,000 metric tons of AI-92 gasoline from Kazakhstan after refinery outages and drone strikes cut Russian gasoline output by roughly 25%. Tutkyshbayev acknowledged a sharp increase in gasoline consumption in Kazakhstan’s three regions bordering Russia, West Kazakhstan, Pavlodar, and Aktobe, which may indicate cross-border fuel flows. “Some motorists install additional fuel tanks on their vehicles,” he said. “We are monitoring the situation closely, and together with other government agencies we have stepped up efforts to combat the illegal export of fuel from Kazakhstan.” Meanwhile, Kazakhstan is preparing to extend its existing ban on fuel exports from November 22, 2026, until May 22, 2027. A draft order published on the government’s Open NPA portal would prohibit exports of gasoline, diesel fuel, and certain petroleum products by road and rail, including shipments to fellow members of the Eurasian Economic Union. The draft also proposes a separate ban, from January 1 through June 30, 2027, on exports outside the Eurasian Economic Union customs territory of light distillates, jet fuel, diesel fuel, gas oil, toluene, xylene, and petroleum bitumen. The proposed restrictions underline the tension in Kazakhstan’s fuel policy: Astana wants to protect its domestic market in the short term, even as it plans major oil and petrochemical investments and has set a long-term goal of increasing fuel exports.