Kyrgyzstan Business & Economy - The Times Of Central Asia

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E-Commerce

Kyrgyzstan E-Commerce Platform to Be Built With Chinese Firm

Kyrgyzstan and China are set to create a new e-commerce platform using Kyrgyz Post’s network to deliver orders across the country. For Kyrgyz businesses, the project promises access to foreign buyers, although it remains unclear how the platform’s export component will work. The agreement was signed on August 28 by state-owned Kyrgyz Post and China’s Kashgar Fengxin Trading Co., Ltd. at the Kyrgyz-Chinese Investment Forum in Bishkek. The platform is expected to integrate with the existing postal and logistics infrastructure. The project also includes digital services and content using artificial intelligence technologies. That said, details were light, and the announcement gave no launch date, cost, or financing terms. For Kyrgyz Post, the project is a continuation of efforts to transform a traditional postal operator into infrastructure for online commerce. The company already provides services linked to Ozon – its website, for example, features a dedicated delivery calculator for the Russian marketplace. The new platform is expected to use the existing network of postal and logistics facilities for nationwide delivery. The sector itself is growing rapidly. According to Chairman of the Cabinet of Ministers Adylbek Kasymaliev, Kyrgyzstan’s domestic e-commerce market was estimated at $525 million in 2025, about 15% more than a year earlier. In the first half of the year alone, around one million online purchases were made worth 1.7 billion soms ($19.4 million). At the same time, a significant share of e-commerce is already linked to foreign platforms. Russian marketplaces Wildberries and Ozon operate in Kyrgyzstan, while Chinese platforms Taobao and Alibaba are popular, and Temu is also available to Kyrgyz consumers. Amazon and eBay are not fully available in the country. For Kyrgyzstan, the reverse flow – selling its own goods abroad – is therefore of particular interest. Kyrgyz Post specifically points to this opportunity, saying the new platform should help local entrepreneurs promote their products and expand sales opportunities in foreign markets. The operator has not yet specified which countries will be accessible to sellers or whether they will gain direct access to Chinese consumers. This is not Kyrgyzstan’s first attempt to create dedicated infrastructure for cross-border e-commerce. The government, together with the United Nations Development Programme, has been working on at regulatory framework for an E-commerce Park, intended to support companies operating in the sector. Separately, the government says a preferential tax regime has been introduced for e-commerce participants, with a tax of 2% of turnover and exemptions from VAT, income tax, and sales tax. The partnership with the Chinese company comes amid a broader shift in Kyrgyzstan’s economic relationship with Beijing. According to the Kyrgyz government, direct investment from China totaled $1.85 billion between 2021 and 2025. At the same forum, officials said they wanted to gradually move beyond a relationship dominated by trade toward joint production, technology localization, and cooperation between Kyrgyz and Chinese companies in third-country markets. The government also links this broader goal to the China-Kyrgyzstan-Uzbekistan railway. The planned route starts in Kashgar, crosses into Kyrgyzstan through the Torugart Pass and runs...

Baytik Mountain Resort

$128 Million Ski Resort Near Bishkek to Use Chinese Financing

Kyrgyzstan is launching another major ski resort project. The year-round Baytik Mountain Resort, valued at $127.9 million, will be built 35 kilometers from Bishkek. China National Heavy Machinery Corporation (CHMC) will participate in both the construction and financing of the project. On August 27, the Tourism Development Support Fund, Valmont Group, and the National Investment Agency signed a public-private partnership agreement to build the resort in Kashka-Suu. The first phase of infrastructure is expected to be commissioned within four to five years. Kashka-Suu has been a ski destination since the Soviet era, with its first ski club established in 1976. The plans include cable cars, ski slopes with artificial snowmaking, accommodation, and facilities for summer recreation and business events. Funding will also come from state-owned Eldik Bank and a private partner. The project is expected to create at least 1,500 jobs during construction and around 800 permanent jobs once operational, with at least 80% of the latter to be held by Kyrgyz citizens. Baytik comes as Kyrgyzstan pursues a much larger expansion of its ski tourism infrastructure. In the east of the country, the government is already developing the Ala-Too Resort, valued at around €1.2 billion. The project will link Jyrgalan, Ak-Bulak, and Boz-Uchuk, with plans for 260 kilometers of ski runs and construction extending through 2038. As The Times of Central Asia previously reported, work began in August 2025. The two projects have different locations and potentially different markets. Ala-Too is being developed near Issyk-Kul as a large international tourism cluster. Baytik’s main advantage is its proximity to Bishkek and the country’s largest international airport. Karakol, Kyrgyzstan’s best-known ski destination, is roughly 400 kilometers from the capital. Baytik is intended to create a major year-round recreation area within easy reach of Bishkek. The investment comes as Kyrgyzstan’s tourism revenues are growing. Foreign visitors spent almost $1.1 billion in the country in 2025, up from $1.02 billion a year earlier, while tourism’s share of the economy reached 3.8%. Travelers from neighboring Central Asian countries and Russia continue to account for most foreign arrivals. For Kyrgyzstan, developing mountain resorts offers a way to reduce the tourism industry’s dependence on the summer season and Issyk-Kul. CHMC’s involvement brings another potential source of capital to the project. Chinese companies have long been involved in infrastructure projects in Kyrgyzstan, particularly in transport and energy. With Baytik, a major Chinese contractor is moving into the country’s tourism infrastructure.

Fuel Prices

Kyrgyzstan Extends Fuel Subsidies Amid Russian Supply Disruptions

Kyrgyzstan has extended subsidies for fuel importers through the end of 2026. Bishkek is trying to contain prices at the pump as problems in the Russian fuel market push traders to seek supplies elsewhere and make domestic refining more important. On August 26, the Cabinet of Ministers extended a temporary fuel subsidy scheme through December 31.Under the scheme, the state covers part of eligible importers’ fuel and transportation costs when the total exceeds a fixed threshold. The government also raised those fixed prices: from $860 to $960 per metric ton for AI-92 gasoline, from $950 to $1,050 for diesel, and from $575 to $650 for automotive liquefied petroleum gas. The change means importers must now absorb more of the cost themselves before receiving a subsidy. AI-92 is a lower-octane gasoline broadly comparable to regular fuel in the United States. AI-95, closer to the standard unleaded gasoline sold across much of Europe, was included in the original subsidy mechanism introduced in late May, but has now been removed from both the subsidy program and temporary price regulation. The extension keeps government support in place for another three months. On August 25, Chairman of the Cabinet of Ministers Adylbek Kasymaliev said the government had allocated 956.1 million soms, or about $11.4 million, in subsidies to companies importing petroleum products. Kyrgyzstan receives more than 90% of its imported fuel from Russia, where Ukrainian drone attacks and refinery outages have reduced available supplies. Shortages have also emerged on the Russian domestic market, prompting Moscow to tighten restrictions on fuel exports, although supplies under intergovernmental agreements, including Russia’s agreement with Kyrgyzstan, are exempt. On August 25, Reuters, citing three industry sources, reported that Russia was set to extend its ban on diesel exports by producers through September as shortages persisted and several refineries remained idle following repeated Ukrainian drone attacks. Kyrgyzstan felt the effects relatively quickly. Gasoline and diesel prices rose, while some filling stations experienced shortages of AI-95 gasoline, even as the more widely used AI-92 remained available. Fuel traders have already begun buying from farther afield. China is emerging as an alternative source of supply. After talks with Sinopec, a Kyrgyz delegation met with state-owned CNPC on August 19. The discussions focused on procedures for supplying petroleum products to Kyrgyzstan through CNPC-affiliated Kunlun Logistics. Following the talks, Kyrgyz companies signed contracts with CNPC for petroleum product supplies, although volumes, prices, and delivery schedules were not publicly disclosed. The fuel squeeze has also made an existing effort to refine more oil domestically more important. The modernization of the Junda refinery is not a new response to the current shortages: the $193.75 million project was already underway earlier this year and had previously been scheduled for completion by July 31. On August 25, the National Investment Agency signed an additional agreement with Central Asia Energy Company allowing the next stage of modernization of the Junda refinery in Kara-Balta, the country’s largest, to begin. The latest announcement did not give a new completion date. The project...

Oil Refinery

Kyrgyzstan Advances Junda Refinery Modernization Amid Fuel Supply Strain

Kyrgyzstan’s largest oil refinery, Junda in Kara-Balta, is moving to the next stage of a modernization project worth nearly $194 million. The project has taken on added significance amid problems with fuel supplies from Russia, on which Kyrgyzstan remains heavily dependent. On August 25, Ravshanbek Sabirov, head of the National Investment Agency, signed an additional agreement with China’s Central Asia Energy Company. The document allows the next stage of the Junda modernization project to begin. Once upgraded, the refinery is expected to increase petroleum output and produce fuel meeting Euro 5 standards. The official announcement confirms the start of the new phase but does not specify its individual cost. Junda, also known as Zhongda, is located in Kara-Balta, about 60 kilometers west of Bishkek. The refinery is operated by the Kyrgyzstan-registered China Petrol Company Junda, which is 99% owned by China’s Central Asia Energy Company. The remaining 1% is held by Kyrgyzstan-registered Dade Service Company. The refinery, with an annual crude-processing capacity of 800,000 tons, began operating in 2014. Production halted in early 2020, and the plant remained idle for about four years. Before the shutdown, residents of Kara-Balta had repeatedly complained about air pollution and unpleasant odors from the facility. The shutdown lasted about four years, with production resuming in 2024. A new modernization program followed. A 2024 investment agreement initially put the cost of repairs and modernization at $160 million, while the company later cited an investment of more than $167 million. An additional agreement subsequently raised the project figure to $193.75 million. The refinery’s stated processing capacity remains 800,000 tons per year. The project’s timeline, however, remains unclear. An earlier supplementary agreement called for the modernization to be completed by July 31, 2026. That deadline has already passed, yet on August 25 the parties signed another agreement allowing the next phase to begin. The National Investment Agency has not explained whether the original deadline has formally been extended. President Sadyr Japarov has previously given a different target – 2028. He also said the Chinese side had allocated about $500 million for Junda, substantially more than the $193.75 million cited in the investment agreement. It is unclear whether the two figures refer to different stages or scopes of work. Japarov has also spoken about modernizing another refinery, Kyrgyz Petroleum Company in Manas, the city formerly known as Jalal-Abad. For Kyrgyzstan, the issue is not only fuel quality. Deputy Energy Minister Nasipbek Kerimov said in July that Kyrgyzstan consumes around 2 million tons of fuel and lubricants annually and that almost 95% has traditionally come from Russia. More recent government figures put average annual demand at more than 1.5 million tons, while Japarov has said Russia currently accounts for about 90% of consumption. That dependence has become particularly visible this summer. Disruptions at Russian refineries and reduced volumes available for export have pushed prices higher. Ukrainian drone strikes, refinery outages, and strong domestic demand have contributed to fuel shortages in Russia and restrictions on exports to some markets. Rising fuel...

Artificial Intelligence

Kyrgyzstan’s NineNineSix Takes On Global AI Voice Market

In February, Kani TTS 2, a text-to-speech (TTS) model developed by Kyrgyzstani startup NineNineSix, ranked among Hugging Face’s top three trending TTS models, according to Kyrgyzstan’s High Technology Park. Hugging Face is sometimes described as the “GitHub for AI.” At $5 per million characters, NineNineSix’s listed price is lower than several paid TTS offerings from ElevenLabs and OpenAI, while Google’s range includes both cheaper and more expensive models. The company illustrates how rapid advances in AI are creating opportunities for entrepreneurs from Central Asia. NineNineSix, whose name refers to the Kyrgyz Republic’s international calling code, +996, grew out of a problem its founders encountered when using third-party pre-trained models at their previous startup. Using its own data, the team fine-tuned those models but remained dissatisfied with the results. Those models sounded robotic and were too resource-intensive and slow, creating a bottleneck. The team concluded that building its own model was the only way to achieve the quality it needed. [caption id="attachment_54711" align="aligncenter" width="1024"] Founders Ulan Abdurazakov, Nursultan Bakashov and Denis Pavlov[/caption] Not the First Try NineNineSix co-founder Nursultan Bakashov tells The Times of Central Asia: “Building our own models felt like the natural next chapter of the story we’d already started writing. In the age of AI, the only real choice is to do AI.” Bakashov founded the company in 2025 with Ulan Abdurazakov and Denis Pavlov. He and Abdurazakov had previously worked together, co-founding Makers Bootcamp with a third partner in 2019 to train people for careers in technology. Three years later, they left Makers Bootcamp to focus on AI. They became active in the Kyrgyz Republic’s AI community, organizing events and training for several years. The community now has more than 1,800 members. Their work there led to The Cramer Project, which they launched with Timur Turatali, formerly of EY and Citibank, and Pavlov, who had moved from Russia to the Kyrgyz Republic. The company developed AkylAI, which it describes as Kyrgyzstan’s first AI-powered smart speaker. The name refers to Akylai, a common female name in Kyrgyz; the element “ai” means “moon” and often appears in Kyrgyz names. In October 2023, AkylAI was named a winner in the Unicorn from KG program, run by the High Technology Park of the Kyrgyz Republic. It also took part in Draper University’s Hero Training incubation program in Silicon Valley. The following year, AkylAI was selected for the European Bank for Reconstruction and Development’s first Star Venture cohort in the Kyrgyz Republic. It was also presented at KIT Forum 2024, Bishkek’s flagship annual technology event. That year, The Cramer Project also tested CorePod, a smart speaker designed to support mental health and sleep. CorePod was intended as a global product, beginning with the United States market. The team says the company became the first Kyrgyzstani startup admitted to the LAUNCH incubator in May 2024. CorePod was later pitched to Jason Calacanis, a Silicon Valley angel investor, and featured on his This Week in Startups podcast. An upgraded version of AkylAI was presented...

Inflation

Kyrgyzstan Drafts $419 Million Plan to Curb Rising Prices

Kyrgyzstan has drafted a plan worth about $419 million to curb rising prices in 2026–2027. The authorities aim to increase food production and build reserves, but fuel imported primarily from Russia remains a major source of inflationary pressure largely beyond the government’s control. The draft was presented to the Cabinet on August 21. During the first seven months of 2026, consumer prices and tariffs in Kyrgyzstan rose by 6.7% from their December 2025 level. Average annual inflation over the same period was 10.7%. Food prices rose particularly sharply, with fresh fruit up 16% and meat products 14.5%. Lamb recorded the largest increase at 23.1%. Horse meat rose by 16%, while beef increased by 14.2%. The authorities have already intervened directly in the meat market. In March, Kyrgyzstan introduced a six-month ban on livestock exports. Temporary state controls on beef and mutton prices also applied earlier this year but expired on May 2. The plan calls for increasing the productive livestock population by at least 20,000 head. Agribusinesses will be eligible for preferential loans, while the dairy and poultry sectors will receive subsidies. Storage facilities with a combined capacity of 18,000 metric tons are planned in all seven regions. Farmers are to receive 68,000 metric tons of seed and the necessary amounts of mineral fertilizer. The government also intends to ensure sufficient wheat supplies for the domestic market and purchase another 20,000 metric tons from local producers for state reserves. The draft would establish direct supply channels for agricultural products and expand the network of retail outlets operating without intermediaries. Kyrgyzstan relies on imports for almost all of its petroleum products. Deputy Energy Minister Nasipbek Kerimov said in July that Russia had supplied about 95% of the country’s annual fuel needs in recent years, with total consumption of around 2 million metric tons. This summer, Russia’s fuel shortages worsened amid refinery outages following Ukrainian drone attacks, high seasonal demand, and transport problems. Moscow tightened restrictions on fuel exports and turned to imports to support domestic supplies. For Kyrgyzstan, the decline in Russian supplies quickly became a problem. According to the National Statistical Committee of the Kyrgyz Republic, the average price of AI-92 gasoline reached 88.24 soms per liter by August 12, around 6% above the July average. AI-95 rose by 12% to 109.24 soms, while diesel increased by 5% to 102.08 soms. The government has already raised its year-end inflation forecast to 14–15% from an earlier projection of 9%, citing rising fuel costs as one reason. The National Bank of the Kyrgyz Republic kept its policy rate at 12% on July 27. Among the external inflation risks, the central bank cited volatile global food prices and possible disruptions to petroleum-product supplies through the Strait of Hormuz. Its medium-term inflation target is 5–7%. Kyrgyzstan cannot quickly replace Russian fuel, but importers have begun seeking supplies farther afield. Kanatbek Eshatov, president of the Association of Oil Traders of Kyrgyzstan, said on August 12 that reduced supplies from Russian refineries had prompted deliveries from...