Kyrgyzstan Business & Economy - The Times Of Central Asia

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Transport Corridor

Kyrgyzstan Tests Alternative Transport Route to Russia That Bypasses Kazakhstan

Kyrgyzstan and Russia are advancing plans for an alternative transport route that would bypass Kazakhstan. The proposed Southern Transport Corridor would connect the Russian port of Astrakhan across the Caspian Sea to the Turkmenbashi port in Turkmenistan and then continue overland through Turkmenistan and Uzbekistan to Kyrgyzstan. The first test cargo shipments along this corridor have already been completed, according to Russian media reports citing Kyrgyzstan’s First Deputy Prime Minister Daniyar Amangeldiyev. Amangeldiyev said Kyrgyzstan views the development of this southern route via the Caspian Sea as a promising alternative for trade between the two countries. “We’re working in this direction. We have a strategic partnership in this area and a shared vision. We are currently in negotiations,” he told Russia’s TASS news agency on April 3 on the sidelines of the CIS International Economic Forum in Moscow. Discussions on establishing the new transport corridor date back to October 2024, during the visit of then–prime minister of Kyrgyzstan Akylbek Japarov to Moscow. For Kyrgyzstan, the Southern Transport Corridor offers a way to reduce dependence on transit through Kazakhstan. At present, most cargo traffic between Russia and Kyrgyzstan passes through the territory of Kazakhstan. Trucks from Kyrgyzstan often face delays of several days at the border, creating significant obstacles for cargo transport, particularly for perishable agricultural goods. The new corridor is expected to help alleviate these bottlenecks and provide an alternative route linking Kyrgyzstan with the European part of Russia. Kazakhstan would continue to serve as the primary transit route for trade with Russia’s Siberian, Ural, and Far Eastern regions.

Energy Sector

Kyrgyzstan Plans Central Asia’s First Live-Line Energy Training Center

Kyrgyzstan plans to establish a competence center for live-line working technologies, with the aim of developing it into a regional hub for training highly qualified specialists from Kazakhstan, Uzbekistan, and Tajikistan. The center will focus on maintaining power grids and electrical equipment without de-energizing high-voltage lines. The National Electric Network of Kyrgyzstan has signed a cooperation agreement with Grid Company of Tatarstan (Russia) to develop and introduce live-line working technologies, including the creation of a specialized training center. The agreement was signed during the Energoprom-2026 international electric power forum in Kazan and was attended by Kyrgyz Energy Minister Taalaibek Ibrayev and Russian Energy Minister Sergey Tsivilyov. The initiative aims to enable maintenance of electrical grids without disconnecting consumers. This is expected to reduce the frequency and duration of power outages, lower technical losses, and improve the reliability and quality of electricity supply for households and businesses. The project is particularly relevant for Kyrgyzstan, where electricity supply is frequently interrupted due to the maintenance needs of aging infrastructure. Authorities say the initiative could help modernize the country’s energy sector and strengthen its role in regional cooperation. The partnership with Russia also provides for the supply of electrical equipment and the localization of production in Kyrgyzstan, including cables, switchgear, and metering devices. The project is also expected to position Kyrgyzstan as a regional training and competence hub for the electric power industry.

Gold Trading

Digital Gold Trading Launches on Kyrgyz Stock Exchange

On April 3, the Kyrgyz Stock Exchange, Kyrgyzaltyn, and Central Depository CJSC signed an agreement enabling the purchase and sale of precious metals, particularly gold. The initiative aims to provide equal access to exchange-based gold trading for all categories of investors. The exchange will ensure automated and transparent transactions, with prices formed in real time based on supply and demand. Participants in the trading include commercial banks, jewelry and brokerage firms, and other entities registered with the Department of Precious Metals under the Ministry of Finance. “Using exchange infrastructure automates processes and guarantees equal access to the asset for all categories of investors,” said Aida Chodulova, CEO of the Kyrgyz Stock Exchange. She added that gold will function as both a digital and physical asset, with transactions recorded in the exchange’s automated system. Officials say the platform will allow investors to trade gold without the need for physical transportation, while also offering a tool for long-term capital preservation. Gold remains Kyrgyzstan’s main export commodity. In 2025, the country exported 6.2 tons of gold worth $682.8 million, according to preliminary data cited by local media. According to the Ministry of Economy, gold accounted for nearly 24% of total exports. The country’s largest deposit, Kumtor, is located in the Issyk-Kul Region at an altitude of about 4,000 meters. It is one of the world’s largest gold deposits and was nationalized in 2021 after previously being owned by Centerra Gold. The mine is operated by Kumtor Gold Company, which is fully owned by Kyrgyzaltyn. In 2025, the company produced 12,081 kg of gold, generated $1.434 billion in revenue, and reported net profit of more than $706 million, while paying $246.5 million in taxes and other payments.

Trade

Afghanistan Aims to Increase Trade with Central Asia to $10 Billion

Afghanistan aims to increase trade with Central Asian countries to $10 billion over the next three to four years, Foreign Minister Amir Khan Muttaqi said at a meeting in Kabul. According to Muttaqi, Afghanistan’s trade turnover with countries in the region reached approximately $2.7 billion in 2025, marking a significant increase compared to previous years. The statement was made during a consultative dialogue involving representatives from Kazakhstan, Uzbekistan, Kyrgyzstan, Tajikistan, and Turkmenistan, focused on regional cooperation, trade, and the development of transit routes. Muttaqi said Afghanistan intends to leverage its geoeconomic position to connect Central Asia with markets in South and West Asia. Among key projects, he highlighted the TAPI gas pipeline, which is currently under construction. Afghan authorities are seeking to expand economic ties despite ongoing international sanctions affecting the banking sector, which continue to constrain investment inflows. At the same time, Russia remains the only country to have officially recognized the Taliban government that came to power in 2021. Several countries, including China, India, Turkey, and the United Arab Emirates, maintain a diplomatic presence in Kabul. Landlocked Central Asian countries view southern routes through Afghanistan as an alternative to northern corridors via Russia, which have been complicated by sanctions. Afghanistan shares a border of more than 2,300 km with Tajikistan, Uzbekistan, and Turkmenistan, and continues to face security challenges, including threats from extremist groups, drug trafficking, and irregular migration. However, Muttaqi said the situation along the borders remains generally stable. Earlier reports indicated that Kazakhstan is exploring the possibility of investing in rare earth metal mining in Afghanistan. The national company Tau-Ken Samruk is conducting laboratory analysis of samples collected in Afghanistan and Rwanda.

Nuclear Power Plant

Kyrgyzstan Weighs Nuclear Power as Rosatom Talks Advance

Kyrgyzstan is still in talks with Russia’s state-owned nuclear power company Rosatom about building a nuclear power plant (NPP) in Kyrgyzstan. But on March 3, Kyrgyz Deputy Chairman of the Cabinet of Ministers, Daniyar Amangeldiyev, was already speaking about conducting a national referendum on the construction of a nuclear power plant. It is clear why Rosatom is anxious to build the NPP, but it is less clear why Kyrgyzstan needs it. Kyrgyzstan’s Road to Nuclear Power Rosatom is active in Central Asia, receiving the contract to build Kazakhstan’s first NPP in June 2025. Uzbekistan had already signed a contract with Rosatom in May 2024, and in late March 2026, the first concrete was poured for the NPP that Rosatom is constructing in Uzbekistan. At first glance, Central Asia might not seem like an ideal market for nuclear power. But after Russia’s full-scale invasion of Ukraine in February 2022, Finland canceled its contract for Rosatom to build the Hanhikivi-1 NPP, and while several European countries are building or considering building NPPs, Hungary is the only country committed to partnering with Rosatom. With limited prospects for new contracts in Europe, Rosatom is likely to focus on securing additional deals in non-European markets to expand its already extensive portfolio. Kyrgyzstan’s Energy Ministry and Rosatom signed a Memorandum of Understanding for a small NPP in January 2022. The initial plan for Kyrgyzstan’s NPP was to build a small RITM-200N with a 55-megawatt (MW) capacity. In May 2025, Director General of Rosatom, Alexey Likhachev, said his company was offering Kyrgyzstan a modular NPP project that could generate anywhere from 110 MW to 440 MW using RITM-200N reactors, equivalent to two to eight units. In late March 2026, Likhachev said current talks with Kyrgyzstan were not only focused on the construction of a small NPP but also a medium-sized NPP. Kyrgyz Deputy Chairman of the Cabinet of Ministers Amangeldiyev said in June 2025 that Kyrgyz officials and Rosatom representatives were already looking at potential sites for the NPP. Reports about the planned NPP in Kyrgyzstan don’t mention the cost of construction, and it remains unclear how many and what size reactors will be installed. According to Uzbek officials, the six 55-MW units that Rosatom was initially contracted to build (the project has since changed) would have cost “less than $2 billion.” An Agreement or Not In March 2024, Kyrgyzstan’s Deputy Energy Minister Taalaybek Baygaziyev signed an agreement with Rosatom on the development and implementation of the NPP investment project. In September 2025, Altynbek Rysbekov was appointed Kyrgyzstan’s Deputy Energy Minister, and he said, “There is a possibility of building a (nuclear power) station, but no fundamental decision has been made yet.” However, Rysbekov’s further comments indicated he supported the idea of building an NPP in Kyrgyzstan, and he reconfirmed that the search for an appropriate site for the NPP continued. On April 3, 2026, Amangeldiyev said negotiations with Rosatom are continuing. “We are collaborating with Rosatom on infrastructure development and personnel training,” Amangeldiyev stated. “Only after...

Smart Electricity

Kyrgyzstan to Install 300,000 Smart Electricity Meters Purchased from China

Kyrgyzstan’s Ministry of Energy has signed a contract with Shenzhen Kaifa Technology for the purchase of 300,000 smart electricity meters for the National Electric Network in 2026, according to the ministry. Negotiations are also underway for an additional 90,000 units. The National Electric Network of Kyrgyzstan has introduced an automated electricity control and metering system that has helped strengthen financial discipline in the energy sector. As of the end of 2025, 500,100 smart meters had been installed across the country, bringing the total number of installed meters to more than 923,000. This has improved metering accuracy and reduced electricity losses from 11.7% to 10.6%. Smart meters offer several advantages. They enable automatic data transmission, with readings sent to a central server in real time, eliminating the need for manual inspections. They also allow for remote control: electricity supply can be automatically suspended in cases of non-payment and restored once payment is made. In addition, smart meters help protect against overloads, support voltage stability in the grid, and reduce human error by minimising manual data entry. This also contributes to lowering electricity theft. The rollout is part of the Kyrgyz Energy Modernization and Sustainability Project, supported by the World Bank. The project aims to modernise the energy sector, improve the accuracy of electricity metering, and reduce power losses. Smart metering is particularly important for Kyrgyzstan, which continues to face electricity shortages and relies on imports to meet growing demand from industry and households.