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Transport

South Korea Supports Kyrgyzstan’s Transition to Electric Transport

South Korea is expanding support for Kyrgyzstan’s transition to electric mobility through new investments in charging infrastructure and the electrification of government vehicles. Blue Networks Co., Ltd., a South Korean company specializing in electric vehicle (EV) charging infrastructure that has installed more than 3,500 charging stations in South Korea, plans to install 300 EV charging stations across Kyrgyzstan by July 2026. The initiative was discussed during a March 3 meeting between Kyrgyz Energy Minister Taalaibek Ibraev and representatives of Blue Networks. Cooperation between Kyrgyzstan and Blue Networks began in 2024, when the state-owned energy company Chakan HPP and the South Korean firm signed a memorandum on the joint development and operation of EV charging stations. In 2025, the partners signed a framework agreement to establish a manufacturing facility in Kyrgyzstan to assemble EV charging stations. As part of the agreement, a joint venture has already been established, and the launch of the assembly plant is scheduled for April 2026. Digitalization was also a key topic during the meeting. Blue Networks said it is developing software to manage EV charging infrastructure and agreed to provide Kyrgyzstan’s Ministry of Energy with access to the system to ensure transparency, monitoring, and efficient management of the future charging network. The initiative forms part of broader support from South Korea for Kyrgyzstan’s transition to electric mobility. On March 3, the Korea International Cooperation Agency (KOICA) handed over electric vehicles under the project “Electric Vehicle Transition Project for Public Service Fleet to Realize Green Mobility in the Kyrgyz Republic.” The ceremony was attended by Kyrgyz Deputy Minister of Economy and Commerce Mederbek Tumanov, South Korean Ambassador to Kyrgyzstan Kim Kwangjae, KOICA Country Director Lim Soyeon, and representatives of participating government institutions. According to the KOICA Kyrgyzstan office, ten electric SUVs will be distributed among key government institutions during the first phase of the project. The initiative, which runs from 2024 to 2027 with a budget of about $11 million, aims to reduce greenhouse gas emissions and support the adoption of electric vehicles in the public sector through the provision of vehicles, charging infrastructure, and training programs. These initiatives align with the Kyrgyz government’s strategy to promote environmentally friendly transport and reduce air pollution in Bishkek and other major cities. The number of electric vehicles in Kyrgyzstan has been steadily increasing. According to First Deputy Prime Minister Daniyar Amangeldiev, more than 200 electric vehicles are imported into the country daily under a VAT exemption scheme. As a member of the Eurasian Economic Union (EAEU), Kyrgyzstan also benefits from an annual quota allowing the duty-free import of up to 15,000 electric vehicles. Despite this rapid growth, electric vehicles still represent a small share of the national vehicle fleet. According to the Ministry of Natural Resources, Ecology, and Technical Supervision, Kyrgyzstan had more than 1.9 million registered vehicles as of early 2026, a 13% increase compared with 2024. Of these vehicles, 972,000 run on gasoline, 339,000 on diesel, 56,900 on gas, and 37,000 are hybrids. Electric vehicles account for...

Economic Cooperation

UK and Kyrgyzstan Expand Financial Cooperation

The Kyrgyz Republic Capital Markets Day was held in London, where representatives of the UK financial and investment community met with Kyrgyz officials to discuss prospects for expanding banking and investment cooperation. The Kyrgyz delegation was led by Deputy Minister of Economy and Commerce Mederbek Tumanov. During his working visit to London, Tumanov held meetings with representatives of the investment banks Oppenheimer and Citi, presenting Kyrgyzstan’s macroeconomic indicators for recent years and outlining the country’s fiscal policy and structural reforms. According to the Ministry of Economy and Commerce, Kyrgyzstan aims to improve its sovereign credit rating, which would facilitate the country’s access to international capital markets. During the discussions, particular attention was given to creating a predictable regulatory environment for investors. The Kyrgyz government also seeks to reduce the cost of external borrowing and strengthen the confidence of international investors. During the visit, the Kyrgyz delegation met with business representatives, including DG and Bankinvest, to discuss opportunities for attracting British private capital to key sectors of the Kyrgyz economy. According to the Kyrgyz Ministry of Economy, the British delegates expressed interest in expanding investment cooperation. Tumanov also participated in a meeting of the Kyrgyz-British Business Council, where participants discussed prospects for bilateral investment and the promotion of Kyrgyzstan’s economic priorities in the British market. During the event, the Kyrgyz representatives presented a number of potential investment projects to British investors, including initiatives related to the development of critical minerals, financial market development, and closer banking cooperation. According to Kyrgyz authorities, the interest shown by British businesses reflects growing international investor attention to Kyrgyzstan and the wider Central Asian region.

Oil Industry

Junda Oil Refinery Modernization in Kyrgyzstan Set for Completion by August 2026

Kyrgyzstan’s largest oil refining facility, the Junda (Zhongda) refinery in the town of Kara-Balta, approximately 60 kilometers west of Bishkek, is undergoing a major modernization project scheduled for completion by July 31, 2026. The $193.75 million upgrade is expected to increase domestic fuel production and strengthen the country’s energy security. On March 2, a delegation from the National Investment Agency of Kyrgyzstan, the Ministry of Economy and Commerce, and the Kara-Balta municipality visited the refinery to monitor implementation of the investment agreement signed in July 2024 with China Petrol Company Zhongda LLC. Owned by a Chinese investor, the refinery has an annual crude processing capacity of 800,000 tons, producing gasoline, diesel fuel, and liquefied petroleum gas. The modernization is intended to upgrade technical infrastructure and improve operational efficiency. Government representatives have emphasized the project’s importance for industrial development, job creation, and reducing Kyrgyzstan’s reliance on imported fuel. If completed on schedule, the refinery could potentially cover between 50% and 70% of Kyrgyzstan’s domestic demand for motor fuel. This would represent a significant shift for a country that currently depends heavily on imports. At present, local refining capacity reportedly meets only about 5% of domestic fuel demand. Kyrgyzstan consumes approximately 1.6 million tons of motor fuel annually, more than 90% of which is imported from Russia. A key constraint remains the refinery’s dependence on imported crude oil. Authorities are seeking to diversify supply routes, including potential deliveries from Azerbaijan and other oil-producing countries. Originally commissioned in 2014, the refinery was shut down in February 2020 for extensive repairs and modernization that lasted four years. Operations resumed in August 2024. The facility has faced public scrutiny over environmental concerns. Residents of Kara-Balta have complained about air pollution, resulting in fines for emissions violations. The refinery has also been accused of damaging ancient burial mounds, prompting criticism from cultural heritage advocates. The modernization positions the Kara-Balta refinery as a strategic industrial asset in Kyrgyzstan’s efforts to enhance energy security. However, its long-term viability will depend on securing stable crude oil supplies and addressing environmental risks. If successful, the project could reduce Kyrgyzstan’s fuel import bill and mark a significant step toward greater energy independence.

CA5+UK

UK Expands Strategic Engagement in Central Asia Amid Growing Global Competition

The world’s largest economies have recently increased their focus on Central Asia. The United Kingdom, alongside the U.S., the European Union, and China, is seeking to strengthen partnerships in a region that was previously not among its top foreign policy priorities. Britain Replicates an Established Format Throughout the years of independence, Kazakhstan and its regional neighbors were often perceived as operating within Russia’s sphere of influence. The war in Ukraine and broader geopolitical shifts have altered international attitudes toward Central Asia. Major powers are now intensifying dialogue with the region, with particular emphasis on economic cooperation. At the end of February, foreign ministers met in London under the Central Asia-UK (CA5+1) format. Although this was the first meeting of its kind in the British capital, the format mirrors similar mechanisms already used by the U.S., the European Union, Russia, China, and Japan. Participants noted that the CA5+1 format has proven to be an effective mechanism for structured and substantive engagement with external partners. The regional agenda is addressed comprehensively, reflecting Central Asian priorities while creating additional opportunities to advance economic initiatives and implement joint projects. Particular attention has been paid to trade diversification, industrial cooperation, sustainable infrastructure development, and unlocking Central Asia’s potential in critical minerals and renewable energy. The meeting also covered economic growth prospects, key challenges facing Central Asian economies, and the expansion of trade and investment. Logistics was a central topic, including the development of the Trans-Caspian International Transport Route, widely known as the Middle Corridor. British Foreign Secretary Yvette Cooper emphasized the strategic importance of Central Asia as a dynamically developing region characterized by sustained economic growth, expanding regional cooperation, and a growing role in international affairs. According to the British participants, the region’s countries are pursuing a pragmatic approach, strengthening connectivity and expanding their participation in shaping a modern architecture of economic and political cooperation. Education and Finance Interest in British education continues to grow across all five Central Asian countries. Four branches of British universities are operating in Kazakhstan, and nearly 6,000 students have earned British degrees through the Bolashak international scholarship program. Uzbekistan and Kyrgyzstan have announced plans to establish international financial centers modeled on the Astana International Financial Centre in Kazakhstan. British Ambassador to Uzbekistan Timothy Smart said that work is underway to create an international financial center in Tashkent based on international arbitration standards. Like the Astana model, the new center will operate under English common law. British Ambassador to Kyrgyzstan Nicholas Bowler highlighted London’s role in assisting with legislation for the International Dispute Resolution Center, which will operate under English law and be located in the Issyk-Kul region. Greater participation by Central Asian companies on the London Stock Exchange is also anticipated. Logistics and Resources British diplomats have placed particular emphasis on cooperation in critical minerals, a priority within the United Kingdom’s global strategy. Projects are underway across the region, accompanied by new agreements and industrial partnerships. Agreements have reportedly been reached between the Kazakh producer Zhezkazganredmet and the British...

Iran

Central Asia Updates from Mideast Conflict

Kazakhstan has expressed sorrow over the deaths of young students in what appeared to be an air strike that hit a girls’ primary school in the southern Iranian city of Minab. “I received the news of the death of 160 schoolgirls in Iran - with deep distress. The interruption of the lives of children, who must get education and step into the future on a peaceful day, is an irreplaceable tragedy for all humanity,” Education Minister Zhuldyz Suleimenova said on Facebook on Monday. “As a parent, I believe that children should never be victims of any kind of conflict, or political disputes,” Suleimenova said. “Their safety and well-being is one of the most important values for the international community and for every state.” Health officials and state media in Iran have reported a higher death toll of at least 175 in the destruction at the school on Saturday, saying most of the dead were probably children. The U.S. military said it was looking into reports of civilian casualties during its operations against the Iranian government. Some reports say the school that was hit is near an Iranian military installation, one of many targeted by U.S. and Israeli strikes since the military air campaign began on Saturday. Kyrgyzstan is working to help hundreds of its citizens who are stranded in Gulf countries because of the Mideast conflict. Diplomats are negotiating with hotels to make sure that Kyrgyz nationals are not evicted, Seitek Zhumakadyr uulu, head of the consular department of Kyrgyzstan’s Ministry of Foreign Affairs, said on Monday. He said there are 800 stranded Kyrgyz citizens in Qatar and about 1,000 in the United Arab Emirates, according to Kyrgyzstan’s state news agency Kabar. Most Kyrgyz citizens in Saudi Arabia are performing Umrah, the Islamic pilgrimage to Mecca, the official said. Thousands of pilgrims have been affected by the air strikes on Iran and retaliation by Iranian forces. Airspace in many parts of the region is closed to commercial traffic and airlines have suspended flights. However, Ulukbek Maripov, Kyrgyzstan’s ambassador in Saudi Arabia, has said that airports there are operating relatively well. There are no reports of Kyrgyz civilian casualties in the conflict. Uzbekistan’s diplomats in Turkmenistan's capital Ashgabat are arranging assistance for Uzbek citizens who want to leave Iran and cross into neighboring Turkmenistan. “Embassy officials will meet citizens at the Turkmen-Iranian border crossing in the city of Sarakhs,” Uzbekistan’s state news agency Dunyo reported. “Official vehicles of the Embassy of Uzbekistan in Ashgabat have been mobilized to facilitate onward travel arrangements.” The Iranian city of Sarakhs is a key transit point for trade between Iran and Central Asia. The border between Iran and Turkmenistan is more than 1,000 kilometers. A Tajik citizen who was leaving Iran by crossing into Azerbaijan needed medical assistance at the border. “A female citizen of Tajikistan experienced health problems during the evacuation from Iran via the Azerbaijani border,” the Azerbaijani Press Agency reported. “She applied to a doctor present at the checkpoint. The Tajik citizen...

Agriculture

Escalation in the Middle East Threatens Kyrgyzstan’s Agricultural Export Potential

Escalating tensions in the Middle East are putting pressure on Kyrgyzstan’s export routes, a significant portion of which previously transited through Iranian territory. Iranian ports in the Persian Gulf and on the Caspian Sea have provided Kyrgyz producers with access to markets in the Middle East and Europe. According to the National Statistical Committee of Kyrgyzstan, cattle exports from Kyrgyzstan declined fivefold in 2024. In 2025, domestic meat prices rose sharply amid what authorities described as uncontrolled exports of cattle carcasses, primarily to Uzbekistan and Tajikistan. In response, the State Antimonopoly Service introduced maximum retail prices for lamb and beef in the domestic market and imposed a temporary ban on livestock exports to neighboring countries. To stabilize supply, the government approved meat imports from India for processing plants, while domestic production was intended to meet internal demand. Against this backdrop, many farmers shifted their focus to exporting chilled meat to Iran. In 2024, shipments resumed, beginning with an initial 10-ton consignment, after which volumes gradually increased. The Ministry of Agriculture announced plans to raise lamb exports to Iran to 1,000 tons. In addition to meat, Kyrgyz companies exported legumes, grains, and dried vegetables to Middle Eastern markets via Iranian ports. Honey, beans, and nuts were also shipped to Europe using Iranian transit routes. However, in the context of renewed military tensions, Kyrgyz exporters may now need to seek alternative logistics corridors or new destination markets. Any rerouting is likely to increase transportation costs and reduce the price competitiveness of Kyrgyz agricultural products. In 2023, the Eurasian Economic Commission signed a free trade agreement with Iran, which entered into force on May 15, 2024. The agreement provides for the creation of “green customs corridors,” the digitalization of trade procedures, and the introduction of electronic transit mechanisms. According to EEC Minister for Trade Andrey Slepnev, the deal was intended to facilitate accelerated access to the Iranian market for companies from the Eurasian Economic Union. Under the agreement, goods from EAEU member states benefit from tariff preferences, including zero or reduced import duties in Iran. Iranian products receive comparable preferences within the EAEU market. Last year, Tehran also proposed that Bishkek consider establishing its own merchant fleet, using Iranian ports in the Persian Gulf and the Caspian Sea to export Kyrgyz agricultural products and expand transit opportunities.