Kyrgyzstan International Affairs - The Times Of Central Asia

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Kyrgyzstan Looks to Azerbaijan to Replace Russian Fuel

Geopolitical turbulence is forcing Kyrgyz authorities to diversify approaches to securing its fuel and lubricants supplies. Azerbaijan may become one of the sources of oil products. As part of Kyrgyz president Sadyr Zhaparov's recent visit to Azerbaijan, negotiations were held with representatives of the Baku Oil Refinery, which is run by the state oil company, SOCAR. The two sides discussed the specific details of Azerbaijani oil supplies to the Junda oil refinery in Kyrgyzstan. "Azerbaijan is one of the largest exporters of oil products. In the near future, the Junda oil refinery will also start operating in Kyrgyzstan, the demand of which is more than 1 million tons of fuel per year. In this regard, the issues of oil supplies to Kyrgyzstan were discussed with the management of SOCAR. For their part, they are ready to cooperate," said Kyrgyz energy minister Taalaibek Ibrayev. Earlier, Kyrgyzstan's Ministry of Economy and Commerce discussed various risks in the fuel market. The ministry is preparing a package of measures in case of a sharp increase in prices for crude oil and petroleum products. Kyrgyzstan's economy minister Daniyar Amangeldiev referenced the agreements between Russia and Kyrgyzstan on duty-free supplies of oil products under the customs rules of the Eurasian Economic Union (EAEU). However, the ministry fears a sharp reduction in imports from Russia -- as Ukrainian forces use drones to bomb Russian refining capacity, and western sanctions make repairing and replacing parts more difficult. Currently, Kyrgyzstan's local capacity for refining petroleum products doesn't even cover 5% of domestic demand.

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U.S. to Restrict Firearms Exports to Central Asian Countries

From the end of May the U.S. will restrict exports of all firearms to non-government entities in high-risk countries, including Kyrgyzstan, Kazakhstan and Tajikistan, according to a statement from the U.S. Department of Commerce. According to the statement, the Department’s Bureau of Industry and Security (BIS) has issued a regulation “amending the Department’s licensing policy for exports of firearms, ammunition, and related components under its jurisdiction.” The decision concerns export to non-governmental organizations. Kyrgyzstan, Kazakhstan and Tajikistan are among 36 countries included on the list of high-risk nations. As part of the new changes to the regulations, the administration is also shortening the validity period of arms export licenses to one year from four years. The changes are aimed at reducing the risk of increasing instability in the regions of the world through the illicit use of American weapons.

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Kyrgyz Farmers Urged to Supply Agricultural Products to China

The Kyrgyz Ministry of Agriculture, Forestry and Water Resources has urged more domestic businesses to establish and expand trade in agricultural produce with the People's Republic of China (PRC). Kyrgyz farmers and processors currently export wheat flour, cherries, melons, grapes and soybeans to China and to increase food exports, the ministry has issued a series of guidelines. Entrepreneurs and small-business owners must first be registered on the website of the General Customs Administration of the PRC, and to satisfy Chinese demand, ensure that their produce is devoid of genetically modified organisms (GMOs) and harmful additives. "It should be noted that requirements on the Chinese side differ according to risks posed by individual plant products," warned the Kyrgyz Ministry of Agriculture, "and conducts a comprehensive inspection of produce provided by first-time exporters." In his address at an earlier conference in Bishkek, Chinese Ambassador to Kyrgyzstan Du Dewen confirmed China's need for imports from organic agriculture vendors and plans to improve trade relations with Kyrgyzstan. According to the General Customs Administration, Kyrgyzstan increased its annual export to China by over two-fold in the first quarter of 2024, and total bilateral trade turnover stands at $4.5 billion per year. In a recent list provided by Chinese authorities, Beijing requires beef, poultry, fish, as well as cowhides, sheep, goats, and washed wool and cashmere.

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Azerbaijan and Kyrgyzstan Expand Economic and Transport Cooperation

During a state visit to Azerbaijan on 24 April, Kyrgyzstan President Sadyr Japarov joined President Ilham Aliyev in bilateral talks at the 2nd gathering of the Interstate Council of Azerbaijan and Kyrgyzstan. As a result of the meeting in Baku and in support of a joint declaration to deepen relations, the leaders signed a strategic partnership agreement between Azerbaijan and the Kyrgyz Republic. In a statement to journalists, President Aliyev referred to centuries-old ties of cooperation, friendship and interaction enjoyed by Azerbaijan and Central Asia, and announced, “Today, the regions of Central Asia, the Caspian Sea and Azerbaijan are of great importance in terms of energy resources, transportation routes and trade. We are seeing great potential here and are strengthening interaction with our traditional partners from brotherly countries. Among them, cooperation with Kyrgyzstan is of particular importance.” During the meeting, the two governments signed an addendum to the agreement on the authorized capital of the Azerbaijani-Kyrgyz Development Fund, to quadruple it from $25 million to $100 million. To date, the Fund has received over 40 applications for investment projects in Kyrgyzstan and according to Aliyev, the construction of a five-star hotel financed by Azerbaijan already begun at Kyrgyzstan’s Lake Issyk-Kul, is due for completion by the end of next year. The president commended the significant increase and potential for growth in trade between Azerbaijan and Kyrgyzstan and reported Azerbaijan’s interest in investing in renewable energy projects in Kyrgyzstan. With reference to transport, he recommended that consultations proceed on coordination of transport routes in terms of digitalization and tariff policy, to make the route via the Caspian Sea and Central Asia to Europe both faster and more commercially viable. President Japarov, in turn, referenced Kyrgyzstan’s construction of a secondary school in the Aghdam district of Azerbaijan, saying, “The construction of this school is Kyrgyzstan's contribution to the restoration of peace in the regions affected by the [Azeri-Armenian] conflict.”

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U.K. Company to Manufacture Innovative Material to Improve Irrigation in Kyrgyzstan

Back in November 2023, Chairman of the Cabinet of Ministers of the Kyrgyz Republic, Akylbek Japarov met head of Concrete Canvas, Will Crawford in Cardiff to discuss the establishment of a plant in Kyrgyzstan. On 23 April representatives of the company travelled to the Chui region of northern Kyrgyzstan for further negotiations attended by Kyrgyzstan’s Deputy Chairman of the Cabinet of Ministers - Minister of Water Resources, Agriculture and Processing Industry, Bakyt Torobayev and British Foreign Secretary David Cameron. Concrete Canvas, produces waterproof flexible concrete filled geosynthetic composite mats used for lining irrigation canals to prevent erosion and reduce seepage losses. Hailing the benefits of the product, Torobayev stated, “Across Kyrgyzstan, the length of canals is 30 thousand kilometres, including 11 thousand kilometres of -unsurfaced- canals. By laying concrete material on these canals, we will avoid seepage of water and ensure its efficient use. Kyrgyzstan is an agricultural country with a lot of arable land, so we really need such materials. The plan is to build the company’s plant in the Osh region in south Kyrgyzstan in the near future.” Material produced by the Kyrgyzstan plant will meet domestic demand and could also be exported to Russia and Uzbekistan.

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Kyrgyzstan and U.S. Review Political, Security and Economic Cooperation

On April 22 Bishkek hosted Annual Bilateral Consultations led by the Deputy Foreign Minister of the Kyrgyz Republic Aibek Moldogaziev and U.S. Deputy Assistant Secretary of State for South and Central Asian Affairs John Mark Pommersheim. Referencing the historic C5+1 Summit held on September 22, 2023 in New York, the parties commended its positive impact on regional cooperation and the U.S.-Kyrgyzstan commitment to enhancing U.S.-Central Asia regional partnership. Deputy Foreign Minister Moldogaziev and Deputy Assistant Secretary Pommersheim reaffirmed the importance of annual bilateral consultations in advancing shared priorities, including political and security cooperation, economic partnership and support for civil society and rule of law. Under security cooperation, discussions focused on counterterrorism, border protection, global health security, and continued defense cooperation, with the United States reiterating its unwavering support for Kyrgyzstan’s sovereignty, territorial integrity, and independence. Both sides emphasized their commitment to grow and diversify the Kyrgyz economy, increase U.S. private sector investment, improve regional connectivity and trade, expand agricultural cooperation, and advance partnership on critical minerals and the green economy. Collaboration on the continued commitment to addressing social issues included furthering economic opportunities for persons with disabilities, and measures to protect public health. Looking towards the realization of creating a resilient, prosperous, and secure Kyrgyzstan, delegates listed media freedom, a strong civil society, respect for human rights -including women’s rights- stronger protection against gender-based violence, judicial independence, and combating corruption, as essential. The parties also discussed the importance of continuing to increase cooperation through educational and English language programmes, emphasizing the important role of direct personal interaction in the countries’ bilateral relationship.