Kyrgyzstan - The Times Of Central Asia

Viewing results 19 - 24 of 2753

Fuel Prices

Kyrgyz Government Considers Countermeasures as Fuel Prices Rise

In recent months, there has been a gradual but steady increase in motor fuel prices in Kyrgyzstan, driven in part by higher import costs from Russia, the country’s main supplier of gasoline and diesel. Analysts have linked pressure on regional fuel markets to higher global crude prices following the U.S.-Israeli war with Iran, as well as reduced Russian refinery output after Ukrainian drone strikes on oil-processing facilities. In Bishkek, AI-92, a widely used lower-octane gasoline grade, cost an average of 78.4 soms (about $0.89) per liter as of May 14, making it more expensive than comparable fuel in both Russia and Kazakhstan. On May 21, Chairman of the Cabinet of Ministers and Head of the Presidential Administration Adylbek Kasymaliev met with the heads of the country’s major fuel trading companies to discuss domestic fuel supplies. Kasymaliev said the latest price increases were linked to instability in the Middle East, which has pushed up international petroleum prices. According to him, the government has so far managed to prevent sharp increases at gas stations through the use of accumulated fuel reserves. Officials also reviewed possible financial and tax support measures for the sector if instability in global markets continues. Among the options under consideration is direct state subsidization of fuel imports. Kasymaliev urged fuel traders to work closely with the government to help maintain supplies and limit pressure on consumers. He also instructed authorities to monitor the market for signs of hoarding, artificial fuel shortages or speculative price increases. Despite rising fuel prices in Kyrgyzstan, the country's fuel market remains relatively stable thanks to guaranteed deliveries from Russia. According to the country’s Antimonopoly Regulation Service, current fuel reserves are sufficient for between one and one-and-a-half months. The agency said that if fuel prices continue to rise, the government could introduce additional stabilization measures. These could include temporary tax cuts for importers of Russian fuel, subsidy programs and preferential lending mechanisms. Officials say such measures could help smooth price fluctuations in the domestic market and maintain stability amid the current geopolitical environment. Kyrgyzstan’s annual demand for motor fuel is estimated at approximately 1.6 million tons. According to First Deputy Chairman of the Cabinet of Ministers Daniyar Amangeldiev, the country currently imports around 1.2 million tons of fuel annually. The Junda oil refinery in northern Kyrgyzstan is capable of producing up to 800,000 tons per year. However, the facility is currently undergoing large-scale modernization aimed at reducing harmful emissions. On May 19, Kasymaliev met with the Chinese management of the Junda refinery to discuss the progress of modernization work and the timeline for resuming production. Kasymaliev said bringing the refinery back online would be important for Kyrgyzstan as global energy markets remain volatile.

SMEs

Small Businesses in Kyrgyzstan Struggle With Expensive Loans and Border Delays

Small and medium-sized businesses now account for more than half of Kyrgyzstan’s economy, but entrepreneurs continue to face high borrowing costs, logistical bottlenecks and rising operating expenses, according to First Deputy Chairman of the Cabinet of Ministers Daniyar Amangeldiev. According to Amangeldiev, the share of small and medium-sized enterprises (SMEs) in the national economy has reached 51.7%, making the sector one of the country’s key drivers of employment and domestic demand. “The main obstacle at the moment is access to financing,” he said during a press conference in Bishkek. Amangeldiev noted that average lending rates in Kyrgyzstan remain at around 19-20%, while the profitability of many businesses does not exceed 15%. As a result, borrowed capital becomes prohibitively expensive, limiting companies’ ability to expand. The government is currently negotiating with the banking sector to reduce loan costs and has already allocated approximately $3.4 million to support small and medium-sized businesses. Authorities have also introduced interest-rate subsidies to expand entrepreneurs’ access to financing. In addition to expensive credit, businesses continue to face logistical and customs-related difficulties. According to Amangeldiev, delays in certification procedures and border clearance disrupt supply chains and reduce trade turnover. “While cargo remains stalled at the border, entrepreneurs’ financial resources are effectively frozen together with the goods,” he said. The government is placing particular emphasis on the agricultural sector, which remains one of the country’s largest employers. The Cabinet of Ministers has instructed financial institutions to accelerate loan issuance for agricultural producers, noting that the speed of capital turnover is critical for agribusiness operations. The Kyrgyz authorities are continuing efforts to bring more businesses out of the shadow economy. In 2024, the government abolished part of the voluntary patent-based trading system and required entrepreneurs, including small traders and some tax-exempt businesses, to use cash registers and digital fiscal systems. The reforms triggered resistance among some entrepreneurs. However, authorities argue that increasing transparency in trade is necessary to broaden the tax base and modernize the economy.

TCA Interviews

From a Student Initiative to a Youth Movement: How Volunteering Is Developing in Kyrgyzstan

In 2023, Kyrgyzstan adopted a law establishing the legal basis for volunteer activity, while the Ministry of Culture, Information and Youth Policy has been named Kyrgyzstan’s focal point for the International Year of Volunteers 2026. UN Volunteers has also reported that nearly 100 youth and volunteer organizations are active across the country, with major public events expected to rely heavily on trained volunteers. The Times of Central Asia spoke with Aruuke Karmyshakova, executive director of Active Volunteers, about why more young people in Kyrgyzstan are entering volunteer work, how the organization cooperates with state bodies, international partners, and educational institutions, and why sustainable funding remains a central challenge for the sector. TCA: What gap did Active Volunteers set out to fill when it was founded, and how did the organization develop from there? Aruuke: Active Volunteers was founded in 2017 through the initiative of Bekbolot Stalbekov. Bekbolot wanted to create a platform where students could develop not only academically, but also beyond the classroom, to try themselves in real projects, gain practical experience, and show initiative. At first, it was a small student group of like-minded people. But it very quickly became clear that there were many active and versatile young people like this. With each new project, the number of participants grew, the team expanded, and the initiatives became increasingly large-scale. That is how, from a small student idea, we gradually grew into a full-fledged youth foundation with many different areas of work. TCA: How has the organization’s mission evolved as its work has expanded into different areas? Aruuke: Today, we define our mission as the comprehensive, multi-sphere development of young people and society as a whole. It is not one single direction, but a complex approach: we are involved in charitable assistance, educational projects, cultural initiatives, and support for civic activity. We help young people develop in science, art, media, leadership, ecology, and many other fields. The main idea is that every participant should be able to unlock their potential while also bringing real benefit to the country. Members of our team, Malika Baibolotova, Nurzhigit Kazygulov, Sofya Khurshudova, and Elaman Zhusupov, are already participating in international projects such as the “Strong Youth - Strong Country” program from the Civic Participation Foundation, funded by the European Union and UNICEF. They are undergoing regular training, which will continue until 2027-2028, and they will then be ready to establish and implement their own initiatives and projects. TCA: Has the profile of volunteers in Kyrgyzstan changed in recent years? Aruuke: Previously, most volunteers were university and college students, but since 2023 the picture has changed noticeably. Today, the age range has become much wider: school students starting from the age of 13-14, university students, young specialists, and also middle-aged people come to us. Everyone finds their own niche, some help in education, some in cultural events, and others in social projects. But what unites everyone is one thing: a sincere desire to contribute to the development of Kyrgyzstan. [caption id="attachment_49262" align="aligncenter" width="2560"] @Active...

Border Disputes

UN General Assembly Adopts Kyrgyzstan-Led Resolution on Border Disputes

On May 20, the United Nations General Assembly adopted by consensus a Kyrgyzstan-backed resolution titled “Peaceful Settlement of Border Disputes,” Kyrgyzstan’s Foreign Ministry announced. More than 40 countries co-sponsored the document. The resolution was presented by Kyrgyzstan jointly with Tajikistan and Uzbekistan. According to the ministry, the main purpose of the resolution is to share with the international community the historic achievement of the three Central Asian countries in resolving border disputes through peaceful means, including dialogue and negotiations, in accordance with the UN Charter and international law. The resolution proposes what Kyrgyz officials described as a simple and universal principle: when states face border disputes, the way forward should be peaceful, lawful, and based on dialogue. According to the ministry, the Central Asian achievements highlighted in the resolution offer the international community an example of good-neighborly relations and peaceful dispute resolution. The adoption of the resolution is another confirmation of the ability of Kyrgyzstan and its neighbors to peacefully resolve complex issues that had remained unsettled for decades, the ministry stated. Kyrgyzstan, Tajikistan, and Uzbekistan have recently resolved long-standing border delimitation disputes in the Ferghana Valley inherited after the collapse of the Soviet Union. During a summit in Khujand, northern Tajikistan, on March 31, 2025, Kyrgyzstan’s President Sadyr Japarov, Tajikistan’s President Emomali Rahmon, and Uzbekistan’s President Shavkat Mirziyoyev signed a historic agreement on the junction point of the three countries’ state borders, effectively ending decades-long territorial disputes. The three leaders also inaugurated the Friendship Stele, marking the exact point where the borders of the three countries meet. The monument symbolizes friendship among the three nations, the resolution of long-standing border issues, and a new stage of regional cooperation. The Times of Central Asia previously reported on Kyrgyzstan’s initiative to establish the Dostuk (Friendship) International Trade and Economic Park jointly with Tajikistan and Uzbekistan in the border area where the three countries meet. The proposed project is expected to increase cross-border trade, attract investment, and create new economic opportunities across the region.

Sanctions

Kyrgyzstan Orders 50 Companies to Cease Activity Over Sanctions Risks

Kyrgyzstan has ordered 50 companies to cease activity after state agencies flagged them for sanctions risks, as Bishkek faces growing pressure over Russia-linked trade and payment channels. The move follows months of pressure from Western governments, which say some routes through Central Asia can be used to bypass sanctions imposed over the war in Ukraine. The Ministry of Justice did not name the companies, their owners, or their sectors. It also did not say whether any of them had direct links to Russia. The list was prepared by the Ministry of Economy and Commerce and other state bodies after checks into possible attempts to evade sanctions restrictions. The order was issued under an interagency mechanism for identifying dishonest participants in foreign economic activity and transactions with increased sanctions risks. The mechanism allows state bodies to use a simplified procedure to terminate the activity of legal entities after a formal submission. The Justice Ministry linked the move to efforts to protect the national economy from possible secondary sanctions. The European Union adopted its 20th sanctions package against Russia on April 23, less than a month before the Ministry of Justice order. The package added measures on energy, finance, trade, and crypto channels. It also used the EU’s anti-circumvention tool against Kyrgyzstan for the first time. Under that measure, the EU banned exports of computer numerical control machines and radios to Kyrgyzstan when there is a high risk that the goods will be re-exported to Russia. The Council of the EU said trade data showed a sharp rise in re-exports of common high-priority items through Kyrgyzstan to Russia. The EU treats the goods as sensitive because they can support industrial production, communications, and military-linked supply chains. The financial aspect of the sanctions has also reached Kyrgyzstan. The EU said it was targeting four financial institutions in third countries for circumventing sanctions or connecting to Russia’s financial messaging system. Local media identified Keremet Bank and Capital Bank as the Kyrgyz banks included in the package. The EU also designated a Kyrgyz entity that operates a platform where significant amounts of the A7A5 stablecoin are traded. Local outlets identified the entity as TengriCoin, registered in Bishkek, and linked it to the Meer platform. The pressure on Kyrgyz banks and crypto companies has been growing. The U.S. Treasury designated Keremet Bank in January 2025, saying the bank had coordinated with Russian officials and Promsvyazbank, a sanctioned Russian state defense lender, to support cross-border transfers. In August 2025, the UK government sanctioned Capital Bank of Central Asia, its director Kantemir Chalbayev, Grinex, Meer, TengriCoin, Old Vector, and other targets linked to Russian payment and crypto channels. London said the ruble-backed A7A5 token had moved $9.3 billion on a dedicated crypto exchange in four months. Kyrgyz officials have rejected the broader claim that the country helps Russia evade sanctions. The Foreign Ministry said on April 28 that Kyrgyzstan acts within national laws and its international obligations. It said Bishkek had supplied the requested documents to European partners...

Rule of Law

American Professor and Longtime Central Asia Researcher Denied Entry to Kyrgyzstan

Professor Steve Swerdlow of the University of Southern California (USC) arrived at the Bishkek airport at 4:30 am on May 19, leading a group of 16 students for a trip of a lifetime: two weeks in Kyrgyzstan and two weeks in Kazakhstan. Swerdlow, a veteran Central Asian researcher who had previously worked for Human Rights Watch in Uzbekistan (2010), Kazakhstan (2011), and Kyrgyzstan (2012-2019), had led similar trips to Kyrgyzstan with USC students in 2022 and 2024. This time, however, there were problems immediately upon his arrival at Bishkek. “I was taken out of line at passport control and whisked away to the departure area, and then taken to a little room,” Swerdlow told TCA. “There were three guys there and they said, almost with a smirk, that we only work here and were told not to allow you into the country.” Swerdlow attempted to get clarification as to why he was being denied entry to Kyrgyzstan, but the border officials merely said their instructions were that Swerdlow was not to be admitted. They told him that an official letter stating the reason for the denial of entry would come, but Swerdlow said he was never given such a document. The border officials said he was to be deported on a plane to Istanbul that was due to leave at 10:00 am. The officials gave Swerdlow his passport with a letter in it addressed to the people at Turkish Airlines, who later showed Swerdlow the contents. It said only that Swerdlow was being denied entry to Kyrgyzstan because entry to Kyrgyzstan was “closed” to him. Swerdlow’s passport was returned to him when he reached Istanbul, but there was another complication. Kyrgyz border control officers had told Turkish Airlines that Swerdlow was being sent all the way back to Los Angeles, so his luggage was transferred at Istanbul to a flight preparing to leave for California. He managed to retrieve his luggage from that flight but remains in Istanbul, where he is trying to coordinate with his students, USC, and officials in Kyrgyzstan. The students are Swerdlow’s main concern. The trip was organized with help from the American University of Central Asia in Bishkek, so the students have accommodation, and there are people who speak English helping them. During previous trips, students met with people from Kyrgyzstan’s presidential administration, the human rights ombudsman, and visited parliament. It is unclear if this group will now be able to do the same. Some parts of the trip will almost surely be canceled. Swerdlow mentioned that the group had yurts reserved at Tamga on the shore of Issyk-Kul, the immense alpine lake that is Kyrgyzstan’s premier tourist attraction. “It was going to be a cultural event,” Swerdlow said. “We were going to watch a kok-boru match, attend some cooking classes for local dishes, and a reading of Manas.” Kok-boru is a national sport in Kyrgyzstan, something like polo with players on horseback trying to drag a replicated sheep carcass to goals at either end...