Our People > Sergey Kwan

Sergey Kwan

Journalist

Sergey Kwan has worked for The Times of Central Asia as a journalist, translator and editor since its foundation in March 1999. Prior to this, from 1996-1997, he worked as a translator at The Kyrgyzstan Chronicle, and from 1997-1999, as a translator at The Central Asian Post.
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Kwan studied at the Bishkek Polytechnic Institute from 1990-1994, before completing his training in print journalism in Denmark.

Articles

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...

2 months ago

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.

2 months ago

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...

2 months ago

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...

2 months ago

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...

2 months ago

Fuel Supply

Kyrgyzstan Turns to China as Russian Fuel Supplies Falter

Kyrgyzstan, which has depended almost entirely on Russian fuel for years, is accelerating its search for alternative suppliers. On August 17, the authorities began direct talks with China’s Sinopec. The search has become more urgent as Russian supplies have grown less reliable and gasoline prices in Bishkek have risen. Some filling stations have also periodically run out of AI-95 gasoline. Erlist Akunbekov, Kyrgyzstan’s deputy chairman of the Cabinet of Ministers, met with executives from China Petroleum & Chemical Corporation (Sinopec) in Urumqi on August 17. Representatives of more than ten Kyrgyz oil-sector companies traveled to China with him. The sides discussed direct supplies of petroleum products, including transportation and customs clearance. “Kyrgyzstan is interested in increasing supplies of petroleum products from China. This area has great potential and, I believe, represents a long-term direction for trade and economic cooperation between our countries,” Akunbekov said during the meeting. Until recently, Bishkek had little reason to change the established arrangement. Russia is relatively close and supplies petroleum products to Kyrgyzstan duty-free under agreed indicative balances within the Eurasian Economic Union. Russian fuel accounts for more than 90% of Kyrgyzstan’s imported petroleum products. From January through May 2026, Russia supplied more than 251,000 tons of gasoline and 235,150 tons of diesel fuel. Jet fuel deliveries reached 48,150 tons. But the reliability of this model has come into question amid problems at Russian refineries. Ukrainian drone strikes and refinery maintenance have reduced available supplies. Seasonal demand and export restrictions have added further pressure, while renewed attacks in late July and early August worsened the situation. By mid-August, restrictions on fuel sales were in place in at least ten Russian regions, while gasoline sales on the St. Petersburg International Mercantile Exchange had fallen by about 20% since the beginning of the month. Particularly significant for Central Asia was the strike on the Orsk refinery in Russia’s Orenburg region, near the border with Kazakhstan. The refinery, with an annual processing capacity of about 6 million tons, halted operations after an August 11 attack. Regional authorities have said repairs could take up to six months. For Kyrgyzstan, problems in Russia quickly show up at the pump. In May, a liter of AI-92 gasoline in Bishkek cost an average of 78.4 soms, or about $0.90. By August 17, the price of the country’s most popular gasoline grade had reached 87.9 soms, about $1 per liter. AI-95 was selling for 109.9 soms, about $1.25, while diesel cost 99.9 soms, about $1.14 per liter. Some filling stations have been unable to offer AI-95, while others have temporarily stopped operating. The government initially introduced price controls in late May, then partially rolled them back in July as maintaining fixed prices became increasingly difficult amid rising import costs. The search for alternatives began before the latest meeting with Sinopec. Kyrgyzstan has held talks with Kazakhstan and Belarus, while separate discussions have involved Uzbekistan. Azerbaijan and Turkmenistan have also been approached. Agreements have already been reached with Belarus for supplies of diesel and...

2 months ago

Labor Market

Kazakhstan South Korea Working Visa Route Opens Under EPS

South Korea is opening an official route into its labor market for citizens of Kazakhstan, thousands of whom already work in the country without legal status. Seoul has added Kazakhstan to its Employment Permit System (EPS), a government program that allows South Korean employers facing labor shortages to recruit workers from participating countries. Kazakh workers are expected to begin arriving through the system in 2028. Kazakhstan has become the 18th country designated as a sending country under the EPS, according to Kazakhstan’s Ministry of Labor and Social Protection. Uzbekistan, Kyrgyzstan, and Tajikistan already participate in the program. Kazakhstan had sought admission since 2023, but its large population of undocumented workers in South Korea became the main obstacle to an agreement. According to figures cited by Kazakh officials in 2025, about 15,000 Kazakhstanis were working in South Korea, roughly 11,000 of them without legal status. The EPS allows foreign workers to obtain E-9 visas for jobs in sectors facing labor shortages, including manufacturing, construction, agriculture, and fisheries. Workers are generally admitted for three years, with extensions allowing them to remain for up to four years and 10 months. Recruitment will not begin immediately. Kazakhstan and South Korea must first sign a memorandum of understanding and establish the arrangements for the Korean-language test required under the EPS (EPS-TOPIK), which Kazakh officials have said will be conducted at the National Testing Center in Almaty. Kazakh citizens can travel to South Korea visa-free for short stays, but this does not give them the right to work. Some visitors have overstayed and found jobs in construction, agriculture, and other sectors. The scale of undocumented employment complicated Kazakhstan’s attempt to join the EPS. In the fall of 2025, Kazakh officials acknowledged that Seoul wanted concrete measures to reduce illegal migration. Astana prepared a roadmap aimed at reducing the number of undocumented workers and preventing those recruited through a future legal scheme from overstaying. For prospective workers, the change is straightforward: instead of entering South Korea as a visitor and seeking work without authorization, applicants will be able to apply from Kazakhstan and enter the country with permission to work. The agreement forms part of a broader effort by Kazakhstan to create legal routes for its citizens working abroad. Astana has also reached labor-migration agreements or cooperation arrangements with countries including Qatar and the United Kingdom, while pursuing similar deals elsewhere.

2 months ago

Oil and Gas

U.S. Firm to Test Oilfield Water Recycling in Kazakhstan

U.S.-based IBL Elements will test technology in Kazakhstan for treating water produced during oil and gas extraction. The treated water could be reused, while the substances it contains will be studied to determine whether valuable and critical minerals can potentially be recovered. IBL Elements, the National Hydrogeological Service Kazhydrogeology, and oil producer Kazakhoil Aktobe have signed a memorandum of cooperation. The parties are preparing a pilot project to test technologies for treating industrial and produced water at oil and gas facilities. Produced water occurs naturally in underground formations and is brought to the surface along with oil and gas. Once separated from hydrocarbons, it can be treated for reuse or disposal, or reinjected underground. The new project is intended to determine whether some of this water can be returned to industrial use. Specialists will also study its composition and the possibility of recovering minerals. For now, the project is limited to research and testing. No commercial extraction of any elements has been announced. IBL Elements is based in Oklahoma and develops technologies for treating oilfield wastewater and recovering minerals from brines. The company says it is developing iodine extraction technology and also plans to recover lithium and other minerals. If the trials are successful, the technology could also be used at other oil and gas facilities in Kazakhstan, according to Bolat Bekniyaz, chairman of Kazhydrogeology. The project comes as American interest in Kazakhstan’s critical minerals is growing. In June, representatives of more than 20 U.S. companies and government agencies attended the AMM 2026 mining and metallurgy congress in Astana. Washington is looking at projects in Kazakhstan involving not only mining, but also processing and the development of new supply chains. For the IBL Elements project, critical minerals are only one part of the equation. The other is growing pressure on Kazakhstan’s water supplies. The country uses about 25 billion cubic meters of water annually, with industry accounting for roughly a quarter of that amount. Kazakhstan’s new Water Code requires industrial enterprises and heat producers to gradually transition to circulating and reused water supply systems. So far, 168 transition plans have been prepared. The authorities aim to increase the share of reused water in industry from 13% to 28% by 2030. The issue is particularly acute in Kazakhstan’s oil-producing west, where freshwater shortages coincide with large volumes of water brought to the surface during oil production. The outcome of the pilot will therefore depend on two factors: whether this water can be treated for reuse and whether it contains minerals at concentrations high enough to make their recovery economically viable.

2 months ago

Electricity Demand

Kyrgyzstan Electricity Imports to Rise Again in 2026

Kyrgyzstan will again have to import a significant share of its electricity in 2026. With consumption expected to reach 19.6 billion kWh, domestic power plants are projected to generate 15.5 billion kWh. The difference, around 4.1 billion kWh, will have to be covered by imports. For a country where most electricity is generated by hydropower plants along the Naryn River, many of them built during the Soviet period, the current deficit is the result of a long-running gap between rising demand and the construction of new large-scale generating capacity. The new estimates from the Energy Ministry were presented on August 10 during preparations for the heating season. A year earlier, Kyrgyzstan imported about 3.9 billion kWh, meaning that its dependence on external supplies is expected to increase slightly this year. The reasons go far beyond the current period of low water levels. Kyrgyzstan’s power system in its present form developed as part of the integrated Soviet Central Asian network. The republic controlled the upper reaches of the Naryn River, while reservoirs and hydropower plants built along it served two purposes: generating electricity and regulating water flows for agriculture downstream, primarily in Uzbekistan and Kazakhstan. The first major plant on the Naryn was the Uch-Kurgan Hydropower Plant, commissioned in the early 1960s. Construction of the much larger Toktogul hydropower complex began in 1962. Toktogul was commissioned in January 1975. It was followed by the Kurpsai, Tash-Kumyr, and Shamaldy-Sai hydropower plants. This cascade became the backbone of Kyrgyzstan’s electricity sector. The Soviet system was not designed to make each republic self-sufficient in energy. Kyrgyzstan stored water during the colder months and released it for downstream irrigation in summer, generating electricity that fed into the regional grid. In return, it received fuel and power from elsewhere in the Soviet system during winter. After the collapse of the Soviet Union, that integrated system fragmented, while the power plants and reservoirs remained. Construction of new large facilities then almost stopped. Work on Kambarata-2 began in 1986 but was suspended after the collapse of the Soviet Union; its first generating unit was not commissioned until 2010. As a result, a substantial share of Kyrgyzstan’s present-day electricity generation still comes from plants built several decades ago. The hydropower plants themselves are gradually being modernised. Following rehabilitation, Toktogul’s capacity increased from the original 1,200 MW to 1,440 MW. But upgrading existing generating units does not solve the other problem: electricity consumption is growing faster than new sources of generation are being added. In 2025, the country consumed about 19.1 billion kWh, roughly 860 million kWh more than a year earlier. Imports totaled about 3.9 billion kWh from Turkmenistan, Uzbekistan, Kazakhstan, and Russia. This year, imports are expected to increase to 4.1 billion kWh. The situation also depends on water availability. The Toktogul Reservoir allows part of the Naryn’s flow to be shifted between seasons, so its water level directly affects the generating capacity of the country’s largest hydropower plant. At the August 10 meeting, the authorities said the reservoir...

2 months ago

Bilateral Investment

Kyrgyzstan’s Bilateral Development Funds Back Industry and Energy Projects

Kyrgyzstan has established bilateral development funds with Russia, Uzbekistan, Azerbaijan and Hungary that are financing manufacturing and energy projects across the country. The Russian-Kyrgyz Development Fund (RKDF) is by far the largest. In November 2025, President Sadyr Japarov said it had invested more than $1 billion in Kyrgyzstan and financed more than 3,500 projects since its creation. At the time, the fund was participating in 14 hydropower and renewable energy projects worth more than $175 million. One of them is the 25-megawatt Bala-Saruu hydropower plant in Talas Region, for which the RKDF allocated $10 million to help complete construction. The newer Azerbaijan-Kyrgyz Development Fund has also begun financing identifiable projects. By November 2025, it had allocated $14.4 million to four projects worth a combined $52.7 million. They included KG TEX, a garment factory with 300 jobs, and the 9-megawatt Tyup small hydropower plant. The Uzbek-Kyrgyz Development Fund financed the 6.7-megawatt Kogart hydropower plant. The project began in August 2022 and was ready for operation by July 2024, according to the fund. In May 2026, the Hungarian-Kyrgyz Development Fund opened a long-term credit line for NEMAN-PHARM. The first financing stage was earmarked for purchasing pharmaceutical products in Hungary. Projects financed by the fund must include a Hungarian component of at least 30%. Its published loan rates range from 1.5% to 7.25% a year, with terms of up to 10 years. These institutions are operating during a period of rapid economic expansion in Kyrgyzstan. Gross domestic product grew by 11.9% year-on-year in the first half of 2026. The International Monetary Fund has warned of emerging signs of overheating and expects re-export and trade-related activity to plateau. The number of state-backed financing options is also set to increase. The Turkic Investment Fund has begun practical operations and is expected to provide financing for joint projects across Central Asia. For Kyrgyzstan, these funds provide access to long-term capital for projects that may struggle to secure conventional financing. Their success will ultimately depend on whether the businesses and infrastructure they support remain viable and repay their loans.

3 months ago

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