EAEU - The Times Of Central Asia

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Excise Tax Revenues

Alcohol and Tobacco Lead Kyrgyzstan’s Excise Tax Revenues

Alcohol and tobacco products continue to be the primary sources of excise tax revenue for Kyrgyzstan’s state budget, according to the Ministry of Finance’s final report on budget revenues for the first 11 months of 2025. The report highlights excise taxes as one of the most stable and predictable sources of state income. From January through November 2025, total excise tax revenues exceeded $222 million. Alcohol producers remain the top contributors. During the reporting period, they transferred $38 million to the budget. Vodka producers accounted for the largest share at $25.5 million, while breweries contributed approximately $9.4 million. Producers of brandy, wine, and other alcoholic beverages paid significantly less. As a result, the alcohol sector continues to lead all industries in excise tax contributions. Despite reduced domestic production, tobacco companies dominate excise revenues from imports. In the same period, excise taxes on tobacco products imported from Eurasian Economic Union (EAEU) countries brought in $101 million, with an additional $4.4 million from imports originating outside the EAEU. Revenue is no longer limited to traditional cigarettes. The report notes contributions from heated tobacco products and electronic cigarettes. While their current share remains modest, steady annual growth in excise payments for these categories points to shifting consumer habits. Kyrgyz authorities consider excise taxes on alcohol and tobacco not only a fiscal mechanism, but also a tool of social policy. Gradual increases in tax rates are intended to simultaneously boost revenue and, according to government projections, reduce consumption of harmful products. The state's role in the alcohol sector warrants particular attention. In early 2023, the country’s largest alcohol producer, Ayu, along with its distilleries and vodka factories, was voluntarily transferred to state ownership. Since then, smaller industry players have voiced concern that the government may incrementally tighten its grip on the sector and effectively establish a monopoly. Overall, the data confirm that so-called “harmful” goods, alcohol and tobacco, remain the most lucrative sources of excise tax revenue for the Kyrgyz budget.

EAEU

From GDP to AI: EAEU Leaders Review Integration Milestones in St. Petersburg

The leaders of the Eurasian Economic Union (EAEU) gathered on December 21 at the Yeltsin Presidential Library in St. Petersburg, Russia, to assess the bloc’s progress and outline future integration priorities. The summit was attended by the leaders of EAEU member states, President of Russia, Vladimir Putin, President of Belarus, Aleksandr Lukashenko, Prime Minister of Armenia, Nikol Pashinyan, President of Kazakhstan, Kassym-Jomart Tokayev, President of Kyrgyzstan, Sadyr Zhaparov, and Chairman of the Board of the Eurasian Economic Commission, Bakytzhan Sagintayev. In an expanded format, representatives of Uzbekistan, Indonesia, Iran, and Cuba also participated. The meeting took place against the backdrop of continued global economic fragmentation, as the EAEU looks to position itself as a stable integration platform within an increasingly multipolar economic order. [caption id="attachment_41254" align="aligncenter" width="2560"] Image: Akorda[/caption] Opening the meeting, Vladimir Putin proposed a year-end review and highlighted key decisions aimed at deepening cooperation. He stated that the EAEU has solidified its position as an independent and self-sufficient center within the evolving multipolar world. Putin pointed to rising combined GDP figures and noted that EAEU membership has contributed to economic stability and improved living standards across member states. These assessments framed the EAEU not only as a regional trade bloc but as a long-term economic center adapting to shifting global alignments. [caption id="attachment_41258" align="aligncenter" width="2560"] Image: Akorda[/caption] Putin also cited progress in building the union’s payment infrastructure, removing trade barriers, and enhancing transport connectivity. Among individual economies, Kyrgyzstan stood out with a GDP growth rate of around 10%. Much of the focus, however, remained on translating macroeconomic gains into deeper market integration across energy, finance, and logistics. Belarusian President Alexander Lukashenko, addressing the summit as chair of the EAEU, called for renewed approaches to economic engagement with third countries over the next five years. He endorsed deeper ties with what he termed the “global majority,” while acknowledging existing challenges, such as delays in establishing unified energy markets and hesitancy among member states to form a common financial market. Nonetheless, he described the Union State of Russia and Belarus as the “locomotive of integration” in the post-Soviet region. The discussion highlighted a recurring tension for the bloc: expanding external partnerships while still completing core internal market harmonization. [caption id="attachment_41259" align="aligncenter" width="2560"] Image: Akorda[/caption] Kazakh President Kassym-Jomart Tokayev emphasized the EAEU's milestone year as it entered its second decade. He projected a 2% increase in the union’s combined GDP in 2025 and noted that intra-union direct investment had surpassed $20 billion. Kazakhstan alone saw a nearly sevenfold increase in EAEU-related investment from $600 million in 2015 to $4 billion in 2024. [caption id="attachment_41260" align="aligncenter" width="2560"] Image: Akorda[/caption] Tokayev also proposed the systematic integration of artificial intelligence technologies into EAEU operations, from trade forecasting to customs duties assessment. He highlighted the union’s potential as a global transport and logistics hub and advocated for the swift implementation of the Caspian Sea shipping agreement. Uzbek President Shavkat Mirziyoyev noted that Uzbekistan’s trade with EAEU countries had nearly doubled to $20 billion over its...

Cotton

Turkmenistan Considers Cotton Exports to Kyrgyzstan

Turkmenistan is exploring the possibility of exporting cotton to Kyrgyzstan as part of a broader effort to jointly develop the textile industry, according to Danil Ibrayev, a member of the presidium of the Eurasian Economic Union (EAEU) Business Council and President of the Kyrgyz Union of Industrialists and Entrepreneurs. He shared the update during an interview with Birinchi Radio. Ibrayev noted that both countries are currently discussing practical mechanisms for supplying Turkmen cotton to Kyrgyz enterprises, where it would be processed into finished textile products. These products could then be sold domestically or exported, including to other EAEU member states. “Turkmenistan produces large volumes of cotton. We are now discussing how to organize its delivery to Kyrgyzstan and develop textile production here,” Ibrayev said. The initiative aligns with Kyrgyzstan’s strategy to revitalize its light industry by securing stable sources of raw materials. Turkmenistan, meanwhile, is seeking to diversify export routes for its agricultural commodities, with cotton remaining a vital component of its economy. Experts cited by local media suggest that such cooperation could deepen industrial integration within Central Asia and reduce dependence on textile imports from outside the region. With growing demand for locally produced goods and the expansion of import substitution policies, regional partnerships are gaining strategic significance. Last year, Kyrgyz officials emphasized the government's commitment to expanding domestic textile production and actively sourcing raw materials from neighboring states. Cotton processing was identified as one of the quickest pathways to job creation and increased exports through value-added manufacturing.

Eurasian Development Bank (EDB)

Uzbekistan Approves Share Purchase Plan to Join Eurasian Development Bank

President Shavkat Mirziyoyev has approved Uzbekistan’s plan to acquire shares in the Eurasian Development Bank (EDB), formally initiating the country’s accession to the institution’s 2006 founding agreement. The decision was published on the official legal portal, Lex.uz. Under the approved terms, Uzbekistan will receive 777,777 shares in the EDB’s charter capital, each valued at $1,000. Of these, 168,411 shares (21.7%) are payable, while the remaining 609,366 shares (78.3%) will be paid on demand. The president’s decree also outlines a payment schedule, with funding to begin from the state budget in 2025. The Ministry of Investments, Industry, and Trade has been tasked with executing the share purchase in accordance with established procedures. The Ministry of Economy and Finance will allocate the necessary funds, which will be included in the state budget from 2026 onward. The Central Bank of Uzbekistan will serve as the depository for EDB funds and assets within the country. President Mirziyoyev described Uzbekistan’s participation in the EDB as a strategic move to strengthen regional economic ties. “Joining the Eurasian Development Bank will open new opportunities for financing infrastructure, industrial, and trade projects that directly serve our long-term development goals,” he said. Deputy Prime Minister Jamshid Khodjaev has been appointed Uzbekistan’s authorized representative to the EDB, with Deputy Minister Khurshid Teshabaev designated as his deputy. The Ministry of Investments, Industry, and Trade will serve as the country’s authorized body in dealings with the bank. This move is part of Uzbekistan’s broader strategy to deepen integration with Eurasian economic institutions. In 2024, officials confirmed that Uzbekistan aims to complete its accession to the EDB by early 2025. Uzbekistan has held observer status in the Eurasian Economic Union (EAEU) since 2020 and already participates in collaborative projects on trade, transport, e-commerce, and climate change. Founded in 2006 by Russia and Kazakhstan, the EDB now also includes Armenia, Belarus, Kyrgyzstan, and Tajikistan. The bank’s core mission is to finance large-scale investment projects that promote economic growth and regional integration.

gasoline

Russia’s Gasoline Export Ban: Limited Shock, Broader Lessons for Central Asia

Russia’s decision to prolong restrictions on gasoline exports has raised concerns in energy markets, but for Central Asia, the immediate fallout appears limited. The true significance lies in what the move reveals about structural dependencies, the role of the Eurasian Economic Union (EAEU), and the region’s long-term push to diversify energy supplies. Moscow Extends Ban On September 2, Russian officials confirmed that the government may prolong its gasoline export ban for oil producers into October, extending measures first introduced in late summer. Deputy head of the Federal Antimonopoly Service, Vitaly Korolev, told state media that the authorities were weighing a one-month extension beyond the current deadline of September 30. As reported by Reuters, the aim is to stabilize domestic fuel supplies following refinery outages and a seasonal spike in demand. Ukrainian drone strikes have also damaged key refineries, reducing Russia’s production capacity by an estimated 10–17%. The ban affects a relatively small share of Russia’s overall fuel output but highlights the state’s readiness to intervene in energy markets. Previous restrictions in 2023 and 2024 temporarily halted shipments to stabilize domestic prices. The latest decision reflects similar concerns: tightening inventories, growing demand from the agricultural sector, and pressure to prevent inflation ahead of winter. While Moscow insists the measure is temporary, traders and governments across post-Soviet space are watching closely. Russia remains one of the world’s largest fuel exporters, and even marginal policy changes can cause significant ripples. Fuel Security in Central Asia For Central Asia, the impact of the ban will be blunted by exemptions. As members of the EAEU, both Kazakhstan and Kyrgyzstan continue to import Russian gasoline without interruption. Kazakhstan’s Ministry of Energy issued a statement stressing that the country is self-sufficient, pointing to its refineries in Pavlodar, Shymkent, and Atyrau. “For countries that have signed the relevant intergovernmental agreement… these restrictions do not apply,” Minister of Energy, Yerlan Akkenzhenov, stated. Kyrgyzstan is highly dependent on Russian imports. However, according to Kyrgyzstan’s Ministry of Energy, the 1.6 million tons of fuel the country consumes annually, 93% of which is imported from Russia under intergovernmental agreements, will remain unaffected by the export ban. Since mid-summer, gasoline and diesel prices have climbed, driven by rising global oil benchmarks and repair work at several Russian refineries. Talks are already in progress to set revised supply volumes for 2026. Non-EAEU states face a different challenge. Uzbekistan sources fuel through state-brokered contracts with Russian companies, ensuring stability for now, but smaller private importers outside of these deals have reported difficulties accessing volumes. Late last year, the Chairman of Uzbekistan’s Central Bank warned that the country’s growing reliance on Russian fuel imports could increase vulnerability to supply shocks, which may translate into limited competition and rising prices. Tajikistan remains heavily dependent on Russian fuel through bilateral import agreements, and its virtually non-existent refining capacity makes it highly susceptible to external price fluctuations, a vulnerability underscored by seasonal diesel shortages and repeated spikes in domestic fuel prices. Turkmenistan, meanwhile, continues subsidizing its energy sector heavily:...

gasoline

Russian Gasoline Export Ban Will Not Impact Kyrgyzstan, Ministry Confirms

The temporary ban on gasoline exports introduced by the Russian government on August 27 will not affect Kyrgyzstan, the country’s Ministry of Energy has confirmed. As a member of the Eurasian Economic Union (EAEU), Kyrgyzstan is exempt from the restriction, which applies only to non-EAEU countries. Kyrgyzstan consumes approximately 1.6 million tons of motor fuel annually, 93% of which is imported from Russia under a 2016 intergovernmental agreement on fuel trade. While the full quotas for 2025 have yet to be fulfilled, deliveries remain uninterrupted, and negotiations are ongoing regarding 2026 volumes. Despite the exemption, domestic fuel prices in Kyrgyzstan have risen since mid-2025, reflecting wholesale price hikes in Russia. The Association of Oil Traders of Kyrgyzstan anticipates further increases in retail prices if the current upward trend at Russian refineries continues. The surge in Russian wholesale prices is attributed to multiple factors, including reduced refining capacity due to both scheduled and emergency maintenance, infrastructure damage from Ukrainian drone attacks, and ongoing difficulties in procuring technological equipment amid Western sanctions. In Kyrgyzstan, the price of AI-92 gasoline, a commonly used grade, has already reached 70 soms ($0.80) per liter. Nevertheless, retail fuel prices in Kyrgyzstan remain lower than in neighboring Tajikistan and Uzbekistan, which also depend on Russian imports but do not benefit from the EAEU exemption.