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...

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...