For a successful business start, financial assistance is essential. The Russian-Kyrgyz Development Fund (RKDF) actively supports enterprising citizens by providing funds to implement their ideas. In this article, we will examine the fund's contribution to the economy of Kyrgyzstan.
As of November 1, the RKDF reached a significant milestone in its investments, reporting that the total volume of implemented projects exceeded $1 billion. Since the fund's establishment, 3,658 business projects have been supported in various regions of Kyrgyzstan, strengthening its reputation as one of the leading development institutions in the country.
The investment strategy of the RKDF is aimed at sustainable economic growth. Financing is provided in key areas such as the agro-industrial sector, processing, manufacturing, infrastructure, energy, logistics, tourism, information technology, and innovation.
As of November 1, the largest portion of investments was allocated to the following areas:
● agro-industrial sector – $198.6 million,
● manufacturing sector – $140.4 million,
● hydropower – $127.6 million,
● production of building materials – $187.6 million.
These sectors create a foundation for the long-term development of the country. Fund-supported projects contribute to the establishment of modern agricultural and processing enterprises, the renewal of energy infrastructure, the expansion of production capacities, and the creation of new jobs.
The fund continues to improve entrepreneurs' access to financing, covering both large infrastructure projects and small and medium business initiatives. This approach not only modernizes strategically important areas but also stimulates economic development at the local level.
Artyom Novikov, chairman of the Russian-Kyrgyz Development Fund, in an interview with the Kabar agency, outlined key projects that are the focus of the fund's work.
“Currently, there is a clear shortage of electricity. Therefore, the construction of hydropower plants, solar, and wind power plants is becoming our priority. We began active cooperation in this direction in 2022. Currently, we are financing 16 hydropower plants, 8 of which have already been put into operation. In 2025, 4 plants will be launched, and next year, 5 new facilities are planned to be commissioned. Among them are small, medium, and large plants. All our actions align with the priorities set by the President of Kyrgyzstan for the country's development,” he noted.According to Novikov, initially, $500 million was allocated to form the fund's capital, and to date, the capital has significantly increased.
“Until 2020, over five years, the fund approved only 75 projects with investments totaling $230 million. At the same time, about $360 million was invested in Russian securities, effectively working for the economy of another country, although these funds were originally intended for Kyrgyzstan. Since 2021, President Sadyr Japarov has instructed a complete reform of the development funds' operations, including our fund. We have done significant work to update the regulatory framework, revise the investment policy, and manage risks. All funds invested in Russian securities have been returned to Kyrgyzstan and are now working exclusively for the development of our economy,” he added.
85% of the projects funded by the fund are implemented in the regions
“For regions such as Naryn, Talas, and Batken, we have created special conditions. We have lowered the financing requirements for projects. For example, in Bishkek and the Chui region, projects are financed from $1 million, while in other regions, from $200,000. In the Naryn, Talas, and Batken regions, we provide preferential financing conditions in soms, where projects can start from $100,000,” he said.
Novikov also mentioned that there are significant opportunities for the development of the mining, energy, and manufacturing sectors in the Jalal-Abad and Batken regions, while the Issyk-Kul region is the most favorable for tourism.
“Currently, we are analyzing the landscape, the potential for eco-tourism and ethno-tourism, and exploring the opportunities of each region. When entrepreneurs present projects, we assess where their implementation will be most feasible. Resources, human capital, export prospects, logistics, and other factors are taken into account. For example, in the Naryn region, the lack of a raw material base makes the construction of a plant significantly more expensive than in other regions, which can lead to the economic inefficiency of the project,” noted Artyom Novikov.
