"Goods May Become More Expensive". How the Conflict in the Middle East Affects the Economy of Kyrgyzstan

Евгения Комарова Exclusive
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The conflict in the Middle East continues to escalate, and signs of de-escalation are absent. This conflict is already affecting global processes, including the situation in Kyrgyzstan.

Initially, the consequences were felt by workers in the tourism sector.

At the moment, trips by Kyrgyz citizens for Umrah are temporarily restricted. The Ministry of Foreign Affairs has urged citizens to refrain from traveling to this region. The evacuation of Kyrgyz citizens from Middle Eastern countries is also ongoing.

In the long term, this may have a negative impact on the republic's economy.

Experts warn that changes in fuel prices will depend on fluctuations in fuel prices at Russian oil refineries, which directly influence price formation in Kyrgyzstan.

Let's consider how the current situation in the Middle East is already affecting the country's economy.

Remittances from Migrants

According to the National Bank, in 2025, only $76.4 million was received from countries far abroad, not including remittances from Turkey, the USA, and South Korea.

Rapid Change of Circumstances

Igor Golubev, deputy head of the Association of International Freight Carriers of Kyrgyzstan, noted that military actions have virtually halted the flow of goods from Iran and complicated transit with Turkey. Supplies from the port of Bandar Abbas (Iran), located near the Hormuz Strait and the ports of the UAE, have also become problematic.

“We are currently facing difficulties in sea and air delivery. Previously, goods that were routed through Pakistan and Iran were shipped from the port of Karachi (Pakistan). However, the tense relations between Afghanistan and Pakistan, where combat actions are also taking place, have stopped this transit,” Golubev explained.

“We are closely monitoring the situation; news from Pakistan is critically important for us. It is impossible to predict anything. Everything can change instantly,” he added.

Golubev also noted that goods from the Persian Gulf countries are arriving with delays. The options are either to wait or to change transportation routes.

“Some cargo is being redirected through Chinese border points, but such logistics will be more expensive. Our choices are limited. Goods from America can be received via Georgia, but vehicles, equipment, and spare parts were delivered from the UAE. Now they will be more expensive and will take longer to arrive,” summarized the representative of the freight carriers.

Fuel

The conflict has caused serious disruptions in the supply of oil and gas through the Hormuz Strait, which is the main route for one-third of liquefied natural gas and nearly a quarter of the world's oil.

"Goods may become more expensive". How the conflict in the Middle East affects the economy of Kyrgyzstan

At the moment, Kyrgyzstan is not experiencing shortages, as fuel is being supplied from Russia based on the existing intergovernmental agreement between the energy ministries of both countries without tariffs.

“The fuel market is under the control of the service, and in the short term, there is no negative impact on domestic prices. According to oil traders, the fuel market remains stable, and the supply of petroleum products is being carried out without interruptions and according to plan. There are enough reserves for two months,” assured the State Anti-Monopoly Service.

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Experts note that the impact of the conflict on economic processes will become noticeable as early as next month when the results on income and losses are summarized. Nevertheless, they hope for a swift resolution of the conflict in the Middle East and the restoration of economic ties.
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