Today, November 24, 2014, an Agreement was signed between the Government of the Kyrgyz Republic and the Government of the Russian Federation regarding the Kyrgyz-Russian Development Fund.
In the presence of the President of the Kyrgyz Republic, Almazbek Atambayev, the Agreement on the Kyrgyz-Russian Development Fund was signed by the Deputy Minister of Finance of the Kyrgyz Republic, Mirlan Baigonchokov, and the Deputy Minister of Finance of the Russian Federation, Sergey Storchak.
President Almazbek Atambayev emphasized the importance of creating the Kyrgyz-Russian Development Fund for the development of Kyrgyzstan's economy and its adaptation to the conditions of participation in integration processes in the Eurasian space.
The head of state stressed that the Fund's resources should be used to implement specific projects in various sectors that will benefit both Kyrgyzstan and Russia. The President noted that priority should be given to projects in the fields of logistics, the garment and processing industries, agriculture, and mortgage lending.
President Almazbek Atambayev highlighted the need for the effective operation of the Development Fund, aimed primarily at supporting domestic entrepreneurs and enhancing their competitiveness in the context of Kyrgyzstan's accession to the Eurasian Economic Union.
The authorized capital of the Fund will amount to 500 million US dollars. The first 100 million will be allocated by December 31, 2014. An additional 400 million will be provided by May 29, 2016. Furthermore, the Russian side commits to attract a highly concessional loan of 500 million US dollars to the Fund under the terms of the International Development Association and without the guarantee of the Government of the Kyrgyz Republic.
For reference: The Kyrgyz-Russian Development Fund is being established to implement the Agreement between the Government of the Kyrgyz Republic and the Government of the Russian Federation on the development of economic cooperation in the context of Eurasian economic integration, signed on May 29, 2014, in the city of Astana.
The Fund is established to promote economic cooperation between the Kyrgyz Republic and the Russian Federation, modernization and development of the economy of the Kyrgyz Republic, and effective utilization of opportunities arising from participation in Eurasian economic integration.
The Fund will finance self-sustaining projects in priority sectors of the economy of the Kyrgyz Republic by providing loans, participating in equity, and using other financial instruments in relations with economic entities registered and operating in the territory of the Kyrgyz Republic, including in the following areas:
- agro-industrial complex;
- garment and textile industry;
- processing industry;
- mining and metallurgy;
- transportation;
- housing construction;
- trade;
- entrepreneurship development;
- infrastructure development.
