AGP Executive Report

SCO Summit Prep: Kazakhstan and Kyrgyzstan discussed boosting practical cooperation ahead of the Shanghai Cooperation Organisation summit in Bishkek on Sept 1, with Kazakhstan reaffirming support for Kyrgyzstan’s SCO chair priorities. Insurance & Pensions: OSAGO payouts in Kyrgyzstan topped 120.1 million soms in the first seven months of 2026, and payments in the latest week exceeded 2.98 million; meanwhile, pensions rise from Oct 1 as the insurance part increases by 20% (with minimum/maximum thresholds). Competition Rules Update: Kyrgyzstan’s Economy Ministry is revising how authorities identify and prevent anti-competitive agreements, including a new ban on certain vertical restrictions tied to online sales and a voluntary disclosure path to reduce liability. Banking & FX: The National Bank sold $196.2 million in its 10th FX intervention of 2026 to meet market demand and smooth supply gaps. EXPO & Investment Infrastructure: President Japarov signed a decree creating the National EXPO Kyrgyzstan exhibition complex in Bishkek and Chui region, aimed at lifting investment and export capacity. Public Safety & Fraud: Bishkek reported a bus accident injuring two teenage girls; prosecutors also warned about scams using fake tolom.kg and 24.kg-style branding, urging users to verify official sites only. Energy Projects: Arctech secured 425MW of solar tracker projects across Central Asia, including 325MW in Kyrgyzstan and 100MW in Kazakhstan.

Sanctions & Trade Links: Austria says it dismantled a sanctions-evasion network that routed EU-made industrial equipment via shell firms (including Kyrgyzstan) to Russian arms makers tied to Rostec, used for missile and fighter-jet engine production. EAEU Politics: Russia’s deputy FM Mikhail Galuzin warns Armenia must decide by December on an EU referendum vs staying in the EAEU, with the issue set for discussion at the December EAEU summit. National EXPO Push: President Japarov signed a decree creating the National EXPO Kyrgyzstan exhibition complex in Bishkek and the Chui region to boost investment and exports (details on cost and timeline not yet set). Audit Rules: Kyrgyzstan tightened requirements for auditors and audit firms, including mandatory inclusion in a unified state register and new checks on criminal records and professional status. FX Support: The National Bank sold $196.2m to stabilize the market, continuing its 2026 foreign-exchange interventions. Water & City Life: Bishkek will see a planned drinking-water outage in part of the 10th microdistrict on Aug 12; separate scheduled power cuts hit Chui region settlements. Fraud Alerts: Prosecutor General warns of SMS scams using fake tolom.kg-style sites to steal banking data; 24.kg also reports more clone-page fraud using its logo. Business & Infrastructure: Kyrgyzstan’s construction regulator revoked “Abris-Grand” licenses and blacklisted it for serious violations; it also fined and suspended another Bishkek firm over sidewalk damage. Transport & Mobility: Etihad added a new Abu Dhabi–Tashkent daily flight, strengthening Central Asia air links. Public Safety: A Bishkek bus accident injured two teenage girls at a crosswalk; police personnel changes were reported in Osh and Issyk-Kul.

Construction Crackdowns: Kyrgyzstan’s Ministry of Construction revoked the license of “Abris-Grand” and blacklisted it after serious violations; in Bishkek, “Ulan Stroy Company” was fined 200,000 soms and had its license suspended for sidewalk damage and safety breaches. Road & Tourism Infrastructure: Work continues on the Barskoon–Bedel road in Issyk-Kul, with journalists visiting the Soek tunnel and nearby protected heritage sites; Karakol airport also welcomed its first Airbus A320 after runway extension and new landing systems, signaling a push toward regular international routes. Energy Reliability: Scheduled power outages hit parts of Chui region on Aug 11, while Bishkek saw partial outages after heavy machinery damaged power lines on Aug 10. Business & Trade Rules: EAEU foreign e-commerce rules are set to take effect Jan 1, 2027 after ratifications in Kyrgyzstan and others. Finance & Markets: EDB and the Kyrgyz-Russian Development Fund will modernize the Central Depository’s accounting system to upgrade the stock market’s settlement infrastructure. Policy & Social Impact: Pensions’ insurance parts will be indexed from Oct 1 with a coefficient of 1.20, raising payments for many retirees. Visa & Security: Kyrgyz FM discussed U.S. visa bonds; authorities also warned about a fake visa website. Sanctions Watch (Regional): Austria reported dismantling a sanctions-evasion network that routed high-tech equipment via Kyrgyzstan-linked shell firms to Russia’s arms industry.

Stock Market Modernization: The Eurasian Development Bank and the Kyrgyz-Russian Development Fund agreed to help modernize the Central Depository’s accounting system, aiming to upgrade Kyrgyzstan’s securities settlement infrastructure and enable faster, more connected electronic document flows. Energy Deals (Issyk-Kul): At the Kyrgyz-Russian Economic Forum in Bosteri, Rosatom-linked partners signed on the first Issyk-Kul wind farm; initial components have already arrived, with financing support expected from the RKDF and EDB. Aviation Upgrade (Karakol): After runway reconstruction, Karakol International Airport received its first technical Airbus A320 landing; the runway was extended to 3,750 meters and new lighting plus ILS were installed, setting up future regular international routes. Trade & Retail Rules (EAEU): New EAEU rules for foreign e-commerce are set to be ready for practical use from Jan. 1, 2027, with goods bought abroad treated as a separate customs category. Fuel Prices Watch: Bishkek fuel costs were reported at 86.9 soms/l for AI-92, 109.9 for AI-95, 99.9 for diesel, and 48.8 for LPG, with Kyrgyzstan flagged as pricier than Kazakhstan and Russia for key grades. Business Events (Bishkek): Kyrgyzstan EXPO 2026 will run Oct. 15–17 at Zhashtyk Arena, with 500+ companies and 3,000+ visitors expected for B2B/B2G meetings. Legal/Enforcement: The Ministry of Justice confirmed cannabis components in seized eco-products and halted related sales; meanwhile, a draft law would expand bailiffs’ powers to freeze and lift bank account arrests without a court decision. Infrastructure Disruption (Bishkek): Heavy machinery damaged power lines on Orozbekova Street, leaving some buildings without electricity while grid teams worked on restoration.

Customs Crackdown at Manas: Kyrgyz customs found 42 undeclared gold jewelry items (88.97g) sent from Turkey, concealed among consumer goods; the recipient agreed to compensate the state 408,276 soms and avoided a criminal case after paying duties and penalties. EAEU Tensions: At the Eurasian Intergovernmental Council in Cholpon-Ata, Armenia’s PM Nikol Pashinyan argued Russia’s export restrictions violate EAEU rules on free movement of goods and could undermine the union’s purpose. Energy & Infrastructure: Kyrgyzstan’s President signed a Commercial Shipping Law enabling ship registration under the Kyrgyz flag; separately, a wind power plant is planned in Issyk-Kul with Rosatom-linked structures, while officials inspected Lake Kol-Tor after breach fears and ordered preventive works. Business Climate: New tax rules include a 0% unified tax for residents of the Creative Industries Park (5 years) and changes for catering, construction, and mining; livestock exporters can get 97% tax arrears written off, and coal firms may see penalties canceled if principal debt is paid. Local Economy & Trade: Wildberries logistics relocation to Kyrgyzstan is being discussed to cut risks and border delays; Bishkek pavilion owners sued City Hall over demolition plans. Tourism & Events: Issyk-Kul is pitching investment in tourism, processing and green energy; Bishkek hosts the Go Viral Festival 2026 (Aug 12) and “Kyrgyzstan EXPO - 2026” is set for Oct 15–17.

Fuel Shock: Gasoline prices in Kyrgyzstan jumped in July and keep climbing—AI-95 up 22.1% to 108.49 soms, AI-92 up 10.1% to 88.67, diesel up 7.8% to 101.69—pushed by Russia’s refinery disruptions and tougher export conditions, with officials warning more increases and weighing alternative supplies. Energy & Renewables: A wind power plant is set to start in Issyk-Kul, backed by Rosatom-linked structures, the Kyrgyz-Russian Development Fund and the Eurasian Development Bank (details on capacity and timing not yet published). Maritime Law: President Japarov signed the Commercial Shipping Law, creating a legal basis for Kyrgyzstan to register ships under its flag and join international maritime transport. Climate Diplomacy: Kyrgyzstan and Korea will hold a Bishkek climate-change seminar with UNDP, covering climate policy, financing, carbon markets and youth initiatives. Business Policy: New tax rules kick in: zero unified tax for 5 years for residents of the Creative Industries Park; changes for catering and construction from 2027; plus a 97% write-off for livestock exporters’ tax arrears and penalties (with conditions). Finance & Housing: The State Mortgage Company approved a capital increase to 118.2 billion soms via a mix of cash and property. Trade & Risk: The Chamber of Commerce floated moving part of Wildberries logistics to Kyrgyzstan to cut border and labeling friction and diversify warehouse risks after fires in Russia. Local Economy & Tourism: Bishkek hosts the free Go Viral Festival (Aug 12) for startups, AI and the creative economy; and “Kyrgyzstan EXPO - 2026” runs Oct 15–17 with 500+ companies expected. Health Support: The Health Ministry says eight children received home ventilators and nine got a year of consumables for long-term respiratory care. Safety Checks: Emergency officials inspected Lake Kol-Tor after online reports of a possible breach, ordering continued monitoring and preventive measures.

Renewables & Energy: A wind power plant project is kicking off in Issyk-Kul with Rosatom-linked NovaWind Kyrgyzstan, plus support from the Kyrgyz-Russian Development Fund and the Eurasian Development Bank, though capacity, cost and timeline weren’t disclosed. Business Expo: Kyrgyzstan EXPO 2026 will run Oct 15–17 in Bishkek at Zhashtyk Arena, with 500+ companies and 3,000+ visitors expected for B2B/B2G talks. Transport & Trade Corridors: The China–Kyrgyzstan–Uzbekistan railway is moving from planning to construction after tunnel work began in 2025, a key shift for China’s westward connectivity. Healthcare Spending: Osh is building a 249-bed perinatal center (13.5m euros from KfW) with completion targeted for Q4 2028; meanwhile, the state has started covering home ventilators and consumables for children needing long-term respiratory support. Tax & Finance Rules: New Law No.145 sets a 0% unified tax for 5 years in the Creative Industries Park and adjusts unified tax rates for catering and construction from 2027; exporters of livestock get a 97% write-off of tax arrears (with conditions). EAEU & Regional Policy: Kyrgyzstan will take EAEU chairmanship in 2027, and EAEU heads of government met in Cholpon-Ata with multiple agreements signed. Local Economy & Risk: The Chamber of Commerce is pushing to host part of Wildberries logistics in Kyrgyzstan to cut border and labeling friction and diversify warehouse risks after fires and drone attacks. Infrastructure & Safety: In Aravan, bank reinforcement on the Aravan-Say River is underway to protect irrigation land from erosion and mudflows. Human Interest: A Bishkek family raised 1.2m soms in four hours after a fire, showing how fast community support can mobilize.

Higher Education Costs: Kaktus.media maps this year’s contract tuition prices and flags which majors are most expensive after the state tuition-fee moratorium ended. Healthcare & Social Support: Osh is getting a new 249-bed perinatal center (10% ready; €13.5m KfW grant; completion targeted for Q4 2028), while the state now funds home mechanical ventilation for children—eight received devices and nine families got a year of consumables. Tax & Business Climate: Kyrgyzstan introduced a zero unified tax for residents of the Creative Industries Park (5 years) and set new unified tax rates for catering, construction and other services from 2027; exporters of livestock get a 97% write-off of tax arrears (with conditions), and gold/silver mining income tax rates were increased. Finance Oversight: The National Bank is drafting tougher anti-fraud powers, including the ability to temporarily suspend suspicious transactions for supervised institutions. EAEU Integration: Kyrgyzstan will chair the EAEU in 2027 as EAEU heads of government sign new rules for e-commerce and a unified financial market, while Russia pushes a practical plan for joint science/tech development. Trade & Logistics: Wildberries logistics risk is driving a proposal to locate part of its warehouses in Kyrgyzstan; separately, Kyrgyzstan adjusted vehicle confiscation rules so carriers aren’t stripped of vehicles for goods-transport violations. Local Business Dispute: Bishkek pavilion owners sued City Hall over demolition plans in the 12th microdistrict, arguing no approved redevelopment plan or landscaping budget exists.

Bishkek Retail Dispute: Pavilion owners in the 12th microdistrict have sued Bishkek City Hall over demolition plans, arguing no improvement budget or approved redevelopment project exists; they’ve gathered 600+ resident signatures while awaiting court action. Mining Taxes: Kyrgyzstan has raised income taxes for gold and silver extraction and processing, aiming to capture windfall profits as global prices stay high and boost budget revenues. State Finance Boost: The State Mortgage Company’s charter capital is set to rise by 5.193bn soms to about 118.2bn soms, with new shares paid via both cash and property assets. EAEU Digital Rules: EAEU prime ministers signed agreements on e-commerce and a unified financial-market approach, including uniform marketplace rules and broker access across member states. Central Asia Trade Logistics: A “Slavic Caravan” block train corridor is expanding from Belarus to Central Asia, with part of cargo continuing toward Kyrgyzstan and Tajikistan. Banking Oversight: The National Bank is seeking new legal powers to quickly suspend suspicious transactions as part of an anti-fraud and cybersecurity push. Health & Infrastructure: Osh is building a perinatal center funded by a KfW grant of €13.5m, while Karakol continues a 159m-som historical museum reconstruction. Tourism Call: The Ministry of Culture extended its competition for cultural tourism product creation until Oct 20, 2026.

EAEU Integration Push: Kyrgyzstan hosted the EAEU Intergovernmental Council in Cholpon-Ata, where leaders backed new rules for cross-border e-commerce (effective Jan. 1, 2027), electronic trade in goods, broker access to exchange trading, and mutual recognition of academic titles—all aimed at deepening the bloc’s common market and financial coordination. Bilateral Trade Talks: Kyrgyz President Sadyr Japarov met Armenian PM Nikol Pashinyan to discuss expanding trade, investment, and transport links, while Pashinyan reiterated that EAEU cooperation remains a priority and argued that a referendum on EU/EAEU choice is premature without formal EU steps. Central Bank & Banking Oversight: Kyrgyzstan’s National Bank reported assets at 830.4 bln soms in Q2 2026, and a public discussion began on giving the regulator stronger powers to suspend suspicious transactions to curb fraud. Public Procurement Reform: Kyrgyzstan adopted major amendments to the public procurement law, with new rules from Jan. 1, 2027, including fewer procurement methods and tighter anti-corruption checks. Business Risk & Insurance: Wildberries started letting sellers insure goods against drone attacks and sabotage, with higher rates and caps on payouts—relevant for Kyrgyz sellers exposed to Russia-linked delivery risks. Language & Youth Tech: The Nurkids platform launched with Kyrgyz-language games and cartoons, supported by state language bodies and ministries. Regional Stability: A Kyrgyz security operation disrupted an extortion ring in Issyk-Kul, detaining suspects and opening a criminal case.

Kyrgyz-Russian Deal Flow: At the 8th Kyrgyz-Russian Economic Forum in Issyk-Kul, 14 agreements and memorandums were signed, including seven investment projects worth $545.1 mln—notably a $250 mln solar plant in Naryn, a $126 mln 100MW wind project in Issyk-Kul, plus an $88.9 mln oil-and-fat processing plant and logistics plans. Digital & Telecom Integration: Kyrgyzstan and Russia also agreed to create a seamless mobile operator so users can travel and use services without changing SIM cards or paying roaming. Trade Momentum: Russian officials said bilateral trade rose 25%+ in the first five months of 2026 to $2.5 bln, with Russia taking about 27.1% of Kyrgyzstan’s foreign trade turnover; exports to Russia were up 60% in five months. EAEU Execution Push: Kyrgyzstan’s cabinet chief urged faster implementation of EAEU decisions to simplify procedures and speed goods movement, while the EAEU intergovernmental council discussed integration priorities. Energy & Compliance: In Osh, authorities found illegal work on a small hydro plant and fined the contractor 200,000 soms; meanwhile, Russian investment was highlighted as improving Kyrgyzstan’s energy balance. Fuel Diversification: Kyrgyzstan is seeking alternative fuel sources and is considering up to 20,000 tons/month from Uzbekistan as Russia supplies tighten. Public Procurement Modernization: Kyrgyzstan and the EEC discussed digitalization of public procurement, including mutual recognition of electronic digital signatures. Local Business & Infrastructure: Bishkek’s school No. 57 capital renovation is set to finish by the new school year, and restoration at the heritage site Tash-Rabat is underway with temporary visitor restrictions.

Russia-Kyrgyz Deal: At the Kyrgyz-Russian Economic Forum in Issyk-Kul, Kyrgyzstan and Russia signed agreements worth $800 million, including plans for a seamless cross-border mobile operator (no SIM swaps, no roaming) plus support for industry, processing, and SMEs via local banks. Energy Investments: Russian capital is backing Kyrgyzstan’s energy balance, with solar and wind projects in Issyk-Kul and Naryn, and a planned oil-processing plant. Trade Snapshot: Russia’s share of Kyrgyzstan’s foreign trade turnover hit 27.1%, while mutual trade rose 25.5% in early 2026; leaders also cited 2025 trade near $4–5 billion. Regional Diplomacy: Kazakhstan’s PM arrived for the EAEU Intergovernmental Council in Cholpon-Ata, alongside other regional leaders, as integration priorities include customs, food security, and rail digitalization. U.S. Funding & Visit: The U.S. doubled TRIPP+ Enterprise Fund support to $402 million, and Assistant Secretary Paul Kapur is set to visit Kyrgyzstan to meet government and business. Business & Risk Watch: The National Bank warned about WhatsApp fraud schemes; meanwhile, a crane accident in Bishkek led to fines and staff dismissals over safety violations. Labor Market: Labor entries into Russia from Kyrgyzstan, Uzbekistan and Tajikistan fell about 15% in H1 2026 amid tighter Russian migration rules. Local Life: Hot water will be shut off in central Bishkek for scheduled network work.

Russia Trade Talks: Chamber of Commerce head Temir Sariev urged Kyrgyzstan to deepen ties with Russia beyond raw-materials trade, pushing for localized Russian production in Kyrgyzstan using low taxes and a skilled Russian-speaking workforce, and suggested easing EAEU rules for subsidizing cooperative projects. Bishkek Utilities: Hot water will be off Aug 6 from 08:30–20:30 for dozens of buildings and key social facilities around Frunze Street and nearby areas; separate gas supply shutdowns are also planned in parts of Bishkek Aug 5–7. Construction Crackdown: The Chui region ministry says a developer kept building a seven-story project despite a stop order and missing permits; materials were sent to police and a license suspension/blacklisting is being considered. Pensions Update: From Oct 1, the insurance part of pensions rises by 20% (min 1,700 soms, max 10,000), while the basic part is excluded. Digital ID Access: A draft resolution would expand access to passport registry data to mobile operators, credit bureaus, notaries, and certification centers for ID verification. Social Support: “Bala Irysy” allowance payments are starting for 191,796 children, with 235.7m soms allocated. Agribusiness Exports: Kyrgyzstan exported 19,915.55 tonnes of dairy and 228.84 tonnes of honey in H1 2026, mainly to EAEU and other markets. Border Deal: Uzbekistan and Kyrgyzstan began procedures to transfer two border villages (Chon-Gara, Tash-Tobo) to Kyrgyzstan, with residents to undergo citizenship processes. Cybersecurity: Kaspersky flagged new Windows backdoors (OctLurk, SilkLurk) targeting government and public institutions across Central Asia, including Kyrgyzstan. Tourism Spotlight: Kyrgyzstan ranked 4th in Central Asia by share of foreign tourists in 2025 (19%), and also drew many outbound trips from regional residents.

Bishkek Fraud Case: Police detained the CEO of “Family Village” in a $270,000 fraud and document-forgery probe tied to a residential project deal. Budget Oversight: Kyrgyzstan’s Accounts Chamber flagged shortcomings in the Ministry of Education’s 2024–2025 budget execution, including procurement issues and misused funds, and also found violations in the Ministry of Science, Higher Education, and Innovations. Public Utilities: Bishkekgaz warned of a gas shutdown in parts of the city for pipeline work, while the city continues Alamedin River bank reinforcement ahead of flood risk. Social Support: “Bala Irysy” payments are being rolled out for 191,796 children, with 235.7 million soms allocated. Trade & Agriculture: Dairy exports hit 19,915.55 tons in the first half of 2026, and honey exports rose to 228.84 tons; Kyrgyzstan also received free Chinese irrigation-canal cleaning equipment (370 units). Transport & Business Climate: Bishkek City Hall urged residents to use public transport; in Osh, a 9-story complex was suspended over missing permits. Regional Links: Kyrgyzstan’s debt to China fell from about $1.7bn to $1.4bn as new borrowing slowed. Aero Nomad Route: The airline launched a direct Bishkek–Urumqi flight, targeting both tourists and business travel. Property Tax Reminder: Property tax is due by Sept 1, 2026, with daily penalties for late payment.

New City Investment: Kyrgyzstan’s “eco-friendly” Asman city project is set to attract up to $20bn, with plans spanning environmental standards, tourism infrastructure (including Muslim museums and digital exhibits), and an IT-focused economic model. Land Leasing Policy: Prime Minister Adylbek Kasymaliev says Kyrgyz land will not be sold; 49-year leases are meant to unlock serious factory and logistics investment while keeping production and jobs local. China Debt Update: The cabinet says Kyrgyzstan’s debt to China has fallen from about $1.7bn to $1.4bn as new borrowing slowed and repayments continued; China is now just over 20% of external debt. Bishkek-Air Links: Aero Nomad launched direct Bishkek–Urumqi flights, citing strong demand from tourists, students, and business cargo. Transport Digitalization (Korea): Kyrgyzstan and South Korea are rolling out a 2026–2030 digital transformation project for transport and “smart factory” tech. Border & Land Transfers: Chon-Gara and Tash-Dobo villages are being transferred to Kyrgyzstan under demarcation, with citizenship steps next. Trade/Customs: Kyrgyzstan blocked ~25 tons of onions from Uzbekistan over missing EAEU labeling, and seized 20 tons of unregistered flour in Talas. Local Business Relief: Bishkek’s mayor ordered design codes for entrepreneurs to be provided free of charge. Finance & FX: The som strengthened vs major currencies; the ruble slipped below 1.1 som. Social Support: “Bala Irysy” payments (1,200 soms/month per child under 3) start from Aug 4.

Investment Risk Watch: Kazakhstan jumped 17 spots to 53rd in the May 2026 Global Investment Risk and Resilience Index; Kyrgyzstan sits at 96th, highlighting a tougher risk backdrop for investors. Banking Reform: Moody’s says Azerbaijan’s Basel III capital buffers and tighter supervision are credit-positive; the region is broadly moving toward stronger prudential rules, including Kyrgyzstan. Public Finance Scrutiny: Kyrgyzstan’s Audit Chamber flagged budget execution and procurement violations across the education system and the Mandatory Health Insurance Fund, pointing to inflated construction volumes and weak internal controls. Border & Food Security: Quarantine checks blocked nearly 25 tons of onions from Uzbekistan over missing EAEU labeling, and Talas authorities stopped an attempted 20-ton illegal flour import. Business Climate in Bishkek: The mayor ordered Bishkek’s approved design code requirements to be issued free to entrepreneurs and launched an internal probe into alleged extortion of up to 100,000 soms. Social Support & Payments: “Bala Irysy” allowance payments (1,200 soms/month per child under three) begin August 4 via banks and Tündük applications. Transport Digital Push: Kyrgyzstan and Korea start a 2026-2030 project to digitize transport infrastructure and logistics, including smart stops and airport systems. Cross-border Village Transfer: Procedures begin for transferring Chon-Gara and Tash-Dobo to Kyrgyzstan, with citizenship and resettlement steps for about 2,500 residents. Health & Regulation: President Japarov signed amendments banning cremation of human bodies; crematoriums are limited to sanitary thermal disposal of medical biological materials.