Gazprom is investing $1.5 billion in gas pipelines flowing from Kyrgyzstan with one third to be spent within two years and the remainder by 2030.
Russia’s Prime Minister Dmitry Medvedev has been visiting Kyrgyzstan for a meeting of the Commonwealth of Independent States (CIS) heads of state, following on from talks with President Almazbek Atambayev and Prime Minister Sooronbay Jeenbekov.
Around 20 percent of Kyrgyzstan can access the country’s gas supplies, with the Gazprom investment expected to increase this to around 60 percent. The news follows repeated frustrations between the nations regarding finance for hydropower projects, and will greatly enhance the energy infrastructure of the country while strengthening Eurasian economic ties.
The agreement struck by Medvedev also entailed a duty free oil and petroleum products deal, meaning Russia will not charge tariffs on such products entering Kyrgyzstan for domestic consumption. This could be a significant development given Russia supplies more than 90 percent off all fuels to its Eurasian neighbour.
Founded in 1989, Gazprom is one of Europe’s largest energy companies with revenues of more than $100 billion and a workforce of more than 400,000. It is half-owned by the Russia government.