The UK is ready to invest in the Kyrgyz economy

The UK is ready to provide 1.8 billion pounds (about 2.3 billion dollars) for projects in the field of extraction and processing of raw materials, infrastructure development and exports. British investments in the Kyrgyz economy were discussed at a meeting between Bakyt Torobayev, Deputy Chairman of the Cabinet of Ministers, and Shebne Alp, head of the regional branch of the UK EXPORT FINANCE (UKEF) export credit agency. The discussion of investment cooperation between Bishkek and London continued at the Kyrgyz Foreign Ministry with the participation of British Ambassador to the Kyrgyz Republic (KR) Nicholas Bowler.

At a meeting with Chebne Alp, the head of the Cabinet of Ministers of Kyrgyzstan Bakyt Torobayev stressed the priorities outlined by President Sadyr Japarov: modernization of the agro-industrial complex, infrastructure development, export diversification and increasing investment attractiveness. The Government is committed to creating added value within the country, developing environmentally friendly and organic agriculture, modernizing irrigation systems, and shifting to a recycling-based economic model.

During the meetings in Bishkek, prospects for cooperation with UKEF in the mining, construction and infrastructure sectors were discussed. UKEF’s investments can become a catalyst for transformations aimed at developing not only agriculture, but also mining, construction and infrastructure industries. This will strengthen the Kyrgyz economy, reduce dependence on external factors and create new jobs in priority sectors.

The British delegation was received by Deputy Foreign Minister Talant Erkinov at the Kyrgyz Foreign Ministry. He expressed Kyrgyzstan’s interest in strengthening its partnership with UKEF and stressed the importance of attracting investments in key sectors of the economy, such as construction, digitalization, energy, agriculture and mining. UKEF representatives made a presentation on the agency’s activities, financing mechanisms, and prospects for cooperation with public and private entities in Kyrgyzstan.

UKEF is the UK’s export credit agency and a government department working in conjunction with the country’s Ministry of Business and Trade. The organization actually raises funds to finance and insure foreign projects, but with the condition that British companies participate in them. Therefore, the funds offered to Bishkek of 1.8 billion pounds are a loan, one of the conditions of which is the involvement of British contractors. Special attention was also paid to the sanctions regime imposed by the West against Russia. Kyrgyzstan is one of the main countries in the region through which goods go to Russia.

A webinar on British sanctions regimes was held in Bishkek on April 14 with the support of the British Embassy. The participants, including representatives of government agencies and commercial banks, received a detailed overview of the current sanctions and legislative changes. The organizers emphasized the importance of complying with international requirements in a global economy.

The rapprochement of the countries began after the UK adopted the Strategy for Central Asia in 2023 within the framework of the C5+1 format (see NG dated 12/13.23). It was presented by British Foreign Minister David Cameron. A year ago, he visited all the countries of the region, where he discussed common ground with each of them (see NG dated 04/24/24). At the same time, a cooperation Program between Kyrgyzstan and the United Kingdom for 2024-2026 was signed in Bishkek.

The UK’s proposal to cooperate with Central Asian countries in the field of investment is of particular importance in the context of increased competition for influence in the region. Geopolitical instability and the redistribution of forces make the Central Asian region extremely susceptible to external economic injections. In this case, British capital is not just financial support, but a clear signal that the West is actively looking for new footholds in Central Asia, which has traditionally been considered the sphere of influence of Russia and China. This indicates the West’s desire to diversify its geopolitical ties and expand its presence in a strategically important region.

This also indicates the UK’s intention to expand its military presence in Central Asia, promoting regional security. The Strategy for Central Asia plans to conduct training programs for local military personnel on the law of armed conflict and ethics. Special attention is paid to infrastructure development through initiatives such as the Partnership for Global Infrastructure and Investment. In particular, agreements have been reached with Turkey on close cooperation on energy security and the development of the Trans-Caspian International Transport Corridor.

“For Kyrgyzstan, the successful implementation of the agreements with London will not only provide it with the necessary financial resources, but also provide it with an important tool for modernizing and diversifying its economy. Attracting British investments is very important for President Sadyr Japarov, who is likely to run in the upcoming presidential elections scheduled for January 24, 2027. And in order to win, he needs to present to the society the implementation of the declared ambitious projects that have not yet been implemented. The UK can contribute to this, as well as invest in the development of priority sectors such as energy, agriculture and infrastructure, which will have a positive impact on increasing the investment attractiveness of the country as a whole,” political analyst Asilbek Egemberdiev told NG.

Labor migration from Kyrgyzstan to the UK is becoming an important aspect of cooperation. “Although its scale is not yet comparable to migration to Russia, the number of Kyrgyzstanis traveling to the UK for seasonal work is constantly growing. Last year, there were 11,000 of them, and this year London promises to double the quota. The attractiveness of working in the UK is due to transparent admission rules and significantly higher wages compared to other countries,” the expert emphasized.

According to Egemberdiev, this is a chance for the UK to strengthen its position in the region, where new geopolitical alliances are forming, and expand its economic and political influence. The expert recalled that in London, the now former head of the Kyrgyz Cabinet, Akylbek Japarov, signed an agreement on the introduction of English laws in Kyrgyzstan. “On the one hand, the introduction of English law into the domestic legislative system of Kyrgyzstan will pave the way to improving the investment climate. On the other hand, the Kyrgyz government and parliament will become fully accountable to the UK,” the expert believes. In his opinion, there are officials in the Kyrgyz government who lobby for London’s interests.