AGP Executive Report

Aviation Safety & Connectivity: Kyrgyzstan’s airlines have been removed from the EU aviation safety blacklist after nearly two decades, and Bishkek says reforms strengthened oversight and flight safety—opening the door to easier Europe-bound travel and business links. Air Services: UAE low-cost carrier Air Arabia will resume Sharjah–Bishkek flights on July 3 and Sharjah–Osh on June 22, boosting tourism and trade travel after a suspension earlier this year. Energy & Power Supply: Bishkek’s grid operator published a June 11 outage schedule for multiple districts and streets, tied to planned maintenance. Education Spending: From Jan 1, 2027, school meal financing will rise to 40 soms per student per day (up from 14 soms for grades 1–4), with more meat/fish and fresh produce expected. Trade & Logistics: Pakistan has operationalized new land routes to Central Asia via Iran and China, using the TIR regime to send exports from Karachi to Kyrgyzstan—aimed at reducing reliance on Afghanistan transit. Agriculture & Risk: Russia is set to restrict imports of many Armenian food and plant products, and plans to block transit to Belarus, Kazakhstan, and Kyrgyzstan—potentially reshaping regional supply flows. Climate & Carbon Markets: South Korea and Kyrgyzstan agreed to accelerate joint carbon reduction projects under Paris Agreement rules, with a framework meant to speed approvals and attract private investment. Regional Development: Kyrgyzstan is advancing strategic infrastructure in Jalal-Abad, including a new airport expected to be completed in autumn 2026 and operational in 2027. Renewables Outlook: A new regional report warns Central Asia’s renewable boom could raise electricity costs if grid upgrades and storage aren’t funded alongside new solar/wind capacity.

EU Aviation Update: Kyrgyzstan has been removed from the EU air safety blacklist after nearly 20 years, but airlines still face six follow-up audits over three years before full “whitelist” status. Sanctions Watch: The EU is preparing its 21st Russia sanctions package, with proposed export-control restrictions that could include Kyrgyzstan-linked entities and other third-country firms. Energy & Investment: Kyrgyzstan is pushing a dual-track energy plan—renewables via up to $1bn solar/wind projects (up to 700 MW) alongside modernization of hydropower. Mining Cooperation: Kyrgyzstan and Türkiye discussed mining ties, including rare earths and critical minerals, while the U.S. held C5+1 critical minerals talks in Astana with Kyrgyzstan among participants. Climate & Nature: South Korea and Kyrgyzstan agreed to accelerate joint carbon-reduction projects under Paris Agreement rules; meanwhile, Kyrgyzstan created the Ak Ilbirs ecological corridor (nearly 800,000 ha) to help snow leopards adapt. Security: GKNB detained 31 suspected extremists in southern operations. Trade & Connectivity: Kyrgyzstan is preparing direct flights to Europe next year (routes like Milan, Berlin, Brussels, Paris, London) and is also seeing investment monitoring of new industrial projects in Osh and Batken.

Aviation Safety Reset: The EU removed all Kyrgyzstan-certified airlines from its Air Safety List after 20 years, while adding Air Express Algeria over serious safety concerns—154 airlines remain banned from EU skies. Sanctions Spillover: The EU unveiled its 21st Russia sanctions package, with proposed controls reaching beyond Russia to entities in China, Türkiye, Kyrgyzstan and others, including crypto-related firms and drone supply chains. Security Crackdown: Kyrgyzstan’s GKNB detained 31 suspected members of Katibat al-Tawhid wal-Jihad and Islamic State in Osh and Batken, seizing extremist materials, unregistered firearms and funds allegedly meant to finance terrorism abroad. Banking & Fraud Watch: The National Bank warned of a new scam using the NBKR logo and fake messages about “hacked” Tunduk accounts and loans—citizens are urged not to transfer money. Trade & Markets: Kyrgyzstan returned 8.6 tons of pepper to Kazakhstan after phytosanitary certificate discrepancies. Regional Investment Shift: China overtook Russia as Central Asia’s top foreign investor, according to the Eurasian Development Bank, with major capital flowing into energy, mining and infrastructure. Business Diplomacy: Kyrgyzstan and Turkey discussed mining cooperation, including joint exploration and rare earth/critical minerals research. Finance & FX: Kyrgyzstan’s National Bank set June 10 rates, with the dollar at 87.44 soms and the ruble strengthening. Counterterror Finance Link: A Kyrgyz national was named in an Uzbekistan case alleging terror fundraising via Telegram “charity” channels. Water-Land Agenda: Central Asia launched the GEF-backed CAWLN program to tackle shrinking rivers and land degradation across five countries, including Kyrgyzstan.

NBKR Fraud Alert: The National Bank of Kyrgyzstan warned citizens about scammers using the NBKR logo to claim Tunduk account “hacking,” fake loans, and urging victims to move money to “safe” accounts. FX Watch: On June 10, the dollar is set at 87.44 soms by the National Bank; the ruble strengthened while the euro fell in commercial-bank quotes. Aviation Access: Kyrgyz airlines were removed from the EU Air Safety List after nearly 20 years, reopening the path to EU airspace (individual airlines still need EU approvals). EU Sanctions Spillover: The EU proposed a 21st Russia sanctions package, including new drone-related export controls that reportedly cover entities in Kyrgyzstan among other countries. Trade Compliance: Kyrgyzstan returned 8.6 tons of pepper to Kazakhstan after a phytosanitary certificate discrepancy was found at the Ak-Zhol post. Security: Kyrgyz security services detained 31 people linked to extremist groups allegedly planning attacks on police and religious leaders. Regional Water Agenda: GEF launched the CAWLN Water-Land Nexus program across Central Asia, including Kyrgyzstan, to tackle water stress and land degradation. Tourism Links: A seasonal Tashkent–Cholpon-Ata bus route started June 8, with tickets priced at 365,000 Uzbek sums. Global Labor Note: The ILO marked World Day Against Child Labour (June 12), while Kyrgyzstan lacks unified recent child-labor statistics.

Aviation & Tourism: Kyrgyzstan was removed from the EU aviation safety blacklist after nearly two decades, clearing the way for direct flights to Europe and a boost for trade and tourism. Trade Compliance: Kyrgyzstan returned 8.6 tons of pepper to Kazakhstan after a phytosanitary certificate discrepancy was found at the Ak-Zhol post. EU Sanctions Watch: An EU seminar in Bishkek focused on how Kyrgyz companies, banks, logistics firms and virtual-asset players should comply with Russia-related sanctions and avoid circumvention. Tax & Investment: Cyprus and Kyrgyzstan signed a double-taxation agreement in Bishkek to reduce double taxation, clarify cross-border rules, and add anti-evasion safeguards. Regional Water Security: The GEF launched the CAWLN Water-Land Nexus program across Central Asia, bringing five countries together to tackle water stress and land degradation. Central Asia Connectivity: A seasonal Tashkent–Cholpon-Ata passenger bus service started, supporting Issyk-Kul’s tourism rebound. Digital Trade: Kyrgyzstan chaired the UN paperless trade council for the third straight time, pushing cross-border document digitalization. Business Climate: Chinese firms discussed a potential cement plant project in Kyrgyzstan with the National Investment Agency.

Cyprus-Kyrgyzstan Deal: Cyprus and Kyrgyzstan signed a new agreement to avoid double taxation and curb fiscal evasion, aiming to make cross-border business and investment easier, with clear rules for cross-border transactions and tax information exchange. Aviation Update: Kyrgyzstan says it has been removed from the EU’s airline blacklist after reforms to civil aviation oversight and safety standards, with formal lifting expected via an EU regulation. UN Security Council Spotlight: Kyrgyzstan’s first-ever non-permanent UNSC seat for 2027–2028 is in the spotlight after the Philippines lost in secret balloting, underscoring Kyrgyzstan’s growing diplomatic weight. Uranium Arbitration: A US company won an ICSID case against Kyrgyzstan over the uranium mining ban, with the award limited to sunk costs plus interest. EU Sanctions Warning: Kyrgyzstan warned Cyprus that EU moves to intensify sanctions on Russia could hurt Kyrgyz trade, economic and financial development. Border Logistics: Uzbekistan warned of temporary queues at the Kazakhstan–Uzbekistan border due to Kazakh customs IT maintenance. Energy & Safety: Bishkek is working to restore hot water after outages, while the government is tightening fire-safety rules for electric charging stations at gas stations. Climate & Forestry: FAO-backed planting projects delivered 400,000 seedlings across Kyrgyzstan to support climate resilience and carbon sequestration. Business & Talent: A “Young Specialists School” meeting in Bishkek focused on attracting new civil servants and discussed a “One Deputy - One Student” model.

UN Security Council: Kyrgyzstan has been elected a non-permanent member for 2027–2028, with Austria, Portugal, Trinidad and Tobago and Zimbabwe also winning seats—seen as a wider shift in global diplomacy. EU sanctions risk: Kyrgyzstan’s FM warned Cyprus that EU moves to intensify sanctions on Russia could hurt Kyrgyzstan’s trade and finances. Bilateral business push: Kyrgyzstan and Cyprus agreed to “elevate” cooperation, signing a cooperation program for 2027–2028 and an agreement on double-tax avoidance, with tourism, energy and investment highlighted. Border logistics: Uzbekistan’s customs warned of temporary queues at the Uzbekistan–Kazakhstan border due to Kazakhstan’s planned IT maintenance. Trade and industry: SCO countries backed Kyrgyzstan’s textile-cluster idea, supporting a draft agreement for a unified SCO textile cluster. Energy & safety regulation: The cabinet launched public discussion on stricter fire-safety rules for EV charging stations at gas stations. Climate & land use: FAO-backed planting in Kyrgyzstan delivered 400,000+ seedlings across 500 hectares, while a new forest restoration project targets climate resilience. Finance sector: Kyrgyzstan’s insurance revenues rose to 2.9 billion soms in Q1 2026, with premiums driving most growth. Cybercrime: Kyrgyzstan reported nearly 40% of crimes in four months tied to the cyber domain, with phishing and scam calls among common tactics.

Housing Push in Osh: President Sadyr Japarov opened the Asman Residence-1 complex in Osh, built by the State Mortgage Company, and another complex in Zhany-Aryk—part of a wider push with 82,000 apartments under state mortgage programs. Cyber Crime Alert: Kyrgyzstan logged 4,391 crimes in the first four months, with 1,711 tied to the cyber domain; officials warned about phishing, “safe account” scams, SIM renewal fraud, and messaging-app cons. Fertilizer Costs Rise: Mineral fertilizer prices in Kyrgyzstan jumped 40–50% this year, driven by logistics disruptions linked to developments in Iran; demand is 182,300 tons annually. SCO Industrial Cooperation: SCO countries backed Kyrgyzstan’s textile cluster idea and agreed on industrial cooperation steps, including tech exchange and joint production projects. Insurance Sector Growth: Kyrgyz insurers’ revenues rose 1.4x year-on-year to 2.9 billion soms in Q1, with 735,000+ contracts and premiums driving most income. Regional Trade & Security: Pakistan’s Interior Minister Mohsin Naqvi delivered a “special letter” to Iran’s top leadership amid US–Iran tensions, while SCO security talks emphasized joint action against terrorism and cyber threats. Local Construction Complaints: Residents in Bishkek’s Orto-Sai protested a five-story building project, alleging road cracks and soil/utility damage. Heritage Discovery: Underwater archaeologists in Lake Issyk-Kul uncovered a submerged medieval Silk Road trading center with roads, public buildings, and a large cemetery.

SCO Industrial Push: Kyrgyzstan hosted SCO industry ministers in Cholpon-Ata, where delegates backed deeper industrial cooperation, tech exchange, low-carbon initiatives, and a plan for an SCO investment projects database—plus Kyrgyzstan’s proposal for a textile cluster and easier trade in light-industry goods. Local Business & Infrastructure: Bishkek residents in Orto-Sai complained about a five-story build by “Arzy Grupp,” saying excavation and construction have damaged roads, soil, and nearby utilities. Energy & Utilities: Hot water in Bishkek is being gradually restored after a June 6 blackout that shut key pumping stations; full hydraulic adjustment will take time. Education & Workforce Skills: Kyrgyz Education Minister Dogdurkul Kendirbaeva responded to public criticism over Kyrgyz-language proficiency, warning that weak reading skills could threaten the language’s future and pointing to bilingual programs. Climate & Agriculture: FAO-backed reforestation in Kyrgyzstan completed a spring phase, planting 400,000+ seedlings across 500+ hectares to boost carbon capture and ecosystem resilience. Finance & Regulation: Kyrgyzstan’s financial/economic sector leadership highlighted 2025 growth and budget transparency, while regional policy chatter continues around investment and industrial financing.

Hot Water Restored in Bishkek: After a June 6 blackout, Bishkekteploset says power to key pumping stations has been restored and hot water is being brought back in stages, though full hydraulic adjustment will take time. Power Outage Cause: Kyrgyzstan’s National Electric Network reports a HOWO truck damaged the Parkovaya—Ala-Archa 110kV line between pylons 23 and 24, triggering the outage and emergency repairs. SCO Business & Industry: At the Ala-Too Trade & Industry Expo 2026 in Bishkek, Kyrgyz firm ABM Auto showcased an all-terrain tracked crawler vehicle for mountain and roadless operations, plus a monitoring/observation unit. Kyrgyz-Russia Regional Ties: On the sidelines of SPIEF, Yakutia and Kyrgyzstan signed an updated intergovernmental cooperation agreement to expand trade, investment, tourism, and business links. Finance Leadership Message: Adylbek Kasymaliev congratulated Kyrgyz finance and economy workers, citing 11.1% GDP growth in 2025, a 2025 budget surplus, and rising investment and new industrial openings. Crypto/Markets Watch: Russia’s central bank is tightening retail crypto access, limiting non-qualified investors to Bitcoin, Ethereum, and USDT under a draft framework. Regional Security Diplomacy: Pakistan’s Interior Minister Mohsin Naqvi arrived in Tehran for talks aimed at de-escalation between the US and Iran, following meetings in Bishkek tied to SCO cooperation.

Energy & Utilities: Bishkek’s hot water is being gradually restored after a power outage shut down several pumping stations; the city’s hot-water system needs time for full hydraulic recovery and adjustments. Power Reliability: A major blackout hit Bishkek and parts of Chui after damage to the 110-kilovolt Parkovaya—Ala-Archa transmission line, reportedly caused by a cargo truck in a protected zone; repairs are underway and supply is returning. Local Business & Governance: Kyrgyzstan appointed Kumarbek Baidyldaev as Deputy Prosecutor General—Military Prosecutor, with a background in supervising investigations into corruption and economic crimes. Trade & Regional Ties: Kyrgyzstan and Russia’s Sakha Republic (Yakutia) renewed an intergovernmental cooperation agreement to expand trade, investment, tourism, and supplies of agricultural and fruit-vegetable products. Legal & Investor Climate: Kyrgyz Supreme Court Deputy Chair Nurgul Bakirova took part in an Astana forum on administrative justice, focusing on balancing state interests with business and investor rights. Crypto & Platforms: Russia’s central bank limited retail access for non-qualified investors to Bitcoin, Ethereum, and USDT, while a separate deal in Russia set non-discriminatory commission rules for Russian vs foreign sellers on major marketplaces.

SCO Security Push in Bishkek: Pakistan’s Interior Minister Mohsin Naqvi urged Shanghai Cooperation Organisation members to step up joint action against terrorism, organised crime, drug trafficking, cybercrime and terror financing, stressing intelligence sharing and modern coordination as criminal networks increasingly use AI, digital platforms and cryptocurrency. Bishkek Power Cuts: The capital’s grid operator warned of scheduled outages on June 7-8 across multiple neighborhoods and streets for maintenance. SCO Industrial Finance Plan: Kyrgyzstan hosted an SCO ministers of industry meeting in Cholpon-Ata that approved a “Database of Investment Projects in the Industrial Sector of SCO States” to centralize and make investment proposals easier to find. Entrepreneur Rights Restored: Kyrgyzstan’s prosecutor general ordered a full refund of a withheld security deposit (692,800 soms) after a state agency ignored the entrepreneur’s appeals. Preferential Preschool Lending: The government approved preferential loans to support construction and major repairs of kindergartens, with applications handled via the education ministry and banks. Bishkek Gas Station Relocation: City authorities said they won’t extend leases for some gas stations on municipal land and plan to move them outside the city, sparking concerns about refueling and prices. Belarus-Kyrgyz Trade Talks: Belarus PM Alexander Turchin visited Bishkek, signing 12 cooperation agreements and targeting $500m in bilateral trade by 2030.

SCO Security Push: Pakistan’s Interior Minister Mohsin Naqvi urged SCO members in Bishkek to build a joint strategy against terrorism, organised crime, cybercrime and terror financing, warning networks are increasingly using AI, digital platforms and cryptocurrency. SCO Business & Investment: Kyrgyzstan hosted the SCO ministers of industry meeting in Cholpon-Ata, approving a plan for a database of SCO industrial investment projects. Entrepreneur Rights: Kyrgyzstan’s Prosecutor General’s Office forced a refund of a withheld security deposit of 692,800 soms to an entrepreneur, after appeals were ignored. Preferential Lending for Kindergartens: The Cabinet approved “Preferential Lending for Preschool Education - 3,” offering loans to private preschool projects and major repairs/reconstruction via commissions at the Ministry of Education and banks. Bishkek Gas Station Relocation: City Hall will not extend leases for gas stations on municipal land and plans to move them outside Bishkek, a move drivers fear will mean queues and higher costs. Waste & Recycling Upgrade: Belarus PM Alexander Turchin visited Bishkek’s waste processing facilities, where the second phase is set to scale up Central Asia’s biggest solid waste plant and power generation. Digital Integration: Bishkek launched the SCO Youth Digital Forum alongside KIT Forum 2026 under “AI for All,” drawing about 3,000 participants. UN Diplomacy: Kyrgyzstan won its first UN Security Council non-permanent seat for 2027–28, beating Germany in a closely watched Asia-Pacific race. Electricity Disruptions: Bishkek announced scheduled power outages across multiple districts for grid maintenance.

UN Security Council Win: Kyrgyzstan beat the Philippines for the Asia-Pacific non-permanent seat in a four-round vote (142–49), marking its first UNSC term; the result also came as Germany suffered its first-ever defeat in the race, losing to Portugal and Austria. Diplomatic Ties: Uzbekistan’s Mirziyoyev and Kazakhstan’s Tokayev congratulated Kyrgyzstan, highlighting continued coordination on economy, transport, energy and cultural exchanges. Energy & Daily Business: Bishkek residents face scheduled power outages on June 5 across multiple districts and streets due to grid maintenance. Healthcare & Local Economy: Osh and Bishkek expansion projects are getting clinics—Osh’s new Alai-1/Alai-2 areas will receive a Swiss-supported facility, while Talas completed a “Care for the Elderly” campaign reaching 2,716 seniors with free specialist exams. Regional Growth Outlook: The EBRD forecasts Mongolia and Central Asia growth at 5.6% in 2026 (5.3% in 2027), with Kyrgyzstan’s outlook revised down due to expected EU sanctions impact. Cross-Border Finance Rules: A draft Kyrgyz law proposes fees and accreditation steps for non-resident companies opening and maintaining bank accounts, aiming to tighten control over cross-border financial flows.

UN Security Council Win: Kyrgyzstan has secured its first-ever non-permanent seat on the UN Security Council for 2027–2028, beating the Philippines in a four-round vote (142 vs 49) for the Asia-Pacific seat—an outsized diplomatic boost for Bishkek. Water & Infrastructure Finance: A $60m EFSD loan plus $6.7m co-financing will expand safe drinking water for about 158,000 people in Osh Region, including 890+ km of networks and new wells, reservoirs and pumping stations. Banking Rules for Foreigners: Kyrgyzstan is drafting changes to taxation and non-tax revenues, including a new fee for accrediting non-resident legal entities to open and maintain bank accounts, aiming to tighten control over cross-border financial flows. Science Funding Reform: Proposed rules would let Kyrgyz scientific institutions earn independently from contract work (research, education, consulting, publishing, production-commercial activity) and set their own tariffs for paid services. New Financial Hub: Tamchy SFIT opened its first business centre on Lake Issyk-Kul, signaling the start of resident onboarding and dispute-resolution setup. Trade & Connectivity: Kyrgyzstan is expanding cross-border QR payments with Alipay+ via the national interbank processing center, while regional connectivity continues to build momentum through new flight links and corridor plans.

UN Seat Win: Kyrgyzstan beat the Philippines 142-49 to secure its first-ever non-permanent UN Security Council seat for 2027-28, a diplomatic boost that also signals shifting influence toward Eurasia. Digital Payments: The National Bank’s Interbank Processing Center and Alipay+ launched international QR payments via the ELCARD Mobile app, letting users pay abroad in multiple currencies. EU Sanctions Pressure: The EU imposed trade restrictions on Kyrgyzstan for allegedly enabling re-exports of controlled equipment to Russia, citing sharp import and re-export jumps in 2025. Banking Oversight: The National Bank suspended licenses of two Bishkek exchange offices for short compliance breaches. Energy & Infrastructure: Modernization at the Uch-Kurgan HPP is underway (38%-44% readiness on units) to raise reliability; in Batken, the “Hero” reservoir reconstruction will improve irrigation for 1,500 hectares. Business & Trade Hubs: Kyrgyzstan’s Chamber of Commerce plans an office in Xinjiang to deepen trade links, while the Tamchy SFIT opens its first business center on Issyk-Kul. Education Policy: Kyrgyzstan is considering keeping the school year Sept 15–May 25, with a review after one year.