25 Oct 2017 22:02

Kazakhstan's tying $100 million aid to other issues prompting Kyrgyzstan to say no - Kyrgyz Foreign Ministry

BISHKEK. Oct 25 (Interfax) - By tying the matter to other issues, Kazakhstan dragged out the approval of agreements necessary for $100 million to be given to Kyrgyzstan in order to help it adapt to the Eurasian Economic Union (EAEU), leading to the invalidation of the agreement, the Kyrgyz Foreign Ministry said.

"Until the last moment, the Kazakh side withheld approval of the necessary documents, the cost estimate submitted by the Kyrgyz side, tying the signing of the agreement on the provision of $100 million in aid to other issues that had nothing to do with this topic," the ministry said in a statement on Wednesday.

"In view of this, the Kyrgyz side decided to invalidate the agreement between the governments of Kyrgyzstan and Kazakhstan to develop their economic cooperation as part of Eurasian economic integration, as well as the protocols of that agreement, of which the Foreign Ministry informed the Kazakh side in its note of October 23," the statement said.

The Kyrgyz-Kazakh investment fund, which the two countries agreed to form back in 2007, was not formed until 2012, only to close in 2014 before even becoming properly operational.

"As part of the implementation of the Supreme Kyrgyz-Kazakh Inter-State Council's resolution of November 7, 2014, the Kyrgyz side made the necessary efforts to obtain the funds in question from the Kazakh side as soon as possible. The plan was to invest the allocated funds in improving and equipping customs infrastructure and upgrading laboratories before Kyrgyzstan fully joined the EAEU," the statement said.

Talks over signing the agreement dragged on until December 2016, it said.

"In this situation, the Kyrgyz government tapped its own reserves to ensure that the country honor its obligations to implement measures as part of the roadmaps in a timely manner, including completing the construction of most of the 14 laboratories in line with EAEU requirements. At present, Kyrgyzstan is not interested in obtaining the funds in question and sees no point in working further on the essence of the matter," the statement said.