Russian aid to Bishkek may top $1 bln - Kyrgyz ministry
BISHKEK. June 2 (Interfax) - Russian aid to Kyrgyzstan in Eurasian economic integration projects may reach $1.2 billion within the next two years.
An intergovernmental agreement signed by Kyrgyzstan and Russia in Astana on May 29 stipulates a boost to economic contacts in the course of Eurasian economic integration, the Kyrgyz Economy Ministry told Interfax.
The agreement will be implemented in two years with an up to $1 billion fund. Another $200 million will be allotted by Russia to support the roadmap of Kyrgyzstan's accession to the Customs Union of Belarus, Kazakhstan and Russia, the ministry said.
The agreement seen by Interfax proclaims as its goal "the development of economic cooperation between Kyrgyzstan and the Russian Federation within the Eurasian economic integration framework and the adaptation of the republic's sustainable economy to the Customs Union agreements and legal norms."
"The Russian side will ensure the funding of projects of the Kyrgyz side with the formation of the [Kyrgyz-Russian development] fund capital in equal shares within two years, with the fund's authorized capital of $500 million and at least $500 million in borrowed funds," the agreement says.
It noted that "funds shall be borrowed on terms similar with those of the International Development Association."
The fund will finance investment projects in cooperation areas set by the agreement and start its activity "no later than three months after the agreement's signing date."
Funds supporting the adaptation of the Kyrgyz economy to the Customs Union conditions will be gratis and "finance measures taken in the implementation of the roadmap of the accession of Kyrgyzstan to the Customs Union of Belarus, Kazakhstan and Russia."
