In order to support Kyrgyzstan’s accession to the Eurasian Economic Union, Russia led the establishment of the “Russia-Kyrgyzstan Development Fund”. On December 30, 2014, Russia remitted the first tranche of US$100 million to Kyrgyzstan. National Bank Fund Account. Regarding how to use the funds, Kyrgyzstan Prime Minister Otorbayev recently stated that the funds will be used for projects with lower risks, export-oriented, rapid circulation, and the creation of more jobs, so that Russia and Kyrgyzstan can Stanislav society trusts that the funds from this fund are used correctly.
According to analysis by Kyrgyzstan economic experts, the priority use of funds should be in the textile industry and tourism. The reasons are: 1. Kyrgyzstan’s textiles are already very popular in Russia. After Kyrgyzstan’s “EU accession” in the future, the customs border between Kyrgyzstan and Kazakhstan will be cancelled, and the demand for textiles in the Eurasian Economic Union will further expand; 2. Russians are keen on Going to Issyk-Kul for summer vacations, the lake area has huge development potential. At the same time, winter projects such as Kyrgyz ski resorts are also attracting more and more foreign tourists. It is time to modernize and upgrade the tourism infrastructure.
It is reported that according to plan, Russia will also remit the second tranche of US$250 million and the third tranche of US$150 million to the “Russia-Kyrgyzstan Development Fund” in 2015 and 2016 respectively, together with the first tranche A total of US$100 million and US$500 million will serve as fixed capital for the fund, and Russia will also attract US$500 million in preferential loans for the fund.
