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Putin signs law ratifying Russian-Kyrgyz cooperation agreement

Over the next two years, the Russian government plans to allocate $1.2 billion for Kyrgyzstan’s Eurasian integration

Russia's president Vladimir Putin ITAR-TASS/Mikhail Klimentyev

Russia's president Vladimir Putin

© ITAR-TASS/Mikhail Klimentyev

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Kyrgyzstan’s treaty to join Customs Union, Common Economic Space to be signed December 23

MOSCOW, December 2. /TASS/. Russian President Vladimir Putin has approved ratification of an agreement with Kyrgyzstan for development of economic cooperation as part of Eurasian economic integration. A law was published on the official web portal for legal information on Tuesday.

The agreement signed in Astana on May 29 is designed to develop cooperation in agro-industrial sector, the sewing and textile industries, processing, mining and metallurgical industries, transport, housing construction, development of entrepreneurship and infrastructure. A special development fund is going to be set up in the form of an international organization. Its status, functions, structure and rules of functioning will be defined in a separate agreement.

Over the next two years, the Russian government plans to allocate $1.2 billion for Kyrgyzstan’s Eurasian integration.

Russia guarantees that Kyrgyzstan will receive money for implementing projects in the aforesaid fields by forming the fund’s capital in equal shares in the next two years on the following conditions: an authorised capital estimated at $500 million and at least $500 million worth of borrowed loans.

Besides, Russia has undertaken a commitment to grant $200 million to Kyrgyzstan free of charge in the next two years to finance the implementation of a roadmap for Kyrgyzstan’s accession to the Customs Union of Russia, Belarus and Kazakhstan.

Kyrgyz authorities decided to join the Moscow-led Customs Union in the spring of 2011. Six months later, the former Soviet republic filed an official request for accession. Its government is currently aligning legislation with that of the Customs Union and a wider planned Common Economic Space. A roadmap plan for integration approved by all interested parties says Kyrgyzstan will join by January 1, 2015.

A treaty on the republic’s accession to the Customs Union and the newly-formalised Eurasian Economic Union of Russia, Belarus and Kazakhstan is expected to be signed on December 23.

The Eurasian Economic Union, which envisages the free movement of goods, services, capital and workforce and is based on the Customs Union, will become operational from January next year.

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Vladimir Putin Customs Union Kyrgyzstan Trade & Cooperation

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