Russian-Kyrgyz Development Fund To Increase 2025 Financing By 7.8%

The Russian-Kyrgyz Development Fund (RKDF) plans to allocate US$161 million to finance investment projects this year, the RKDF has stated. The fund’s financing amounted to US$149.3 million in 2024. The new figures mean it will increase 7.8% in 2025.

During the year, US$141 million is expected to go towards direct project financing, and another US$20 million will be allocated to support small and medium-sized enterprises through partner banks, the RKDF said. According to the RKDF, its authorized capital currently amounts to US$574 million.

Currently, the fund is reviewing 27 projects with a total value of US$274 million. These include the construction of a recreational ethnocomplex in Osh, a multidisciplinary medical centre with a rehabilitation unit, a hydroelectric power plant in the Jalal-Abad region, the expansion of sugar plant production capacities, and other initiatives.

Several RKDF-funded projects are scheduled for completion this year. These include a ceramic tile plant and a brick factory in Issyk-Kul, a trade and logistics centre in Osh, a sealed glass unit plant, a hydroelectric power plant in Jalal-Abad, and a full-cycle fish processing enterprise are all being prepared for launch. The total financing for these projects exceeded US$74 million.

The Russian-Kyrgyz Development Fund was established under a 2014 agreement between the Russian and Kyrgyzstan governments. Its mission is to promote economic cooperation between the countries, modernize and develop the Kyrgyz economy, and leverage opportunities arising from participation in Eurasian economic integration. Kyrgyzstan is a member of the Eurasian Economic Union.

Kyrgyzstan has a population of about 7.2 million, a GDP (PPP) of about US$48.1 billion, a GDP per capita (PPP) of US$6,790, and a projected GDP growth for 2025 at 5.8%.

Russia-Kyrgyz bilateral trade increased 16.6% last year to reach US$3.2 billion. Russian FDI into Kyrgyzstan grew by 24.2% during that time, while according to Kyrgyzstan’s National Statistical Committee, accrued Russian direct investments amounted to US$1.2 billion at the end of 2024.