Throughout a bilateral assembly between Russian Prime Minister Mikhail Mishustin and his Kyrgyz counterpart, Chairman of Kyrgyzstan’s Cupboard of Ministers Adylbek Kasymaliev, the Russian official reportedly registered complaints relating to “quite a lot of points that trigger us severe concern.”
On the sidelines of a January 31 Eurasian Economic Union (EAEU) gathering in Almaty – the assembly of the Eurasian Intergovernmental Council, comprised of EAEU member-state prime ministers – the Russian an Kyrgyz prime ministers met.
In line with a readout posted to Telegram of the assembly by the Russian aspect, Mishustin “expressed hope that Kyrgyzstan, beneath the management of Adylbek Kasymaliev, will proceed to strengthen cooperation with Russia in all areas.” The submit went on to notice a number of areas the place joint initiatives have been proposed, together with in manufacturing, power, transport, “geological exploration,” and the digital financial system.
Lengthy intertwined, Kyrgyzstan’s financial relations with Russia have solely deepened since Moscow’s full-scale invasion of Ukraine in February 2022. For instance, Kyrgyz exports to Russia exploded, from a baseline of $377 million in 2019 (earlier than the COVID-19 pandemic) and $425 million in 2021 to $1.07 billion in 2022. That determine contracted in 2023 to $743 million, but the spike is clear. On the opposite finish, Kyrgyz imports from Russia have risen since earlier than the pandemic however remained comparatively regular: $1.4 billion in 2019, $1.91 billion in 2021, $2.4 billion in 2022, and $2.18 billion in 2023.
Maybe extra related: Russian international direct funding in Kyrgyzstan has risen lately. Within the first half of 2024, the quantity of Russian FDI in Kyrgyzstan elevated by 24.2 p.c.
Throughout their bilateral assembly on January 31, based on the Russian account, Mishustin requested “that the management of Kyrgyzstan cease administrative stress on our firms and make sure the safety of the rights and legit pursuits of Russian traders.”
On Telegram, the Russian authorities shared a quote from Mishustin which minced few phrases:
There are a variety of points that trigger us severe concern. These are unfounded claims and unlawful statements by high-level representatives of Kyrgyz authorities our bodies in opposition to sincere, bona fide Russian firms which might be creating the financial system of Kyrgyzstan, creating new jobs, and are among the many largest taxpayers. Particular information of unlawful, typically extortionate actions are set out in a diplomatic word from the Russian Ministry of International Affairs. We ask that the management of Kyrgyzstan cease administrative stress on our firms and make sure the safety of the rights and legit pursuits of Russian traders.
On February 3, Mishustin spoke once more along with his counterpart, Kasymaliyev, by phone.
In line with RFE/RL’s Kyrgyz Service, Azattyk, the Kyrgyz Cupboard of Ministers press service assertion solely “famous the excessive degree of bilateral relations and emphasised the significance of additional increasing cooperation in precedence areas,” with out point out of Mishustin’s complaints.
Whereas Mishustin gave no specifics, Azattyk famous that in November 2024, Kyrgyzstan’s State Committee for Nationwide Safety (SCNS) searched the Yandex.Taxi office as a part of a tax evasion investigation. Yandex.Taxi is a ridesharing firm beneath the broader umbrella of Yandex, a large Russian know-how firm akin to Google.
On February 3, the chair of the Kyrgyz State Tax Service, Almambet Shykmamatov, launched a statement referring to Mishustin’s complaints as “an inaccuracy.” He referred to as Mishustin’s used of the phrase “extortion” a “gross exaggeration.”
“We don’t divide taxpayers into these from our nation, from a big energy or from a small state. The tax norms established by legislation apply equally to everybody, and everybody complies with them,” he stated.
Shykmamatov confused his perception that the difficulty at hand “is a standard financial problem, and it mustn’t have an effect on the strategic relations between the 2 nations.”
By the way, Kasymaliev was named chairman of the Cupboard of Ministers in December following the resignation of his predecessor, Akylbek Japarov (no relation to Kyrgyz President Sadyr Japarov), amid a scandal involving the State Tax Service. Shykmamatov additionally took on his submit main the tax service in December, following the arrest of his predecessor, Altynbek Abduvapov.
Akylbek Japarov’s resignation has not formally been tied to the scandal. Regardless, his resignation after three years working the Kyrgyz authorities beneath President Japarov is worthy of consideration. During that interval, he noticed by appreciable reforms. When requested concerning the scenario in December, SCNS head Kamchybek Tashiev answered: “[Akylbek Japarov] left as a result of there was a reference to one thing. He didn’t simply go away.”
The Russian prime minister, as famous above, didn’t title names, however given the intertwined nature of the Kyrgyz and Russian economies – and the risk of higher U.S. sanctions – this spat is value watching.
