Kyrgyzstan Weekly: Kyrgyzstan advances Kumtor underground mining, breaks ground on CKU railway

August 22, 2025 to August 28, 2025

This week's top 10 stories from Kyrgyzstan, selected from our daily intelligence briefs.

1. Kumtor Launches Underground Mining, Projects 17-Year Output as State Reports $3.45B Revenue Since 2021

Kumtor Gold Company has begun underground mining at its flagship Kyrgyzstan deposit, completing 1.6 km of tunnelling and targeting ore grades above 5 g/t as part of a planned 17-year underground programme that management and officials say will complement ongoing open-pit production. The government reports 147 tonnes of geological reserves now on the state balance for underground extraction, and President Sadyr Japarov has framed the shift as both productivity- and glacier‑protection–oriented, forecasting Kumtor will operate “for another 40–50 years.”

Since nationalisation in 2022 (with figures cited from 2021 onward), authorities say Kumtor has generated $3.445 billion in revenue, paid $891.6 million in taxes and fees, and produced over 54 tonnes of gold, with $441 million paid as dividends to the state over three years. Officials also highlight potential additional recovery — tailings reprocessing could yield more than 100 tonnes of gold — and expansion plans at the Togolok development site and Jangart exploration area, underscoring the project’s continuing strategic and fiscal importance to Kyrgyzstan.

From daily brief: 2025-08-28

2. China–Kyrgyzstan–Uzbekistan Railway Breaks Ground, Shortening Routes to Turkey, Middle East and EU

Full-scale construction of the China–Kyrgyzstan–Uzbekistan railway began across Kyrgyzstan on 30 June, after a ceremonial launch on 27 December attended by Presidents Xi Jinping, Sadyr Japarov and Shavkat Mirziyoyev. The 450–520 km corridor will link Kashgar via the Torugart pass, Naryn and Jalal‑Abad to Uzbekistan and onward through Turkmenistan, Iran and Turkey to Europe, creating an overland “Middle Corridor” alternative to existing China–Europe and China–Middle East routes.

Officials project annual transit revenues for Kyrgyzstan of at least $200 million, a throughput of 10–15 million tonnes and over 20,000 construction jobs, with new logistics hubs planned at Makmal and Jalal‑Abad; a broader multiplier effect of roughly $2 billion has been suggested. By cutting distances by about 900 km and saving 7–8 days transit time, the line is expected to enhance export competitiveness and reduce transport costs, while reshaping Eurasian freight flows and regional connectivity.

From daily brief: 2025-08-27

3. $6.2B Plan Advances to Build Kazarman and Kökömeren Hydropower Cascades with Turkish Investment Vehicle

Kyrgyz authorities have signed investment agreements with a newly formed Turkish-led Central Asia Investment Holding to develop two major hydropower cascades: Kazarman on the Naryn River (three plants, ~912 MW) and Suusamyr–Kökömeren (three plants, ~1,305 MW). The combined preliminary cost is estimated at $6.2 billion and total planned capacity about 2.2 GW; final costs and design will be set after feasibility studies and state expert review.

The investor committed social contributions of $5 million annually for 2025–2030 and has already donated 30 vehicles to state bodies. Officials, including Chairman of the Cabinet Adylbek Kasymaliev, position the projects alongside the 1,200 MW Toktogul modernization as a step-change in Kyrgyz power generation. Key near-term risks and decision points include the outcomes of the feasibility studies, financing details, environmental and social impact assessments, and timelines for construction.

From daily brief: 2025-08-26

4. Construction Begins on China–Kyrgyzstan–Uzbekistan Railway in Naryn’s Ak-Talaa District

Construction has begun on the strategic China–Kyrgyzstan–Uzbekistan (CKU) railway, with crews mobilized in Kosh-Döbö village, Ak-Talaa district, Naryn region of Kyrgyzstan. The planned 480-kilometre corridor will traverse more than 300 km of Kyrgyz territory and is intended to shorten freight routes from China to the Middle East and Europe by bypassing longer northern passages, potentially reducing transit times and costs for regional trade. Early works in Naryn indicate priority on the most challenging mountainous segments, where extensive tunnelling and high‑altitude engineering will influence schedules and budgets.

For Kyrgyzstan the CKU line presents both opportunities and risks: it could catalyse logistics hubs, customs modernization and related road and energy upgrades along the route, but will also require complex financing, land acquisition and environmental management over a multi‑year build. The project’s ultimate economic and operational impact will depend on delivery of the technically difficult sections, funding arrangements and cross‑border coordination among China, Kyrgyzstan and Uzbekistan.

From daily brief: 2025-08-26

5. Next-Generation ID Cards and Passports to Roll Out as Current Stock Depletes

The Cabinet has approved rolling out next‑generation ID cards (2025 series) and a universal civil passport to enter circulation once existing 2024 ID card blanks and 2023 passport blanks are exhausted, with no immediate mandatory swap for still‑valid documents. Personalization of the new documents will be centralized under the presidential administration’s Service agency “Kyzmat,” consolidating production control in a single state entity; rollout will be phased according to inventory levels at issuance centers.

Authorities also reiterated legal liability for publishing images of found identity documents online, citing privacy and data‑protection norms. The change aligns Kyrgyzstan with regional moves to strengthen document security and streamline identity systems, and may have downstream implications for bank KYC, border control procedures and integration with digital public services.

From daily brief: 2025-08-25

6. Tokayev’s State Visit Yields New Bilateral Agreements and Cultural Honors in Bishkek

Kazakhstan President Kassym-Jomart Tokayev completed a two-day state visit to Kyrgyzstan on August 22, holding expanded talks with President Sadyr Japarov and signing multiple bilateral documents to deepen political, economic and cultural cooperation. The visit featured high-profile symbolic gestures—the awarding of Kazakhstan’s highest state honor, the Altyn Qyran (Golden Eagle) Order, to Japarov and the presentation of Dostyk (Friendship) Orders to several Kyrgyz public figures—underscoring an emphasis on elite and people‑to‑people ties.

Practical outcomes included joint inaugurations and cultural projects, notably the “Golden Bridge of Friendship” monument in Bishkek honoring writers Chinghiz Aitmatov and Mukhtar Auezov, and a visit to a school named for Kemel Tokayev. Taken together, the agreements and public ceremonies signal continued alignment between Nur-Sultan and Bishkek and a near-term push for tangible cooperation across political, economic and cultural spheres.

From daily brief: 2025-08-24

7. Government Issues 9.3 Billion Som in Interest‑Free Loans to SMEs Under Emergency Support Program

Kyrgyzstan’s Finance Ministry has disbursed more than 9.3 billion som in interest‑free loans to 11,765 entrepreneurs under the nationwide “Emergency Support for Micro, Small and Medium Enterprises” program, which runs through July 2027. Loans are issued in Kyrgyz som at 0% interest, exclude agricultural businesses, and target officially registered firms operating at least six months; qualifying turnover caps are up to 8 million som for sole proprietors and up to 30 million som for sole proprietors and legal entities.

The initiative—administered via partner banks that handle final documentation—aims to provide sustained liquidity support and stabilize non‑agricultural MSME sectors through concessional credit channels. For international observers and investors, the program signals continued state intervention to shore up small business activity, although exclusion of agriculture and the relatively modest turnover thresholds may limit broader structural impact.

From daily brief: 2025-08-23

8. Sanctions Dispute Deepens as Bishkek Rejects Western Claims and Signals Openness to Audit

The UK on [date not specified] imposed new sanctions targeting financial entities and Kyrgyz-linked cryptocurrency networks it says help Russia evade restrictions, following earlier U.S. measures against Kyrgyz banks. Kyrgyz President Sadyr Japarov publicly rejected the allegations, demanded evidence from Washington and London—saying “they have not provided a single fact”—and invited independent audits and full reporting from Kyrgyz banks to prove compliance. Political scientist Tokon Mamytov criticized the measures as politicizing sanctions while noting Bishkek’s declared readiness to cooperate and undergo international scrutiny.

The government reiterated adherence to international frameworks (UN and FATF) and framed its response around sovereignty and continued open dialogue with all partners. For international professionals, the dispute raises risks of escalating reputational and compliance pressures on Kyrgyz financial and crypto sectors, potential strains in Kyrgyz–Western relations, and a possible shift toward more politicized use of sanctions absent transparent evidence or mutually accepted audit mechanisms.

From daily brief: 2025-08-23

9. State-Owned Eldik Bank Completes Beeline Kyrgyzstan Acquisition, Pledging Integrated Fintech-Telecom Push

Kyrgyzstan’s state-owned Eldik Bank has completed the acquisition of 100% of Sky Mobile (Beeline Kyrgyzstan), a deal officials say was executed under English law and in line with international M&A and corporate governance standards. Announced with backing from President’s office leaders including Adylbek Kasymaliev, the transaction is being presented as a government-led consolidation to create a national digital ecosystem combining telecom infrastructure and banking services under Eldik’s control.

Eldik and government statements (including from Eldik chair Ulanbek Nogaev) describe rapid deployment of 5G, upgraded regional telecom capacity, and a “super-app” bundling banking, payments, e‑commerce and public services intended to accelerate digital inclusion, literacy and sovereignty. For international investors and partners, the deal signals Kyrgyzstan’s strategic push to modernize its digital economy, but also raises governance and competition questions typical of state-led sectoral consolidation.

From daily brief: 2025-08-22

10. UK Sanctions Central Asia Capital Bank; President Japarov Rejects Allegations and Appeals to Leaders

The UK on August 21 sanctioned state-owned Central Asia Capital Bank (Kapital Bank) and its director Kantemir Chalbaev, accusing the bank of facilitating Russian military procurement — including via cryptocurrency channels — a move that follows U.S. sanctions in January on Keremet Bank. London warned the measures reflect heightened Western scrutiny of regional financial conduits linked to Russia and said the action increases compliance risks for cross‑border transfers and ruble conversions affecting remittances and trade flows.

President Sadyr Japarov publicly rejected the allegations as unproven and politicized, noting both banks process ruble remittances from Kyrgyz migrants in Russia and fall under the Finance Ministry; he said U.S. officials declined Kyrgyz offers of joint independent audits and provided no concrete evidence. Japarov appealed directly to foreign leaders for clarity and pledged transparency, while analysts warn the sanctions could complicate Kyrgyzstan’s banking operations and state revenues in the near term.

From daily brief: 2025-08-22