BAKU, Azerbaijan, August 7. Kyrgyzstan is
counting on investments from Azerbaijan in the hydropower sector,
the First Deputy Minister of Economy and Commerce of the Kyrgyz
Republic, Choro Seyitov, told Trend in an exclusive interview.
''The energy sector is one of the most promising areas of
Kyrgyz-Azerbaijani cooperation. The Kyrgyz Republic has significant
hydropower potential and is actively implementing projects to
develop renewable energy sources,'' he said.
Seyitov emphasized that the Azerbaijan-Kyrgyz Development Fund
plays an important role in the development of this area, as it is
already financing projects to build small hydropower plants in the
Issyk-Kul and Osh regions.
''The implementation of these projects will help increase
generating capacity, enhance the country’s energy security, create
new jobs, and promote regional development. We are also interested
in continuing to attract investment for the modernization of energy
infrastructure, the development of distribution networks, the
introduction of energy-efficient technologies, and the
implementation of joint projects in the field of ‘green’ energy,''
the First Deputy Minister added.
Collective efforts to develop the Middle
Corridor
Seyitov stated that the Kyrgyz Republic is interested in
developing the Trans-Caspian International Transport Route (Middle
Corridor), viewing it as one of the promising avenues for
strengthening regional transport connectivity and expanding trade
and economic cooperation.
''The development of the Middle Corridor contributes to
expanding access to alternative international transport routes,
enhancing the resilience of logistics chains, and diversifying
foreign trade shipments. We advocate for the high-quality
development and further strengthening of the Middle Corridor’s
potential. In this context, the construction of the
‘China–Kyrgyzstan–Uzbekistan’ railway is of paramount importance
and is viewed by us as a key factor in strengthening transport
connectivity and sustainable economic development throughout the
region,'' he added.
As the First Deputy Minister noted, expanding the capabilities
of this route will make it possible to diversify export
destinations, reduce cargo delivery times, increase the
competitiveness of Kyrgyz products in foreign markets, and
strengthen Kyrgyzstan’s role as a participant in regional transport
and logistics chains.
''For the further development of the route, the following are of
key importance: coordination of transportation policy, digitization
of transportation procedures, development of multimodal transport,
improvement of customs administration, removal of administrative
barriers, and implementation of joint infrastructure projects.
Kyrgyzstan is interested in further deepening cooperation with
Azerbaijan in the development of international transport corridors,
which will help increase the volume of bilateral trade and transit
shipments,'' said Seyitov.
Prospects for Growth in Bilateral Trade
According to him, the Kyrgyz Republic views Azerbaijan as one of
its key partners in the region and attaches great importance to the
steady development of bilateral trade and economic cooperation.
''Although the volume of bilateral trade remains relatively
small for now, a steady upward trend has been observed in recent
years. According to data from the Kyrgyz side, trade volume reached
$12.2 million at the end of 2025, an increase of 11.9% compared to
the previous year. Moreover, for the period from January through
April 2026, the volume of bilateral trade also amounted to $12.2
million, which is more than 3.2 times higher than the figure for
the same period last year. This indicates a significant
intensification of trade and economic relations between the two
countries,'' the first deputy minister added.
As Seyitov noted, the growth in bilateral trade is driven both
by steady supplies of Kyrgyz products to the Azerbaijani market and
by an increase in imports of Azerbaijani goods, primarily petroleum
products and sugar.
''We see significant potential for further development of
cooperation in industrial cooperation, the agro-industrial complex
and agricultural processing, the textile and apparel industries,
transportation and logistics, the energy sector, the supply of
petroleum products, tourism, the digital economy, as well as in the
implementation of joint investment projects. The
Azerbaijan-Kyrgyzstan Development Fund plays a significant role in
expanding economic ties by helping to finance promising projects in
key economic sectors,'' he said.
Investment Opportunities
The First Deputy Minister reported that Kyrgyzstan is
consistently improving its investment climate, implementing reforms
to enhance the business environment, protect investors’ rights, and
expand government support mechanisms for investment projects.
''As of June 1, 2026, 54 business entities with capital from the
Republic of Azerbaijan were registered in the Kyrgyz Republic. The
largest number of enterprises operate in the trade sector, as well
as in construction, industry, transportation, professional
services, energy, the financial sector, healthcare, and other
areas. Positive trends are also observed in the area of foreign
direct investment. In 2024, the volume of investment received from
Azerbaijan amounted to $26.1 million, and in the first quarter of
2026, it was $3.1 million. A significant portion of the investments
is directed toward the financial sector, healthcare, trade, and
other sectors of the economy,'' he explained.
Seyitov stated that the Azerbaijan-Kyrgyzstan Development Fund
serves as an additional tool for stimulating investment
activity.
''As of today, the Fund has a paid-in capital of $63.82 million
and is reviewing 120 investment applications, of which eight
projects have already received funding in the energy, industrial,
infrastructure, healthcare, logistics, agribusiness, and tourism
sectors. We consider hydropower, the processing industry, the
agro-industrial complex, transportation and logistics
infrastructure, tourism, the digital economy, construction, light
industry, and the production of export-oriented goods to be the
most promising areas for attracting Azerbaijani investment,'' the
first deputy minister added.
New Areas of Cooperation
Seyitov believes that, in the long term, the potential for
Kyrgyz-Azerbaijani cooperation extends far beyond traditional areas
of trade.
''We see good prospects for joint work in the areas of digital
transformation of the economy, the development of e-commerce,
artificial intelligence, innovative technologies, industrial
cooperation, the development of transportation and logistics
services, renewable energy, agricultural processing,
pharmaceuticals, tourism, and workforce training. Of particular
importance is the development of joint production ventures
targeting the markets of Central Asia, the Caucasus, and other
countries in the region,'' he said.
As the First Deputy Minister noted, Kyrgyzstan is also
interested in expanding cooperation in the field of critical
mineral resources, exchanging modern technologies, implementing
joint research projects, and developing partnerships between
innovative companies.
''We are confident that, thanks to the political trust between
the leadership of the two countries, the effective work of the
Intergovernmental Commission, the activities of the
Azerbaijan-Kyrgyzstan Development Fund, and the intensification of
direct contacts between the business communities,
Kyrgyz-Azerbaijani economic cooperation will continue to
strengthen, taking on new forms and substance,'' he added.
On upcoming joint events
According to Seyitov, one of the key mechanisms for developing
bilateral cooperation remains the Kyrgyz-Azerbaijani
Intergovernmental Commission on Economic and Humanitarian
Cooperation, established in accordance with the 1997
intergovernmental agreement.
''Over the past period, the Commission has held six meetings,
the most recent of which took place in December 2025 in Baku.
Following the meeting, a Joint Action Plan was approved, comprising
83 measures aimed at expanding cooperation in trade, investment,
industry, transportation, agriculture, energy, tourism, and other
areas. Most of these measures are currently being implemented,'' he
said.
The First Deputy Minister noted that in the near future, a
series of bilateral events, business meetings, and business
missions are expected to take place, involving government agencies,
development institutions, and business representatives from both
countries.
''We expect these platforms to facilitate the implementation of
new investment projects, the expansion of trade ties, the
development of industrial cooperation, and the establishment of
direct contacts between entrepreneurs from Kyrgyzstan and
Azerbaijan,'' he concluded.
