Kyrgyzstan: Bishkek Seeking Kremlin Cash Infusion

It seems that the Kremlin's charm offensive with the new provisional government in Kyrgyzstan may soon include a cash hand-out.

Speaking at a news conference on April 12, Kyrgyzstan's interim first deputy minister for economic affairs, Almazbek Atambayev, revealed that the new leadership in Bishkek is angling for Moscow's financial support. Atambayev led a Kyrgyz delegation that was in Moscow over the weekend. He said Russian leaders were receptive to the idea of providing Bishkek with a fresh infusion of financial aid.

"I met with full support in Moscow. The questions that I asked were received with complete understanding," Atambayev stated, according to comments distributed by the AKIpress news service.

Acting Finance Minister Temir Sariev is due to travel to Moscow on April 14 to hold follow-up discussions on possible Russian assistance.

In early 2009 Russia extended a $2.15 aid package to Kyrgyzstan. Experts at the time saw it as a quid-pro-quo for a Kyrgyz commitment to close the American transit center at Manas Airport outside Bishkek. [For background see the Eurasia Insight archive].

Russia coughed up $450 million of the package, including a $150 million grant. [For background see the Eurasia Insight archive]. But Kurmanbek Bakiyev's administration did not follow though on closing the Manas base, and Moscow ended up withholding a $1.7 billion loan that was intended to help finish construction of the Kambarata-1 hydropower project. [For background see the Eurasia Insight archive].

Provisional government leaders have alleged that Bakiyev and others may have drained the treasury of most of the country's liquid assets before fleeing the Kyrgyz capital on April 7.

Russia's receptiveness to a new assistance offer indicated that the hard feelings the Kremlin showed toward Bakiyev in recent weeks were not carrying over to Kyrgyzstan's new leaders.

Atambayev told journalists that Bishkek was seeking a grant in excess of the $150 million that the Kremlin proffered last summer. "During peaceful times, Russia provided us a grant in the amount of $150 million. I explained to our Russian colleagues that this is an emergency situation and the sum of the grant should be more," he said.

Hope is now building in Bishkek that Moscow may also drop a duty on petroleum products exported to Kyrgyzstan. But Mikhail Evdokimov, who is affiliated with the Trade Representation of Russia in Kyrgyzstan, said it is too early to say what will happen to the duty. [For background see the Eurasia Insight archive].

"So far there is no decision about abolishing the duties for fuel to Kyrgyzstan. Due to many requests from Kyrgyz companies, we sent official letters to the government of Russia asking whether that will happen or not. We are now waiting for an answer," Evdokimov told EurasiaNet.org on April 12.

Edil Baisalov, chief of staff to the acting leader of Kyrgyzstan's provisional government, told EurasiaNet.org on April 12 that an end to the import duty was "one of the main requests of Atambayev's trip to Moscow."