There is no place for money here

Beijing again postponed negotiations on the construction of a railway from Uzbekistan to China through Kyrgyzstan. Investments announced during the visit of the Chinese leader to this country are extremely insignificant. Caution is explained: foreign companies in this chaos covered by chaos are at a great risk.

China will allocate almost $ 3 billion for projects in Kyrgyzstan, said Temir Sariev, Kyrgyz Minister of Economics. The relevant agreements were signed during the state visit of the chairman of China Xi Jinping to this country on September 11.

Of these, $ 1.4 billion will be allocated for the construction of 225 kilometers of Kyrgyzstan-China gas pipeline. It will be completed in two to three years, the volume of deliveries will be 30 billion cubic meters per year. The object is intended for the export of Turkmen gas to the Chinese Kashgar.

In addition, China will allocate $ 400 million for the reconstruction of the Bishkek CHPS and the construction of the Alternative Road "North-South". Another $ 400 million will receive the Junda oil refinery in Kara-Balt. Next, 210 million yuan (about $ 38 million) of technical assistance and grants for various projects will be allocated.

"Funds for the construction of the gas pipeline and an increase in the capacity of the refinery in Kara-Balt are clean investments of the Chinese side. Money for the reconstruction of hydroelectric power stations and the construction of the Sever-Yug alternative road is loans under the guarantee of the government," the minister explained.

In total, according to the results of the visit of Xi Jinping, seven documents were signed to Kyrgyzstan: an agreement on technical and economic cooperation, an act of transferring cars from the Chinese Government by the Presidential and Government of the Kyrgyz Republic, an agreement on cooperation in the construction and operation of a gas pipeline from Kyrgyzstan to China, a memorandum of mutual understanding of cooperation in the field of healthcare, an agreement On the allocation of loans to the Chinese export-importing bank for the reconstruction of the Bishkek CHPP and the construction of the Sever-Yug alternative highway, a credit agreement between the RSK-Bank and the Chinese development bank on $ 10 million, a declaration on the establishment of strategic partnership relations.

The Chairman of the Government of China visited Bishkek as part of a tour of Central Asia. Before that, he visited Kazakhstan, Turkmenistan and Uzbekistan. Investments that Xi Jinpin agreed to allocate in the economy of Kyrgyzstan are simply insignificant compared to Beijing’s investments in other Central Asian countries. So in Kazakhstan, during the current visit of Xi Jinping, an agreement was reached on investments of $ 30 billion (in particular, in the development of the Kashagan oil giant oil field), and in Uzbekistan $ 15 billion. The scale of investments in Turkmenistan is not disclosed, but given the China rate on Turkmen gas, it can be assumed that they are also much higher than in Kyrgyzstan.

Moreover, contrary to Bishkek’s expectations, Beijing postponed the consideration of the main Chinese project in this country: the construction of a railway from Uzbekistan to China through the Kyrgyzstan. It should be noted that due to delay with the start of the construction of this highway, Tashkent also suffers, since, namely, this artery largely predetermines the scale of Sino-Uzbek cooperation.

The insignificance of the scale of Chinese investment in Kyrgyzstan is easily explained. The instability of the situation in this state, where political life largely determines the dictatorship of the crowd led by criminals, puts foreign companies working in Kyrgyzstan in a very risky position. So, for example, the Canadian company, which develops the golden place of the Kumtor, is constantly subject to pressure from the authorities led by "authorities" of aggressive crowds. Numerous attacks of local residents were recorded on Chinese enterprises in Kyrgyzstan.

The instability in Kyrgyzstan is well aware of Beijing. As noted by the largest Chinese newspaper Zhenmin Gibao, on September 11, in Beijing, a presentation of new documents "Report on the development of the SCO (2013)" and "Report on the development of the countries of Central Asia (2013)" was held. The documents noted that, with the exception of Kyrgyzstan, in other countries of the region, the political situation was stable, and economic development was favorable. Given that in China public information, especially this kind, does not appear without sanctions from above, the resulting conclusion can be translated as follows: Beijing is ready to invest in all Central Asian republics, except for Kyrgyzstan.
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