Projects implemented by the Fund in Kyrgyzstan aim to adapt its national economy to the standards of the Customs Union, the United Economic Space and the Eurasian Economic Union.
The draft federal law on the ratification of the Russian-Kyrgyz intergovernmental agreement on the Russian-Kyrgyz Development Fund (hereinafter, the Agreement and Fund) has been submitted by the Ministry of Foreign Affairs and the Ministry of Finance.
The Fund aims to promote economic cooperation between Russia and Kyrgyzstan, the development and modernisation of the Kyrgyz economy, and the efficient use of the opportunities provided by the two countries’ participation in Eurasian economic integration.
The Agreement approves the Fund Regulations and sets its basic principles and the terms and mechanisms of its work. The decision-making procedure of the Fund's council and board shall duly consider Russian interests.
Russia shall guarantee the funding of Kyrgyz efforts to implement projects through the Fund by forming its capital, which shall consist of 500 million USD in registered capital and borrowings totalling no less than 500 million USD.
In compliance with Article 6 of the Regulations, the $500 million in registered capital shall be formed by Russia from its federal budget in 2014-2016. Membership fees can be paid in US dollars or Russian roubles.
Russia made its first $100 million contribution to the registered capital in 2014. An equivalent of $400 million in US dollars and/or Russian roubles shall be paid to the Fund's account at the National Bank of Kyrgyzstan in compliance with the schedule envisaged by the Agreement: $250 million in 2015 and $150 million in 2016. This schedule eases the load on the federal budget.
The projects implemented by the Fund in Kyrgyzstan aim to adjust its national economy to the standards of the Customs Union, the United Economic Space and the Eurasian Economic Union, and thereby promote Russian strategic interests.
The document was approved by the Government meeting of 26 March 2015.