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.
