Kyrgyzstan seeks to pay petroleum debts

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KYRGYZSTAN — Before it can start negotiating next year’s petrol prices with Uzbekistan, Kyrgyzstan must quickly settle its outstanding US$18 million debt. Early in August, Uzbekistan said that it would not begin negotiations until the debts had been paid. Kyrgyzstan hopes to resolve the matter soon, and the prospects of winter and freezing weather provide an extra incentive.

Before the cold season sets in, Kyrgyzstan would like to see a reduction in the current price of $240 per thousand cubic metres of petroleum, to reflect the recent decrease in global energy commodity prices.

Kyrgyzgaz CEO Salamat Aitikeev promised that Kyrgyzstan would settle its debts to Uzbekistan in full by September 1.

According to official figures from Kyrgyzgaz, the total number of petrol consumers in the country is 277,000, only 2,000 of whom are not private citizens. Most of the debt is carried not by citizens, but by state and private organisations and companies that together owe Kyrgyzgaz more than US$14 million.

To repay Uzbekistan, Kyrgyzgaz is carrying out mass corporate raids to collect debts and cut off non-payers. In addition to Kyrgyzgaz employees, officers of law-enforcement agencies and journalists are also involved in the raids.