Details have emerged regarding the situation in Kyrgyzstan’s oil industry and the activities of the state-owned enterprise Kyrgyzneftegaz. Daiyrbek Orunbekov, head of the Information Policy Service of the Presidential Administration, reported.
According to him, the enterprise was established in the 1950s, and during the Soviet period, extracted oil was sent to Uzbekistan for processing. After the collapse of the Soviet Union, domestic refining remained limited for a long time due to a lack of modern facilities.
In 1996, a subsidiary Kyrgyz Petroleum Company was established, launching oil refining within the country. However, due to outdated equipment, the plant produced only AI 80 gasoline and diesel fuel.
After Kyrgyzstan joined the Eurasian Economic Union, the country transitioned to Euro fuel standards (AI 92, AI 95, AI 98), which are mainly imported from Russia. As a result, locally produced AI 80 lost demand on the domestic market.
According to the presidential administration, since 2021 a corruption scheme involving affiliated private companies had been operating around Kyrgyzneftegaz. It is alleged that intermediaries were inserted between the state enterprise and the refinery, through which products were sold, with most of the profits diverted away from the state.
It is also reported that certain companies were effectively forced to purchase AI 80 and diesel despite low demand, and then blend them with higher-quality fuel for sale.
Following management changes in the sector, such procurement practices have been halted, leading to an accumulation of fuel stocks in storage.
In response, the government has temporarily authorized the export of AI 80 gasoline and diesel fuel. Products from Kyrgyz Petroleum Company and the refinery Zhongda will be supplied to Tajikistan and Afghanistan, while Euro-standard fuel imported from Russia will not be exported.
Additionally, modernization of the refinery has begun. It is expected that within two years, the plant will be able to produce fuel meeting Euro standards and partially cover domestic demand.
