Russian diplomat: The loan, allocated to Kyrgyzstan, is not used according to its purpose
$450 million loans, provided to Kyrgyzstan by Russia under the agreements, reached in February of 2009, have not been used according to its purpose, Vitalyi Skrinnik, the first secretary at the Russian Embassy in Bishkek, informed Eurasianet.
According to Skrinnik, Kyrgyz authorities used money to establish a fund, "issuing credits to others to make money". He did not specify the manager of this fund. "Here we had misuse of the money, of $450 million," he said. Perhaps, the diplomat is speaking about Kyrgyzstan’s Development Fund, the structural unit of Central Agency for Development, Investment and Innovation (CADII), headed by Maxim Bakiev, the son of Kyrgyz President.
Victor Kharchenko, the press-secretary of Russian Embassy in Kyrgyzstan, informed Ferghana.Ru that the statement of Skrinnik was his personal opinion. "Vitalyi Mikhailovich manages the cooperation programs with compatriots; therefore, I am not going to confirm his viewpoint", Kharchenko said. He also informed the session of Kyrgyz-Russian intergovernmental commission will be held soon that will consider issues, related to the loan, and make decisions on economic component of the partnership.
We were not able to reach Skrinnik since he is currently not in Kyrgyzstan.
It has to be mentioned that the decision to offer financial aid to Kyrgyzstan was announced on February 3, 2009 in Moscow by the leaders of two countries: Kurmanbek Bakiev and Dmitry Medvedev - $150 was allocated to support state budget, $300 million was offered as preference loan and over $2 billion was offered for joint investment project in hydropower sector. On March 30 Kyrgyzstan received $150 million. On April 30 Ferghana.Ru reported the transfer of another $300 million to the National Bank of Kyrgyzstan.
Russia promised to supply $1.7 billion lax credit to Kyrgyzstan at 0.75% per year for the construction of Kambarata-1 hydropower plant. In August the parties established joint stock company that would receive funds from Russia. According to the plan, Kyrgyz side should have prepared the feasibility study of the project by the end of 2009 that would ensure not only energy security of Kyrgyzstan but also net export of electricity. During October visit to Bishkek Sergey Naryshkin, the Head of Russian Presidential Administration, said that Kyrgyzstan was not catching up on Kambarata-1 project implementation terms.
Signing $2 billion agreement with Russia, Kyrgyz leader Kurmanbek Bakiev promised to shut down the US airbase in Kyrgyzstan. The observers reported Russian lobby although Kyrgyzstan said it was independent in such decision making. Half a year later, the airbase was renamed into Transit Shipment Center to support anti-terrorist operations in Afghanistan. Therefore, American soldiers remained in Kyrgyzstan. Allegedly, the reason is that Russian government is being slow in transferring the promised money. Another reason could the fact that Uzbekistan strongly opposes the construction of Kambarata-1 hydropower station.
Meanwhile, in December of 2009 Russia’s envoy to Kyrgyzstan, Valentin Vlasov, informed Komsomolskaya Pravda that all arrangements on $1.7 billion loan remain in force.