Russia to invest $600m in Kyrgyz gold project: Putin

19 March, 2021 12:00 AM printer

BISHKEK: President Vladimir Putin on Wednesday oversaw the opening of a Moscow-backed gold refining plant in Kyrgyzstan, pledging the impoverished country's second largest mine would see $600 million in investments from Russia.

Russia, China and the West have competed for influence in Central Asia including in Kyrgyzstan whose economy relies on gold mining, among other industries, reports AFP.

Moscow has watched billions in investments from China pour into Central Asia in recent years, with Russian companies struggling to compete.

On Wednesday, watching the opening of the gold processing plant at the Jerooy mine in northwestern Kyrgyzstan via video link, Putin said the project would see "record volumes" of investment totalling $600 million by the end of its lifetime.

The plant at Jerooy, a mine operated by Russia's Alliance Group had been expected to go on line last year, but was attacked during unrest that saw a Kyrgyz administration toppled and populist Sadyr Japarov emerge as leader.

The group said the arson attack cost the company over $10 million in damages, delaying production at Jerooy, which holds nearly 90 tonnes of gold and 25 tonnes of silver.

Kyrgyz leader Japarov thanked Putin for his support of the project.

Gold is central to the threadbare economy of the majority Muslim country of 6.5 million people which sends hundreds of thousands of its citizens to work in Russia each year.