RKFR has allocated another $25 million to the sugar industry in Kyrgyzstan

The Russian-Kyrgyz Development Fund continues to support the country's food security and has allocated an additional $25 million to Kyrgyzstan's sugar industry. The relevant financing agreement was signed with OJSC Kaindy-Kant and OJSC Koshoy.

The money will be used to replenish the working capital of the enterprises.

The RDF noted that the allocation of funding is a continuation of systematic work to revive and develop the sugar industry and is in line with the course set by the president and the cabinet of ministers in terms of ensuring food security.

The revival of the industry began in 2016-2017, when, with the support of the RKFR, the restoration and deep modernization of two key sugar factories in the country were financed. At that time, the Fund allocated about $16 million, which allowed the enterprises to emerge from the crisis and ensure production growth.

According to Artem Novikov, Chairman of the Board of the RCF, the new funding will significantly increase production volumes.

“The capacity of the Kaindy-Kant and Koshoy factories allows them to meet 100% of the country's sugar needs. The $25 million allocated will make it possible to increase the volume of sugar beet purchased and bring production to a level capable of fully covering Kyrgyzstan's domestic demand,” he said.

The project has a pronounced multiplier effect on the economy. The two factories employ about 1,500 people and provide stable sales for 3,500 farms. In total, about 100,000 people across the country are involved in the sugar beet cultivation and processing chain.