Kyrgyzstan launches $25 mln oil refinery to cut Russian fuel reliance
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Kyrgyzstan has started construction of a $25 million mini-oil refinery in the south of the country, financed by Kyrgyz-Chinese company Central Asian Energy LLC. The move aims to bolster energy security amid disruptions in Russian fuel supplies, which account for over 90% of Kyrgyzstan's gasoline imports.
Project Details
The refinery, with a capacity of 450,000 tonnes per year, will produce gasoline and diesel meeting K5 and K6 environmental standards, as well as bitumen and motor oils. The first phase of construction is scheduled for completion in autumn 2026. Central Asian Energy LLC is fully funding the project.
Supply Disruptions
Since late May, Russia has faced a fuel deficit due to reduced refining volumes after drone attacks on its oil processing facilities. In late June, the Kyrgyz Oil Traders Association reported shortages of AI-95 and AI-98 gasoline, citing limited Russian supplies and seasonal demand growth.
Diversification Efforts
To stabilize the domestic market, Kyrgyz authorities have introduced temporary price controls, later lifted for AI-95 gasoline, and banned fuel exports. Bishkek is also seeking imports from China and Belarus, and has agreed with Uzbekistan to process some oil products at Uzbek refineries for re-export to Kyrgyzstan.
What's Next
The first phase of the refinery is expected to be completed by autumn 2026. It remains unclear whether the new capacity will fully offset the Russian supply shortfall or if additional measures will be needed.
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Kyrgyzstan launches $25 mln oil refinery to cut Russian fuel reliance
