Russia will allocate $1 billion for adaptation of the Kyrgyz economy in the EAEC

Astana. November 25. Silkroadnews - Russia will allocate $1 billion for adaption of the economy of Kyrgyzstan in the Eurasian Economic Union (EAEC), reports the newspaper "Kommersant' ".
"Russia is ready to support the Kyrgyz authorities in a bid to join the Eurasian Economic Union. To adapt the economy of this country to join the union, Bishkek will receive financial assistance in the amount of $1 billion",- says the publication.
Notes that half of that amount will be directly transferred to the fund in the form of the share capital, another $500 million Russia agrees to enlist in the form of a loan from the World Bank Group.
Representatives of the Ministries of Finance on the eve signed an intergovernmental agreement on the establishment of the Kyrgyz-Russian Development Fund in the amount of $1 billion. It is expected that the share capital of the fund will be $500 million, its financing will be fully satisаfied by Russia: the first $100 million will go to the Republic until 31 December of this year, the remaining $400 million - before 29 May, 2016.
In addition, the Russian side undertakes to bring to the fund concessional loan of $500 million to the International Development Association (part of the World Bank Group). The loan will be made without the guarantee from the government of Kyrgyzstan.
Recall that in late May this year, the head of Russia, Kazakhstan and Belarus signed an agreement on the establishment of the EAEC, which will start acting from 1 January, 2015. At the same time in Astana leaders of the three countries approved a "roadmap" for the accession of Kyrgyzstan to the Customs Union and the EAEC.