Gazprom Buys Kyrgyz Gas Firm

Kyrgyzstan’s debt ridden state owned gas firm Kyrgyzgaz has been bought by Russian gas giant Gazprom for $1, Associated Press has reported.

The price has been set at one dollar for 75 percent of the company, considering its estimated debt of $38 million, said Kyrgyzgaz director Turgunbek Kulmurzayev. The Kyrgyz firm is currently 87 percent owned by the state. Another 4.5 percent is held by social investment funds, with the remainder belonging to private investors.

Reports said that Gazprom plans to invest $650 million over five years on modernizing Kyrgyzstan's gas pipeline network.

Kyrgyzstan also expects Gazprom to begin exploration for new gas fields.