Gazprom Acquires Kyrgyzstan’s Gas Network, Pledges Secure Supply

Russia’s Gazprom has acquired Kyrgyzstan’s natural gas network as anticipated by Natural Gas Europe, pledging to invest million of roubles to ameliorate the infrastructure in the next five years.

According to Reuters, the deal was signed on Friday afternoon, with Gazprom paying a symbolic $1 to acquire Kyrgygaz, the state gas company of the country that has been part of the Soviet Union until 1991.

"It will buy its subsidiary under a scheme designed for protection from possible opposition from minority shareholders. Gazprom will invest 20 billion roubles ($609 million) in the first five years," said to Reuters a senior source at Russia’s Energy Ministry, stressing that the Russian company will invest to increase Kyrgyz energy security.

The country stockpiled a debt due to unpaid bills to Kazakhstan and Uzbekistan. This induced several interruptions in the gas supplies to the country last year. As part of the agreeement, Gazprom will assume its debt of around 40 million, Kyrgyz officials said.

Gazprom and Kyrgyzstan signed a 25-year agreement, in which Russian company committed to investments to upgrade the local gas equipment and pipelines.