Russia, Kyrgyzstan Hold Talks on Stalled Hydropower Cascade

Russian and Kyrgyz officials have met to discuss deepening cooperation in the energy sector. The Russian delegation was led by Minister of Energy Sergey Tsivilev, while the Kyrgyz Republic was represented by First Deputy Prime Minister Daniyar Amangeldiev and Minister of Energy Taalaibek Ibraev. Representatives from the Russian state-owned hydropower company PJSC RusGidro also attended the talks, which focused on collaboration in hydropower development.

The central topic of discussion was the implementation of the Upper-Naryn Cascade of Hydropower Plants. The parties addressed the settlement of outstanding issues related to the project and outlined a series of steps required for its advancement. An agreement was reached to continue joint efforts on the initiative, which could significantly increase electricity generation capacity in the region.

The project’s revival is contingent on resolving a financial dispute with RusGidro. In late 2023, Kyrgyz President Sadyr Japarov stated that work on the cascade would not resume until a settlement is reached. The dispute concerns compensation for funds invested by RusGidro during the project’s initial phase before contracts were terminated. The original claim of $37 million grew to $51 million following an international arbitration ruling against Kyrgyzstan and the addition of penalty fees. Despite the lack of any permanent structures at the construction site–where only containers remain–the legal and financial obligations are still in effect, preventing the project from restarting even with interest from new potential investors.