Central Asia Capital, a Bishkek-based private equity fund, in partnership with the Russian Export Center, has launched a political risk insurance program for Russian investments in Kyrgyzstan.
According to Central Asia Capital, the new program is aimed at safeguarding investments against political risks, including restrictions on fund transfers, currency inconvertibility, expropriation of assets, trade sanctions, and other unforeseen regulatory measures, insuring up to 90% of the investment principal and investment income.
The program is open to Russian private individuals and legal entities, as well as foreign companies under Russian majority control.
The program will support investments made through the Central Asia Hub industrial park, a special economic zone in Kyrgyzstan offering tax incentives for Russian manufacturing and commercial enterprises.
The launch of the insurance program is seen as a strong catalyst to drive further growth in Russian investment activity in Kyrgyzstan. The new protection mechanism is intended to reinforce confidence for companies moving beyond one-off export deals to establishing joint ventures and manufacturing facilities.
