Anis H. Bajrektarevic is a Professor and a Chairperson for International Law and Global

STRATEgIC PERSPECTIvES
The new government and the following gov-
ernments have to look for economic opportu-
nities due to the fact that resources are scarce.
Kyrgyzstan has used its natural resources to at-
tract foreign investors, but changes in the po-
litical climate and a more assertive and
nationalistic Kyrgyzstan government may push
foreign investors away. The natural resources
exploration and exploitation opportunities pro-
vided by Kyrgyzstan will further drive its rela-
tionship with the West. The most important task
for Kyrgyzstan to complete in the realm of both
economics and politics is balancing its own self-
interests against close ally and former colonizer,
Russia. Kyrgyzstan must be able to establish a
sustainable and stable environment in order to
get the economy running smoothly and to pro-
tect its countries resources. Kyrgyzstan, regard-
ing its Western partners, is concerned with
foreign investment opportunities and political
stability. Kyrgyzstan hosts Kumtor Gold mine,
an open pit mine in Northeast Kyrgyzstan,
which is owned and operated by Canadian Cen-
terra Gold via Kumtor Operating Company
(KOC). The mine, which has been operational
since 1997, has become the center of political,
social, and economic struggle in Kyrgyzstan as
the Kyrgyz seek to nationalize the mine as they
feel they need great control over their resources
and that the revenue is not being equally dis-
tributed. Environmental damages caused to
drinking and irrigation resources and glaciers
that supply the drinking and irrigation water
have been tainted. Centerra Gold/KOC has set
up the Issyk Kul Development Fund to give back
to the local mining communities. 
MODERNDIPLOMACY.EU

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One percent of the revenue from Kumtor Gold
Mine is placed in the fund and is spent based
on government’s spending plans and with gov-
ernment priorities. The operation at Kumtor has
met local resistance as local had protested the
operation of the mine and the presence of a for-
eign company by blocking roads which re-
sulted in the forced shut down of the mine. If
nationalization of the mine were to occur, it
could have the potential to devastate the Kyr-
gyz economy as the Kyrgyz government would
have to upfront the operating costs, provide
jobs and benefits, and carry out routine main-
tenance and engage in environmental safe-
guards. All of these are pricey. It is unclear if the
mine were to be nationalized if the Issyk Kul De-
velopment Fund would cease to exist.
Kyrgyzstan was considered a strategic asset to
the European and Western coalition partners.
The U.S. ran Afghanistan-related logistics oper-
ations out of Bishkek International Airport at
Ganci Airbase. Due to political strife and the end
of U.S. operation and the withdrawal of U.S.
troops Manas Transit Center (the facility was
downgraded), the U.S. has lost influence in Cen-
tral Asia. Kyrgyzstan before the closure of
Manas was the only country to host both a U.S.
airbase and a Russian airbase. 
Kyrgyzstan at this time represented the political
struggle between Russia and the U.S. over the
strategic area of Central Asia. 
Kyrgyzstan also shares a border with China.
Here there are ethnic, cultural, and historical
linkages with the Turkic Uighurs that reside in
the far Western Province Xinjiang also known as
the Xinjiang Uighur Autonomous Region. China
has also invested in Kyrgyz gold mine and gold
mine exploration meeting the same fate as Cen-
terra Gold’s KOC by addressing protests by local
and more assertive demands by the Kyrgyz
government. From a strategic standpoint, Kyr-
gyzstan’s large natural resources make it an at-
tractive location for investors, but due to the
wealth, the Kyrgyz has more maneuvering
power.