Legal Market Overview
The land-locked nation of Kyrgyzstan was hit by the Covid-19 crisis in March of 2020, but the government acted swiftly to quarantine suspected carriers, ban public gatherings, and Friday prayers in mosques, as well as declaring a temporary state of emergency.
The Kumtor gold mine still accounts for approximately 10% of the country’s GDP, while worker remittances made up approximately a third of its GDP in 2019. These two factors led to a significant economic downturn in light of the global pandemic and a general reduction in international capital.
However, while Kyrgyzstan’s economy was particularly hit by the external shock of the pandemic, the political instability within the country remains another major concern for the international community. Most notably, the election of the nationalist politician Sadyr Japarov in early 2021 with an overwhelming victory of 79% of the vote, leaves the future for Kyrgyzstan uncertain. These electoral results contrast to Japarov’s position in early 2020, when he had been serving a prison sentence for kidnapping a local official.
Kyrgyz firms frequently provide on the ground support for international businesses seeking to expand into the local market and typically work in close collaboration with international firms. Regional firms based in the CIS region, such as GRATA International and Centil Law, frequently lead on power and construction projects, which are expected to rebound in the coming years. Kalikova & Associates Law Firm is a key local firm in the market.