The Kazakh Majilis adopted the Kaw of Kazakhstan On the ratification of the agreement between the Government of Kazakhstan and the Cabinet of Ministers of Kyrgyzstan on encouragement and mutual protection of investments, Kazinform News Agency reports.

The agreement was signed on April 19, 2024, in Astana. It aims at creating favorable conditions for investment activities, encouraging the flow of direct foreign investments and improving the economic welfare of the two countries.

The new version of the agreement was proposed by Kyrgyzstan in 2021 due to the changes in the structure of Kyrgyzstan’s executive power, Deputy Foreign Minister of Kazakhstan Alibek Kuantyrov said.

He noted that the bilateral investment agreement will provide investors with legal guarantees and ensure adequate conditions. It encompasses important mechanisms such as access to international arbitration and fair treatment of foreign investments.

Kuantyrov said the countries recorded a rise in bilateral trade and economic and investment cooperation. Kazakhstan is Kyrgyzstan’s third largest trading partner. The commodity turnover between the two nations reached 1.7 billion US dollars in 2024. Kazakhstan’s exports to Kyrgyzstan rose by 9.6% to 1.3 billion US dollars. All this proves the stability of economic relations between Kazakhstan and Kyrgyzstan. According to the Kazakh National Bank, for nine months of 2024, Kazakhstan attracted 4.8 million US dollars in direct foreign investments from Kyrgyzstan, that is 18% more compared the same period of the previous year, while Kazakhstani investors channeled 48 million US dollars in direct investments.