VZCZCXRO6735
RR RUEHAST RUEHBI RUEHCI RUEHLH RUEHLN RUEHNEH RUEHPW RUEHSK RUEHVK
RUEHYG
DE RUEHEK #0079/01 0280836
ZNR UUUUU ZZH
R 280836Z JAN 09 ZDS
FM AMEMBASSY BISHKEK
TO RUEHC/SECSTATE WASHDC 1689
INFO RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE
RUCNCIS/CIS COLLECTIVE
RUEHBJ/AMEMBASSY BEIJING 2817
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
CIMS NTDB WASHDC

UNCLAS SECTION 01 OF 07 BISHKEK 000079 
 
C O R R E C T E D  C O P Y (TAG AND ADDRESEE) 
 
SIPDIS 
 
DEPT FOR SCA/CEN (GORKOWSKI), EB/IFD/OIA 
DEPT PASS TO USTR (JKALLMER) 
TREASURY FOR DO/JMACLAGHLIN 
USDOC FOR ITA 
 
E.O. 12958: N/A 
TAGS: EINV EFIN ETRD ELAB KTDB OPIC USTR KG
SUBJECT: 2009 INVESTMENT CLIMATE STATEMENT FOR THE KYRGYZ 
REPUBLIC 
 
REF: 08 STATE 123907 
 
BISHKEK 00000079  001.2 OF 007 
 
 
¶1. This cable provides Embassy Bishkek's submission of the 
2009 Investment Climate Statement for the Kyrgyz Republic. 
 
¶2. Begin text: 
 
Openness to Foreign Investment 
------------------------------ 
 
The Kyrgyz Republic has a liberal investment regime on paper 
with a broad base of commercial laws in place. 
Unfortunately, these laws are not implemented consistently. 
Foreign investors must register their firms with the Ministry 
of Justice.  In addition to registration, expatriate 
employees must obtain a work permit from the State Committee 
on Migration and Employment.  Foreign investors usually form 
joint ventures with local partners. 
 
The legal Qncept of contract sanctity is not consistently 
observed.  Kyrgyz law on foreign investment guarantees 
protection for foreign investors from expropriation and 
nationalization.  Individual investors have become involved 
in disputes over licensing, registration, and enforcement of 
contracts and, in one case, the government has persistently 
entertained the issue of nationalization.  Corruption is also 
a serious problem, although the Government of the Kyrgyz 
Republic has publicly denounced corruption and implemented 
some steps to counter this problem.  The Commercial 
Arbitration Court of Kyrgyzstan began considering cases in 
April 2004. 
 
Under the aegis of the World Bank-sponsored "Doing Business" 
project, Kyrgyz authorities have taken steps to cut 
regulatory measures to benefit the business sector.  Under 
the U.S.-funded Millennium Challenge Program, the Kyrgyz 
Republic is implementing reforms to reduce corruption and 
improve the judicial system. 
 
Banking laws do not discriminate against foreign banks. 
However, foreign institutions seeking new banking licenses 
from the Kyrgyz Central Bank may encounter difficulties in 
trying to establish new operations in the country.  At least 
eight foreign banks operate in the Kyrgyz Republic: Demir 
Bank (Turkey), Bank of Asia (South Korea), National Bank of 
Pakistan, ATF Bank - Kyrgyzstan (91.8% controlled by the Bank 
of Austria Creditanstalt BA-CA), Kazcommerce Bank 
(Kazakhstan), Halyk Bank (Kazakhstan), the Kyrgyz Investment 
and Credit Bank (owned mostly by international public and 
private development institutions), and FinanceCreditBank 
(Kazakhstan).  Manas Bank recently began operations in the 
Kyrgyz Republic, and is believed to have significant Latvian 
interests.  Asia Universal Bank also has significant foreign 
ownership. 
 
There is no discrimination against foreign investors 
enshrined in official government policy.  However, procedures 
for licensing and approvals are not transparent, which can 
make the process seem discriminatory.  Tax authorities may 
apply greater scrutiny to foreign entities operating in the 
Kyrgyz Republic.  However, spurred by external initiatives, 
Kyrgyz officials have cut some regulatory procedures for 
conducting business and have sought to streamline customs 
procedures to spur foreign trade and investment. 
 
Conversion and Transfer Policies 
-------------------------------- 
 
Foreign exchange is widely available, and the local currency, 
the som, is freely convertible.  As of January 2009, the 
exchange rate was 40.4 soms to the U.S. dollar.  The National 
Bank of the Kyrgyz Republic (NBKR) conducts weekly inter-bank 
currency auctions, in which competitive bids determine 
market-based transaction prices.  Banks usually clear 
payments within a single working day. 
 
Complaints of currency conversion issues are rare.  With 
occasional exceptions in the agricultural and energy sectors, 
barter transactions have largely been phased out.  Payment 
disputes adjudicated through the court system can be 
extremely lengthy. 
 
In 2000 and 2001, several Kyrgyz banks declared bankruptcy, 
 
BISHKEK 00000079  002.2 OF 007 
 
 
lost their licenses or were restructured.  Depositors at 
these banks lost significant sums.  The government recently 
introduced a minimal level of deposit insurance for 
individual investors at Kyrgyz banks.  There have been 
uninvited takeovers of some Kyrgyz banks in the past two 
years, with at least one facilitated by government 
authorities. 
 
Expropriation and Compensation 
------------------------------ 
 
To date, the Kyrgyz government has not expropriated any 
properties.  However, in 2006, local officials assisted in 
the seizure of equipment and other property of one foreign 
investor.  In recent years some Kyrgyz parliamentarians and 
government officials have advocated the nationalization of a 
foreign-run gold mine.  Another foreign investor has 
complained about attempts by a state-owned company to seize 
assets.  Foreign investors have the right to compensation in 
the case of government seizure of assets.  However, there is 
little understanding of distinctions among historical book 
value, replacement value and actual market value, which 
brings into question whether the government could calculate a 
fair basis for compensation in the event of expropriation. 
The government has frozen bank accounts and other liquid 
assets until disputes were resolved. 
 
Foreign ownership of land continues to be prohibited; 
however, there is no prohibition on foreign rental of land 
for residences or factory sites.  A central land registry has 
helped potential lenders and others deal with the financing 
of real property (e.g., land, buildings, and other 
improvements) in a more sophisticated manner.  The 
introduction of property taxes may make land ownership more 
transparent. 
 
Dispute Settlement 
------------------ 
 
The Law on Commercial Arbitration allows for international 
and domestic arbitration of disputes.  If feasible, the 
arbitQ should be a neutral entity that is identified in the 
contract, along with the specific terms of arbitration. 
Establishing the terms for arbitration beforehand will 
prevent further complications in the event of a dispute. 
However, Kyrgyz business partners may attempt to ignore 
arbitration requirements. 
 
The Kyrgyz Republic is a member of the International Center 
for the Settlement of Investment Disputes (ICSID).  It signed 
the ICSID agreement on June 9, 1995, and ratified it on July 
5, 1997.  The Kyrgyz Republic became a member of the 1958 New 
York Convention on the Recognition and Enforcement of Foreign 
Arbitral Awards on March 18, 1997. 
 
Performance Requirements and Incentives 
--------------------------------------- 
 
The Kyrgyz Republic is compliant with World Trade 
Organization (WTO) Trade Related Investment Measures 
obligations.  The Kyrgyz government has also reduced the tax 
burden on repatriation of profits by foreign investors to 
conform to the tax rate for domestic investors.  There are no 
specific conditions for permission to invest.  However, any 
project is likely to be scrutinized for its effect on 
employment and tax revenues. 
 
Visa requirements and fees may change on short notice.  In 
2006, the Kyrgyz government adopted a measure limiting the 
period expatriates can work in Kyrgyzstan.  Government 
ministries, lacking adequate budgets, often finance their 
operations through user fees.  Such fees may appear 
arbitrary. 
 
The Kyrgyz government adopted a new tax code, which took 
force in January 2009, that is supposed to be more business 
and investment friendly.  Under the new tax code, a number of 
taxes were abolished and some new taxes were introduced.  The 
VAT rate has been decreased from 20 to 12%.  Hotel, 
advertising and resort taxes were abolished.  A unified sales 
tax has consolidated several previous taxes, and property 
taxes have been approved. 
 
 
BISHKEK 00000079  003.2 OF 007 
 
 
The new tax code also establishes a presumption of innocence 
of the taxpayer, improves collection provisions and supports 
automation and e-filing. 
 
Payroll taxes such as social fund payments, used for the 
National Pension System, are complex.  Many recent tax 
inspections have focused on social fund payments. 
Transparency is a problem, as even basic laws and regulations 
are seldom published. 
 
Right to Private OwneQhip and Establishment 
-------------------------------------------- 
 
Foreign and domestic private entities may own business 
enterprises and engage in a broad range of commercial 
activities.  Foreign entities are expressly forbidden from 
owning land, including farmland, although regulations allow 
for up to 99-year leases of property, which is adequate for 
most business purposes.  However, 49-year leases are more 
common. 
 
Foreign investors are theoretically given equal treatment 
under Kyrgyz law.  In reality, well-connected Kyrgyz private 
or state-owned companies are able to utilize their contacts 
to achieve their business aims.  Foreign investors are 
disadvantaged less by outright discrimination than by a 
simple lack of knowledge on how to "work the system." 
 
Protection of Property Rights 
----------------------------- 
 
Property right protections are slowly emerging.  However, the 
judicial system remains under-developed and lacks 
independence.  Court actions can force the sale of property 
to enforce payments and other contractual obligations. 
 
The Kyrgyz Republic is obligated to protect intellectual 
property rights as a member of the WTO.  However, an 
estimated 98% of DVDs, CDs and other audio-visual products 
sold in the Kyrgyz Republic are counterfeit.  The Kyrgyz 
Republic acceded to both the WIPO Copyright Treaty and the 
WIPO Performances and Phonograms Treaty in 2002. 
 
Transparency of Regulatory System 
--------------------------------- 
 
The legal and regulatory system of the Kyrgyz Republic 
continues to develop.  The process of implementing 
regulations and court orders relating to commercial 
transactions remains inconsistent.  Some court decisions, 
which appear to contradict established procedures, can be 
implemented expeditiously in certain cases and are subject to 
outside influence.  The Kyrgyz system is heavily 
bureaucratic.  Consequently, investors must overcome a great 
deal of red tape in order to conduct business. 
 
There is an investment department at the Ministry of Economic 
Development and Trade, which assists investors with 
bureaucratic procedures.  This department also consolidates 
information about potential investment projects in the Kyrgyz 
Republic.  However, the ability of this office to steer firms 
through the system has not been fully demonstrated.  An 
investment council, under the auspices of the president, 
exists ostensibly to further regulatory improvements for the 
business climate.  Contradictory government decrees often 
create bureaucratic paralysis or opportunities for 
undocumented incentives. 
 
Efficient Capital Markets and Portfolio Investment 
--------------------------------------------- ----- 
 
The National Bank of the Kyrgyz Republic is a nominally 
independent body which, in 2008, intervened repeatedly in the 
market to stabilize the Kyrgyz national currency, the som, 
against the U.S. dollar.  The currency is freely convertible, 
Kyrgyz bonds are available for foreign ownership, and the 
stock market is developing.  According to the Kyrgyz National 
Statistical Committee, the Kyrgyz Republic's Consumer Price 
Index surged 20% in 2008. 
 
As of December 2008, the value of transactions at the Kyrgyz 
Stock Exchange amounted to 4.1 billion soms ($104.5 million). 
 There were 3,305 transactions in the first 11 months of 
 
BISHKEK 00000079  004.2 OF 007 
 
 
¶2008.  As of December 2008, Kyrgyz Stock Exchange listed 14 
companies (primarily brokerage companies), which represent 
around 140 Kyrgyz companies, that trade their shares at the 
stock exchange.  The stock market has not fully matured. 
Individuals have limited access to buy stocks. 
 
Total capitalization of the banking sector as of October 2008 
was about $310 million while in October 2007 the figure was 
$202 million.  There are currently 21 commercial banks in the 
Kyrgyz Republic, with a total of 227 branches throughout the 
country. 
 
Several foreign banks now operate in the Kyrgyz Republic. 
Demir Bank, Bank of Asia, National Bank of Pakistan, Halyk 
Bank, Kazcommerce Bank - Kyrgyzstan, FinanceCredit Bank and 
ATF Bank - Kyrgyzstan are entirely foreign held.  Other banks 
are partially foreign held, including the Asia Universal Bank 
(95% foreign held), Manas Bank and KICB (Kyrgyz Investment 
and Credit Bank).  Although no U.S. bank has set up 
operations in the Kyrgyz Republic to date, many Kyrgyz banks 
maintain correspondent relations with U.S. and other foreign 
banks to facilitate short-term commercial lending, such as 
letters of credit. 
 
The Kyrgyz Investment and Credit Bank (KICB) began operating 
in mid-2001.  Established to provide commercial lending and 
other services, the KICB introduced western banking practices 
and encouraged the entry of other banks into the Kyrgyz 
market.  KICB's principle shareholder is the Aga Khan Fund 
for Economic Development, which has a 21% stake.  Habib Bank 
Ltd (Pakistan), which is the newest shareholder, has an 18% 
stake.  The International Finance Corporation, the European 
Bank for Reconstruction and Development, and the German 
Corporation for Investments and Development each hold 17% 
stakes.  The Kyrgyz government retains a 10% share. 
 
The Kyrgyz Republic is largely a cash society, and outside 
investors have rarely sought financing from domestic banks. 
Bank lending is heavily biased towards short-term loans and 
traditionally has not favored using physical assets as 
collateral.  Some banks do not engage in retail banking. 
 
Since March 2008, new banks must have a minimum charter 
capital requirement of 600 million soms ($14.8 million). 
Banking laws also require that banks maintain a 10% reserve 
with the National Bank.  A deposit insurance system was 
recently established for the benefit of individual investors. 
 
 
Between 1999 and mid-2001, seven banks became insolvent and 
suspended operations.  The Supreme Court, in 2005, ruled 
Qainst the National Bank's attempt to declare the commercial 
bank, "AkBank," bankrupt.  The Central Bank intervened in 
late 2007 and early 2008 to halt KyrgyzPromStroiBank's (KPSB) 
operations and later approved the transfer of the institution 
to one of KPSB's competitors. 
 
Accounting systems in banks and enterprises are being 
converted to international standards.  The Kyrgyz government 
has supported this exercise.  International assistance 
programs have contributed to rapid progress in reaching these 
standards via accounting training and certification. 
 
Political Violence 
------------------ 
 
In March 2005, a popular uprising led to the overthrow of 
President Askar Akayev.  The change of power was precipitated 
by smaller uprisings in southern Kyrgyz towns, such as Osh 
and Jalalabad, in which citizens rallied against perceived 
flaws in earlier parliamentary elections.  The uprising was 
swift, and there was substantial looting in Bishkek.  Losses 
due to looting in Bishkek are estimated at almost $100 
million.  Kurmanbek Bakiyev was elected president in July 
¶2005. 
 
Since the March 2005 uprisings, there have been no known 
incidents of politically motivated damage to projects and 
installations.  Demonstrations in November 2006 and April 
2007 were largely peaceful.  Although Kyrgyz citizens enjoy 
basic rights, including the right to protest and demonstrate, 
the Kyrgyz government has increasingly restricted these 
rights. 
 
BISHKEK 00000079  005.2 OF 007 
 
 
 
Supporters of extremist groups such as the Islamic Movement 
of Uzbekistan (IMU), Al-Qaeda, and the Eastern Turkistan 
Islamic Movement remain active in Central Asia.  These groups 
have expressed anti-U.S. sentiments and may attempt to target 
U.S.-affiliated interests in the region, including in the 
Kyrgyz Republic.  Because of increased security at official 
U.S. facilities, terrorists seek softer civilian targets such 
as residential areas, clubs, restaurants, places of worship, 
hotels, schools, outdoor recreation events, resorts, beaches, 
maritime facilities and planes.  In December 2002, a bombing 
occurred at the Dordoi Bazaar, a market mostly frequented by 
locals.  In May 2003, a bank in Osh was bombed.  The Kyrgyz 
Government blamed the IMU for both bombings. 
 
In May 2006, suspected Islamic militants attacked a border 
post on the Kyrgyz-Tajik border, and ensuing skirmishes took 
place between the militants and Kyrgyz military forces 
throughout the southern Batken region.  U.S. citizens 
planning to travel to the Kyrgyz Republic should refer to the 
U.S. Department of State for updated security information. 
This information is available on the Internet at 
http://travel.state.gov. 
 
The Kyrgyz government has expressed concern about the 
presence of extremist groups with radical religious or 
political agendas, including Hizb ut-Tahrir (HT).  HT, which 
is banned in the Kyrgyz Republic, maintained that it was 
committed to nonviolence, but the party's virulently 
anti-Semitic and anti-Western literature called for the 
overthrow of secular governments, including in Central Asia, 
to be replaced with a worldwide Islamic government. 
 
In the summers of 1999 and 2000, armed IMU insurgents entered 
the southern Kyrgyz Republic and took a number of Kyrgyz 
citizens and foreigners captive.  While subsequent military 
operations in Afghanistan have eliminated many resources used 
by these insurgents, the Department of State urges U.S. 
citizens to avoid travel to the following areas of the Kyrgyz 
Republic: the rural areas along the Kyrgyz-Uzbek and 
Kyrgyz-Tajik borders, and the areas to the south and west of 
the provincial capital Osh. 
 
There are occasional tensions among ethnic Kyrgyz, Russian, 
Uzbek and other ethnic nationalities in the Kyrgyz Republic 
over such issues as language, land rights, and religion. 
North-south divisions are also palpable in the Kyrgyz 
Republic.  Such tensions, however, seldom affect foreign 
employers directly.  The Kyrgyz Republic's relations with its 
neighbors sometimes are complicated over disagreements 
regarding water rights, energy supplies, refugees and other 
issues.  However, it is unlikely that such tensions would 
translate into disputes directly affecting foreign investors. 
 
Corruption 
---------- 
 
Corruption remained a serious problem at all levels of 
society.  According to the Transparency International 
Corruption Perception Index, in 2008 the Kyrgyz Republic 
ranked 166 out of 180 countries surveyed - on par with 
Cambodia, Turkmenistan, Uzbekistan and Zimbabwe. 
 
The Kyrgyz Government recognizes the damage corruption can 
cause.  As part of an IMF Poverty Reduction and Growth 
Facilitation program, the Kyrgyz government agreed to take 
action to stem corruption.  In 2003, the law on combating 
corruption was adopted.  On June 21, 2005, the Kyrgyz 
Government adopted the National Anti-Corruption Strategy.  On 
June 29, 2005, the Parliament of the Kyrgyz Republic ratified 
the UN Convention Against Corruption.  On October 21, 2005, 
the Kyrgyz Government founded the National Anti-Corruption 
Agency and the National Anti-Corruption Council, which were 
tasked with implementation of the Anti-Corruption Strategy. 
The U.S. government is aiding anti-corruption activities 
through its Millennium Challenge Threshold Program with the 
Kyrgyz Republic. 
 
The law provides criminal penalties for official corruption; 
however, the government did not implement the law 
effectively.  There were reports of arrests of government 
officials on corruption charges.  The Ministry of Internal 
Affairs (i.e., the police) investigates corruption, together 
 
BISHKEK 00000079  006.2 OF 007 
 
 
with the Prosecutor General and subordinate prosecutors.  The 
government has also created special police anti-corruption 
units.  However, they have yet to show their effectiveness. 
 
U.S. firms complying with the Foreign Corrupt Practices Act 
can be disadvantaged vis-a-vis other foreign firms operating 
in the Kyrgyz Republic.  However, most U.S. firms that have 
decided to conduct business in the Kyrgyz Republic have 
eventually been able to do so.  To date, measures targeting 
bribery and other such economic crimes have been selectively 
enforced. 
 
The Kyrgyz Republic is not a signatory to the OECD Convention 
on Combating Bribery.  However, the OECD and the World Bank 
have previously reported on the progress of anti-corruption 
measures. 
 
Bilateral Investment Agreements 
------------------------------- 
 
The Kyrgyz Republic currently enjoys bilateral investment 
treaties with the United States, Armenia, Azerbaijan, 
Belarus, China, Finland, France, Georgia, Germany, India, 
Indonesia, Iran, Kazakhstan, the Republic of Korea, 
Lithuania, Malaysia, Moldova, Mongolia, Pakistan, Sweden, 
Switzerland, Tajikistan, Turkey, United Kingdom, Ukraine and 
Uzbekistan. 
 
The Kyrgyz Republic has also signed double taxation treaties 
with Armenia, Austria, Belarus, Canada, China, Finland, 
Germany, India, Iran, Kazakhstan, Lithuania, Malaysia, 
Moldova, Mongolia, Pakistan, Poland, Russia, Switzerland, 
Tajikistan, Turkey, Ukraine and Uzbekistan. The U.S.-U.S.S.R. 
treaty on double taxation, which was signed in 1973, remains 
in effect between the U.S. and the Kyrgyz Republic. 
 
OPIC and Other Investment Insurance Programs 
-------------------------------------------- 
 
OPIC is active in the Kyrgyz Republic.  The event of an 
inconvertibility claim against OPIC is highly unlikely, given 
the Kyrgyz Republic's liberal conversion regime. 
 
Labor 
----- 
 
Labor is widely available, but the number of skilled 
individuals is decreasing as Kyrgyz citizens find more 
lucrative job opportunities abroad.  International 
organizations are generally able to employ competent staff, 
often bilingual in English or other languages, but are 
starting to encounter difficulties retaining staff members. 
Literacy in the Kyrgyz Republic is approximately 97 percent. 
According to Kyrgyz government sources, the official 
unemployment rate stood at 11 percent in 2008.  The 
unemployment rate would actually be higher if Kazakhstan and 
Russia did not absorb up to one million Kyrgyz migrant 
workers. 
 
Foreign Trade Zones/Free Ports 
------------------------------ 
 
There are four Free Economic Zones (FEZs) in the Kyrgyz 
Republic:  Bishkek, Naryn, Karakol and Maimak.  Each is 
situated to make use of transportation infrastructure and/or 
customs posts along the Kyrgyz borders.  Goods entering and 
traded within the zones are duty free within the Kyrgyz 
Republic.  Government incentives for investment in the zones 
include exemption from several taxes, duties and payments; 
simplified customs procedures; and direct access to utility 
suppliers.  The production and sale of petroleum, liquor, and 
tobacco products in FEZs are banned. 
 
Foreign Direct Investment Statistics 
------------------------------------ 
 
According to the Kyrgyz National Statistical Committee, 
Foreign Direct Investment (FDI) totaled $436.8 million in 
2007, $335.6 million in 2006, $210.3 million in 2005 and $176 
million in 2004.  For the first nine months of 2008, FDI 
amounted to $481 million. 
 
The problem of registering and tracking numerous new private 
 
BISHKEK 00000079  007.3 OF 007 
 
 
businesses has rendered government statistics on employment, 
the tax base and national economic performance questionable. 
The shadow economy may account for up to one-half of overall 
economic activity. 
 
Foreign direct investment is chiefly oriented towards 
manufacturing, food processing, banking and mining.  Many 
foreign firms conduct contract work for foreign assistance 
organizations.  U.S. direct investment is concentrated in the 
hotel and telecommunications sectors, with increasing 
interest in construction and mining. 
 
Joint ventures and foreign companies in the Kyrgyz Republic 
include the Reetsma Kyrgyzstan Company (cigarettes), the 
Plaskap Bishkek Company (packaging/bottling), the Central 
Asian Group (entertainment/garments), the Hyatt Regency 
Bishkek, and the Kyrgyz Petroleum Company.  A joint venture 
operates a Coca-Cola franchise that bottles its soft drinks, 
and the Canadian gold-mining firm Centerra Gold has formed 
the largest western joint venture in the Kyrgyz Republic, the 
Kumtor Operating Company.  Joint ventures play a leading role 
in the mining, petrochemical, hotel, and food processing 
sectors. 
 
According to the National Statistical Committee, the 
following countries were the largest sources of FDI in first 
nine months of 2008:  Kazakhstan 50.76%, Germany 8.17%, Great 
Britain 6.34%, Russia 4.8% and Cyprus 4.59%.  In 2007, the 
largest sources of FDI were Kazakhstan 41.83%, Great Britain 
13.76%, China 6.66%, Germany 6.56% and Turkey 3.79%. 
 
Bishkek and the surrounding Chui region absorbed more than 
92% of FDI in 2008.  An additional 4.5% went to the Talas 
region, with the remaining amounts scattered among the other 
five regions of the country. 
 
Web Resources 
------------- 
 
http://travel.state.gov 
 
General 
------- 
 
In connection with the war on terrorism, a Coalition airbase 
operates out of the Manas International Airport near Bishkek. 
 
 
The capital city of Bishkek has an international 
English-language elementary school and other services for 
expatriate families.  The Hyatt Regency is the only five-star 
hotel.  The Golden Dragon is a four-star alternative.  There 
are several three-star hotels in Bishkek, including the 
British-owned Silk Road Lodge.  There are direct air 
connections to Istanbul and London.  Other cities, such as 
Amsterdam, Vienna and Frankfurt, are served from Almaty, 
Kazakhstan, a three-and-a-half hour drive from Bishkek. 
 
End text. 
GFOELLER