On Approval of the Procedure for Granting Subsoil Use Rights by Decision of the Cabinet of Ministers

Within the framework of implementation of the Decree of the President of the Kyrgyz Republic “On issues of reforming the mining industry of the Kyrgyz Republic” and optimization of the state management system in the sphere of subsurface use the Procedure for granting subsurface use rights by decision of the Cabinet of Ministers of the Kyrgyz

Republic was approved. The relevant decision was signed by the Chairman of the Cabinet of Ministers of the Kyrgyz Republic Ulukbek Maripov.

The document is aimed at simplifying the procedure for obtaining licenses for geological exploration and development of mineral resources for business entities and state enterprises with 100 percent state share in competitive and auction sites.

The procedure for granting subsoil use rights envisages the norms for granting pre-emptive rights to legal entities in the sphere of subsoil use whose 100% shares are owned by the state, when obtaining subsoil use rights, according to which business entities and state enterprises in the sphere of subsoil use with 100% state participation interest may be granted

– subsoil areas of national significance;

– auctioned subsoil areas.

On the proposal to introduce state regulation of crypto exchanges by the Ministry of Economy and Finance of the Kyrgyz Republic

Since August 24, the Ministry of Economy and Finance of the Kyrgyz Republic submits for public discussion the draft Resolution of the Cabinet of Ministers of the Kyrgyz Republic “On the activities of crypto-exchanges in the Kyrgyz Republic”.

The State Service for Regulation and Supervision of the Financial Market under the Ministry of Economy and Finance of the Kyrgyz Republic presents a draft Resolution of the Cabinet of Ministers of the Kyrgyz Republic “On Cryptocurrencies in the Kyrgyz Republic”. (hereinafter – the draft decree), which was developed on the basis of the interagency working group established in accordance with the Order of the Ministry of Economy and Finance of the Kyrgyz Republic No. 11-P of May 27, 2021.

The draft Resolution is designed to introduce state regulation of crypto-exchanges in the Kyrgyz Republic to create a legal framework for crypto-exchanges, as well as to reduce the risks of terrorist financing and money laundering in accordance with the Recommendation of the Financial Action Task Force (FATF), the protection of investors’ rights.

On the adoption of the Law of the Kyrgyz Republic “On Protection from Invalid (False) Information”  

On August 23, the President of the Kyrgyz Republic Sadyr Japarov signed the Law “On Protection from Invalid (False) Information”.

The Constitution guarantees the right of everyone to protection of honor and dignity. By signing the Law, the state ensures the fulfillment of this right by establishing a reasonable legal framework.

Thus, the Law regulates the relationship between the person who has suffered from inaccurate information and the owner of information resources where this information was published, regulating their rights and obligations.

Therefore, the Law establishes additional guarantees to protect everyone through a personal appeal to the owners of information resources, to protect against distribution of information not corresponding to reality from them in the Internet.

Procedures proposed by the Law will minimize negative consequences, including reputational (image) losses, possible loss of work, material benefits, etc.

On ratification of the Agreement on the establishment of the Uzbek-Kyrgyz Development Fund

The President of the Kyrgyz Republic Sadyr Japarov signed the Law of the Kyrgyz Republic “On ratification of the Agreement between the Government of the Kyrgyz Republic and the Government of the Republic of Uzbekistan on the establishment of the Uzbek-Kyrgyz Development Fund, signed on March 11, 2021 in Tashkent.

The main purpose of this Law is to conduct domestic procedures for the ratification of the Agreement between the Governments of Kyrgyzstan and Uzbekistan on the establishment of the Uzbek-Kyrgyz Development Fund.

The Fund will finance self-supporting projects in priority sectors of the economy of Kyrgyzstan by providing loans, equity participation and the use of other financial instruments in relations with business entities registered and operating in the territory of Kyrgyzstan. In this regard, there are plans for economic cooperation between Kyrgyzstan and Uzbekistan, the modernization and development of the economy, the effective use of opportunities for bilateral cooperation.

The Fund will be an international organization, with authorized capital of 50 million USD, which is contributed by Uzbekistan with subsequent increase of authorized capital to 200 million USD.

On the adoption of the Law of the Kyrgyz Republic “On Public-Private Partnership”

On 11 August President of the Kyrgyz Republic

Sadyr Japarov signed the Law of the Kyrgyz Republic “On Public-Private Partnership”.

The law was adopted to create effective legal conditions for the emergence and implementation of public-private partnership (PPP) projects, and to create favorable conditions for public-private partnership subjects.

The law provides for the possibility of participation in the implementation of a PPP project in the form of tangible and intangible assets.

The law provides a special mode of PPP projects implementation according to the “project sandbox” principle, allowing to test new, innovative PPP projects in a pilot mode, and the improved PPP projects initiation procedures and tender stages.

In addition, the adopted law regulates the conclusion and termination of PPP agreements, as well as the dispute resolution procedure.

On signing the Law of the Kyrgyz Republic “On Amendments to the Law of the Kyrgyz Republic “On Public Procurement”

On August 11 the President of the Kyrgyz Republic Sadyr Japarov signed the Law of the Kyrgyz Republic “On Amendments to the Law of the Kyrgyz Republic “On Public Procurement”.

The main purpose of this Law is the acquisition by procuring entities of the subject of procurement of the required quality using the least amount of public funds.

Thus, the Law is supplemented by a chapter establishing a special procedure for public

procurement for business entities, in the authorized capital of which 50 per cent or more of shares are owned by the State, including their subsidiaries and state-owned enterprises.

The Law is also amended and supplemented in order to eliminate legal conflicts, as well as to improve the procedure for public procurement.

The Ministry of Energy and Industry of the Kyrgyz Republic submitted for discussion a draft legal act on the procedure for granting subsoil use rights

On 4 August the Ministry of Energy and Industry of the Kyrgyz Republic submited for public discussion the draft Resolution of the Cabinet of Ministers of the Kyrgyz Republic “On Approval of the Procedure for granting subsurface use rights by decision of the Cabinet of Ministers of the Kyrgyz Republic”.

The purpose and objective of the draft Resolution of the Cabinet of Ministers of the Kyrgyz Republic “On Approval of the Procedure for Granting Subsurface Use Rights by Decision of the Cabinet of Ministers of the Kyrgyz Republic” is:

– Implementation of the Decree of the President of the Kyrgyz Republic “On issues of reforming the mining industry of the Kyrgyz Republic” dated January 29, 2021 No. 5 in respect of development of subsoil areas of national importance exclusively by the national mining company with 100% participation of the state in the share capital;

– optimization of the system of state administration in the sphere of subsoil use;

– simplification of the procedure for obtaining licenses for geological survey and development of subsoil for business entities and state-owned enterprises with 100% state participation on tender and auction sites.

On Approval of the Provisional Regulation on the Licensing Procedure in the Field of Fuel and Energy Complex

Chairman of the Cabinet of Ministers Ulukbek Maripov approved the Provisional Regulation on the procedure for licensing certain types of activities in the fuel and energy complex by Decree No. 87 dated 24 July, 2021.

This was done to regulate the issues of licensing activities of business entities in the sphere of the fuel and energy complex.

The temporary regulation is valid until December 31, 2023.

The temporary regulation regulates the procedure for issuance, reissuance, suspension, renewal and annulment of licenses in the sphere of the fuel and energy complex of the KR authorized body for regulation of the fuel and energy complex.

Entrepreneurs and legal entities, regardless of organizational and legal forms and forms of ownership, who want to engage in licensed activities in the fuel and energy sector shall obtain a license.

It is approved that the authorized body for regulation of the fuel and energy complex issues licenses for the following types of activities:

1) production, transmission, distribution, sale, export and import of electric energy (except for production of electric energy derived from renewable energy sources, as well as production of electric energy from any energy sources for own use at capacity up to 1000 kW);

2) production, transmission, distribution and sale of thermal energy (except for production of thermal energy derived from renewable energy sources, as well as the production of thermal energy from any energy sources for its own use);

3) processing of oil and natural gas, except for commercial production of bioethanol from plant raw materials and its sale;

4) production, transmission, distribution and sale of natural gas.

The license is perpetual, inalienable, and valid throughout the Kyrgyz Republic. Moreover, individuals and legal entities have the right to obtain licenses for one or more activities.