A Chinese company has had a run of bad luck in Kyrgyzstan is not getting much support from government investment hunger or country of Russia.
China controlled by China Junda State Oil Company runs an oil refinery in trouble but potentially strategic in northern Kyrgyzstan. The problem now is that Junda does not have enough oil to fuel its plant for $ 430 million. And oil producers in the region, Kazakhstan and Russia are not willing to help.
Last week, Deputy Prime Minister of Kyrgyzstan Valery Dil Junda called the decision to build a refinery without planning crude supplies "ridiculous" in quotes collected by 24.kg.
"To build a large refinery and not knowing where to get the oil, that's ridiculous," said Dil.
Those who are not exactly welcoming words of a great foreign benefactor who are already struggling to find reasons to continue investing in perennially troubled Kyrgyzstan. In its short history, has faced Junda own environmental protests and labor disputes, asserting a legislator are backed by opposition politicians bent on using the facility as a weapon in a political confrontation with the government.
Dil also confirmed that Russia and Kazakhstan have refused to provide tax-free oil, although his colleague, Economy Minister Temir Sariev, had recently been the hope that the accession of Kyrgyzstan in the Eurasian Economic Union led by Russia would help resolve this problem.
Currently the refinery in Kara-Balta is serving only a fraction of its 850,000 tonnes annual capacity. Medetbek Kerimkulov, President of the Association of Kyrgyz oil traders, an industry lobby said recently that Kazakh companies had supplied 100,000 tons of crude to the refinery in 2014. But that translates into approximately 50,000 tons of products refined petroleum (gasoline) ie just one drop to the annual consumption of Kyrgyzstan, says the Association is around 1 million tonnes.
Moscow is probably reluctant to become a supplier of raw materials for Chinese upstarts in their own backyard. Since Soviet times Central Asia has always been a captive market for finished products Moscow and the fuel, such as migrant workers, is an easy source of influence on Bishkek.