Milli Majlis approves creation of Azerbaijan-Kyrgyz Development Fund

The Milli Majlis, Azerbaijan's national parliament, has approved a draft law on June 28 ratifying the "Supplementary Agreement between the Government of the Republic of Azerbaijan and the Cabinet of Ministers of the Kyrgyz Republic on amendments to the Agreement on the Establishment of the Azerbaijan-Kyrgyz Development Fund." The original agreement to establish the fund was signed on April 24, 2024, in Baku.

This decision follows the initial agreement, signed in Bishkek, Kyrgyzstan, on October 11, 2022, which saw President Ilham Aliyev of Azerbaijan sign a law in December 2022 approving the creation of the development fund. Initially, the fund's authorized capital was set at $25 million, but this was increased to $100 million in 2023 to expand its capacity for supporting development projects.

The Azerbaijan-Kyrgyz Development Fund is currently evaluating project proposals totaling $80 million, with a significant focus on the tourism sector, as stated by the head of the fund, Almaz Mambetov. While specific project details remain undisclosed, the fund's board of directors reviews and approves projects worth up to $1 million, whereas larger projects are assessed by the board of directors.

In addition to establishing the development fund, the Milli Majlis also adopted a law to eliminate double taxation and prevent tax evasion between Azerbaijan and Kyrgyzstan. The "Agreement between the Republic of Azerbaijan and the Kyrgyz Republic on the elimination of double taxation and the prevention of tax evasion in relation to income taxes" was signed on April 24, 2024, in Baku. This agreement aims to optimize tax legislation and create a more favorable investment climate between the two countries.

As noted during the parliamentary vote, the establishment of the Azerbaijan-Kyrgyz Development Fund and the new tax agreement represent significant steps towards enhancing economic cooperation and fostering sustainable development between Azerbaijan and Kyrgyzstan.