X-fold Rent Increase?

by Nathan Hamm on 7/21/2006 · 1 comment

RFE/RL reports exactly how much of the new deal between the US and Kyrgyzstan over Manas is rent and how much is aid.

The United States will pay $20 million to Kyrgyzstan in annual rent of a military base near capital Bishkek under a new deal reached last week.

Kyrgyz Security Council Secretary, Miroslav Niyazov, said the eightfold increase in rent is part of an overall U.S. aid and compensation package for Kyrgyzstan that will over the next year amount to $150 million.

Disclosing the details of the agreement for the first time, Niyazov said the United States will also provide Kyrgyzstan with three Russian-made Mi-8 helicopters.

I am a little surprised to see that the details are coming from a Kyrgyz government official. With all of Bakiev’s blustering about demanding a hundredfold rent increase, one would think it would be in that side’s interests to keep ambiguous how much of the $150 million package is aid.

UPDATE: See also here.

Subscribe to receive updates from Registan

This post was written by...

– author of 2991 posts on 17_PersonNotFound.

Nathan is the founder and Principal Analyst for Registan, which he launched in 2003. He was a Peace Corps Volunteer in Uzbekistan 2000-2001 and received his MA in Central Asian Studies from the University of Washington in 2007. Since 2007, he has worked full-time as an analyst, consulting with private and government clients on Central Asian affairs, specializing in how socio-cultural and political factors shape risks and opportunities and how organizations can adjust their strategic and operational plans to account for these variables. More information on Registan's services can be found here, and Nathan can be contacted via Twitter or email.

For information on reproducing this article, see our Terms of Use

{ 1 comment }

Laurence July 22, 2006 at 9:03 am

Who cares if it is called “aid” or “rent”? Only the US government, trying to CYA so other countries don’t ask for more, too.

The key for Bakiev will be to make sure the “aid” is paid to Kyrgyzstan, not to US “consultants”, “trainers,” private US contractors or NGOs.

IMHO agricultural aid night be the best for this type of deal, because the government can resell bags of grain, rice, or whatever on the world market and turn it into cash, and the US likes to get rid of surplus production.

Previous post:

Next post: