Russian energy company OAO Gazprom (GAZP.RS) will acquire a controlling stake in Kyrgyzstan's national gas company Kyrgyzgaz, Russian news agency RIA Novosti reports on its Web site Wednesday, citing the central Asian republic's ambassador to Moscow.
"The issue of Gazprom's direct participation in the privatization of Kyrgyzgaz and its acquisition of a controlling stake has been settled," Raimkul Attakurov is quoted as saying.
Tursun Turdumambetov, chairman of the Kyrgyz State Committee for State Property Management, told parliament in June the Russian government proposed acquiring 75% plus one share in Kyrgyzgaz, RIA Novosti reports.
Kyrgyzstan's proven natural gas reserves are an estimated six billion cubic meters, but it only produces about 30 million cubic meters a year.
RIA Novosti reports that it will cost about $400 million to modernize Kyrgyzstan's gas industry.