Kumtor Company’s update on State social security payments to the Social Fund of the Kyrgyz Republic

published: 25 February 2014

While addressing the Kyrgyz Parliament on February 20, 2014, Mr. Muhammedkaly Abulgaziyev, the Head of the KR Social Fund, stated that the Fund insists that Kumtor expat employees are required to make social security payments. He remarked that under existing law all foreigners are required to make payments to the Social Fund. “However according to the Kumtor agreement of 2009, only Kyrgyz employees are required to make such payments,” he said.

Mr. Abulgaziyev has raised several times the issue of Kumtor expat employees’ payments to the KR Social Fund.

The Company considers necessary to respond to the comments. Social insurance payments are conducted by Kumtor Gold Company for its expat employees entirely in accordance with requirements of the KR legislation of State Social Insurance. Based on the laws “On State Social Insurance”, “On Investment in the Kyrgyz Republic”, the Law “On Concessions and Concession-Based Operations in the Kyrgyz Republic”, as well as on the Agreement “On New Terms” from 2009, signed by Government and approved by the Parliament, KGC is required to make social insurance payments only for Kyrgyz citizens or stateless persons and has a right to pay social insurance and social security payment for expat employees to relevant funds of their foreign countries.