As part of a new sanctions package against Russia, the EU intends to use for the first time a mechanism to counteract the circumvention of sanctions, which includes a ban on the export of machinery and certain radio equipment to Kyrgyzstan.
According to Bloomberg, the European Union also plans to impose additional restrictions on Russian banks and oil companies, as well as on financial services and cryptocurrency structures from third countries that help Russia evade sanctions.
Furthermore, the proposed measures include new trade restrictions for a number of companies and goods necessary for arms production in Russia, as well as restrictions on the import of various Russian metals, as sources clarified.
Note:
Since the beginning of 2022, more than 20 companies from Kyrgyzstan have been sanctioned by the U.S. and U.K. Department of the Treasury. This list includes major banks and oil and gas companies. Secondary sanctions apply not only to financial institutions and the oil sector but also to companies involved in supplies:
- telecommunications and electronic equipment,
- IT infrastructure,
- aviation fuel,
- air transport, and others.
Economist Robin Brooks from the Brookings Institution noted a sharp increase in export supplies from Europe to Kyrgyzstan: from Estonia — by 10,000%, from Finland — by 3,100%, from Poland and Greece — by 2,200% and 2,100% respectively, as well as from Norway, the U.K., Germany, and the Czech Republic — by more than 1,000%.
