The European Union expresses concern about the potential circumvention of sanctions. In the past, the EU included several financial institutions and crypto companies from Kyrgyzstan in the 19th sanctions package aimed at Russia. A 20th package is currently being developed, which may also include organizations from Kyrgyzstan.
As O'Sullivan noted, the sanctions imposed by the European Union do not directly affect banking activities in Kyrgyzstan. The ban only pertains to certain transactions.
“This means that banks from Kyrgyzstan that are under sanctions cannot interact with European banks and the EU banking system. They are also prohibited from participating in the SWIFT transfer system,” he added.
The latest 19th sanctions package included “Tolubay Bank” and “Eurasian Savings Bank.”
“Sanctions against Kyrgyz banks are not being imposed. We are limiting the cooperation of our banks with certain banks in Kyrgyzstan, as they may be involved in circumventing sanctions,” the EU representative explained.
Note:
Since the beginning of 2022, more than 20 companies from Kyrgyzstan have been sanctioned by the U.S. and UK Treasury, including a major bank and oil and gas companies. Secondary sanctions against Kyrgyzstan concern not only financial institutions and the oil sector but also companies involved in supplies:
- electronic and telecommunications equipment,
- IT infrastructure,
- aviation fuel,
- air transport and other goods.
