With the introduction of new sanctions against Russia's financial system and the active development of the Middle Corridor, the continent's economy is undergoing significant changes. For Central Asia, this is not just a matter of diplomacy, but a serious choice between participating in an open logistics network between China and Europe or the risk of becoming a gray intermediary, which could lead to undesirable consequences.
The recent decision by the European Union to include Russia on the list of high-risk jurisdictions for money laundering implies the introduction of strict controls over any transactions related to Russia. In this context, the statement by the President of Kazakhstan regarding opaque transactions amounting to $14 billion through one of the banks is perceived as part of a broader problem. He emphasized that this concerns not only commodity flows but also complex financial schemes that are disguised as "internal regulation".
Kazakhstan, possessing the largest economy in the region, has long been considered a key financial hub for the future corridor. However, the reality is that the country is increasingly sinking into dependencies—energy, logistics, digital, and financial. Control over oil transit, the import of petroleum products from Russia, and the vulnerability of internet traffic, as well as cooperation with sanctioned Russian entities, create serious long-term risks.
A striking example is the regulation of the gambling and betting market. In Kazakhstan, a unified betting accounting system (UBAS) was introduced under the pretext of ensuring "transparency" and combating the shadow economy. As reported by Agents.Media, the contract for implementing the UBAS was won by a company linked to the entourage of Umar Kremlov. Critics argue that this allowed individuals close to the Kremlin to gain control over financial flows in this sector.
Deputy of the Mazhilis Bakytzhan Bazarbek raised the issue that behind the facade of the UBAS lies the transfer of control over financial flows and data to a private company connected with Russian interests. Despite warnings, the system was implemented, and the risks of secondary sanctions effectively fell on the shoulders of Kazakh banks operating in this market.
Unlike Kazakhstan, Kyrgyzstan faced similar attempts to implement Russian financial and digital solutions but chose a more cautious path. Attempts to integrate structures associated with VTB and Russian regulators were rejected. The situation with "Alfa Telecom" also ended in the nationalization of the operator, despite pressure from external investors, thanks to arguments about information security and public discussions in the Jogorku Kenesh.
Nevertheless, Kyrgyzstan has not escaped problems. Sanctions against "Keremet Bank," restrictions for Capital Bank, and accusations against crypto networks have negatively impacted the country's reputation. However, these events became a catalyst for revising financial policy. Banks began to tighten compliance requirements, checking not only formal counterparties but also ultimate beneficiaries, relying on OFAC and European regulatory standards.
Today, Europe clearly signals: the Middle Corridor is not just a route for cargo but a whole financial ecosystem where there is no place for schemes servicing sanctioned economies. In this context, countries that continue to integrate Russian financial solutions risk finding themselves outside the new continental project.
At this moment, Kyrgyzstan balances on the edge between the past and the future. However, the lack of deep integration with Russian sanctioned mechanisms gives the country the opportunity to avoid the role of a gray transit zone and become part of a new architecture of trust.
