The European Union expresses concern about the potential circumvention of sanctions. The 19th package of restrictions imposed against Russia included several financial institutions and crypto companies from Kyrgyzstan. A 20th package of sanctions is currently being developed, which may also affect organizations from Kyrgyzstan.
As O'Sullivan noted, EU sanctions do not apply to banking operations conducted directly on the territory of Kyrgyzstan. The imposed restrictions only pertain to certain transactions.
“This means that Kyrgyz banks that are under sanctions cannot interact with banks and financial institutions of the EU. Furthermore, they are excluded from the SWIFT transfer system,” he added.
The latest, 19th package of sanctions included "Tolubay Bank" and "Eurasian Savings Bank".
“We do not impose sanctions on Kyrgyz banks. Instead, we inform our banks that they cannot cooperate with certain financial institutions in Kyrgyzstan, as this may contribute to the circumvention of sanctions,” he explained.
Note:
Since the beginning of 2022, more than 20 companies from Kyrgyzstan have been sanctioned by the U.S. and U.K. Treasury. Among them are major banks and oil and gas enterprises. Secondary sanctions affecting the country impact not only financial institutions and the oil sector but also companies involved in supplies:
- telecommunications and electronic equipment,
- IT infrastructure,
- aviation fuel,
- air transport, and more.
