EU urges Kyrgyzstan to curb re-exports of sanctioned goods to Russia

By Aigerim Turgunbaeva

BISHKEK, Feb 26 (Reuters) - The EU expects Kyrgyzstan to crack down on the re-export of European goods to Russia, a senior EU official said on Thursday during a visit to the tiny Central Asian state that has become a conduit for equipment banned under sanctions against Moscow.

Sanctions Circumvention and EU Concerns

Since Russia's 2022 full-scale invasion of Ukraine, Kyrgyzstan, a close Russian ally that borders China, has become one of the world's fastest-growing economies, expanding by an average of 9% a year.

Surge in Sensitive Goods Imports

EU sanctions envoy David O'Sullivan said Brussels was concerned over surging imports to Kyrgyzstan of radio equipment and machine tools destined for re-export to Russia, in violation of sanctions on goods with potential military uses.

"We have reason to believe that the trade flows indicate that these goods are being imported into Kyrgyzstan with the sole purpose of being re-exported to Russia in breach of our sanctions," he told a press conference.

"What is disturbing for us is the fact that there has been a significant and very noticeable percentage, a big increase in the percentages of your imports and re-export of these products compared to the pre-war period."

FT cites 800% jump in high‑priority items

The Financial Times this month cited an internal European Commission document that said imports of "common high-priority items" from the EU to Kyrgyzstan are up 800% since the outbreak of the Ukraine war, with Kyrgyz exports to Russia up 1,200%.

Sanctions on Banks and Crypto Firms

Several Kyrgyz banks and cryptocurrency firms have already been sanctioned by Western powers for helping Moscow evade sanctions, and the EU is considering more measures. Kyrgyzstan called sanctions on its companies "one-sided" and "interference in the country's internal affairs".

EU Message: Maintain Trade, Stop Evasion

O'Sullivan said the EU respects Kyrgyzstan's need for a close economic relationship with Russia, where many of its citizens travel for work.

"We are not asking Kyrgyzstan not to have trading relations with Russia," he said. "We only ask that that trading relationship does not involve the deliberate circumvention of our sanctions by the transmission through Kyrgyzstan of sanctioned EU goods to Russia."

(Reporting by Aigerim Turgunbaeva, Writing by Felix Light; Editing by Mark Trevelyan and Peter Graff)