Published by Global Banking and Finance Review
Posted on October 24, 2025
2 min readLast updated: January 21, 2026
Kyrgyzstan criticizes EU sanctions on its banks linked to Russia, urging dialogue. The sanctions impact Kyrgyz banks but the economy grows due to trade with Russia.
BISHKEK (Reuters) -Kyrgyzstan voiced regret on Friday over the inclusion of several Kyrgyz entities in the European Union's latest Russia sanctions list, a move it called "one-sided sanctions pressure".
In a statement, the foreign ministry of the Central Asian state said Kyrgyzstan "strictly observes its international obligations" and pursues an "open and constructive dialogue" with EU partners to prevent sanctions-evasion risks. It invited Brussels to initiate an independent audit.
The sanctions, part of the EU’s 19th package in response to Russia’s invasion of Ukraine, target several banks and companies, including two Kyrgyz lenders, Tolubay Bank and Eurasian Savings Bank. Two banks in neighbouring Tajikistan were also sanctioned.
Three other Kyrgyz banks have previously been sanctioned by Western countries including the U.S. and Britain for facilitating Russian sanctions evasion.
Some sanctions have targeted A7A5, a rouble-pegged stablecoin launched in Kyrgyzstan which Britain said in August had moved $9.3 billion in four months.
The central bank said it was assessing the impact of the new measures on the country’s financial system.
The EU and the United States have increasingly tightened oversight of financial flows through Central Asia, which Western officials say has become a key transit hub for goods and funds circumventing restrictions on Moscow.
Kyrgyzstan’s economy has expanded sharply since the war began, growing 10% year-on-year in the first nine months of 2025 thanks largely to booming trade with Russia and a surge in money transfers from migrant workers.
Speaking at the U.N. General Assembly in September, Kyrgyz President Sadyr Japarov called sanctions against his country "interference in the country's internal affairs".
Under Japarov, a populist and nationalist, Kyrgyzstan has taken a generally pro-Russian position on the Ukraine conflict.
(Reporting by Aigerim Turgunbaeva, Writing by Felix Light, Editing by William Maclean)
EU sanctions are restrictive measures imposed by the European Union against countries, entities, or individuals to influence behavior, often in response to violations of international law.
A central bank is a national financial institution that oversees the monetary system for a country or group of countries, managing currency, money supply, and interest rates.
Sanctions evasion refers to attempts by individuals or entities to circumvent imposed sanctions, often through illicit financial transactions or trade practices.
A stablecoin is a type of cryptocurrency designed to maintain a stable value by pegging it to a reserve of assets, such as fiat currencies or commodities.
Financial oversight refers to the regulatory scrutiny and monitoring of financial institutions and markets to ensure compliance with laws and regulations.
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