Kyrgyzstan Is Forcibly Shutting Down Companies That Help Russia Circumvent Sanctions
- 19.08.2026, 16:56
"Toxic" businesses are simply shut down.
Kyrgyz authorities have forcibly liquidated 19 companies linked to the circumvention of EU and U.S. sanctions against Russia, according to “Interfax”. Since the end of June, approximately 40 legal entities with elevated sanctions risks have been identified in the country, according to the Kyrgyz Ministry of Economy and Commerce.
The decision was made at a meeting on sanctions chaired by the Kyrgyz President’s Special Representative for Special Assignments Bakyt Sydykov. Representatives of government agencies, the National Bank, and commercial banks participated in the meeting. Based on the results of the analysis, the interagency group decided to suspend the operations of these companies to prevent negative consequences for the country resulting from the circumvention of sanctions.
At the same time, the National Bank of Kyrgyzstan announced that it would strengthen oversight of banks, payment services, and other financial services. From July through August 14, 2026, the state-owned Eldik Bank terminated its relationships with 109 companies. Another 20 or so companies are in the process of having their accounts closed. The bank also continues to monitor customer payments to identify and block transactions related to sanctions evasion. Another state-owned bank, “A-Bank,” has terminated business relationships with approximately 35 companies. About 40 more companies are currently undergoing verification procedures. “Banks will continue to consistently strengthen compliance controls at all stages of transactions. Particular attention will be paid to in-depth verification of documents serving as the basis for payments, identifying the ultimate recipients of goods and services, and determining the destination countries for shipments,” added the Ministry of Economy.
The current campaign is a continuation of measures that Bishkek began implementing in the spring. In May, Kyrgyzstan’s Deputy Prime Minister Danyar Amangeldiev announced the suspension of registration for 50 companies operating in wholesale trade, transportation, and logistics. Information about these companies was provided by the United States and the United Kingdom. “Once they report the risks, we investigate them and respond,” Amangeldiev said. On May 2, the deputy prime minister warned that a company’s registration could be revoked if its ties to sanctions-related schemes were established.
Kyrgyzstan was the first among the former Soviet republics to fall under European sanctions for violating measures imposed against Russia. As part of its 20th sanctions package, the EU banned the export of European CNC machine tools and telecommunications equipment to Kyrgyzstan. Brussels explained the decision by citing the high risk of these products being re-exported to Russia. Certain Kyrgyz companies and financial institutions were also subject to EU sanctions. Among them are Keremet Bank, Capital Bank of Central Asia, and the Grinex cryptocurrency exchange. The latter traded the ruble-pegged stablecoin A7A5, launched by Promsvyazbank and Moldovan businessman Ilan Shor. A7A5’s trading volume reached $100 billion.