Kyrgyz Banks Restrict Money Transfers to Russia

Kurmanjan Datka, obverse of the fifty som banknote

Several commercial banks in Kyrgyzstan have suspended work with Russian money transfer systems after the expansion of U.S. sanctions. Most cite as the reasons behind this decision both technical problems and exchange rate volatility.

The RSK Bank, which occupies one of the leading positions in Kyrgyz financial market, announced that, “Due to technical works, the following money transfer systems (sending and receiving) are not working at the moment: Astrasend, Unistream, Contact, Zolotaya Korona, Sberbank-Online.”

The temporary suspension of services to send and receive transfers in rubles  through the applications ‘Kompanion ’ and  ‘Unistream,’ was also reported by Kompanion Bank.

Mbank, among the most popular in the Kyrgyz market,  joined suit, stating that, “Due to the exchange rate volatility and possible sharp fluctuations of the currency market, a temporary restriction on ruble accounts and cards has been introduced (replenishment, transfers, conversions). ” Via its website, the bank confirmed its full protection of clients’  ruble accounts.

Five more Kyrgyz banks have now announced the introduction of restrictions on operations concerning dollar accounts and ruble/dollar conversion.

As reported by TCA on June 13, new U.S. sanctions were imposed on the Moscow Exchange, the Russian National Clearing Center (NCC), and the National Settlement Depository (NSD).