EU Sanctions - The Times Of Central Asia

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EU Sanctions

Bishkek Warns of Risks to Ties Over EU Sanctions Decision

Kyrgyzstan’s Ministry of Foreign Affairs has expressed concern over the inclusion of Kyrgyz legal entities in the European Union’s 20th sanctions package against Russia, including the application of the so-called anti-circumvention mechanism. In a statement, the ministry said Bishkek adheres to an “open, responsible, and constructive approach” in its dialogue with the European Union on mitigating sanctions-related risks and advocates for mutual consideration of interests, as well as transparency and trust. The Foreign Ministry noted that despite ongoing negotiations, regular contacts with European partners, and the provision of requested information, including details of measures taken by state authorities, the Kyrgyz position, in its view, “is not being taken into account.” “It is a matter of concern that the position of the Kyrgyz side is effectively being ignored,” the statement said. The ministry also emphasized that such decisions could undermine trust in bilateral relations and contradict the EU’s stated intention to develop cooperation with Kyrgyzstan and other Central Asian countries. Bishkek further expressed concern over the use of unilateral restrictive measures affecting third countries. The Foreign Ministry called on the EU to engage in a “transparent, professional, and depoliticized dialogue,” as well as to adopt a more consistent and balanced approach that takes into account Kyrgyzstan’s position and previously reached agreements. The Times of Central Asia previously reported that the EU had stepped up sanctions pressure on Kyrgyzstan by restricting supplies of sensitive technologies and imposing measures on the country’s financial institutions. Brussels is concerned that the Central Asian republic may be used as a transit hub to circumvent sanctions. According to European Commission data, imports of sensitive goods from the EU to Kyrgyzstan surged by nearly 800% in 2025 compared to pre-war levels, while exports of similar goods from Kyrgyzstan to Russia increased by approximately 1,200%.

EU Sanctions

EU Removes Three Tajik Banks from Sanctions List

The European Union has removed three financial institutions in Tajikistan from its sanctions list. The decision was adopted on April 23, as part of the EU’s 20th sanctions package, according to the National Bank of Tajikistan. The move concerns Spitamen Bank, Dushanbe City Bank, and Commercebank of Tajikistan, which had previously been subject to restrictions introduced on November 12, 2025. “As a result of productive dialogue and cooperation between the relevant authorities of the Republic of Tajikistan and European partners, a favorable basis has been created for reviewing previously imposed restrictions,” the National Bank said. The National Bank also noted that the decision reflects strengthened cooperation between the regulator, government ministries, and the European Commission, as well as the consistent implementation of international compliance standards and improvements in anti-money laundering systems. “The adoption of this decision is viewed as a direct result of expanded cooperation with the European Commission, the consistent implementation of international compliance standards, and the strengthening of mechanisms to combat money laundering,” the statement said. The regulator believes the move will provide a strong boost to the development of the banking sector, increase investor confidence, and expand financial services in the country. The sanctions against the three Tajik banks had originally been introduced under the EU’s 19th package of restrictions against Russia. According to the Council of the EU, the measures included a ban on transactions with certain banks and companies from third countries suspected of facilitating sanctions circumvention. At the time, Brussels considered these institutions potential channels for bypassing restrictions imposed on Russia. The list also included financial entities from Kyrgyzstan, Kazakhstan, the United Arab Emirates, Hong Kong, China, and India. However, specific cases or transaction volumes that led to the sanctions were not disclosed. The wording remained general, referring to “assistance in sanctions circumvention” and “support for the Russian economy.” In response, Tajik authorities worked to secure the removal of the restrictions, providing additional guarantees and information to the EU demonstrating that the banks’ financial operations comply with international standards. For its part, the EU showed readiness to reconsider the measures, taking into account changes in the banks’ financial practices and Tajikistan’s efforts to strengthen domestic financial regulation.

EU Sanctions

EU Sanctions Put Kyrgyzstan’s Transit Trade Under Scrutiny

The European Union has stepped up sanctions pressure on Kyrgyzstan by restricting supplies of sensitive technologies and imposing measures on the country’s financial institutions. The decision, adopted as part of the EU’s 20th sanctions package against Russia, reflects growing concerns in Brussels that the Central Asian republic may be used as a transit hub to circumvent restrictions. The move marks a shift in the EU’s approach, from diplomatic warnings to tighter controls on trade and financial channels in third countries. A key argument for Brussels has been trade data. According to European Commission materials, imports of sensitive goods from the EU to Kyrgyzstan surged by nearly 800% in 2025 compared to pre-war levels. Meanwhile, exports of similar goods from Kyrgyzstan to Russia rose by approximately 1,200%. European officials say this dynamic indicates a systemic pattern of re-exports. As a result, the EU has added Kyrgyzstan to its list of countries posing a “systematic and persistent” risk of sanctions circumvention, a designation previously applied only selectively. The restrictions primarily target dual-use goods. These include metalworking machinery and numerically controlled equipment, as well as a wide range of telecommunications devices, from routers and modems to data, voice, and image transmission equipment. According to the EU, these categories present the highest risk of being used by Russia’s defense-industrial complex. European exporters will face tougher checks to show that sensitive goods are not likely to be re-exported to Russia. This creates an additional administrative barrier and raises risks for businesses. For many companies, the effect is a ‘presumption of guilt’ regime around trade with Kyrgyzstan. The sanctions package also affects the country’s financial system. Keremet Bank and Capital Bank have been included in the restrictions, which are set to take effect in May 2026. Particular attention has been paid to the cryptocurrency sector. The EU has sanctioned TengriCoin, a Bishkek-registered entity linked to the Meer platform, which European regulators say facilitated trading in a stablecoin affiliated with Russia’s Promsvyazbank. This move signals the EU’s expanding sanctions policy into digital financial instruments increasingly used to bypass traditional restrictions. Additional measures affect the transport sector. Several Kyrgyz logistics companies have been restricted from accessing European infrastructure, including ports and transport networks. This is likely to increase shipping costs and complicate foreign trade operations, putting additional pressure on export-oriented businesses. Analysts also warn of a potential shortage of European industrial equipment on the Kyrgyz market. The risk of secondary sanctions may lead EU suppliers to withdraw even from legitimate transactions. The tightening of sanctions comes amid intensified foreign policy engagement by Kyrgyzstan. On the day the package was approved, President Sadyr Japarov reaffirmed a strategic partnership with Vladimir Putin during a visit to Moscow. At the same time, Bishkek is strengthening cooperation within the Shanghai Cooperation Organization (SCO), preparing to host a summit and receive high-level delegations, including Chinese Defense Minister Dong Jun. Kyrgyz authorities have previously criticized EU sanctions policy. Japarov has described it as unjustified and as pressure that hampers economic development. Despite a series...

EU Sanctions

EU Targets Kyrgyz Financial Sector Over Russia Sanctions Evasion

At the beginning of the year, the news agenda surrounding Kyrgyzstan shifted dramatically. Several media outlets reported that the European Union is considering restrictive measures affecting Kyrgyzstan as part of its 20th sanctions package against Russia. This does not imply direct sanctions against the state itself, but rather potential measures targeting banks, oil companies, and cryptocurrency services that, according to Brussels, may facilitate circumvention of the sanctions regime. For Kyrgyzstan’s economy, which is highly sensitive to cross-border capital flows, this represents a serious warning signal. EU Special Envoy for Sanctions David O’Sullivan, who visited Bishkek, outlined Brussels’ principal concern: a sharp increase over the past year in imports of machine tools and radio equipment into Kyrgyzstan. According to O’Sullivan, exports of certain categories of goods have risen by several hundred percent compared with the pre-war period. These goods fall into the category of dual-use products, and even relatively inexpensive components can be incorporated into drones or missile systems. The EU’s core argument is that such goods are neither produced nor consumed in significant volumes within Kyrgyzstan but are imported from Europe for subsequent re-export to Russia. Brussels views this pattern as evidence of systematic transit. The European Commission is also advocating restrictions on exports of certain machine tools and radio equipment to Kyrgyzstan. According to cited sources, exports of sanctioned technologies to Kyrgyzstan have increased eightfold since the start of the war in Ukraine, while shipments of equipment from Kyrgyzstan to Russia have risen by approximately 1,000%. O’Sullivan stated that the EU “does not impose sanctions on countries,” but rather on specific companies and banks. In practical terms, however, the distinction can be largely formal for the national economy. In October 2025, the EU added two Kyrgyz banks, Tolubay Bank and Eurasian Savings Bank, to its sanctions lists. According to the special envoy, the measures do not prohibit domestic operations, but they do restrict transactions with European financial institutions. In practice, this means the loss of correspondent banking relationships and limited access to SWIFT. Previously, Keremet Bank, Capital Bank, and the cryptocurrency platforms Grinex and Meer were sanctioned by the United Kingdom and the United States. In November 2025, Canada imposed sanctions on Capital Bank of Central Asia and the A7 platform. Brussels has formally stated that it respects Kyrgyzstan’s sovereignty and its legitimate trade relations with Russia and does not seek to halt lawful trade or remittance flows from migrant workers. According to O’Sullivan, preventing transit should not generate significant economic losses, as the goods in question represent only a “tiny fraction” of trade and do not create substantial added value within Kyrgyzstan. A Delicate Balancing Act The situation is further complicated by the lack of full consensus within the EU itself regarding the new sanctions package. Kyrgyzstan finds itself at a difficult intersection of interests. On one side are longstanding economic ties with Russia; on the other, the growing importance of the EU as a source of investment, grants, and institutional support. Following an extended meeting between First...

Z5+1

Germany Builds a Z5+1 in Central Asia

Germany’s meeting on February 11 with the five Central Asian foreign ministers in Berlin formalized the Z5+1 (“Z” for “Zentralasien”) format as a standing work channel. It joins other “plus-one” formats now crowding Central Asia that function as instruments of influence. The United States is using C5+1 to push a more deliverables-oriented agenda, including critical raw materials, and China has institutionalized leader-level summitry with accompanying treaties, grants, and transport-centered integration. The EU has elevated its relationship to a strategic partnership and is putting Global Gateway branding behind connectivity and investment. Germany’s Z5+1 is best understood as Europe’s effort to add a practical, tool-driven channel that can move faster than EU consensus in some domains while still feeding EU programming rather than competing with it. The concluding Berlin Declaration reads like a program sheet with named instruments, sector priorities, and established a direct link to the EU’s broader “Team Europe” posture through the participation of EU Special Representative Eduards Stiprais. Germany’s Z5+1 fits this competitive field as a European execution lane that can move projects forward with German instruments while staying aligned with EU programs. Berlin Defines the Tools The Z5+1 meeting in Berlin drew on a sequence that Germany has been building since its 2023 “Strategic Regional Partnership” and subsequent summits in Berlin (2023) and Astana (2024), with an explicit emphasis on Central Asian regional cooperation as a counterpart to bilateral ties. The Berlin meeting, therefore, did not attempt to invent a new regional architecture but rather added a stable ministerial format for pushing forward project lists, regulatory expectations, and finance conditions between higher-level meetings. In Berlin, Germany committed €2.7 million to a cooperation platform for the Trans-Caspian Transport Corridor: a small sum by infrastructure standards, but targeted at unglamorous coordination like data-sharing, planning discipline, and institutional continuity, i.e., standards and transborder management regimes where corridor initiatives often stall. This profile complements the EU-backed Trans-Caspian Coordination Platform track, which is explicitly tied to a wider €10 billion commitment announced at the January 2024 Global Gateway investors forum for EU–Central Asia transport connectivity. and which has addressed the corridor less as a construction problem than as a finance-and-sequencing problem. Berlin also explicitly supported the commercial participation of German rail and logistics firms in transport and consulting projects, aligning with the intent to keep firm-level engagement attached to ministerial diplomacy. The declaration references export credits and investment guarantees, and links them to business-environment expectations. On the same day, the German Eastern Business Association convened a “Wirtschaftsgespräch” (economics talk) in the Foreign Office with the Central Asian delegations. There, the region was framed as strategically significant for Germany’s diversification agenda, and it was signaled that an autumn leaders’ summit is already in view. Germany’s public accounting of its regional engagement in Central Asia stresses its already-deep base of activity in Kazakhstan and Uzbekistan in particular, including dozens of projects and multi-billion-euro volumes. The energy transition was mentioned, as the Berlin Declaration points to renewables, hydrogen, and climate programming that Germany is already funding...

Dismissals

Kyrgyz President Dismisses Right-Hand Man to “Prevent a Split in Society”

A political earthquake hit Kyrgyzstan on February 10. The tandem of President Sadyr Japarov and security chief Kamchybek Tashiyev was seemingly broken when Japarov dismissed Tashiyev from his post. The reason given for relieving Tashiyev of his position was that it was “in the interests of our state, in order to prevent a split in society, including between government structures,” which hinted that something serious had caused the rift. Old Friends After the brief tumultuous events of October 5-6, 2020, that saw the government of President Sooronbai Jeenbekov ousted in the wake of parliamentary elections plagued by violations, Japarov came to power and appointed Tashiyev to be head of the State Committee for National Security (GKNB). The two have remained in those positions and were often referred to as a tandem. Some believe Tashiyev has actually been the one making many of the important state decisions. Their relationship goes back much further, to the days when Kurmanbek Bakiyev was Kyrgyzstan’s president from 2005-2010. In August 2006, Japarov, Tashiyev, and some other politicians from Kyrgyzstan’s southern Osh area cofounded the Idealistic Democratic Political Party of Kyrgyzstan, which later became the foundation for the Ata-Jurt party. Both Japarov and Tashiyev were supporters of President Bakiyev. When Bakiyev was forced to flee the country after the 2010 revolution in Kyrgyzstan, the Ata-Jurt party became the strongest opposition party to the government that emerged after the revolution. Ata-Jurt won the most seats, 28, in the snap October 2010 parliamentary elections, and among the party’s deputies were Japarov, Tashiyev, and another politician named Talant Mamytov. The three Ata-Jurt deputies helped organize anti-government protests, and during one outside the government building in Bishkek in October 2012, Japarov, Tashiyev, and Mamytov jumped the fence and led an armed crowd to the building. All three were convicted in 2013 of trying to overthrow the government. They were sentenced to a mere 18 months in prison, but did not even serve that, with all three being released in July 2013. Japarov helped lead a protest in Kyrgyzstan’s northeastern Issyk-Kul Province in October that year. A local official was captured and briefly held by protesters, and after order was restored, Japarov was charged with hostage-taking. He fled the country and only returned in March 2017. Japarov was immediately arrested and sentenced to 11 ½ years in prison. A crowd released Japarov from prison when unrest started on October 5, 2020. Tashiyev was among those who quickly put forth Japarov to be Kyrgyzstan’s next leader, and by October 15, Japarov was both acting prime minister and acting president. He appointed Tashiyev to be GKNB chief on October 16. Mamytov was elected speaker of parliament on November 4, 2020. The Dismissal Tashiyev was in Germany receiving medical treatment when Japarov dismissed him. On February 11, Tashiyev commented from Germany on his dismissal, calling it unexpected, but said he would heed the president’s decision. “I served our state, people, and president honorably, and I'm proud of it,” Tashiyev said, and expressed his “gratitude...