Kyrgyzstan Offers International Audits of State Firms Amid Russia Sanctions Scrutiny
Kyrgyzstan has expressed its readiness to subject state-owned enterprises to international audits amid rising Western scrutiny over potential sanctions circumvention. The statement was made during a meeting in London between First Deputy Chairman of the Cabinet of Ministers Daniyar Amangeldiev and David Reed, Director of Sanctions at the UK Foreign, Commonwealth & Development Office. The two officials discussed Kyrgyzstan’s compliance with international sanctions regimes and the need to prevent any circumvention of restrictions, particularly those related to Russia. Reed raised concerns about the activities of certain Kyrgyz companies engaged in foreign trade, specifically naming Capital Bank and Trading Company, both state-owned enterprises. Capital Bank was created to oversee financial transactions involving Russia and has been designated, as of May 1, as a clearing institution for settlements in Russian rubles. The Trading Company is tasked with monitoring transit trade flows. Amangeldiev emphasized that the establishment of these entities was aimed at enhancing transparency and regulatory oversight, not sanctions evasion. He assured the UK side that Kyrgyzstan is fully open to inspections by international auditing firms and reaffirmed that these companies are operating within legal frameworks. Kyrgyzstan’s foreign trade, especially its re-export of goods, has faced growing scrutiny from Western governments amid broader concerns over the enforcement and impact of sanctions on Russia. The Kyrgyz government has consistently denied any role in facilitating sanctions evasion.