Sanctions - The Times Of Central Asia

Viewing results 1 - 6 of 33

Iraq Seeks Alternative Gas Import Routes Through Turkmenistan Amid Sanctions Challenge

Iraq is intensifying efforts to implement a long-discussed agreement on natural gas imports from Turkmenistan, seeking to stabilize its energy sector and diversify supply sources. According to Ahmed Musa, spokesperson for Iraq’s Ministry of Energy, the plan involves importing around 20 million cubic meters of gas per day through pipelines connecting Turkmenistan and Iran. The route is intended to offset a shortfall caused by reduced gas flows from Iran, which currently supplies approximately one-third of Iraq’s energy needs. However, the implementation of this deal has faced significant hurdles. Chief among them is the issue of payments: the Trade Bank of Iraq (TBI) has been unable to issue a letter of credit due to U.S. sanctions on Iran, through whose territory the gas must transit. In an effort to resolve the deadlock, Iraqi Energy Minister Ziad Ali Fadel visited Turkmenistan to explore potential mechanisms to bypass the sanctions and operationalize the agreement. The foundations of this partnership were laid in 2023, when Iraq and Turkmenistan signed a memorandum of understanding, agreeing to continue negotiations on the logistics of fuel transit via Iran. Progress followed in November 2023, when both sides signed a protocol outlining the key commercial terms. Under the deal, Iraq is set to receive 45 billion cubic meters of gas over five years, equivalent to 9 billion cubic meters annually. The arrangement is structured as a swap: Turkmenistan will deliver gas to Iran, which in turn will transfer an equivalent volume to Iraq. Further advancing bilateral ties, Turkmenistan’s President Serdar Berdimuhamedov discussed gas supplies and the potential opening of an Iraqi embassy in Ashgabat with Iraqi Prime Minister Mohammed Shia Al-Sudani in March 2025. The talks underscored the growing strategic importance of energy cooperation between the two nations. A Strategic Energy Lifeline Iraq's reliance on natural gas to power its electricity grid makes securing reliable fuel sources a national priority. Given the country’s frequent power shortages and its current dependence on Iranian gas, diversifying suppliers is seen as crucial for both energy security and political autonomy. Turkmen gas is viewed as a strategically vital resource that could help stabilize Iraq’s energy sector and reduce vulnerability to geopolitical disruptions. The five-year agreement with Ashgabat aims to establish predictable, long-term supplies. Nevertheless, full-scale gas deliveries have yet to begin. The main obstacle remains the inability to process payments due to U.S. sanctions on Iran. Baghdad must either secure exemptions or devise alternative payment mechanisms to activate the contract. Simultaneously, technical discussions continue among Iraq, Iran, and Turkmenistan on ensuring reliable transport and infrastructure under the swap scheme. If these issues are resolved, Iraq could gain a dependable new energy partner, while Turkmenistan would expand its reach into a key southern market, strengthening both nations' strategic positions.

Sanctions restrictions International Audit state firms

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.

EU Sanctions Central Asia Russia

EU’s Kaja Kallas: Russia Must Not Use Central Asia to Bypass Sanctions

European Union sanctions against Russia are affecting Central Asian economies, but the EU remains determined to prevent the region from being used to circumvent those measures. This was emphasized by EU High Representative for Foreign Affairs Kaja Kallas during the 20th EU-Central Asia Ministerial Meeting held in Turkmenistan's capital, Ashgabat. “The EU has introduced 16 sanctions packages to weaken Russia’s military machine, and we are working on the 17th,” Kallas stated. “I understand these sanctions impact your economy, but we all want this war to end. Russian companies must not use Central Asia to bypass these restrictions.” The ministerial meeting on March 27 brought together the foreign ministers of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan. Discussions centered on preparations for the upcoming EU-Central Asia Summit, scheduled for April 2025 in Samarkand. Strengthening U.S.-Uzbekistan Ties In a parallel development, U.S.-Uzbekistan relations are showing signs of deeper engagement. On March 26, Ambassador Furkat Sidikov hosted a Congressional Breakfast with U.S. Representative Trent Kelly, focused on trade and investment opportunities. Congressman Kelly praised Uzbekistan’s ongoing reforms and expressed support for lifting the Jackson-Vanik Amendment, a Cold War-era restriction on trade. A Shift in U.S. Strategy Toward Kazakhstan Meanwhile, experts are calling for a more nuanced U.S. approach to Kazakhstan. Dr. Robert M. Cutler, Times of Central Asia correspondent, noted that Kazakhstan’s close ties with Russia and China stem from geopolitical necessity rather than ideological alignment. He urged Washington to maintain consistent engagement with Kazakhstan and prioritize economic and strategic cooperation over political pressure.

Strategic Cooperation EU-Central Asia Relations critical raw materials Trans-Caspian Corridor Sanctions

EU-Central Asia Ministerial Meeting Highlights Enhanced Cooperation and Strategic Priorities

The 20th EU-Central Asia Ministerial Meeting took place on March 27 in Ashgabat, Turkmenistan, reaffirming the parties’ strong political will to deepen engagement and strengthen cooperation in strategically significant areas. The meeting brought together the EU High Representative for Foreign Affairs and Security Policy, Kaja Kallas, along with the foreign ministers of Tajikistan, Turkmenistan, and Uzbekistan, and the deputy foreign ministers of Kazakhstan and Kyrgyzstan. A key item on the agenda was preparation for the inaugural EU-Central Asia Summit, scheduled for April 4, 2025, in Samarkand, Uzbekistan. Advancing Strategic Cooperation Kallas and Central Asian ministers discussed a broad spectrum of mutual priorities under the EU’s Global Gateway Flagship Initiatives, including trade, transport, energy, water resource management, climate change, digitalization, and critical raw materials. Both sides also highlighted advancing cooperation in education, vocational training, research, and skills development to foster deeper people-to-people ties. In a joint communiqué adopted at the meeting, the EU and Central Asian states reaffirmed their shared commitment to further strengthening their comprehensive partnership, grounded in mutual interests and values. The discussions were guided by the “Joint Roadmap for Deepening Ties between the EU and Central Asia,” previously adopted in Luxembourg in October 2023. Focus on Connectivity and the Trans-Caspian Corridor Connectivity emerged as a central theme, with the participants stressing the need to expand sustainable connections between Central Asia and Europe. The EU’s Global Gateway Strategy was highlighted as a key vehicle for supporting regional infrastructure in trade, transport, water, and energy. The participants recalled the success of the Global Gateway Investors Forum on EU-Central Asia Transport Connectivity, held in Brussels in January 2024. They welcomed commitments by European and international financial institutions to invest €10 billion in the Trans-Caspian Transport Corridor (TCTC), aimed at significantly enhancing East-West transport links. Critical Raw Materials and Local Value Chains Another focal point was the growing strategic importance of critical raw materials (CRMs). Ministers reviewed progress following the signing of a Strategic Partnership Memorandum of Understanding between the EU and both Kazakhstan and Uzbekistan in the CRM sector. The meeting acknowledged EU support for strengthening local value chains in Central Asia. Discussions stressed alignment with international labor and environmental standards and the development of sustainable investment projects across the region. Sanctions Compliance The EU also briefed participants on its restrictive measures in the current geopolitical environment, underlining the need to prevent sanctions circumvention. Central Asian countries expressed readiness to continue cooperating with the EU to prevent re-exports of sensitive items, particularly those classified as “high priority.” Strategic Outlook The meeting reaffirmed the EU’s 2019 Strategy on Central Asia, which recognizes the region’s increasing strategic relevance to Europe. The Ashgabat gathering further solidified this recognition, highlighting Central Asia’s growing role in regional connectivity, resource security, and global diplomacy.

Keremet Bank Sanctions Banking

Kyrgyzstan Pushes to Lift U.S. Sanctions on Keremet Bank

The National Bank of Kyrgyzstan is negotiating with the U.S. Treasury Department to lift sanctions imposed on Keremet Bank, according to National Bank Chairman Melis Turgunbaev. The U.S. authorities sanctioned Keremet Bank over alleged ties to Promsvyazbank, a Russian financial institution under sanctions. In response, the National Bank of Kyrgyzstan has formally petitioned for the sanctions to be lifted. Efforts to Lift Sanctions “We have submitted a formal request, provided the necessary information, and are actively engaging with U.S. officials. Typically, cases like this are reviewed within 30 to 45 days. Sanctions on Keremet Bank are set to take effect on March 1, and we are doing everything possible to reverse this decision before then,” Turgunbaev stated. According to him, this window allows the bank to manage its international assets and keep clients informed. Keremet Bank’s Response Keremet Bank has welcomed the government’s efforts to challenge the sanctions. “The bank operates in full compliance with national and international laws, adhering to principles of transparency and responsibility. We have submitted an appeal to OFAC (the U.S. Office of Foreign Assets Control) disputing the allegations against us,” the bank told The Times of Central Asia. Growing Time Pressure and UK Sanctions Despite optimism from Kyrgyz authorities, time is running short for a resolution. Keremet Bank has warned its clients that Visa payment cards issued by the bank will stop working on February 28. In a further setback, the United Kingdom has also imposed sanctions on Keremet Bank, designating it as a foreign financial institution supporting Russia. Previously, the National Bank of Kyrgyzstan instructed commercial banks to tighten control over financial transactions in response to increased enforcement by OFAC.

Economy Sanctions U.S. Sanctions Government

U.S. Urges Tajikistan to Enforce Sanctions on Russian Firms Amid Ongoing Compliance Review

The Tajik government has received an official letter from the United States requesting compliance with sanctions against several Russian companies operating in the country, Chairman of the State Committee on Investment and State Property Management Sulton Rakhimzoda announced at a press conference on February 11. According to Rakhimzoda, the U.S. has requested clarification on what measures Tajik authorities plan to take regarding the sanctions. “This is a sensitive topic, and it is currently under consideration,” he stated. He added that sanctions against Russian companies are not a new phenomenon and that businesses affected by the restrictions should already have mechanisms in place to adapt. “It is clear that sanctions impact companies to varying degrees. However, as far as I know, they have already developed strategies to operate under these conditions. These issues are also being discussed in negotiations with the government,” Rakhimzoda said. He noted that the Investment Committee does not oversee this sector directly, but that the relevant government agencies are handling the matter. Following the start of the conflict in Ukraine, the U.S. and the European Union imposed strict sanctions on several Russian enterprises. In January 2025, the U.S. Department of the Treasury sanctioned Gazpromneft Tajikistan along with its parent company, Gazprom Neft. Tajik authorities have stated that the sanctions will not affect oil product imports into the country. However, experts warn that the restrictions could eventually impact other companies cooperating with Gazpromneft Tajikistan.