• KGS/USD = 0.01153 0%
  • KZT/USD = 0.00200 0%
  • TJS/USD = 0.09187 0.22%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28573 -0.14%
  • KGS/USD = 0.01153 0%
  • KZT/USD = 0.00200 0%
  • TJS/USD = 0.09187 0.22%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28573 -0.14%
  • KGS/USD = 0.01153 0%
  • KZT/USD = 0.00200 0%
  • TJS/USD = 0.09187 0.22%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28573 -0.14%
  • KGS/USD = 0.01153 0%
  • KZT/USD = 0.00200 0%
  • TJS/USD = 0.09187 0.22%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28573 -0.14%
  • KGS/USD = 0.01153 0%
  • KZT/USD = 0.00200 0%
  • TJS/USD = 0.09187 0.22%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28573 -0.14%
  • KGS/USD = 0.01153 0%
  • KZT/USD = 0.00200 0%
  • TJS/USD = 0.09187 0.22%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28573 -0.14%
  • KGS/USD = 0.01153 0%
  • KZT/USD = 0.00200 0%
  • TJS/USD = 0.09187 0.22%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28573 -0.14%
  • KGS/USD = 0.01153 0%
  • KZT/USD = 0.00200 0%
  • TJS/USD = 0.09187 0.22%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28573 -0.14%
03 April 2025

Viewing results 1 - 6 of 31

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.

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.

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.

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.

EU Sanctions Envoy’s Kazakh Visit Signals Rising Stakes

On January 30, David O’Sullivan, the European Union’s Special Envoy for Sanctions, made his fourth visit to Kazakhstan. Following the visit, he gave a briefing in Astana, where he discussed the new sanctions package, which could theoretically include Kazakh companies that assist Russia in circumventing restrictions. What O’Sullivan Said  According to O'Sullivan, only companies with indisputable evidence against them of involvement in violations will added to the sanctions list. “We are currently working on preparing a new, 16th package of sanctions. It is possible that Kazakh companies may be added to the list, but no decision has been made yet. We conduct a detailed analysis of companies, examine their trade relations, and review the goods they have previously traded. Of course, we prefer to work with governments to find a systematic solution rather than simply adding individual companies to the list. However, when there is no other option, we do add them,” O’Sullivan explained. The EU Sanctions Envoy reiterated that the EU remains one of Kazakhstan’s key economic partners, with mutual trade turnover reaching nearly 40 billion euros per annum. The EU accounts for 38% of Kazakhstan’s exports and 55 billion euros in direct foreign investments. Highlighting the importance of economic ties, O’Sullivan stated that the EU fully respects Kazakhstan’s position on sanctions, but urged authorities to take strict measures against third-party entities using the country’s trade channels. “We have concerns that unscrupulous actors may try to use Kazakhstan as a platform to circumvent our sanctions,” O’Sullivan warned, pointing to the import of high-tech goods such as microchips, sensors, and circuits, which have been found in Russian drones, missiles, and artillery shells. O'Sullivan noted that these goods, listed in an open “common high-priority list” of 50 codes, are not produced in Kazakhstan but are allegedly being re-exported from EU and G7 countries through Kazakh intermediaries. While they make up less than 1% of Kazakhstan’s total trade volume, O’Sullivan emphasized that these are “lethal products that kill innocent Ukrainian civilians.” The special envoy recalled that in 2024, the EU blacklisted two Kazakh companies and issued a warning that this list could be expanded. He noted that particular attention is being given to companies that emerged immediately after the invasion of Ukraine and the start of the new sanctions regime. “These are usually not well-established, well-known companies with a long history of trading. The fact that a company was created right after the invasion and the imposition of sanctions suggests that its sole purpose may be to evade sanctions,” he stated while stressing that merely registering after 2022 is not sufficient grounds for inclusion on the sanctions list. Strategically Important Central Asia Given the statistics cited by O’Sullivan, there was no pressing need for his fourth personal visit to Kazakhstan. The blacklisting of two Kazakh companies last year went largely unnoticed by the country’s general public. However, his visit highlights the mechanisms of international politics set in motion following Donald Trump’s return to the White House and the opening gambits of his administration,...

Kyrgyz Bank Hit by U.S. Treasury Department Sanctions

The U.S. Treasury Department has uncovered a secret channel allegedly used to re-export dual-use goods and imposed sanctions on Kyrgyz commercial bank Keremet for its involvement in circumventing economic restrictions against Russia, according to a statement on the department’s website. U.S. officials allege that since the summer of 2024, Keremet Bank facilitated cross-border transactions for Russian financial institutions, including Promsvyazbank, which has been under U.S. sanctions since early 2022. Promsvyazbank, nationalized by Russian authorities in 2018, was sanctioned for its role in financing Russia's defense sector and supporting major defense contracts. The U.S. Treasury reports that the bank has provided billions of dollars in financial support to Russia’s military-industrial complex. The Treasury Department’s report also claims that the Kyrgyz Ministry of Finance sold a controlling stake in Keremet Bank in 2024 to a firm closely linked to a Russian oligarch with ties to the Kremlin. According to the U.S., the acquisition aimed to create a financial hub to evade sanctions, enabling payments for imports and exports. Further allegations suggest that Moldovan opposition politician Ilan Shor, who is himself under U.S. sanctions, discussed a sanctions evasion scheme involving Keremet Bank with Russian representatives. Keremet Bank has denied these claims, stating that it has already appealed to the U.S. Treasury’s Office of Foreign Assets Control (OFAC) to have the sanctions lifted. “The bank operates in accordance with national legislation and international law, adhering to the principles of transparency and responsibility,” the bank said in its response, published on its official website. Keremet further emphasized that the sanctions will not impact its operations and expressed readiness to undergo an international audit to clarify the situation.