• KGS/USD = 0.01144 0%
  • KZT/USD = 0.00191 0%
  • TJS/USD = 0.09174 0%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00191 0%
  • TJS/USD = 0.09174 0%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00191 0%
  • TJS/USD = 0.09174 0%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00191 0%
  • TJS/USD = 0.09174 0%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00191 0%
  • TJS/USD = 0.09174 0%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00191 0%
  • TJS/USD = 0.09174 0%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00191 0%
  • TJS/USD = 0.09174 0%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00191 0%
  • TJS/USD = 0.09174 0%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 -0.14%
21 January 2025

Viewing results 1 - 6 of 26

Kyrgyz Banks Restrict Money Transfers to Russia

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).

How Sanctions Against the Moscow Exchange Will Affect Kazakhstan

The introduction of U.S. sanctions against the Moscow Exchange (MOEX) will not have legal consequences for the Kazakhstan Stock Exchange (KASE), because the Russian platform's share in Kazakhstan's capital is not large enough, KASE's press service has reported. On June 12th, the Office of Foreign Assets Control (OFAC) of the United States put the Moscow Exchange on the SDN list, which means blocking its accounts in U.S. banks and depositories and banning cooperation for U.S. citizens and residents. The exchange has already announced that it will stop trading in dollars and euros in the foreign exchange section. At the same time, contrary to popular belief, the entry of a company into the SDN list does not automatically lead to the introduction of secondary sanctions against all its partners, including those from third countries. Restrictions may be imposed on the subsidiaries of sub-sanctioned companies if they own at least 50% of their authorized capital. MOEX owns 13.1% of KASE shares, which means the latter is not considered a company under the control of the SDN-list participant. "In this regard, Kazakhstan Stock Exchange and KASE Clearing Center continue to operate normally. Standard regulations will conduct trades, clearing, and settlements. KASE will consider the continuation of business relations with MOEX considering the sanctions restrictions," noted the release from the Kazakhstan Stock Exchange. In November last year, KASE head Alina Aldambergen said that the platform carefully analyzes the risks of sanctions. At the same time, she said that cooperation with the Moscow Exchange has been reduced to providing IT services. Economist Rasul Rysmambetov previously wrote for The Times of Central Asia that he believes sanctions against several financial structures in Russia will not directly affect Kazakhstan. However, there are bound to be consequences for Kazakhstan from the actions of the Russian authorities. "At some point, the Russian financial authorities will see that the pressure of sanctions is aimed not at complicating their operations, but at destroying their financial structure, and they may start taking symmetrical actions," Rysmambetov wrote on social networks. Rysmambetov believes the ruble's depreciation will affect Kazakhstani entrepreneurs producing sugar, milk, and grain.

Central Asia and Turkey Serving as Way-Points for Russia’s Explosives Imports

Citing an analysis of trade data, the Wall Street Journal (WSJ) has reported that Russia has boosted its imports of an explosive compound critical to the production of artillery ammunition - including from companies based in the U.S. and other Western countries and allies - despite international sanctions meant to choke Moscow's wartime production. Russian imports of nitrocellulose, a highly flammable cotton product central to gunpowder and rocket propellant production, surged 70% in 2022, the first year of Moscow's full-scale invasion of Ukraine, and midway through 2023 imports amounted to 3,039 tons of the product - nearly double the 2021 level. Another supplier of cotton pulp, China, increased its supplies after U.S. and European (EU) sanctions. However, according to Liu Pengyu, spokesperson for the Chinese Embassy in Washington, "Sino-Russian economic and trade cooperation is not directed against any third party and should not be violated or coerced by any third party... China does not sell weapons to parties involved in the Ukraine crisis and handles exports of dual-use goods in a reasonable manner in accordance with laws and regulations." According to Russian customs data provided by trade database, Import Genius, Turkish company Noy İç Ve Diş Ti̇caret accounted for nearly half of Russia's nitrocellulose imports since the Russia-Ukraine conflict began, with most of the Istanbul-based company's sales to Russian companies that are government contractors based in Moscow. The Turkish Embassy, as well as representatives of the company, declined to comment. Nitrocellulose supplies to Russia have also been found to contain chemical tracers from the U.S. company, International Flavors & Fragrances, which suspended its direct shipments to Russia in April 2022 but continued them through third countries. The company said its product didn't contain enough nitrogen to be a component of an explosive. However, Michelle Pantoja, a professor of mechanical engineering at Texas Tech University who heads the combustion laboratory's research center, said the nitrogen content of civilian nitrocellulose could be increased to the required level. In December, the U.S. Department of Commerce added nitrocellulose to its list of high-priority controlled commodities, which restricts its exports, and the Treasury Department said it would impose sanctions on banks or other institutions found to be financing such international trades. To be effective, however, sanctions must also apply to nitrocellulose supplier companies, said a Rand analyst. Last year, the Organized Crime and Corruption Reporting Project (OCCRP) claimed to have documents in its possession which showed that more than 98% of nitrocellulose imported into Russia is supplied by Kazakhstan and Uzbekistan, and that imports have increased since Russia's full-scale invasion of Ukraine. The Import Genius database revealed that in 2022 and early 2023, Fergana Chemical Plant, one of the largest cotton pulp producers in Uzbekistan, not only supplied raw materials to Russian importing companies, but also made direct shipments to two Russian gunpowder plants - one in Kazan, the other in Perm - worth more than $2.2 million. In total, according to a joint investigation by Important Stories, OCCRP and Vlast.kz, the plant supplied 2,700...

Kyrgyz National Bank, Other Agencies Can Resume Sanctions-Related Inspections

Earlier this year, Kyrgyz President Sadyr Japarov signed a decree prohibiting state supervisory agencies from inspecting businesses until the end of 2024. Only evidence that a private company has violated the law could trigger an inspection. That presidential decree banning business inspections was amended recently to ensure economic stability in Kyrgyzstan, and now the tax and customs authorities, as well as the National Bank of the Kyrgyz Republic, can again carry out inspections. The financial regulator can now assess the activities of commercial banks and other financial institutions, as it was before the presidential decree. In a live broadcast on Kyrgyz state radio, Musa Kataganov, head of the Business Environment Policy Department of the Kyrgyz Ministry of Economy, said that "as you know, numerous sanctions are being imposed against Russia. Our commercial banks are under strict surveillance by the West to ensure that goods do not move from or to Russia." According to Kataganov, the National Bank of Kyrgyzstan (NBKR) is obliged to monitor the activities of commercial banks - despite the presidential moratorium - to prevent the entire Kyrgyz banking system from falling under Western sanctions. After the U.S. Treasury Department threatened to impose sanctions for servicing the Russian payment system MIR in September 2022, just under half of Kyrgyzstan's banks stopped working with the system. U.S. sanctions could affect the servicing of correspondent accounts of Kyrgyz financial institutions abroad, as foreign counter-party banks would likely follow Treasury Department guidelines and cut off access to Kyrgyz banks. Each bank in Kyrgyzstan in this case made the decision on its own, without any pressure from the authorities. Asked by Times of Central Asia, the NBKR's press service said that its removal from the list of government agencies on which the inspection moratorium was imposed was primarily due to the need to ensure the safe and reliable operation of Kyrgyzstan's payments and banking systems in order to promote long-term economic growth in Kyrgyzstan. "As part of supervision over the activities of commercial banks, the National Bank carries out both remote supervision and on-site inspection of all types of risks inherent in the activities of commercial banks, including compliance with the requirements of the legislation of the Kyrgyz Republic in terms of combating the financing of terrorist activities and legalization (laundering) of criminal proceeds - as well as compliance with international sanctions," the press service of the NBKR stated.

Import of Chinese Cars to Kyrgyzstan Surges, with Russia as Final Destination

A total of 57,000 cars were imported into Kyrgyzstan from China from January-November 2023, according to China’s customs statistics, more than a 49-fold increase compared to the 1,200 vehicles imported from January-November 2022. In monetary terms, imports increased 62-fold, and the average car price increased by over 25% - up to $29,700. In November, the official website of the State Council of the People's Republic of China reported that exports of cars through the land port in the Kizilsu Kyrgyz Autonomous Prefecture in western Xinjiang (bordering Kyrgyzstan) has surged about fourfold this year to reach 35,000. According to the port management committee, nearly 80% of those cars were new energy vehicles. Chinese vehicles are mainly exported to Russia via Central Asian countries, Chinese officials say. Since the introduction of Western sanctions against Russia over its invasion of Ukraine, China has become the main supplier of new cars to the Russian Federation, accounting for about 80% of all imports.

Central Asia and Turkey’s repentance: too early for Turkish delight

LONDON (TCA) — Recep Erdoğan’s “mea culpa” and his attempts to get Turkey back on the political scene have been met with mild tolerance – but with less enthusiasm than he might have hoped for. The maneuver could restore “business as usual” between the former USSR and Turkey, but the latter is now under close watch by virtually everybody and “rebuilding mutual trust” is no matter of words but of deeds, the ball remaining in Turkey’s camp. Continue reading