Related news EBRD lowers economic growth forecast for Kyrgyzstan Since 2023, the republic has maintained a close and constructive dialogue with Western partners. Numerous meetings and consultations have been held with institutions from the United States, the European Union, and the United Kingdom.

«At the request of our Western partners, work is currently underway to liquidate 50 legal entities that, in their opinion, may have been involved in transactions with elevated sanctions-related risks,» Bakyt Sydykov noted.

He emphasized that Kyrgyzstan adheres to a policy of transparency in the financial and economic system and is taking measures to prevent the use of the country’s territory, financial infrastructure, and certain sectors of the economy to circumvent sanctions and engage in illegal activities.

Particular attention is being paid to the virtual assets sector. While the development of digital financial technologies creates new opportunities for economic growth, it also requires effective regulation and oversight. The cross-border nature of virtual asset transactions, their high speed of circulation, and the use of advanced technological solutions objectively create elevated risks associated with money laundering, the financing of illicit activities, sanctions evasion, and other forms of abuse.

An important milestone in the further development of the national regulatory framework has been the establishment of the National Agency for Virtual Assets and Blockchain Technologies under the President of the Kyrgyz Republic.

Government agencies are also strengthening monitoring of market participants, improving legislation in accordance with FATF recommendations, and introducing modern tools for analyzing blockchain transactions.

The minister noted that Kyrgyzstan intends to continue its open dialogue and cooperation with international partners, financial institutions, and regulators on issues related to sanctions compliance, the prevention of illicit financial activities, and the strengthening of global financial security.

Bakyt Sydykov emphasized that the republic advocates for an objective and balanced approach to sanctions policy and believes that the consequences of restrictive measures should not be unjustifiably extended to third countries and bona fide participants in international trade.

Due to suspicions of circumventing restrictions against Russia, companies from third countries have begun to fall under international sanctions. For example, as part of the 20th sanctions package, the European Union imposed restrictions on the Bishkek-registered cryptocurrency platform TengriCoin, Keremet Bank, and Capital Bank. Furthermore, the import of CNC machine tools and complex communications equipment to the republic has been completely banned.

Between 2024 and 2025, several Kyrgyz commercial entities were already subject to various restrictive measures by the US, UK, EU, and Canada. These include Capital Bank of Central Asia, Tolubay and Eurasian Savings Bank, the A7 payment platform, and the Grinex and Meer cryptocurrency exchanges. International partners imposed the first sanctions against private companies in the country in June 2024.

Kyrgyz authorities have repeatedly stated that sanctions against domestic banks are completely unfounded. President Sadyr Japarov, speaking at the UN, criticized the West for economic restrictions against the country. The head of state called such measures direct interference in the country’s internal affairs and pressure that seriously hinders the development of the still-emerging national economy.