Kyrgyzstan’s head of state appealed to U.S. and U.K. leaders, urging them to avoid “politicizing economy” after London punished Kyrgyz banks and crypto firms allegedly used by Moscow to bypass war-related restrictions. Responding to sanctions imposed this week by the British government, and earlier by Washington, President Sadyr Zhaparov insisted the measures are not based on evidence and will not hurt Russia, with which the West is still trading. Kyrgyz president lashes out over Russia-linked sanctions In an interview published Thursday, Zhaparov criticized the U.K. and U.S. governments for sanctioning Kyrgyz financial institutions without providing evidence that these have been involved in circumventing Western restrictions against the Russian Federation. Among the entities targeted by London is Kyrgyzstan’s Capital Bank, suspected of being used by Moscow to purchase military supplies. In January, the United States sanctioned Keremet Bank, believed to be involved in sanctions evasion, too. This week, British authorities also hit “crypto networks” allegedly employed by the Kremlin to fund its war effort in Ukraine. Among them, Old Vector, a Kyrgyz-based company issuing the ruble-pegged stablecoin A7A5 , was sanctioned by the U.S. as well. Kyrgyzstan’s president complained his administration was not shown any evidence to support the allegations. Speaking to the official Kabar news agency, Sadyr Zhaparov said the U.S. was “unable to present a single fact of violation” in the case of Keremet. He further explained: “Today, 21 banks operate in Kyrgyzstan. To avoid the risk of any of them falling under sanctions, we decided that only the state-owned Keremet Bank would work with the Russian ruble.” “All operations are under state control, and the profit goes directly to the state budget,” the president said, also noting that the same applies to Capital Bank. He emphasized all this has been discussed with the American side. Zhaparov recalled that government officials met with the U.S. ambassador to Kyrgyzstan, Lesslie Viguerie, and representatives of the Office of Foreign Assets Control (OFAC). Bishkek proposed an independent audit to review the activities of its banks, but the offer was rejected. U.S. officials claimed they had certain information at their disposal, and the president of Kyrgyzstan is convinced it originates from local NGOs and opponents of the government, whom he accuses of sending “anonymous false reports.” The Kyrgyz leader also pointed out that about a million citizens of his country live and work in Russia. These people “send billions of rubles home every day” and the funds need to be converted to local fiat. Sadyr Zhaparov also suspects Kyrgyzstan’s expanding economy, with GDP growing at nearly 12%, may be the reason why the former Soviet republic is being targeted. “I believe this is precisely why pressure is being put on us,” he commented, suggesting great powers prefer to deal with dependent nations. Also quoted by Reuters, Zhaparov stated : “That is why I would appeal to the top leadership of these countries, to [U.S. President] Donald Trump and [U.K. Prime Minister] Keir Starmer … The economy must not be politicized.” Russia won’t be harmed by sanctions on Kyrgyzstan, president says Zhaparov, who assumed office in 2021 as Kyrgyzstan’s sixth president since independence, stressed that his nation is pursuing what he called “a multi-vector policy,” cooperating with many partners, including the United Kingdom, to which it sells $1 billion worth of gold a year. The Kyrgyz president is not expecting Russia to be harmed by the sanctions on Kyrgyzstan. Complaining about the unfair treatment of his country, he reiterated his call for evidence. “Frankly speaking, Capital Bank will not suffer either. It will continue to operate and bring profit to the state, just as before,” he added, providing Russia’s Sberbank as an example, which posted annual profits exceeding $13 billion in 2024. Sanctions, nevertheless, have consequences, Sadyr Zhaparov admitted, accusing the nations that impose them of continuing to do business with Russia. Last year alone, trade between EU member states and Moscow reached $141 billion, he noted, and even the U.K.’s exchange with Russia hit $2.2 billion. Want your project in front of crypto’s top minds? Feature it in our next industry report, where data meets impact.
