Kyrgyzstan Hit by EU Sanctions for Helping Russia Evade Them

As part of its 20th package of anti-Russian sanctions, the European Union has banned the export of computer numerical control (CNC) machine tools to Kyrgyzstan over concerns they could be re-exported to Russia. The EU has also prohibited transactions with four banks in Kyrgyzstan, Laos, and Azerbaijan for their alleged role in assisting Russia, RBC reported on April 24.

According to The Guardian (as cited by RBC), more than 20 members of parliament and peers have urged UK Foreign Secretary Yvette Cooper to take action against Kyrgyz authorities “helping Russia circumvent sanctions.”

They proposed imposing personal sanctions on three senior officials for allegedly facilitating sanctions evasion — in particular, for allowing infrastructure to be set up in the country to support the operation of the A7A5 stablecoin, which is pegged to the Russian ruble.

In late February, the European Union called on Kyrgyz authorities to tighten controls over exports of European goods to Russia, as the country has become a channel for supplying equipment banned under sanctions against Moscow, Reuters reported (via RBC).

“We have reason to believe that trade flows indicate these goods are being imported into Kyrgyzstan for the sole purpose of re-exporting them to Russia in violation of our sanctions,” said EU sanctions envoy David O’Sullivan at a press conference.

According to him, goods supplied via Kyrgyzstan may have potential military applications. He also noted the EU’s concern over a significant increase in exports of dual-use goods to Russia compared to the period before the start of the war.

Kremlin spokesperson Dmitry Peskov, speaking to Channel One, stated that economic cooperation between Russia and Kyrgyzstan benefits both sides. “We earn, and Kyrgyzstan earns — through joint investment projects,” Peskov added.

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