On January 15, the US Treasury Department imposed sanctions on Keremet Bank, a Kyrgyz financial institution formerly known as AsiaUniversalBank and later Rosinbank. The bank, over 97% state-owned, has recently been involved in a sanctions evasion scheme with Russian officials and Russia-based Promsvyazbank (PSB). PSB, was nationalized by the Russian government in 2018, is now a key financial player in Russia’s defense sector, facilitating large-scale defense contracts.
Keremet Bank is accused of facilitating cross-border transactions on behalf of PSB, helping the bank evade US sanctions. Ilan Mironovich Shor, a Moldovan-Russian oligarch also under US sanctions, is reported to have participated in discussions about the role of Keremet Bank in these activities.
In 2024, the Kyrgyz Ministry of Finance sold a controlling stake in Keremet Bank to a company with close ties to a Russian oligarch and the Russian government. This acquisition was reportedly aimed at transforming Keremet Bank into a hub for evading sanctions, enabling Russia to process cross-border payments for imports and exports.
The US sanctions designate Keremet Bank under Executive Order 14024, as amended by Executive Order 14114, for conducting or facilitating significant transactions related to Russia’s defense industrial base. This includes the sale, delivery, or transfer of commodities to Russia that may be deemed critical to its defense sector.
In addition, the US sanctions list now includes the Zaporizhzhya Nuclear Power Plant, controlled by Russia, the Patriot Exhibition Center near Moscow, and 16 individuals and dozens of companies from countries including China, the UAE, Turkey, and Germany.
The Treasury Department also highlighted that Russia and China are developing joint settlement platforms to facilitate cross-border payments for goods subject to sanctions.
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