Kyrgyz President Sadyr Japarov on August 21 urged U.S. President Donald Trump and UK Prime Minister Keir Starmer to reconsider recently imposed sanctions on Kyrgyz financial institutions, saying the measures unfairly politicize the economy.
Speaking to state news agency Kabar, Japarov dismissed Western allegations that Kyrgyz banks and crypto firms were helping Russia bypass sanctions.
“There is no need to politicize the economy,” he said. “I would appeal to the top leadership of these countries, to (U.S. President) Donald Trump and (British Prime Minister) Keir Starmer.”
The appeal came a day after Britain sanctioned a rouble-pegged stablecoin, A7A5, launched in Kyrgyzstan. According to London, the network moved $9.3bn in just four months. A Luxembourg-based company and four Kyrgyz entities, including Grinex and Old Vector, were blacklisted. Washington had sanctioned both firms last week for allegedly facilitating sanctions evasion and illicit crypto activity.
Banks under scrutiny
London also targeted Central Asian Capital Bank, while Washington sanctioned Keremet Bank earlier this year. Both are state-owned lenders tasked with handling ruble transactions and remittances from over 1mn Kyrgyz migrants working in Russia.
Japarov denied wrongdoing, insisting that Kyrgyzstan’s 21 commercial banks have no role in sanctions circumvention.
“To prevent any of them from falling under sanctions, we decided that only state-owned banks—Keremet and Capital Bank—would work with the Russian ruble. All operations are controlled by the state, and profits go directly to the state budget,” he said.
The president added that Bishkek had invited U.S. officials and international auditors to review bank operations but said Washington refused.
“They could not present a single concrete fact, only suspicions,” Japarov argued, claiming that some reports originated from local NGOs and “ill-wishers.”
Economic concerns
Japarov also pointed out what he described as a double standard, noting that the UK and EU continue trading with Russia despite sanctions.
“In 2024, EU member states traded $141bn with Russia, and the UK itself traded $2.2bn,” he said. “Our banks mainly handle remittances from our citizens working in Russia. This is our necessity, just like for others.”
The Kyrgyz leader stressed that his government remains committed to international obligations but warned against undermining national development.
“We are ready to comply with international rules. But I will not allow the interests of our citizens and the economic growth of the country to be reduced to nothing,” he said.
Kyrgyzstan’s GDP grew by 11.7% last year, among the highest in the Commonwealth of Independent States, Japarov noted, suggesting that the country’s rapid economic rise was also drawing external pressure.
“Even under sanctions pressure, our daily life will go on,” he concluded.
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