ALMATY, April 24 (Reuters) - The European Union's 20th sanctions package this week banned certain exports to Kyrgyzstan, saying that there was a risk that goods exported to the mountainous Central
EU Bans Kyrgyzstan Exports and Removes Sanctions on Tajik Banks in Central Asia
EU Sanctions and Their Impact on Central Asian Banking and Trade
EU Ban on Exports to Kyrgyzstan
ALMATY, April 24 (Reuters) - The European Union's 20th sanctions package this week banned certain exports to Kyrgyzstan, saying that there was a risk that goods exported to the mountainous Central Asian country may ultimately reach Russia.
Kyrgyzstan, a Russian-allied former Soviet republic with a population of around 7 million, has come under scrutiny for Russian sanctions evasion, drawing sanctions on Kyrgyz banks and cryptocurrency companies.
Details of the Export Ban
In a statement, the EU said: “For the first time ever, the EU is activating its anti-circumvention tool, by prohibiting the export of any computer numerical control machines or radios to Kyrgyzstan where there is a high risk that these products will be re-exported to Russia.”
The EU also said it was designating: “a Kyrgyz entity which operates a platform where significant amounts of the government-backed stablecoin A7A5 are traded.”
Kyrgyz Government Response and Economic Growth
There was no immediate comment from the Kyrgyz government, which had previously said sanctions against the country are politicised.
Kyrgyzstan has enjoyed the fastest economic growth in Central Asia in recent years, a boom some experts have attributed to trade flows rerouted via Kyrgyzstan by Ukraine war sanctions.
EU Lifts Sanctions on Tajik Banks
Separately, Tajikistan's central bank said on Friday that the European Union had lifted sanctions on three Tajik banks it had previously penalised for helping Russia evade sanctions.
Details on the Tajik Banks
The Central Asian country’s regulator named the three lenders as Spitamen Bank, Commerce Bank Tajikistan, and Dushanbe City Bank.
Tajikistan's Ties to Russia
Like neighbouring Kyrgyzstan, Tajikistan is a close ally of Moscow and hosts a significant Russian military presence, while many citizens of both countries migrate to Russia in search of work.
(Reporting by Felix Light; Editing by Raju Gopalakrishnan, Elaine Hardcastle)
