European Union sanctions representative David O’Sullivan visited Bishkek for talks with Kyrgyzstan’s leadership regarding the use of the country as a transit hub for circumventing Western sanctions against the Russian Federation. The main focus was on issues related to the increase in financial flows and trade that could facilitate the supply of prohibited goods to Russia.
This is reported by Finway
Strategic goods at risk of re-export
During official meetings with the heads of the central bank and economic ministries of Kyrgyzstan, O’Sullivan reported on the EU’s mission to identify potential schemes for re-exporting goods from Europe to Russia. Special attention was given to about 80 items, primarily dual-use goods, that could end up in the Russian Federation via Kyrgyz territory. Approximately 50 of these goods are used in military technology, while the rest are critical for industry. At the same time, the EU emphasizes that the list pertains to a narrow segment of products that “do not constitute an economic interest for Kyrgyzstan.”
“We have no intention of interfering in your perfectly legitimate trade and economic relations with Russia, not at all. We respect the closeness of your relations with Russia; we know that you have many labor migrants in Russia, whose remittances back to Kyrgyzstan are vital for the survival of many families.”
Strengthening control over financial flows and cryptocurrencies
The European Union does not require Kyrgyzstan to join the sanctions regime but emphasizes the unacceptability of using the country to circumvent restrictions. O’Sullivan noted that some goods arriving in Kyrgyzstan from the EU are later re-exported to Russia, and such practices are considered unacceptable.
He specifically highlighted the risks in the financial sector, noting attempts to use Kyrgyz banks and cryptocurrency platforms to circumvent Western sanctions. These concerns have led to the inclusion of several banks and financial entities related to cryptocurrency in the preliminary package of EU sanctions.
The EU reserves the right to take action against any companies that facilitate evasion of sanctions, regardless of their country of registration. It is noted that such actions are aimed solely at companies, not at the state of Kyrgyzstan itself.
The European Union is currently discussing a new, 20th package of sanctions against Russia, which is expected to include additional restrictions on the export of high-risk goods — computer numerical control machines and radio equipment — to Kyrgyzstan. The reason is concerns that this product may be re-exported from Kyrgyzstan to Russia, effectively undermining the effectiveness of the imposed sanctions.
Preliminary estimates indicate that the volumes of exports of these goods from the EU to Kyrgyzstan increased by nearly 800% during the first ten months of 2025 compared to the period before the Russian invasion of Ukraine, while re-exports of these goods from Kyrgyzstan to Russia increased by approximately 1200%.