For the first time, the United States imposed sanctions on Kyrgyz Republic-based bank that helped Russia circumvent sanctions.
On January 15, 2025, the United States imposed sanctions on Russian and Chinese entities that are involved in schemes to circumvent sanctions.
The sanctions list also includes 16 individuals, mostly Russian citizens.
Separately, the U.S. Treasury Department noted that with the support of Russian officials and their counterparts from China, Russia and China are working to create structures that will act as counterparties to ensure cross-border payments for sanctioned goods. Dozens of companies, including Herbarium Office Management LLC, Sigma Partners LLC, Aktsionernoe Obshchestvo Tranzaktsii I Raschety, JSC Arctur, were sanctioned due to suspicion of involvement in the scheme.
For the first time, a bank from the Kyrgyz Republic has been included in the sanctions list. The US Treasury Department said since the summer of 2024, officials of Kyrgyz Republic-based OJSC Keremet Bank have been coordinating with Russian officials and the Russian bank Promsvyazbank, which is on the US sanctions list, for schemes to evade sanctions.
According to the US Treasury’s statement, in 2024, the Kyrgyz Ministry of Finance sold a controlling stake in the bank to a company linked to a Russian oligarch with ties to the Russian government. Bank announced on January 16 that it would appeal the sanctions.
“The bank will apply to OFAC in order to appeal the statement of the Office of Foreign Assets Control of the United States Department of the Treasury (OFAC), which alleges alleged violations by our bank. JSC Keremet Bank continues to operate normally… These events will not affect the bank’s operations and the bank continues to fully fulfill its obligations to depositors,” stated Keremet Bank.
According to the bank’s information, on March 29, 2024, the Ministry of Finance of the Kyrgyz Republic acquired 97.45 % of shares of OJSC Keremet Bank from the National Bank. The bank does not disclose whether the block of shares has been sold to anyone else.
January 16, the bank was unable to answer SanctionsLists.org question about whether its cards will work abroad in the coming months.
Before the sanctions were imposed, Keremet Bank allowed non-residents of the country to issue bank cards of international payment systems.
