Kyrgyzstan’s stand: President Zhaparov addresses sanctions and economic resilience.
Interview Conducted by Mederbek Shermetaliev, Director of the Kyrgyz National News Agency “Kabar”
Q: Mr. President, recently the governments of the United Kingdom and the United States announced sanctions against certain banks in Kyrgyzstan. What is your response?
President: I would like to state clearly that there is not a single proven fact demonstrating that Kyrgyz banks have been involved in facilitating the circumvention of Western sanctions imposed against the Russian Federation. No such evidence has been presented to us. For this reason, we view these measures as an attempt to politicize economic relations.
Earlier this year, the United States imposed sanctions on Keremet Bank, alleging that it might be used to bypass sanctions. Now the United Kingdom has imposed restrictions on Capital Bank of Central Asia. Yet in both cases, no evidence has been provided.
Kyrgyzstan currently has 21 licensed banks. To avoid risks for the entire financial sector, the Government decided that ruble transactions would be conducted only through state-owned banks – first Keremet Bank and later Capital Bank of Central Asia. This ensured that all such operations remained under direct control of the Ministry of Finance, with all profits transferred transparently into the state treasury. These measures were taken primarily to serve the needs of nearly one million Kyrgyz citizens living and working in the Russian Federation, who send billions of rubles home every day.
Q: What impact will the sanctions have on Kyrgyzstan and on Russia?
President: In reality, these measures will not affect Russia, and they will not seriously affect our state-owned banks either. Capital Bank of Central Asia will continue its operations under the Ministry of Finance and will continue to transfer its profits into the state budget.
We have already seen how Russia adapted to sanctions by strengthening its industries and agriculture, replacing imports with domestic production, and even expanding exports. For example, despite restrictions, Russia’s Sberbank recorded net profit growth of 4.8% in 2024, reaching more than USD 13 billion.
At the same time, Western countries themselves continue trading with Russia. In 2024, EU member states conducted USD 141 billion worth of trade with Russia, including USD 36 billion of imports. The United Kingdom, which has sanctioned our bank, conducted USD 2.2 billion of trade with Russia that same year. This clearly shows that when it comes to their own needs, they continue cooperation. Our banks, however, are being penalized simply for servicing the remittances of Kyrgyz migrant workers.
Q: How do you assess the broader meaning of these measures?
President: We see Kyrgyzstan’s economy growing rapidly — GDP increased by 11.7% in 2024, one of the highest rates in the CIS. Perhaps it is precisely this progress that has led to unjustified pressure. Large states are often reluctant to see smaller economies develop too quickly and independently.
Therefore, I wish to appeal directly to Prime Minister Keir Starmer and President Donald Trump. Perhaps not all information has reached them. I call on our partners: do not politicize the economy. Kyrgyzstan pursues a balanced, multi-vector foreign policy and values cooperation with all. For example, our annual gold exports to the United Kingdom alone amount to around USD 1 billion.
If there are concerns, we urge our partners to present concrete, verifiable information. Our banks stand ready to provide full transparency and open reporting.
Q: What will be Kyrgyzstan’s course in light of this situation?
President: The Kyrgyz Republic will continue to uphold all its international obligations. We have done so in the past, we are doing so now, and we will continue to do so in the future. At the same time, I will not allow the legitimate interests of our citizens or our economic development to be undermined by politically motivated restrictions.
Our country will continue on its path of strengthening the economy through its own efforts, while remaining a responsible member of the international community and a reliable partner for all.
