The business community has voiced concern over a recent decision by the Cabinet of Ministers, under which, for a six-month period, all major transactions in Russian rubles and related exchange operations will be conducted solely through one bank—Capital Bank of Central Asia. This directive was issued on March 17, 2025, and later confirmed by the National Bank, which set the enforcement dates: April 14 for cash operations and May 1 for non-cash transactions. The regulation applies to migrant remittances, payments for goods and services imported from Russia, including food, medicine, construction materials, and fuel.

In practice, a significant portion of foreign economic transactions is now concentrated in a single financial institution. This raises concerns about potential delays in payments, increased transaction fees, and rising costs for goods and services. As of the end of 2024, over 90% of all personal remittances to Kyrgyzstan originated from Russia. Any disruption in these flows could negatively impact household income and business operations.

Monopolizing such operations removes competition from the market. Without alternative options, banks have little incentive to improve service quality, streamline procedures, or lower fees. It also places a heavy load on the selected bank’s infrastructure, increasing the risk of operational disruptions, especially amid high demand for ruble transfers.

This level of centralization introduces systemic risks. Should there be technical failures, sanctions, or issues with correspondent accounts, the entire payment system could be compromised. This undermines the financial system’s resilience and exposes it to external shocks.

Additionally, experts note that such measures may violate antitrust laws by creating preferential conditions for a single market participant and restricting other banks—who are also licensed and technically equipped—from offering similar services.

The International Business Council urges authorities to reconsider this decision with the involvement of the business community. Maintaining a competitive environment and adhering to the law will ensure the country’s economic security, reduce risks, and strengthen trust in the banking system both domestically and internationally.