The EU has imposed restrictions on Kyrgyzstan for the first time as part of its sanctions against Russia

As part of its 20th package of sanctions against Russia, the European Union has, for the first time, introduced measures that directly affect Kyrgyzstan. The restrictions apply to the supply of certain types of equipment to the republic, which the EU assesses as posing a high risk of being re-exported to Russia in circumvention of existing sanctions regimes. The Council of the EU announced the adoption of the new package on the evening of April 23—the statement was published at 8:45 p.m. Bishkek time.

The measures involve a ban on the export of computer numerical control (CNC) machine tools and radio equipment to Kyrgyzstan. Brussels explained that the decision was made following an analysis of trade data, which showed an increase in the re-export of priority goods through Kyrgyzstan to Russia. It is specifically regarding these two categories of goods that the EU has, for the first time, activated the mechanism against sanctions circumvention.

This is the first time Brussels has applied the mechanism against sanctions circumvention regarding shipments to Kyrgyzstan.

At the same time, the European Union expanded the general list of export restrictions to include goods that, in its assessment, could contribute to the technological strengthening of the Russian economy and defense sector. It includes laboratory glassware, certain high-performance lubricants and additives, energy materials, chemical products, rubber and vulcanized rubber products, steel products, metalworking tools, and industrial tractors.

The value of this new set of export restrictions exceeds €360 million, according to EU Council documents.

In addition to trade restrictions, the package includes measures targeting the financial sector. The sanctions list also includes a Kyrgyz entity linked to a cryptocurrency exchange where, according to the EU, transactions involving the A7A5 stablecoin took place. Brussels explains this move as part of the fight against sanctions evasion via crypto assets.

Earlier, “Akchabar” reported on the likelihood of such a scenario. Even before the EU’s official decision, economist Iskender Sharsheev warned that the possible application of the Article 12f mechanism against Kyrgyzstan could affect not only re-exports but also domestic production chains.