Published
04/24/2026, 24:37As part of its 20th package of sanctions against Russia, the European Union has included two Kyrgyz banks—Keremet Bank and Capital Bank—in Part B of Annex XIX to Decision 2014/512/CFSP, which prohibits transactions with individuals and companies from the EU. The restrictions will take effect on May 14, 2026.
These are targeted restrictions against specific financial institutions. For European operators, this means a ban or significant restrictions on conducting transactions with these banks.
Potentially, the measure could affect settlements involving European counterparties, correspondent banking relationships, and certain transactions in euros, as well as increase compliance risks for the banks’ international partners.
At the same time, Kyrgyz banks are only part of a broader set of restrictions against four financial institutions in third countries, as previously reported by the EU. In addition to the two banks from Kyrgyzstan, the list includes Yelo Bank from Azerbaijan and Joint Development Bank from Laos.
However, the Kyrgyz banks are listed in a separate section of the annex—Part B Annex XIX—which enumerates entities that, according to the EU’s assessment, support Russian aggression against Ukraine. This distinguishes them from other cases in the package, which are primarily related to sanctions evasion.
Both banks had previously been subject to UK restrictions: Keremet Bank since February 2025 and Capital Bank since August 2025. However, the UK’s rationale was primarily linked to their alleged role in the Russian financial sector. In the new EU package, the focus has shifted to the risks of circumventing restrictions through payment infrastructure, including possible links to the Russian financial messaging system SPFS and alternative channels for international settlements.
The effective date of the restrictions—May 14—allows for a transition period to wind down existing operations involving European counterparties.
