Kyrgyzstan to wind up 50 companies at the request of its Western partners

Kyrgyzstan is liquidating 50 legal entities which, according to Western partners, may have been involved in operations carrying heightened sanctions risks. This was announced by the President’s Special Representative on Sanctions Policy and the Minimisation of Sanctions Risks, Bakyt Sydykov, Minister of Economy and Trade of the Kyrgyz Republic.

According to him, since 2023 the republic has been in constant dialogue with representatives of the US, the European Union and the UK on issues of compliance with sanctions regimes. Kyrgyzstan provides foreign partners with the necessary materials and information, and also takes measures to prevent the use of its territory, financial system and certain sectors of the economy to circumvent international restrictions.

Sydykov recalled that by decree of President Sadyr Zhaparov dated 3 June 2026, he was appointed Special Representative for Sanctions Policy with the status of Deputy Chairman of the Cabinet of Ministers. According to him, the decision is aimed at coordinating the work of state bodies to protect the country’s economy from sanctions risks and developing a unified position when interacting with international partners.

The authorities are paying particular attention to the virtual assets market. The government notes that the development of digital financial technologies requires enhanced oversight due to the risks of money laundering, the financing of illegal activities and the circumvention of sanctions. In this regard, supervision of market participants is being stepped up in the country, and measures ranging up to the revocation of licences are envisaged should violations be detected.

One of the key steps in this work has been the establishment of the National Agency for Virtual Assets and Blockchain Technologies under the President of the Kyrgyz Republic. In the near future, the authorities intend to conduct a comprehensive risk assessment in the virtual assets sector, improve legislation in line with FATF recommendations, and introduce modern tools for monitoring blockchain transactions.

“The Kyrgyz Republic does not condone the use of its jurisdiction, financial system or virtual asset market for illegal activities or to circumvent restrictive regimes,” emphasised Sydykov. According to him, the country intends to continue cooperating with international financial institutions and regulators to strengthen financial stability and build trust among foreign partners.