The National Bank has stated that the banking sector remains stable following the new EU sanctions

The National Bank of Kyrgyzstan has stated that the country’s banking sector remains stable following the imposition of European Union sanctions against yet another domestic commercial bank.

According to the regulator, banks are continuing to operate as normal and are providing services to customers without interruption. The National Bank emphasised that the sector has sufficient capital and liquidity reserves to withstand external risks.

“At present, the banking sector is stable, adequately capitalised and possesses sufficient liquidity and resilience to various external risks,” the statement said.

The regulator will continue to monitor the situation. If necessary, the National Bank intends to take the measures provided for by law to minimise the potential impact of sanctions on Kyrgyzstan’s financial system. However, the statement does not specify the particular actions that may be taken.

The National Bank’s statement followed the European Union’s approval on 23 July of the 21st package of sanctions against Russia. OJSC “EcoIslamicBank” was included in this package for the first time.

According to the European sanctions register, the restrictions relate to the bank’s use of the Russian Financial Messaging System – an alternative to the international SWIFT system. The EU authorities believe that financial institutions from third countries may have been involved in operations aimed at circumventing previously imposed sanctions.

The new measures have also affected three further banks from third countries and 14 cryptocurrency platforms registered in Kyrgyzstan, Georgia, Panama, the UAE, the Marshall Islands and Belarus. The restrictions prohibit transactions with European counterparties.

In addition, certain companies from third countries, including Kyrgyzstan, have been subject to enhanced export controls. The EU links their activities to the supply of dual-use goods and technologies to Russia, including microelectronics, numerically controlled machine tools and equipment for the production of semiconductors.

In total, the new package covers 218 individuals and legal entities, and also contains additional restrictions targeting Russia’s financial, energy, transport and defence-industrial sectors.

EcoIslamicBank is not the first financial institution in Kyrgyzstan to be subject to international sanctions.

Since 14 May 2026, EU restrictions have been in force against ‘Keremet Bank’ and ‘Capital Bank’. These primarily affect settlements with European counterparties, access to correspondent accounts and the conduct of international transactions.

Previously, sanctions were also imposed on the Eurasian Savings Bank and Tolubay Bank. The EU authorities accused them of participating in transactions that could have facilitated the circumvention of restrictions against Russia. Keremet Bank, Capital Bank and the Eurasian Savings Bank were also subject to sanctions imposed by the UK or the US.