Kyrgyzstan is shutting down 50 companies due to trade with Russia and the risk of EU sanctions

In Kyrgyzstan, 50 companies suspected of helping Russia circumvent Western sanctions imposed over the war against Ukraine will have their operations suspended. This decision was made due to the risk of potential sanctions from the European Union.

RFE/RL reports this, citing the Kyrgyz Ministry of Justice.

“The U.S. and the U.K. have brought charges against 51 companies. Once they notify us of the risks, we review them and respond. We conducted an investigation and suspended the registration of 50 companies,” Kyrgyz Deputy Prime Minister Daniyar Amangeldiev told the state news agency “Kabar.”

The names of the 50 companies in question have not been disclosed.

Kyrgyz media report that they are engaged in wholesale trade, transportation, and logistics support services.

Earlier, Amangeldiev stated that if a business entity linked to sanctions or suspected of such ties is identified, “we will revoke its legal registration.” “After the legal registration is revoked, it automatically loses its registration with banks, cannot open accounts, and cannot conduct business activities. We have adopted this radical decision,” he said.

Kyrgyzstan has long been considered one of Russia’s main channels for evading sanctions. Since sanctions were imposed on Russia in 2022, there has been a significant increase in exports of certain goods to Kyrgyzstan, which are subsequently re-exported to Russia.

The new tough measures are linked to the EU’s 20th sanctions package, in which Kyrgyzstan is identified as a country of concern regarding sanctions evasion. EU data cited in the decision point to sharp anomalies in trade, specifically a more than 800% increase in Kyrgyzstan’s imports of specialized electronics from the EU between 2022 and 2025.

At the same time, European officials noted that there was no corresponding increase in domestic production in Kyrgyzstan, which reinforces concerns that the country has become a transit corridor for supplies to the Russian defense industry.

The EU’s package of measures included a ban on the export to Kyrgyzstan of two types of goods: radio equipment and CNC machine tools used for cutting, drilling, and machining materials. Both types of goods can be used in the production of drones and have been re-exported from Kyrgyzstan to Russia in very large volumes in recent years.