ALMATY, Feb 2 (Reuters) – Kyrgyzstan’s government said on Monday that it is seeking talks with the European Union, after Bloomberg reported last week that the bloc is planning the first-ever use of its anti-sanctions circumvention tool against the Central Asian country.
Deputy Prime Minister Daniyar Amangeldiev told U.S. broadcaster RFE/RL’s Kyrgyz outlet that he would speak in the coming days to EU sanctions chief David O’Sullivan, after the report that Brussels may punish Kyrgyzstan for what it says is the country’s role in facilitating the evasion of sanctions against Russia.
Kyrgyzstan, a mountainous country of 7 million that is closely allied and in a customs union with Russia, has become a principal clearinghouse for exports to Russia redirected by Western sanctions over the war in Ukraine.
A string of Kyrgyz banks and cryptocurrency firms have come under U.S., EU and UK sanctions in recent months for facilitating sanctions evasion.
Bloomberg reported last week that the EU is considering upping the pressure on Kyrgyzstan by using the mechanism to ban the export of certain kinds of goods to Kyrgyzstan, including machine tools and some radio equipment.
This “last resort” measure allows the EU to restrict the sale, supply, transfer, or export of sensitive goods and technology to specific third countries.
Kyrgyzstan has enjoyed rapid economic growth, the fastest in Central Asia, partly driven by surging wartime trade with Russia, which maintains military bases in Kyrgyzstan.
(Reporting by Felix Light; Editing by Sharon Singleton)
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