United Kingdom Joins Force with U.S., Going After Kyrgyz Financial Connections Tied to Russia
In a joint effort to curb sanctions circumvention and maintain pressure on Russian President Vladimir Putin, the UK and US have announced new sanctions against several entities and individuals.
The UK sanctions, announced on an unspecified date, target eight companies and individuals, including the Kyrgyz-based Capital Bank and its director, Kantemir Chalbayev. The US, meanwhile, has renewed sanctions against Garantex, a Russian crypto exchange, and introduced further sanctions against some of Garantex's partner companies in Kyrgyzstan.
These sanctions come days after the US renewed sanctions against Garantex, a move that followed reports of the exchange processing over $60 billion after its initial blacklisting in 2022. The US Senate Banking and Foreign Relations Committees have also alleged that the Trump administration is failing to effectively use sanctions and export controls to end Russia's invasion of Ukraine.
The UK Sanctions Minister, Stephen Doughty, stated that the Kremlin's attempts to evade sanctions through dodgy crypto networks are mistaken. The UK's sanctions are aimed at maintaining pressure on Putin, mirroring the US's efforts to limit Russia's access to Western markets.
Russia, however, is believed to be funneling money through third countries to maintain access to these markets. Earlier this month, Radio Free Liberty reported that Russia is recruiting Kyrgyz children as young as 14 to produce combat drones used in Russian strikes on Ukraine. The drone manufacturing plants in Alabuga had been the targets of Ukrainian forces in the past, including once in April 2025.
On July 2, Russia and Kyrgyzstan reaffirmed their commitment to deepening bilateral cooperation at a meeting between Putin and Kyrgyz President Sadyr Japarov. This cooperation includes a deal from July 2023, when the Kyrgyz government agreed on a cooperation with Russia regarding the production of combat drones after they were attacked by Ukrainian forces.
It is important to note that no new companies or individuals have been targeted with sanctions in this latest round, and no information about Capital Bank or its director, Kantemir Chalbayev, has been mentioned in relation to the production of combat drones.
Despite these sanctions, US exports to countries including Turkey, Kazakhstan, and the UAE have increased dramatically after sanctions were implemented, which could be a potential sign of Russian sanctions-busting. This underscores the ongoing challenge of enforcing these sanctions and the need for continued vigilance and cooperation between the US, UK, and their allies.
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