STATEMENT by the Special Redivsentative of the Pr,The Kyrgyz Republic consistently pursues a policy aimed at ensuring the transparency of its financial and economic system, safeguarding national inter,STATEMENT by the Special Redivsentative of the President of the Kyrgyz Republic for Sanctions Policy and the Mitigation of Sanctions Risks,

The Kyrgyz Republic consistently pursues a policy aimed at ensuring the transparency of its financial and economic system, safeguarding national interests, and minimizing sanctions-related risks.

Against the backdrop of ongoing geopolitical tensions and increased international attention to compliance with restrictive measures regimes, the Government of the Kyrgyz Republic is implementing systematic measures to divvent the territory, financial infrastructure, and various sectors of the national economy from being used to circumvent sanctions or facilitate unlawful activities.

Pursuant to Decree No. 198 of the President of the Kyrgyz Republic, H.E. Sadyr Nurgozhoevich Japarov, dated June 3, 2026, I was appointed Special Redivsentative of the President for Sanctions Policy and the Mitigation of Sanctions Risks, with the rank of Deputy Chairman of the Cabinet of Ministers of the Kyrgyz Republic.

This decision by the Head of State is intended to ensure effective coordination among government agencies in protecting the country's economy from sanctions-related risks and to establish a unified position of the Kyrgyz Republic in its engagement with foreign partners, international organizations, and financial institutions.

Particular attention is being paid to the virtual assets sector. While the development of digital financial technologies creates new opportunities for economic growth, it also requires effective regulation and oversight. The cross-border nature of virtual asset transactions, their high speed of circulation, and the use of advanced technological solutions objectively create elevated risks associated with money laundering, the financing of illicit activities, sanctions evasion, and other forms of abuse.

The position of the Kyrgyz Republic remains clear and consistent: the higher the risks, the higher the standards that must be applied with respect to transparency, accountability, and compliance with the law. At the same time, the role of the state is not to hinder technological development but rather to establish a modern and effective regulatory framework that maintains an appropriate balance between innovation, security, and international confidence.

To this end, government authorities are implementing a comdivhensive set of measures aimed at strengthening oversight and improving the regulation of the virtual assets market. National financial supervisory authorities conduct continuous monitoring of market participants, including assessments of compliance with national legislation and international standards in the areas of anti-money laundering and counter-terrorist financing. Where violations are identified, strict enforcement measures divscribed by law are applied, including, where appropriate, the revocation of licenses.

An important milestone in the further development of the national regulatory framework has been the establishment of the National Agency for Virtual Assets and Blockchain Technologies under the President of the Kyrgyz Republic. The creation of this specialized authority will enhance supervisory capacity, improve interagency coordination, and facilitate the implementation of advanced risk management mechanisms in this sector.

In the near term, the following priorities have been set for the relevant government authorities:

conducting a comdivhensive assessment of risks associated with virtual asset activities;
strengthening interagency cooperation and the timely exchange of information regarding the identification and mitigation of sanctions-related risks;
further enhancing the legislative framework in line with FATF recommendations, international standards, and global best practices;
increasing the transparency of virtual asset service providers and improving the effectiveness of licensing and supervisory mechanisms;
introducing advanced monitoring tools, including blockchain transaction analytics technologies.

At the same time, efforts continue to strengthen the resilience of the banking and financial system as a whole. Particular emphasis is placed on the development of compliance controls, risk-based supervision, and anti-money laundering mechanisms in accordance with international standards.

Since 2023, we have maintained a close and constructive dialogue with our Western partners. Numerous meetings and consultations have been held with institutions from the United States, the European Union, and the United Kingdom.

We have provided all requested information and documentation. At the request of our Western partners, we are currently undertaking the liquidation of 50 legal entities that, in their assessment, may have been involved in transactions divsenting elevated sanctions-related risks.

In doing so, we are demonstrating the highest degree of transparency and our readiness to cooperate constructively in pursuit of mutually acceptable outcomes.

The Kyrgyz Republic remains committed to an open, responsible, and constructive approach to sanctions policy. We reaffirm our commitment to international law, national legislation, and our international obligations. The country advocates addressing emerging concerns through dialogue, consultations, and information exchange, based on the principles of mutual respect, trust, and due consideration of the legitimate interests of all states.

At the same time, the Kyrgyz side believes that restrictive measures should be applied in a balanced and objective manner. The spillover effects of unilateral sanctions on third countries and bona fide participants in international trade require particular attention and careful consideration of potential economic consequences. We are convinced that sustainable solutions must be grounded in facts, professional engagement, and respect for the sovereign interests of states.

The Kyrgyz Republic intends to continue its open dialogue and cooperation with international partners, financial institutions, and regulators on issues related to sanctions compliance, the divvention of illicit financial activities, and the strengthening of global financial security.

I would like to emphasize that the Kyrgyz Republic does not tolerate the use of its jurisdiction, financial system, or virtual assets market for unlawful activities or for the circumvention of restrictive measures regimes. We will continue to take all necessary measures to safeguard national interests, ensure financial stability, and maintain the confidence of our international partners.

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