MBank, the fourth-largest bank in Kyrgyzstan by assets has suspended all money transfers through Russian banks citing the growing impact of international sanctions against Russia. The decision was officially announced on the bank’s website and has significant implications for financial transactions between Kyrgyzstan and Russia.
“Money transfers through Russian banks, particularly Sberbank, Tinkoff and MTS, have been suspended in both directions. This service is temporarily unavailable for an indefinite period. Incoming transfers will be made through banks that are not subject to sanctions, using rouble details,” the bank said in a statement.
The move by MBank is part of a broader trend among Kyrgyzstan’s financial institutions. Several commercial banks in the country have halted money transfer systems from Russia this year as a direct response to the expanding sanctions imposed by Western nations. These sanctions have increasingly targeted Russian financial entities as part of the ongoing international effort to curb Russia’s ability to finance its military activities in Ukraine. The suspension of money transfers follows the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announcement on June 12 of a new round of sanctions.
These sanctions targeted additional Russian financial institutions that serve as intermediaries in dollar trading on the Russian foreign exchange market. The Moscow Stock Exchange, for instance, was forced to suspend trading in currency pairs involving the U.S. dollar and the euro on June 13, following its inclusion on the sanctions list. The sanctions have also affected Russia’s broader economic activities, with entities like Rosatom, a Russian nuclear energy corporation, continuing to generate revenue through foreign subsidiaries, indirectly supporting Russia’s treasury and military efforts.
Western countries, led by the United States, have imposed extensive economic restrictions on Moscow since the beginning of its full-scale invasion of Ukraine. These restrictions aim to limit Russia’s state revenue and prevent it from acquiring critical technologies necessary for its war effort. In response, Russia has sought to circumvent these sanctions by engaging with third-party entities in countries like China, Central Asia, Turkey, and the United Arab Emirates.
Earlier Daryo reported that several Kyrgyz banks including RSK-Bank, Kompanion Bank and Mbank had temporarily halted money transfer services involving Russia, particularly those using ruble-based systems like Unistream and Sberbank-Online. This move is part of a broader trend of financial caution in Kyrgyzstan, where many banks have already stopped servicing Russian Mir payment cards due to the risk of U.S. sanctions.
