BISHKEK, Jan 16 (Reuters) - Keremet Bank, a Kyrgyzstani lender, announced its intention to contest a decision by the U.S. Treasury to impose sanctions on the bank. The sanctions were imposed on the grounds of allegedly establishing a platform for trade payments and assisting Russia in circumventing restrictions.
In a statement, Keremet Bank expressed its plan to appeal to OFAC (U.S. Office of Foreign Assets Control): "Keremet Bank continues its regular operations, upholding its commitments to clients and partners with a steadfast dedication to transparency, reliability, and accountability."
The U.S. Treasury accused Keremet Bank, a mid-sized financial institution based in Kyrgyzstan, of collaborating with Russian officials and sanctioned the Russian defense sector lender Promsvyazbank. According to the U.S. Treasury, in 2024, the Kyrgyzstani Ministry of Finance sold a controlling stake in Keremet Bank to a company closely associated with a Russian oligarch with ties to the Russian government. This sale aimed to establish a hub for Russia to evade sanctions related to import and export financial transactions.
Meanwhile, Kyrgyzstan's central bank stated that it is actively working to mitigate the adverse effects of the sanctions on the country's banking sector.