Keremet Bank Faces U.S. Sanctions: A Battle for Transparency

Kyrgyzstan's Keremet Bank challenges U.S. Treasury sanctions citing its role in aiding Russia to circumvent trade restrictions. Accused of coordinating with Russian banks and trading entities, it plans to appeal the decision, maintaining its operations amid transparency claims, while Kyrgyz financial authorities seek to mitigate sanctions' impact.

On Thursday, Keremet Bank, a financial institution in Kyrgyzstan, announced its intention to contest sanctions imposed by the U.S. Treasury. These sanctions allege that the bank has been serving as a conduit for trade payments to support Russia in evading international restrictions.

The U.S. further accused Keremet Bank of collaborating with sanctioned Russian entities, including Promsvyazbank, a defense sector lender. In a statement, the bank asserted its commitment to transparency, reliability, and responsibility, while maintaining normal operational activities.

U.S. officials highlighted the Kyrgyzstani Ministry of Finance's 2024 sale of Keremet Bank's controlling stake to a company linked to a Russian oligarch. This transaction, according to the Treasury, was aimed at establishing a hub for Russia to maneuver around sanctions, facilitating trade payments. Kyrgyzstan's central bank is working to alleviate potential adverse effects on the nation's banking system.

(With inputs from agencies.)