UK slaps sanctions on Central Asian payment firms over Russia ties
The UK has sanctioned three companies in Kyrgyzstan, including a payment firm linked to the country’s Finance Ministry, over business transactions it said support or benefit the Russian government.
The Foreign, Commonwealth and Development Office (FCDO) has updated the UK Sanctions List on 8 October, adding Bishkek-based Processing KG, TokenSpot and Tsunami Payments. The sanctions included imposing asset freezes and barring UK financial institutions from processing payments to, from or through them. Processing KG director Ulan Bukabaev was also sanctioned.
The official notice lists Kyrgyzstan’s Finance Ministry as Processing KG’s parent. Britain said it had reasonable grounds to suspect the company was conducting business of economic significance to Russia’s government.
For TokenSpot and Tsunami Payments, it cited their activities in Russia’s financial services sector. The notice does not identify specific transactions underpinning those decisions.
Read more: EU adds five Central Asian banks to sanctions list
Payment routes and online access
Processing KG describes itself as a licensed non-bank payment institution established by the Kyrgyz Finance Ministry. Its website says it handles international corporate payments and transactions for VexPay, a platform using government-backed promissory notes for trade. It identifies Bukabaev as its board chairman.
Read more: How sanctions on Russia’s money transfers affect Uzbekistan
Alongside financial restrictions, the sanctions require internet providers, social media services and app stores to take reasonable steps to prevent UK users accessing content or services supplied by the three companies.
Bukabaev faces a travel ban as well as an asset freeze. The measures target the named businesses and individuals, rather than Kyrgyzstan’s banking system as a whole.
The announcement comes after Kyrgyz authorities sought to reduce their exposure to sanctions.
Read more: EU considers restrictions on Kyrgyzstan over Russian trade
On 7 October, state news agency Kabar reported that the Economy Ministry had requested compulsory liquidation proceedings against approximately 35 companies identified as posing elevated sanctions and compliance risks. That report did not name the companies.
