Tashkent, Uzbekistan (UzDaily.com) — On 15 January 2025, the U.S. Department of the Treasury expanded sanctions against the Russian financial sector by adding Kyrgyzstan’s Keremet Bank to the sanctions list.

According to the U.S. Treasury Department’s press release, since the summer of 2024, officials from Keremet Bank have been coordinating their actions with Russian officials and Public Joint Stock Company Promsvyazbank (PSB), which is already included in the U.S. sanctions list. This collaboration was aimed at implementing a sanction evasion scheme, under which Keremet Bank assisted with cross-border transfers on behalf of PSB.

PSB was added to the U.S. sanctions list on 22 February 2022, due to its activities in Russia’s defense sector. After being nationalized in 2018, the bank reoriented its operations to finance Russia’s defense industry and service major defense contracts.

In response to the imposed sanctions, Keremet Bank announced its intention to challenge the U.S. Treasury’s decision with the Office of Foreign Assets Control (OFAC), stating that it always acts in strict compliance with national legislation and international law, adhering to principles of transparency and accountability.

Additionally, the U.S. Treasury added several other entities to the sanctions list, including the Zaporizhzhia Nuclear Power Plant (ZNPP), which is under Russian control, the Patriot Exhibition Center in the Moscow region, as well as 16 individuals and dozens of companies from China, the UAE, Turkey, and Germany.

The press release also noted that Russia and China are working together to create joint settlement platforms, which will serve as counterparts in cross-border payments for sanctioned goods.