Central Asian banks no longer transfer money to Russia

RUSSIA / FSU POLITICS - In Brief 01 Aug 2023 by Alex Teddy
On July 20 the US Treasury introduced sanctions on Unistream (a Russian money transfer company). Unistream dealt with former Soviet countries in Central Asia and the Caucasus. The US sanctions seem to be working. On July 24 Kazpochta and Nurbank said that they will not process payments to Russia until further notice. Since 2022 there has been a huge increase in cash flows between Central Asia and Russia. Russians evaded banking sanctions by transferring money via Central Asia and the Caucasus. In Uzbekistan, People's Bank, Kapital Bank and Ipoteka Bank; in Kyrgyzstan, Kompanyon Bank, Fince Bank, RS Bank, Kapital Bank, Halyk Bank and Bank of Asia have also said they will no longer deal with Unistream. In Tajikistan two banks have ended dealings with Unistream. In Armenia two banks have ended cooperation with Unistream. However, Evokabank and Armeconombank said they will only allow RUB to be sent through Unistream. In Georgia major banks have ended dealing with Unistream. Contact and Zolotaya Korona are Russian money transfer companies that have become very important since 2022. Transfers from Russia to Georgia rose 400% in 2021. Transfers to Kazakhstan increased 579% in 2022 YoY. Transfers to Armenia rose 306%.

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