Banks across Kyrgyzstan are tightening restrictions on financial transactions involving Russian companies, citing fears of U.S. secondary sanctions, the RBC news website reported Monday.

According to trade consultants and legal experts, payment processing times have increased, commission fees have doubled and some transfers from Russian firms have been halted altogether.

Russia accounts for more than 90% of cross-border payments in Kyrgyzstan. In 2023 alone, Russian entities sent $2.8 billion to Kyrgyzstan and received $370 million in return.

Several major Kyrgyz banks, including Bakai Bank, Demir Bank, Optima Bank and Keremet Bank, curtailed or suspended transactions with Russian financial institutions throughout 2024, according to the Kyrgyz news site 24kg.

The country’s central bank defended the restrictions as necessary to comply with anti-money laundering laws and client verification procedures.