We take the issue of secondary sanctions very seriously – Central Bank chief

The Chairman of the Central Bank of Uzbekistan, Temur Ishmetov, commented on the potential impact of the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctions against Russia’s “Lukoil” and “Rosneft” companies on Uzbekistan. He made the remarks during a press conference on October 24 regarding the Central Bank’s key rate decision.

“Global developments inevitably have some degree of impact on Uzbekistan’s economy. Therefore, in all our forecasts, we always take into account the risks associated with such sanctions and how to act if they occur,” Ishmetov stated.

According to him, the recently announced sanctions may have a limited effect. However, oil product purchases are typically made under long-term contracts, and after any sanctions are imposed, governments usually hold negotiations to minimize their negative consequences.

“In practice, countries that are not directly involved in sanctions usually engage in negotiations to clarify that the purpose of such measures is not to harm other states or their citizens. These discussions aim to ensure that third countries are not negatively affected,” he explained.

Ishmetov emphasized that Uzbekistan takes the risk of falling under secondary sanctions very seriously.

“There are always concerns regarding the possibility of banks in neighboring countries being subjected to sanctions. We treat the issue of secondary sanctions with utmost seriousness. Over the past two to three years, sanction compliance within the banking system has significantly improved and continues to be strengthened. Our banks strictly avoid transactions with sanctioned goods or entities, and this is closely monitored. I believe that such a cautious approach has so far prevented our banks from facing any sanctions. We intend to maintain this strict policy,” he said.

It should be noted that earlier, the U.S. Department of the Treasury announced sanctions against Russia’s two major oil companies – “Rosneft” and “Lukoil.” According to the department’s statement, the move was in response to Russia’s “lack of genuine commitment” to peace efforts in Ukraine.

Meanwhile, banks from Kyrgyzstan and Tajikistan have been included in the European Union’s 19th package of sanctions against Russia.