A Kyrgyz bank is suing a Belgian NGO for defamation over accusations that it helped Russia evade sanctions, a case with significant geopolitical and legal implications.

A high-stakes legal battle is brewing in Brussels, where the Belgian courts are set to hear an unusual defamation case with profound geopolitical implications. The Open Dialogue Foundation (ODF), a Brussels-based NGO known for its vocal activism, has accused one of Kyrgyzstan’s largest financial institutions, Bakay Bank, of assisting Russia in circumventing European sanctions imposed in response to the war in Ukraine. In retaliation, the bank has enlisted a major international law firm to take legal action against the NGO, seeking damages that could amount to several million dollars.

The Open Dialogue Foundation (ODF) has built a reputation for championing democracy and human rights. However, its work has long been accompanied by controversy. While the NGO presents itself as a defender of political freedoms, its associations with individuals such as Mukhtar Ablyazov—a Kazakh oligarch convicted in multiple jurisdictions, including the United Kingdom, for embezzling billions of dollars—have fueled skepticism. Additionally, its advocacy for cryptocurrencies, often cited as tools for illicit financial transactions, has raised further concerns.

ODF has also been accused of employing dubious methods to promote its agenda. These tactics, which some observers consider aggressive and ethically questionable, have drawn criticism from various political and financial actors. Now, by targeting a financial powerhouse in Central Asia, ODF appears to have waded into deeper waters—potentially crossing the line in its latest allegations.

In two articles published on its website in May and July 2023, ODF accused Bakay Bank, a major financial institution based in Bishkek, of helping Russia bypass international sanctions. According to the NGO, the bank facilitated the import of sanctioned technological goods that were then re-exported to Moscow, ultimately assisting the Kremlin in its war in Ukraine.

Beyond these accusations, the Open Dialogue Foundation actively lobbied European institutions, calling on the European Parliament and the European Commission to impose immediate sanctions against the bank. The organization also sought penalties against other financial entities and individuals allegedly involved in similar activities.

Yet, these claims are far from undisputed.

While economic ties between Russia and Kyrgyzstan remain close—as with many former Soviet republics—Bakay Bank has repeatedly positioned itself as a supporter of Western financial regulations. The bank was one of the first institutions in the region to denounce Russia’s actions in Ukraine publicly.

According to Sergei Ibragimov, Bakay Bank’s former president, the institution proactively cut ties with Russia’s MIR payment system—Russia’s equivalent of the global SWIFT network—well before the United States imposed sanctions on it. He argues that this move proves that Bakay Bank is not aligned with Moscow’s economic maneuvers.

Despite this, ODF’s allegations gained traction, damaging Bakay Bank’s credibility on the international stage.

In late September 2024, Bakay Bank formally contacted ODF’s president, Lyudmyla Kozlovska, demanding that she retract the allegations. According to sources close to the case, the bank suffered “significant damage to its reputation,” resulting in substantial financial losses, reportedly amounting to millions of dollars.

The impact extended beyond public perception. The bank lost key financial partnerships in multiple countries, including Italy and South Korea. Given these repercussions, Bakay Bank sought to clear its name by commissioning an independent audit by KPMG, one of the world’s leading financial auditing firms.

The audit results refuted ODF’s claims, confirming that Bakay Bank was fully compliant with European Union and United States financial regulations. However, the Open Dialogue Foundation ignored the audit’s findings, declining to issue a correction or retract its statements.

With reputational damage continuing to mount, Bakay Bank opted for legal action.

The Kyrgyz bank enlisted the Belgian office of Fieldfisher LLP, a prestigious international law firm headquartered in London, to fight back. The firm employs approximately 1,200 lawyers worldwide and has a strong record in handling high-profile defamation cases.

Fieldfisher assigned two experienced attorneys, Hakim Haouideg and Maxime Berlingin, to represent Bakay Bank in the Belgian courts.

The lawsuit against ODF is more than just a routine defamation case. It raises broader questions about the role of activist organizations in shaping global narratives and the potential consequences when allegations are made without sufficient evidence.

While NGOs play a critical role in holding institutions accountable, this case underscores the risks of overreach—particularly when accusations target financial entities operating in politically sensitive regions. The case also highlights the challenges facing banks that operate in former Soviet republics, where economic interdependence with Russia is difficult to avoid.

The outcome of this legal battle could have far-reaching consequences for ODF. If the Belgian courts rule in favor of Bakay Bank, the NGO may face financial penalties and a significant blow to its credibility. On the other hand, if ODF successfully defends its claims, it could embolden activist organizations to take even stronger stances against financial institutions accused of enabling Russia’s war efforts.

Regardless of the ruling, this case promises to be a landmark moment in the ongoing intersection of finance, activism, and international law.

As the proceedings unfold, the Belgian judiciary will have to navigate the legal intricacies of defamation and the broader geopolitical forces at play.