The move is expected to damage the country's reputation in the West and jeopardise an already fragile economic recovery.

Lenders reported a fall in total net profit of 1.5 percent year-on-year of 366.3 million manats ($215.5 million) in the period from January to June 2021, but an increase from the 273.2 million manats reported a month earlier.

The bank’s assets amounted to 5.7 billion manats, 9.3 percent up from January-June 2020. Liabilities rose by 12.1 percent, amounting to 5.2 billion manats.