Sanctions - The Times Of Central Asia

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Sanctions

U.S. Sanctions Former Uzbek Officials in Orphan Abuse Case

The United States has imposed sanctions on three former officials in Uzbekistan’s government who were involved in human trafficking as well as physical and sexual violence toward orphan children. The three people, who carried out the crimes during their tenure as government employees, are now ineligible for entry into the United States and any property or entities in the U.S. that they own are “blocked” in line with the sanctions, the U.S. Department of the Treasury said Monday. American citizens are also barred from doing any transactions related to the blocked assets, it said. The sanctioned individuals were identified as Yulduz Khudaiberganova, who was director of a state-run orphanage in Urgench, in Khorezm region, at the time of the abuses; Anvar Kuryazov, who was head of the Khorezm regional justice department; and Aybek Masharipov, who was head of the district emergency department. “For at least 10 months, Khudaiberganova forced at least three underage girls to engage in sexual acts with at least six different men in exchange for funds and goods,” said the Treasury statement, which was released on the International Day for the Abolition of Slavery. “Khudaiberganova used various coercive tactics to ensure the girls’ compliance, including physical beatings, threats, starvation, and isolation from their peers. Both Masharipov and Kuryazov demanded sexual access to orphans in compensation for ‘gifts’ they provided to the orphanage. Kuryazov and Masharipov repeatedly visited the orphanage in order to prey upon the young girls,” it said. Uzbek media have previously reported on the case, saying a district court in Khorezm sentenced Khudaiberganova to five and a half years in prison, while the two men were given one and a half years of partial house arrest that barred them from leaving their homes from 10 p.m. to 6 a.m. The sentences were handed down in 2022 but an appeals court took up the case in 2023 after Nemolchi.uz, a non-governmental group that campaigns against gender-based violence, publicized the light sentences, causing a public outcry. Kuryazov and Masharipov were subsequently sentenced to three years in prison. “This was the most severe punishment given the legislation in force at the time of the crime,” Nemolchi.uz said on Telegram after the U.S. sanctions announcement. The group has pushed for tougher laws in Uzbekistan to shield children from sexual abuse, and the government has taken steps to strengthen protections.

Migration

Russian MP Blames Central Asians for Ruble Depreciation

Mikhail Matveyev, a member of Russia’s State Duma, has attributed the depreciation of the Russian ruble in part to remittances by labor migrants from Central Asia and the Caucasus. In a statement on his Telegram channel, Matveyev argued that millions of migrants working in Russia transfer their earnings abroad, removing significant sums from the Russian economy. According to him, these remittances fuel demand for foreign currencies, such as the dollar, thereby weakening the ruble. Citing statistics, Matveyev claimed that in 2023, labor migrants sent $5.7 billion from Russia to Tajikistan - nearly half of Tajikistan’s GDP. Kyrgyzstan received remittances equal to about one-third of its GDP, while Uzbekistan received over $14.5 billion, accounting for 12-15% of its GDP. Other significant recipients included Georgia (over $2 billion), Armenia (over $3 billion), and Kazakhstan. Matveyev also criticized some of these countries for their stance on Western sanctions against Russia. He noted that several countries in the Eurasia region have joined sanctions targeting Russian banks and refuse to process transactions using the Russian Mir payment system. This, he said, forces migrants to withdraw cash dollars from Russia to transfer home, exacerbating the pressure on the ruble exchange rate. The MP’s remarks came amid a sharp drop in the ruble’s value against the dollar last week. For more than 30 years, millions of Central Asian citizens have migrated to Russia for work. However, recent trends indicate an increase in return migration, driven by Russia’s deteriorating economic conditions, stricter immigration rules, worsening attitudes toward Central Asian workers, and attempts by Russian authorities to recruit immigrants - both with and without Russian citizenship - for military service in Ukraine.

Economy

Kazakh Deputy PM Zhumangarin: Our Industries Come Before Sanctions

Kazakhstan has clarified its position on sanctions against Russia imposed as a result of Russia's invasion of Ukraine. Primarily, Kazakhstan will not support measures that could negatively impact its economy. Speaking to Russian state media outlet Tass, Deputy Prime Minister Serik Zhumangarin underscored that Kazakhstan will not act as a conduit for circumventing sanctions, as doing so could severely affect its domestic industries. However, he emphasized the nation's commitment to safeguarding its economic interests, particularly in sectors where products might fall under sanction restrictions. “We have explicitly stated that we will not impose restrictions on these goods, as behind them are large labor collectives and enterprises, often located in single-industry towns,” Zhumangarin explained. During Russian President Vladimir Putin's visit to Kazakhstan on November 27-28, he met with Kazakh President Kassym-Jomart Tokayev. The leaders issued a joint statement condemning unilateral sanctions, citing their detrimental effects on global trade, economic cooperation, and sustainable development. They reaffirmed their commitment to principles of open and non-discriminatory international trade. By maintaining a neutral stance on sanctions, Kazakhstan seeks to minimize economic risks while prioritizing the interests of its workforce and industries. As The Times of Central Asia previously reported, Kazakhstan’s Ambassador to Russia, Dauren Abayev, noted that Kazakh companies aim to avoid secondary sanctions but will continue fostering close cooperation with Russia. In an August interview with Bloomberg, Zhumangarin reiterated that Kazakhstan would not blindly adhere to sanctions against Russia but would consider international restrictions. He highlighted that while Kazakhstan aims to protect its companies from trade bans, it cannot completely disregard sanctions due to the risk of economic isolation. Furthermore, Kazakhstan's Minister of National Economy, Nurlan Baibazarov, addressed concerns in early November regarding including Kazakh companies on UK sanctions lists. He emphasized that these cases mostly involved transient firms, asserting that Kazakhstan continues to comply with international regulations.

Sanctions

Kazakhstan’s Ambassador: Kazakh Companies Do Not Want To Be Under Sanctions

Kazakh companies seek to avoid secondary sanctions, but the country will continue to cooperate closely with Russia. This was stated by Kazakhstan's Ambassador to Russia, Dauren Abayev, at a press conference in TASS news agency. According to him, about ten companies in the country have fallen under such sanctions, but these are isolated cases. “Kazakh companies, naturally, do not want to be under sanctions, as any restrictions have a negative impact on their activities,” Abayev emphasized. Nevertheless, he noted that strategic partnership and allied relations remain between Kazakhstan and Russia, and the growth of trade turnover confirms the continuation of cooperation. Earlier in August, Kazakhstan's Deputy Prime Minister Serik Zhumangarin said in an interview with Bloomberg that the republic would not blindly follow sanctions against Russia but would take into account international restrictions. He emphasized that Kazakhstan will not allow a ban on trade for its companies, but the country cannot completely ignore the sanctions because of the risk of economic isolation. Kazakhstan's Minister of National Economy Nurlan Baibazarov commented in early November on Kazakhstan companies being placed on the UK sanctions lists, saying that these violations are not systemic. He said the sanctions were mainly one-day firms, and the republic continues to comply with international restrictions.

Sanctions

U.S. Sanctions Uzbek Companies Supplying Russia with Equipment

The U.S. Department of the Treasury has sanctioned 275 individuals and entities involved in supplying Russia with advanced technology and equipment that it desperately needs to support its war machine. The Uzbek companies Uzstanex and The Elite Investment Group are among the sanctioned entities. Deputy Secretary of the Treasury Wally Adeyemo emphasized that the U.S. and its allies are committed to halting the flow of essential tools and technologies that enable Russia to pursue its unlawful war against Ukraine. “As demonstrated by today’s actions, we are unwavering in our resolve to weaken Russia’s military capabilities and to penalize those attempting to circumvent or evade our sanctions and export controls,” Adeyemo stated. Uzstanex is part of the StanexGroup holding. The company sells and adjusts machine tools in Uzbekistan, Kazakhstan, Kyrgyzstan, Tajikistan, and Turkmenistan. According to the U.S. Treasury Department, the machine tools purchased by Uzstanex were delivered to Russia through the Chinese company Shanghai Winsun Imp and Exp Co Ltd (Shanghai Winsun), which is why sanctions were imposed against it. The Elite Investment Group is a non-specialized wholesaler. It is noted that from mid-March to May 2024, using GUCLU GLOBAL as a carrier agent, the company delivered approximately $190,000 worth of high-priority goods, including electrical transformers, to companies in Russia, including the GS Group.

International Diplomacy

Authorities Rail Against Use of Kazakhstan in Circumventing International Sanctions Against Russia

Kazakhstan's Deputy Foreign Minister Roman Vassilenko emphasized in an interview with the Polish publication PAP that the country seeks to prevent its territory from being used to circumvent international sanctions imposed against Russia. According to Vassilenko, although Kazakhstan has not officially imposed sanctions nor joined the anti-Russian measures, the republic's authorities consider it essential to prevent risks associated with possible secondary sanctions against its companies. This is especially important in regard to its close economic ties with Western countries. At the same time and in acknowledgement of its position concerning both its Western partners and Russia, Kazakhstan has emphasized the need for balance and an avoidance of circumvention of restrictive measures. Vassilenko also noted that Kazakhstan is actively cooperating with the European Union on the sanctions regime, and as part of these consultations, reported that he had been in dialog with David O'Sullivan, the EU special envoy for sanctions. Vassilenko denied speculation about growing tensions between Kazakhstan and Russia, and pointing out that the countries maintain close ties, explained: “There are different issues because we are neighbors and have diverse relations. We are working with Russia to solve these issues before they become problems. This is our approach not only to the Russian Federation but to any other country." After the start of the Russian military operation in Ukraine, Kazakhstan took a neutral stance and did not support Western sanctions against Moscow. Nevertheless, the Kazakh authorities have repeatedly stated that they will not allow the country's territory to be used to circumvent these restrictions. President Kasym-Jomart Tokayev, in his speeches, adheres to the principle of compliance with the international sanctions regime and aims to conduct a constructive dialog with the EU and the U.S. to avoid possible secondary sanctions that could affect Kazakh companies.