UK Warns Kazakhstan-Based Companies of Sanctions Risks

The UK Foreign, Commonwealth and Development Office has issued new guidance for companies operating in Kazakhstan, warning of potential consequences for violating sanctions against Russia, Orda.kz reports.

The document aims to clarify legal risks tied to dealings with sanctioned Russian entities and outlines potential repercussions such as blocked assets, loss of access to Western financial systems, and criminal charges.

Attempts to circumvent sanctions – for example, through purchases in third countries with subsequent re-export – may result in asset blocking, denial of banking and logistics services, and even criminal liability,
the guidance notes.

The document also highlights that “British persons”— individuals and businesses under UK jurisdiction, regardless of location — remain bound by sanctions regulations.

Kazakhstan-based firms working with such entities may also be exposed to penalties.

Companies unable to verify that their operations are free of ties to sanctioned Russian recipients are considered high-risk and may lose access to Western markets and supply chains.

This warning comes amid discussions in Washington on forming a dedicated team to monitor sanctions circumvention through Kazakhstan. Concerns persist that Russian firms are exploiting intermediaries in the region to acquire restricted goods.

Some Kazakhstani companies have already faced penalties. The EU’s 16th sanctions package included Kazstanex and TOO Metallstan, which are accused of supplying dual-use items to Russia. According to the Ministry of Trade, both firms remain operational but have shifted their focus.

Almaty-based Kazstanex is currently sanctioned by the EU, UK, and US. British authorities claim the company helped deliver Western machinery to Russia in ways that could “contribute to the destabilization of Ukraine.”

Original Author: Ruslan Loginov