Why Kazakhstan's Cities Are Buying Russian Traffic Lights from Shvabe Holding Subsidiary

In early March, we reported that four Kazakh cities—Aqtobe, Qostanay, Pavlodar, and Oskemen — had purchased around 1,500 traffic lights from a Russian subsidiary, Urals Optical & Mechanical Plant (UOMZ).

UOMZ is part of the Shvabe holding, which is under Western sanctions. UOMZ is also designated on OFAC. This raised questions about why local governments are procuring such equipment.

To clarify the situation, Orda.kz sent inquiries to the Akimats of the cities listed in Rostec’s reports. We asked them how many traffic lights had been purchased, whether alternatives were considered, and if there were any concerns.

Two Akimats denied purchasing traffic lights from Ural Optical and Mechanical Plant (UOMZ), the subsidiary of Shvabe that has been under EU and U.S. sanctions since 2022. The Aqtobe Akimat stated that no Russian traffic lights were purchased in 2024.

The Oskemen Akimat elaborated, saying a tender for traffic light installation was held, and the contractor carried out work in seven locations but did not use UOMZ-manufactured devices.

This discrepancy raises questions about whether the Russian company or the city authorities are withholding information.

The Qostanay Akimat confirmed that the city decided to replace old traffic lights in 2023 with new ones that met high price and quality standards. Given Kazakhstan’s harsh climate, suppliers needed to ensure the new lights could withstand extreme temperatures.

However, the technical specifications in the public procurement process did not specify a manufacturer — it was up to the contractor to select a supplier that met the criteria.

This appears to be the answer to why Kazakhstan's cities are buying Russian traffic lights: suppliers could not find local alternatives at a competitive price.

In 2024-2025, suppliers selected through public procurement purchased and installed 426 pedestrian panels and 449 transport panels in Qostanay.Qostanay Akimat 

The Akimat did not clarify how many of these were Russian-made.

Unlike the other cities, Pavlodar officials provided a straightforward answer:

The authorities emphasized that they did not directly buy the traffic lights. Instead, the contractor chose the supplier that met the technical requirements in the government tender.

Private organizations should assess the sanctions risks concerning the purchase of Russian traffic lights - such purchases cause no legal risks to government agencies.

Still, as the purchase concerns civilian-purpose equipment, this may be more of a politically sensitive matter; only 13% of UOMZ's production is for civilian use — the remaining output is military equipment. 

Original Author: Nikita Drobny