Sanctions evasion across Central Asia will continue

Significance

In early June, the United States sanctioned three entities -- one Kazakh and two Kyrgyz -- for procuring industrial goods and equipment for Russia’s ultimate benefit, violating US export control regulations. Later that month, the EU imposed sanctions on a company from Kazakhstan and two companies from Kyrgyzstan, citing their involvement in illegal schemes to evade sanctions targeting Russia.

Impacts

• Central Asian authorities will struggle to clamp down on most categories of sanctioned goods transiting their countries to Russia.
• Western governments will intensify pressure on third countries to help stop or dismantle Russia’s evasion schemes.
• If measures are taken to stem the flow of goods via Central Asia, local firms will still be used in financing arrangements.