Four entities in Central Asia have been added to the US Treasury Department’s sanctions list, accused of providing machine tools and other dual-use equipment to Russia via China in violation of US rules barring trade that can support the Kremlin’s war effort in Ukraine.
The four entities, one from Kazakhstan, one from Kyrgyzstan and two from Uzbekistan, were among 275 businesses and individuals added to the sanctions list at the end of October.
A Treasury Department statement outlined what it called the “Ushko Machine Tools Procurement Scheme,” in which an Almaty-based company, Kazstanex, and Tashkent-based Uzstanex procured machine tools from Europe, then shipped them onward to Shanghai Winsun Co. in China. From there, the products were sent to Russia to a company called Open Systems Development Technology. Russian citizens, identified as Sergey Ushko, Alexander Ushko, Igor Khomenko and Tatyana Khomenko, are listed as coordinating the deliveries, according to the Treasury Department. All entities and individuals named in the scheme are now under US sanctions.
A Bishkek-based firm called LLC Service Fly Bishkek and a second Uzbek-firm, LLC The Elite Investment Group also landed on the US sanctions list.
“The United States and our allies will continue to take decisive action across the globe to stop the flow of critical tools and technologies that Russia needs to wage its illegal and immoral war against Ukraine,” the statement quoted Deputy Treasury Wally Adeyemo as saying.
Central Asia has long been seen as a conduit used by Russia to evade sanctions. The Russia-Ukraine war has forced Central Asian leaders to walk a fine line as they find themselves caught in the middle of a great-power struggle and strive to keep the opposing sides, Russia and China on the one hand, the United States and European Union on the other, content. Kazakhstan, for example, officially adheres to Western trade sanctions imposed on Russia. But numerous reports of sanctions-busting behavior by entities based in Kazakhstan, as well as elsewhere in Central Asia, have been documented.
Earlier in 2024, several Kazakh entities were added to the sanctions’ list. Minister of National Economy Nurlan Baibazarov, commenting on sanctions, said the imposition of secondary penalties against some Kazakh entities would not have a significant impact on the overall economy. “On a national scale, Kazakhstan complies with sanctions,” Baibazarov maintained.
