Minister of Trade explains why authorities are not acting on sanctioned Kazakhstani companies

The minister believes that there is no need to close sanctioned entities / Photo: Shutterstock, photo editor: Milosh Muratovskiy

Kazakhstan’s Minister of Trade and Integration Arman Shakkaliyev explained why authorities do not dissolve companies sanctioned by the EU and U.S.

During a press briefing, journalists asked Shakkaliyev why Da Group 2022, a small enterprise specializing in the wholesale trade of electronic and telecommunications equipment, remained active in Kazakhstan. On Jan. 10, this company was sanctioned by Japan, while already being on the sanction lists of the EU and the U.S.

According to the minister, Da Group 2022 is currently idle but not dissolved as authorities have no legal grounds to do so.

«The company may either be dissolved by its founder or compulsorily by the request of authorized authorities if the fact of breaching the law is proven,» Shakkaliyev said.

He also added that if the country’s authorities identify any violations of the law, they would consider initiating the compulsory dissolution of the company. After a reporter questioned whether he thought it necessary to amend the legislation to make sanctions a valid ground for compulsory dissolution, the minister said that Kazakhstan has imposed no sanctions against Russia.

«We keep explaining that we have international export control obligations that we fulfill. As for unilateral sanctions, we don’t impose any against Russia as a trade partner of ours. This is why the question is likely not entirely appropriate from a legal perspective. A company may be dissolved if the owner decides to do so or if the law is violated. In other cases, we all must obey the law,» Shakkaliyev explained.

Da Group 22 was hit with U.S. sanctions in late February 2024 and with EU sanctions imposed in June of the same year, for allegedly aiding Russia. This small enterprise was engaged in the wholesale trade of electronic and telecommunications equipment and spare parts with only one employee listed.

The list of sanctioned Kazakhstani companies includes Elem Group, Gazprom Neft Kazakhstan, TawKZ, Rabadaziya, Stanex Group, CPS Energy, Zapchasttrade, Kazstanex, Catu Tech Ltd. and KBR-Technologies.

As the Atameken Business TV channel reported, executives of Da Group 22 planned to close the company after settling issues related to the VAT refund generated from completed export transactions.