Central Asian country falls victim to sanctions against Russia

The EU has accused Uzbekistan-based companies of facilitating Moscow’s military effort

The 11th package of sanctions against Russia adopted by Brussels last month targets two firms based in Uzbekistan among a list of entities accused of supporting Moscow’s military operation in Ukraine.

Last week, the EU included Alfa Beta Creative and GFK Logistics Asia among a list of 87 enterprises that the bloc claims are enabling the Russian military-industrial complex. The Uzbek entities were featured in a similar blacklist compiled by the US government earlier this year.

In April, the US Department of Commerce blacklisted both Tashkent-based companies, claiming that their operations were designed to “evade export controls and acquiring or attempting to acquire US-origin items in support of Russia’s military and defense industrial base.”

Inclusion on the list means an entity will face stricter limitations on its ability to source dual-use goods and technologies.

The latest set of EU punitive measures is mainly aimed at stopping third countries and companies from bypassing existing sanctions. They ban the transit of dual-use goods and technology to Russia to prevent the use of these products in the country’s defense and security sector. Moreover, the new penalties allow the bloc to impose restrictions on the sale of sensitive dual-use goods and technology to nations that may resell them to Russia.

READ MORE: Brussels piles more sanctions on Moscow

Mutual trade between Russia and Uzbekistan has boomed over the past year. In 2022, it saw a year-on-year surge of 23% to $9.3 billion. The volume of Uzbek-labeled products and services to Russia increased 150% to $3 billion over the same period.

Find more stories on economy and finance in TROIB business