Twelve Kazakh Companies Involved in Legal Disputes in Uzbekistan

Tashkent, Uzbekistan (UzDaily.com) — Legal claims have been filed in Uzbekistan against twelve Kazakh flour and grain producers, including companies from the Kostanay region. The plaintiff is an Uzbek company currently undergoing bankruptcy proceedings.

According to the Chamber of Entrepreneurs of Kostanay Region, the plaintiff is seeking payment of up to $500,000 in principal debt and around $40,000 in legal fees from each company.

The situation is being reviewed by the sectoral council on trade issues under the Chamber of Entrepreneurs of Kostanay Region.

Kazakh entrepreneurs explain that the claims relate to contracts for the supply of textile products that in fact never existed. The case dates back to 2022, when Afghanistan was under strict economic sanctions.

Under a “third-party” system, the Uzbek companies acted only as transit payers for Kazakh flour and grain shipments. All transactions were overseen by banks in Kazakhstan and Uzbekistan at the time and did not raise any claims.

Three years later, when the statute of limitations had effectively expired, lawsuits were filed in Uzbek courts, based on what Kazakh businessmen describe as questionable arguments regarding undelivered textile products.

Entrepreneurs also pointed out discrepancies in contract copies, which included signatures and details of company officials who were not involved in the actual transactions.

Kostanay entrepreneurs expressed concern about a potential legal precedent that, in their view, could create risks for other bona fide exporters and logistics companies. Aleksey Minaev, lawyer for KazMuka LLP, reported that appeals have already been sent to state authorities to examine the situation.

Meanwhile, Adil Mukhamedyarov, representative of the Kazakh Chamber of Foreign Trade, noted that experts from relevant ministries are expected to be involved in resolving the matter.

The sectoral council also proposed creating a registry of companies against which claims have been filed and sending a collective appeal regarding the actions of the Uzbek company. Among the affected firms are Karagandinsky Milling Plant LLP, ASG Export, SevEsilZerno LLP, and other major producers.

According to Robert Yusupov, head of the industry council on industrial matters, the regional chamber will provide necessary support to the companies in managing their appeals.