The Legislative Chamber of the Oliy Majlis in Uzbekistan has taken a decisive step by adopting a bill aimed at improving risk management associated with sanctions, on February 13.
The proposed bill seeks to address a critical gap in Uzbekistan's legal framework by prohibiting sanctioned individuals from opening bank accounts, thereby mitigating risks inherent in financial transactions involving such entities.
With the proliferation of sanctions imposed by various states, international organizations, and financial institutions, navigating the complexities of international economic relations has become increasingly challenging. The absence of a legal framework to address risks associated with secondary sanctions has accentuated the need for comprehensive regulatory measures.
"We note that this bill is not directed against any state,"
emphasized a statement regarding the bill, highlighting its non-targeted nature and aligning it with global practices aimed at preempting secondary sanctions by national financial institutions. In crafting the amendments, legislators in Uzbekistan have looked to the experiences of nations such as Latvia, the Czech Republic, Estonia, and Georgia for guidance.
However, the bill's adoption has not been without controversy, with some quarters interpreting it as Uzbekistan aligning itself with financial sanctions against Russia. Concerns have been raised about the potential impact on citizens of certain countries, particularly Russians affected by sanctions linked to conflicts such as that in Ukraine.
Recent challenges in executing transactions between Russia and Uzbekistan, attributed to imposed sanctions and concerns about secondary sanctions, underscore the practical implications of the bill. Legal experts anticipate the closure of accounts associated with sanctioned goods and beneficiaries from the Russian Federation as a logical next step, reflecting the evolving regulatory landscape shaped by geopolitical realities.
Earlier Daryo reported that the Ministry of Foreign Affairs of Russia has summoned the Uzbekistan ambassador in response to comments made by Sherzodkhon Kudratkhuja, the rector of the University of Journalism and Mass Information Communications, concerning individuals in Uzbekistan who do not speak the Uzbek language. The Russian Ministry emphasized that such remarks go against the deep strategic partnership and alliance relations between Russia and Uzbekistan. They expect an official clarification from Uzbekistan's Ministry of Foreign Affairs soon.
"We believe that any attempts, whether internal or external, to sow discord between the peoples of our countries will be unsuccessful," stated the Russian Ministry of Foreign Affairs. Previously, it was reported that "Rossotrudnichestvo" halted all communication with Kudratkhuja following his comments made during an interview with the AlterEgo project, where he referred to those who do not speak the country's language as "invaders or idiots". Kudratkhuja's remarks were directed towards citizens and residents of Uzbekistan who have resided in the country for many years but choose not to learn or speak the Uzbek language.
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