The United Kingdom’s Foreign, Commonwealth & Development Office (FCDO) has released a guidance document outlining potential business risks for UK companies operating in Kazakhstan. The statement does not mention specific sectors affected but identifies key areas of concern including intellectual property protection, organised crime, human rights issues, bribery and corruption, and terrorism. This document, published on 23 November 2023, follows recent heightened diplomatic activity surrounding concerns over the treatment of opposition figures and reports of credible threats from extremist groups. The statement does not address Kazakhstan’s membership in the Eurasian Economic Union or its alignment with China. — the full statement has further detail.
Context
The guidance represents a formal acknowledgement by the FCDO of elevated risks associated with operating within Kazakhstan. It is intended to inform UK businesses considering investment or trade partnerships, providing them with a framework for risk assessment and mitigation strategies. The document highlights that the UK government recognises “the potential for serious harm” resulting from issues such as intellectual property theft and organised crime activity. The statement does not specify what support the FCDO will offer to businesses encountering these risks – this suggests a cautious approach, prioritizing reputational protection over proactive engagement.
What to Watch
Should the visit by the Foreign Secretary lead to further diplomatic engagement with Kazakh authorities, the FCDO’s response will likely depend on demonstrable improvements in human rights practices and the dismantling of organised crime networks. If the government continues to prioritize economic ties over fundamental freedoms, as indicated by the document’s focus on security risks, the UK may adopt a more restrictive stance on investment approvals. The statement does not mention any plans for additional sanctions or targeted measures against individuals implicated in wrongdoing.
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