According to Deputy Prime Minister Jamshid Khojaev, the new measures do not imply a complete ban on exports. Their goal is to improve monitoring of export operations, which will help minimize the risks of international sanctions being imposed. He emphasized that a lack of proper control could pose a threat to the entire financial system of the country and cause problems in banking transactions.
Cellulose and cotton fluff are classified as dual-use products, meaning they can be used for military purposes. Therefore, all export transactions must now undergo additional scrutiny. Exporters are required to check their foreign partners, and banks have been given the authority to suspend operations if risks are identified.
Abrokhuzha Turdaliev, Deputy Chairman of the Central Bank, noted that contracts must be terminated if the buyer is on the U.S. sanctions list (SDN) or if there is a likelihood of the products being used in the defense industry. He added that there are already companies in Uzbekistan that have been sanctioned due to supplies to munitions enterprises, and the blocking of payments by banks is aimed at protecting entrepreneurs from being included in sanctions lists.
The new requirements have already impacted businesses. For instance, the head of Bumfa Group Asia reported that since January 7, the export of products has been effectively halted by the Customs Committee without explanation. This has led to about 100 employees being forced to take administrative leave, and losses have exceeded 2 billion sums. Other manufacturers of hygroscopic cotton have also reported delays in fund transfers and the blocking of supplies to Europe.
The Ministry of Investments, Industry, and Trade stated that a regulation for issuing expert opinions for exporters has already been developed and will soon be presented for consideration by the Cabinet of Ministers. Vice Prime Minister Jamshid Khojaev assured entrepreneurs that the delays are temporary and that exports will resume without obstacles after the necessary checks are completed.
