Additional control measures are aimed not at banning supplies, but at enhancing monitoring of export operations to reduce risks associated with international sanctions, as reported by Deputy Prime Minister Jamshid Khojaev. He emphasized that the lack of proper control could lead to sanction pressure on the entire financial system of the country, which, in turn, could cause problems in banking transactions.
Cellulose and cotton fluff are classified as dual-use products, meaning they can be used for military purposes. In this regard, all export transactions now require additional expertise. Exporters are obliged to check their foreign partners, and banks have the right to halt operations if risks are present.
Abrokhuzha Turdaliev, Deputy Chairman of the Central Bank, noted that contracts should be canceled if the buyer is included in the U.S. sanctions list (SDN) or if there is a likelihood of the product being used in the defense sector. He also mentioned existing companies in Uzbekistan that have already fallen under sanctions, particularly due to supplies to powder enterprises, and emphasized that blocking payments by banks is aimed at protecting entrepreneurs from being included in sanctions lists.
The introduction of new rules has already affected businesses. For example, 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 led to about 100 employees being sent on administrative leave, and the company's losses amounted to over 2 billion sums. Other producers of hygroscopic cotton also reported delays in fund transfers and blockages of supplies to Europe.
The Ministry of Investments, Industry, and Trade noted that the regulations for issuing expert conclusions for exporters have already been developed and will soon be presented for consideration by the Cabinet of Ministers. Deputy Prime Minister Jamshid Khojaev assured entrepreneurs that the delays are temporary and that after verification and obtaining permission, export operations will resume without obstacles.
