The Foreign Intelligence Service of Ukraine reported that the former Soviet republics are tightening checks and restricting Russian citizens’ access to financial services, car purchases and real estate.
Refusals for car purchases in Kazakhstan
According to available information, car dealers in Kazakhstan have started refusing buyers with Russian passports. The refusals affect a number of well-known brands: Skoda, Hyundai, Kia, Toyota, Volkswagen, Chery, Audi, Nissan and Lexus.
The reasons cited include the risk of falling under secondary international sanctions and the fear of losing lucrative contracts. “The former Soviet republics are increasingly refusing Russians on routine matters because of the risk of being subject to secondary international sanctions. This specifically concerns the purchase of cars and real estate — the familiar scheme used by citizens of the Russian Federation (RF), where purchases were registered in the name of a ‘local friend’, is becoming unavailable to participants,” the post says.
Blocking deals on the real estate market in Georgia
In Georgia, the Ministry of Justice has allegedly issued informal instructions to bankers to block large deals for Russians without explanation. As noted, this concerns transactions in commercial and residential real estate.
Financial regulators in Kazakhstan, Kyrgyzstan and Armenia, following recommendations from Western partners, are introducing an automated system to track resales. “This procedure destroys the scheme favoured by Russians to circumvent sanctions, when the purchase of a car or commercial real estate was registered in the name of a local resident and then transferred to the buyer from the RF,” the post says.
Banks step up anti-money laundering (AML) checks and block accounts
The new monitoring system will reportedly allow banks, when preparing a “quick deal” involving a resale, to immediately block the accounts of local sellers. At the same time, banks have begun to apply anti-money laundering (AML) compliance procedures more actively when dealing with clients holding Russian passports.
According to the report, banks in Kyrgyzstan, Armenia and Georgia are closing Russians’ accounts or refusing to accept transfers from the Russian Federation, even if they are routed through non-sanctioned intermediaries. “Also, banks in Kyrgyzstan, Armenia and Georgia, under pressure from packages of anti-Russian sanctions, have sharply tightened checks within AML compliance procedures (Anti-Money Laundering). They have begun closing Russians’ accounts or refusing to accept transfers from the RF, even if they are made via non-sanctioned intermediaries,” the post says.
For Ukrainian readers, these changes are important because they could alter demand for imported cars, affect real estate markets and change payment flows, which may influence prices and currency movements.
