Kazakhstan: Anti-corruption Sanctions

I thank Mr Speaker for granting this debate and the Minister for joining us. I also thank a host of civil society experts who have helped me—too many to name—but I give special thanks to Professor John Heathershaw of Exeter University, Adam Hug of the Foreign Policy Centre and Sue Hawley of Spotlight on Corruption.

Earlier this week, the Foreign Secretary announced welcome moves to toughen up the sanctions regime against Russia, but we should not be waiting for a potential military crisis before we act against illicit finance at home and corruption overseas. We should act and use the powers we have now.

Today, I want to shine a light on foreign corruption in another state, not simply because that is important in itself, but because I want to highlight the UK’s role in facilitating shameful wrongdoing. Put simply, Britain enables kleptocracy. My ask of the Government is twofold. First, they should act proactively by sanctioning wrongdoers in Kazakhstan. Secondly, now that they have committed to tabling an economic crime Bill in the next Session, they must ensure the Bill’s provisions are fit for purpose, tough, effective and appropriate so that Britain can show by what we do that we are seriously committed to fighting the scourge of dirty money.

It is 30 years since Kazakhstan, a multi-ethnic, resource-rich central Asian state, emerged from the disintegration of the Soviet Union. In those years, Kazakhstan has, by some indicators, been a success. Its GDP growth has outstripped that of many of its neighbours, including Russia. Living standards are higher and until the 2010s Kazakhstan appeared to enjoy political stability.  

But there is another side to the Kazakhstan story. The country is ruled by a kleptocratic elite that has grown rich off the back of money stolen from its people. Until 2019, its autocratic dictator was Nursultan Nazarbayev.  In Kazakhstan, just 162 people own 55% of the wealth—mostly members of Nazarbayev’s family or close associates. The country has a poor human rights record and little media freedom.  

As early as 2006, Jonathan Winer, former Deputy Assistant Secretary of State for International Law Enforcement in the Clinton Administration, said:

“I can’t think of a leader in the free world as notoriously corrupt as Nazarbayev… We’ve know about his corruption for at least 15 years”.  

https://hansard.parliament.uk/commons/2022-02-03/debates/41000B02-86AB-499E-8547-0F5AA84611B0/KazakhstanAnti-CorruptionSanctions