Central Asia has become an increasingly attractive market for foreign manufacturers, suppliers and service providers entering into cross-border commercial transactions. However, signing a contract is only part of the process. The goods must still be delivered, invoices must be paid, and, if a dispute arises, the contract must be capable of effective enforcement rather than merely being well drafted on paper.
It is worth emphasizing at the outset that Kazakhstan, Uzbekistan, Kyrgyzstan, Tajikistan and Turkmenistan have five distinct legal systems and should not be treated as a single regional market. Currency control requirements, court procedures and enforcement timelines vary from country to country. Nevertheless, several practical issues arise repeatedly across these jurisdictions and should be considered before—not after—a payment dispute reaches your desk.
1. Get the Contract Language Right
Most cross-border deals in the region end up with a contract in two languages, sometimes more. Say clearly which version controls if there’s a conflict — and don’t leave that to a machine translation. Have both versions reviewed by someone who actually reads the language and knows the law, not just the vocabulary.
This isn’t only about the main agreement, either. Technical specs, purchase orders, acceptance certificates, invoices — all of these can end up as evidence later, so they need the same level of care.
Language requirements can also surface unexpectedly at the payment or enforcement stage. In Kazakhstan, for instance, a foreign-language export or import contract that requires accounting registration for currency control purposes must be submitted with a Kazakh or Russian translation. That registration requirement kicks in for contracts above USD 50,000 (or any contract that doesn’t specify an amount at all).[1]
Similar translation and certification hurdles tend to appear elsewhere in the region when it’s time to enforce a foreign court judgment or arbitral award — the exact requirements differ by country, so this is one to confirm with local counsel before, not during, a filing.
2. Don’t Ship Before the Payment Structure Is Secure
Having a contractual right to be paid and actually getting paid are two different things. If you’re dealing with a new counterparty, an open-account arrangement with no security behind it puts the collection risk squarely on you.
Depending on the deal, a few options worth considering:
A documentary credit under UCP 600 shifts the payment obligation from the buyer to the issuing (or confirming) bank, which is a real improvement — but it only pays out if the documents match the credit’s terms exactly. Strict compliance, not “close enough,” is the standard.[2]
An on-demand guarantee under URDG 758 goes a step further, since the guarantor’s obligation to pay is generally independent from whatever is happening in the underlying commercial dispute. Still worth checking who the issuing bank actually is, when the guarantee expires, and exactly what triggers a valid claim.[3]
3. Spell Out the Payment Clause in Full
Price and due date aren’t enough. A payment clause that’s actually worth something also covers:
If a counterparty suddenly asks you to send funds to an unrelated company, a personal account, or a bank in a country that has nothing to do with the deal — treat that as a red flag, not a minor administrative request. And any change to bank details should be verified through a channel you already trust, not just the email that asked for it.
4. Pick a Dispute Resolution Clause That Actually Works
A good dispute resolution clause answers, clearly:
Vague clauses cause their own disputes. “Arbitration at a location to be agreed later” is a classic example — parties end up litigating the clause before they ever get to the actual claim. Using the relevant institution’s model clause is a simple way to avoid this; HKIAC, for example, publishes model clauses that can be adapted directly.[4]
The good news for the region: all five countries — Kazakhstan, Uzbekistan, Kyrgyzstan, Tajikistan and Turkmenistan — are now parties to the 1958 New York Convention. Turkmenistan was the last to join, acceding in 2022.[5] That makes international arbitration a genuinely portable enforcement option here, which isn’t something you can say about every emerging market.
But an award isn’t cash. Recognition and enforcement still has to go through the local courts, and each jurisdiction has its own procedural requirements — translation, certification, filing deadlines — that can trip up an otherwise strong award if they’re missed. Confirm the specifics with local counsel before a dispute arises, not after.
5. Think About Enforcement Before You Sign, Not After
Before extending credit to a new counterparty, look past the corporate registration certificate. Check what they actually own and whether there’d be anything to collect if it came to that.
A reasonably thorough pre-signing check usually covers:
If the counterparty is state-owned or a public body, add another layer: confirm the contract and dispute clause have the necessary internal and governmental sign-offs, and think through whether sovereign immunity could become an issue down the line.
Conclusion
None of this should put anyone off doing business in Central Asia. The risks described here aren’t reasons to walk away — they’re reasons to negotiate payment security and a workable dispute resolution clause while you still have leverage to do so, at the start of the deal.
In our experience, the deals that end up in a collection dispute are rarely the ones where the contract was badly written. They’re the ones where nobody thought about enforcement until it was already too late to fix.
This article is provided for general information only and does not constitute legal advice. Country-specific legal advice should be obtained before entering into or enforcing a transaction in any Central Asian jurisdiction.
Sources
[1] National Bank of Kazakhstan, “Export Import” — currency control and accounting registration requirements, including the USD 50,000 threshold and the Kazakh/Russian translation requirement: https://nationalbank.kz/en/news/eksport-import
[2] ICC Academy, guidance on documentary credits and UCP 600: https://academy.iccwbo.org/international-trade/article/documentary-credits-rules-guidelines-terminology/
[3] ICC Academy, guidance on demand guarantees and URDG 758: https://academy.iccwbo.org/trade-finance/article/understanding-demand-guarantees-urdg-758-guide/
[4] HKIAC Model Clauses: https://hkiac.org/arbitration/model-clauses/
[5] UN Treaty Collection / UNCITRAL — status of the 1958 New York Convention. Turkmenistan’s accession (deposited 4 May 2022, effective 2 August 2022, 170th State Party) confirmed via the UN depositary notification: https://treaties.un.org/doc/Publication/CN/2022/CN.123.2022-Eng.pdf — general status list https://uncitral.un.org/en/texts/arbitration/conventions/foreign_arbitral_awards/status2
Kazakhstan is preparing a new customs framework for cross-border e-commerce. In July 2026, Kazakhstan adopted amendments introducing a separate customs regime for goods purchased through foreign online platforms. The reform forms part of a wider Eurasian Economic Union initiative and is expected to change how online purchases are declared, cleared and delivered to customers in
Overview Central Asia has become an increasingly attractive market for foreign manufacturers, suppliers and service providers entering into cross-border commercial transactions. However, signing a contract is only part of the process. The goods must still be delivered, invoices must be paid, and, if a dispute arises, the contract must be capable of effective enforcement rather
Kazakhstan is entering a new stage of investment policy. The country is not only trying to attract more foreign capital, but also to make investment projects more structured, predictable and easier to support through legal and tax instruments. This is especially relevant after the adoption of the new Tax Code and the recent discussions around
