A recent lobbying effort in the United States has cast a spotlight on the increasingly complex world of sanctions lobbying, particularly among business actors in Central Asia. The case revolves around an Uzbek businessman’s alleged attempt to use US political leverage to impose sanctions on a rival company in Uzbekistan, offering a rare glimpse into the murky practices surrounding international sanctions and business rivalries.

At the heart of the story is Stephen Payne, a former aide to President George W. Bush and a top partner in Texas-based lobbying firm Linden Strategies. Payne’s firm was hired by Uktam Aripov, a little-known Canada-based entrepreneur, to lobby for US sanctions against a major Uzbek cement company, the United Cement Group (UCG). The firm, owned by prominent Uzbek businessman Ulugbek Shadmanov, has been a key player in Central Asia’s cement industry, and its business interests have allegedly clashed with Aripov’s. Payne’s involvement in the lobbying campaign raises questions about the growing trend of using sanctions as a tool for business and political influence.

According to Payne, his firm was hired to brief US Congressman Wesley Hunt, a Texas Republican, on possible sanctions violations by UCG. The lobbying effort focused on UCG’s alleged connections to Russia, particularly concerning the company’s 2022 acquisition of a state-owned cement plant in Uzbekistan. Payne asserts that his firm did not directly urge any specific action but instead provided Congressman Hunt with information that could potentially lead to further investigation into UCG’s activities.

Rep. Hunt, who has been vocal about his concerns over US sanctions enforcement, particularly in former Soviet republics like Uzbekistan, took the matter to the House floor in March 2024. He warned that the US focus on Russian assets in Europe may have overlooked key entities in Central Asia, including UCG. In a speech, Hunt specifically referenced the cement company, without elaborating further. He also wrote to the US Treasury’s Office of Foreign Assets Control (OFAC) requesting a formal inquiry into whether UCG had violated US sanctions on Russia.

A few days later, records show that Payne made a $3,300 donation to Hunt’s campaign for re-election, raising concerns over the potential influence of campaign donations on legislative action. While Payne insists the donation was unrelated to his lobbying efforts, the timing and nature of the donation have raised questions about the intersection of political fundraising and lobbying activities.

UCG, which is the largest cement manufacturer in Central Asia, has long been a subject of scrutiny in relation to its potential involvement with Russian interests. In particular, US lawmakers have expressed concerns over Uzbekistan’s business dealings with Russia, especially after Russia’s invasion of Ukraine in 2022. Several Uzbek companies, including UCG, have been accused of supplying components to the Russian military-industrial complex, potentially violating US sanctions.

The allegations against UCG stem from its acquisition of the state-owned cement plant in Uzbekistan in 2022, which some critics believe may have been part of a broader effort to monopolize the cement industry in Central Asia. Rep. Hunt’s remarks in the House of Representatives highlighted what he described as the “opaque” nature of the privatization deal, suggesting that the company may have benefited from close ties to Russia. However, UCG’s spokesperson has strongly denied these claims, stating that the company has not violated any sanctions and that its business dealings with Russia are minimal at best. The spokesperson also pointed out that the US Treasury conducted a “light investigation” into UCG’s activities, which concluded without any evidence of Russian involvement.

The key figures in this lobbying effort include Uktam Aripov, the Uzbek entrepreneur who allegedly sought to convince the US to impose sanctions on UCG, and Stephen Payne, the Texas-based lobbyist hired to carry out the mission. According to Payne, Aripov paid Linden Strategies $25,000 for its services. Aripov, for his part, has denied that he ever instructed Payne to lobby for sanctions against UCG, claiming that their relationship had deteriorated over a business dispute.

Aripov’s background suggests he has long been involved in international business, with past ties to Motorola and Harris Corp., two major US companies. He has also been connected to a Latvian-registered company called Euro Luxe Trading, which contracted with Linden Strategies to lobby on “fair business practices” in Uzbekistan. Aripov has vehemently denied the allegations that he sought sanctions against UCG, calling them baseless.

The dispute between Aripov and Shadmanov is framed as a business rivalry, though political factors in Uzbekistan’s tense political environment may also be at play. Shadmanov, UCG’s owner, has been linked to the powerful family of President Shavkat Mirziyoyev, and reports suggest that he may be aligned with Mirziyoyev’s son-in-law, Otabek Umarov. Some analysts believe that the sanctions lobbying could be connected to a broader power struggle within Uzbekistan’s elite.

The use of sanctions as a tool for business competition is a growing phenomenon, particularly in regions where geopolitical tensions are high. Since the outbreak of the war in Ukraine in 2022, the US and its Western allies have ramped up sanctions against Russia and its allies, targeting companies and individuals believed to be supporting Russia’s military efforts. These sanctions have created an environment in which businesses in countries like Uzbekistan, Kazakhstan, and Kyrgyzstan find themselves caught in the crossfire of US and European sanctions policy.

Lobbying firms like Linden Strategies have become key players in this process, working on behalf of clients to either push for sanctions against rivals or to prevent their own companies from being added to sanctions lists. The practice of lobbying for sanctions-whether to impose them or remove them-has become a lucrative business in Washington DC, with firms charging large sums to represent clients seeking to influence US foreign policy.

Uzbekistan, with its population of 36 million, is strategically located at the crossroads of Central Asia. Its rich natural resources and growing industrial base make it an important player in the region. In recent years, President Shavkat Mirziyoyev has sought to open up the country’s economy and improve relations with the West, including the United States. Despite efforts to attract foreign investment, Uzbekistan remains a politically sensitive environment, with powerful business interests often intertwined with the country’s political elite.

The case of UCG highlights the complex relationship between business and politics in Uzbekistan, where personal rivalries, political connections, and economic interests often collide. As Uzbekistan seeks to navigate its place in a rapidly changing geopolitical landscape, the use of lobbying and sanctions as tools of influence will likely continue to grow, with far-reaching consequences for the country’s economy and its international relations.

The lobbying campaign targeting United Cement Group is a striking example of how sanctions have become a tool not only for punishing geopolitical adversaries but also for pursuing personal and business rivalries. While the US Treasury’s investigation into UCG did not find any evidence of sanctions violations, the case underscores the increasingly blurred lines between politics, business, and international sanctions. As the global landscape becomes more fraught with economic and political tensions, the use of lobbying to influence sanctions policy will undoubtedly continue to shape the future of international business and diplomacy.

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