How to Recover a Debt from a Kazakh Company: A Step-by-Step Guide for Foreign Creditors

Is your buyer or partner in Kazakhstan not paying under the contract? You can recover the debt without travelling to the country. Here is how I handle such cases.

1. Check your documents

The court will rely on written evidence. Gather:

• the contract (supply, construction or service agreement) and its annexes;
• invoices, delivery notes, CMR, certificates of completed work;
• proof of payment or shipment;
• correspondence with the debtor, including messenger chats where it acknowledges the debt.

Documents in a foreign language will need to be translated into Kazakh or Russian for the court.

2. Check the dispute clause in the contract

If the contract contains an arbitration clause (for example, arbitration in London, Stockholm or at the AIFC International Arbitration Centre in Astana), that arbitration hears the dispute, not a state court. If there is no such clause, a claim against a Kazakh company is filed in a Kazakh court, as a rule at the defendant’s location.

3. Check the debtor

Before starting I check whether the company is active, whether it has assets, accounts and turnover, and whether it is in bankruptcy. This shows whether there will be real money at the end.

4. Send a demand letter

A demand letter often leads to payment without court. If the contract requires a mandatory pre-trial procedure, the court will return a claim filed without it.

5. Issue a power of attorney

The power of attorney for the advocate is signed before a notary in your country and certified with an apostille (Kazakhstan is a party to the Hague Convention) or legalised at a consulate. I will send you the ready text.

6. Lawsuit and account freeze

Together with the claim I ask the court for interim measures: freezing the debtor’s bank accounts and assets. This prevents the debtor from moving money while the case is pending. The court of first instance usually decides the case within two months.

7. Enforcement

Once the judgment takes effect, the court issues a writ of execution, which is enforced by a private bailiff: debiting accounts, levying execution on assets and income, and possibly a temporary travel ban on the debtor’s manager. The recovered money is transferred to your account.

What else can be recovered

• a contractual penalty, if the contract provides for one;
• if there is no penalty, interest for the use of another’s money under Article 353 of the Civil Code of Kazakhstan;
• damages;
• legal costs.

How much it costs

Document review and opinion on the prospects: 500 USD. Handling the case: 3 to 10 percent of the debt. State court fee: 3 percent of the debt. You can make an exact calculation with the calculator on the home page.