Supply of Equipment or Goods to Kazakhstan: What to Do If the Buyer Doesn’t Pay and Doesn’t Return the Goods

If you are reading this text, the situation is already critical.

The supply of equipment or goods to Kazakhstan rarely ends with immediate problems.

Troubles start later — when:

• The equipment has already been delivered and accepted;

• Installation (mounting) is complete;

• The equipment is already being used in production;

• Money has not been received, or only partial payment was made;

• The buyer evades returning the goods.

At this stage, the supplier usually believes that the issue is "temporarily delayed."

In practice, the risk has already materialized.

Every day of delay:

• Reduces the chances of returning the equipment;
• Allows the buyer to siphon off or hide assets;
• Complicates the actual recovery of funds.

This publication was prepared by Samat Serikovich Sagidanov, Advocate of the Astana City Bar Association.

If you don't have time to delve into the details, you can contact me directly.

📞 WhatsApp / Phone: +7 702 847 80 20

📧 Email: garantplus.kz@mail.ru

👉 Initial consultation — Free of charge

You can write in any language. I will arrange the translation myself and provide a correct and legally precise answer to eliminate any misunderstandings and financial risks. Simply send a message via WhatsApp, and I will translate the text, reply in your preferred language, and involve a professional translator if necessary.

⚠️ If you do not want to deal with Kazakhstani courts and procedural intricacies or risk your money — just send a message.

Why Equipment Supply is the Most Vulnerable Category of Transactions

Equipment is not an ordinary commodity. In Kazakhstan, such disputes have a different judicial and practical logic because:

• Transaction amounts are large (hundreds of thousands or millions of dollars);
• Collateral or bank guarantees are often missing;
• Equipment is handed over before full payment;
• The asset is physically located at the buyer's premises;
• The equipment can be used to generate profit.

As a result, the buyer gains control over the asset and profits from it, while the supplier is left without money and without leverage — unless they act in time.

The Main Mistake of Foreign Suppliers

The primary mistake made by companies from China, the EU, Turkey, the USA, and other countries is waiting and negotiating.

Typical excuses:

• "They promise to pay."
• "We need to maintain partner relations."
• "We will file for arbitration later."
• "Lawyers abroad are already handling the matter."

In Kazakhstan, this almost always ends the same way: the equipment is utilized, assets are moved, and by the time of the trial, the debtor has nothing left but a formal legal entity shell.

What Kazakhstan Law Really Allows a Foreign Supplier

According to the legislation of the Republic of Kazakhstan, a foreign company has equal rights with residents. If the equipment is located on the territory of the Republic of Kazakhstan, the supplier has the right to:

• Recover the debt under the supply contract;
• Recover interest for late payment;
• Recover damages and compensation for the use of the equipment;
• Reclaim equipment from someone else's illegal possession (replevin);
• Secure the seizure of equipment and a ban on its use;
• Block the alienation, dismantling, and resale of the asset;
• Recover the debt from other property owned by the buyer.

Key point: A Kazakhstan court has full jurisdiction even if:

1.      The supplier is a foreign company;

2.      The contract is in a foreign language;

3.      The applicable law is not Kazakhstani law.

Why the "Equipment Is Installed" Argument Does Not Work

One of the most common arguments used by debtors is the impossibility of returning the equipment because it has been mounted/installed.

From a legal standpoint:

• Installation does not create ownership rights;
• Use without payment is qualified as unjust enrichment;
• Commercial exploitation strengthens the supplier's position, rather than weakening it.

The court has the power to:

• Recover the full cost of the equipment;
• Recover a fee for the period of use;
• Order the return of the asset;
• Foreclose on other property of the buyer.

The Key to Results: Interim Measures (Injunctions)

In equipment disputes, interim measures decide everything.

Without them:

• The equipment continues to be used;
• It may be dismantled or resold;
• The debtor's assets disappear.

With interim measures, the court can:

• Seize the equipment;
• Prohibit its use;
• Prohibit movement and dismantling;
• Freeze the buyer’s bank accounts and other property.

In practice, it is the seizure of the equipment that most often forces the buyer to pay voluntarily, leads to a quick settlement, and prevents the loss of the asset.

A Step-by-Step Action Strategy That Actually Works

1.      Urgent Legal Analysis: Checking contract terms, payment procedures, return conditions, applicable law, and buyer's assets. The goal is to understand which measures can be applied immediately.

2.      Procedural Fixation of the Breach: Creating a document that not only claims the debt but fixes the delay, starts the accrual of interest, and prepares the ground for court and seizure.

3.      Filing for Interim Measures: This is where the result of the entire case is determined. The court can take measures even before considering the claim on its merits.

4.      Filing a Lawsuit in the Economic Court of Kazakhstan: The lawsuit is filed at the buyer's place of registration or according to the jurisdiction specified in the contract. A foreign company is not required to travel to Kazakhstan — everything is possible via a Power of Attorney.

5.      Actual Enforcement of the Decision: Controlling the bailiff’s work: searching for property, foreclosure, sale of equipment or assets, and the actual receipt of money.

Why International Law Firms Often Fail to Deliver Results in Kazakhstan

Many suppliers turn to international law firms that write excellent memorandums, conduct negotiations, and file arbitration claims.

But:

• They often do not work directly in Kazakhstan’s local courts;
• They do not file for local interim measures;
• They do not control the actual enforcement of decisions on the ground.

As a result, the supplier gets a formal paper decision without the real return of money or equipment.

Typical Mistakes Leading to Loss of Equipment

• Waiting for "voluntary payment";
• Relying solely on foreign arbitration;
• Failure to seize the equipment immediately;
• Late contact with an advocate in Kazakhstan;
• Working through consultants who lack an advocate's license.

Why You Need Specifically an Advocate in Kazakhstan

Only an Advocate:

• Has the right to represent interests in the courts of the Republic of Kazakhstan;
• Can file for interim measures effectively;
• Interacts directly with the court and bailiffs;
• Bears professional responsibility.

In equipment supply cases, a legal mistake can cost millions.

Emergency Legal Assistance for Foreign Suppliers

Samat Serikovich Sagidanov

Advocate, Member of the Astana City Bar Association

📞 Phone / WhatsApp: +7 702 847 80 20

📧 Email: garantplus.kz@mail.ru

I work with foreign companies remotely. Communication is possible in Russian, English, Chinese, and Turkish.

👉 Initial consultation — Free of charge

Simply write to me on WhatsApp. I will organize the translation and provide a legally sound response to protect your investments.

Conclusion

If the equipment is already in Kazakhstan and there is no payment — this is not just a "risk" or a "dispute," it is direct property damage.

In these situations, the winner is not the one with the "better contract," but the one who is the first to block the asset and act professionally.