Elizaveta Peskova's Potential Use of Kazakh IIN Raises Sanctions Concerns

Elizaveta Peskova, the daughter of Russian President Vladimir Putin's press secretary Dmitry Peskov, may have registered for an individual identification number (IIN) in Kazakhstan. This registration, if confirmed, could allow her to circumvent international sanctions by accessing the Kazakh banking system.

Peskova, who is 26 years old, was sanctioned by the United States in March 2022 for supporting Russia's invasion of Ukraine. The IIN registration, reportedly completed before September 2022, would enable her to open a local bank account in Kazakhstan, bypassing restrictions imposed by Visa and Mastercard.

After Russia's partial mobilization in September 2022, thousands of Russians crossed the border into Kazakhstan. The Kazakh government received around 200,000 applications for IINs from foreigners during this period, highlighting the surge in demand for these identification numbers.

Why this matters: The potential use of Kazakh IINs by sanctioned individuals like Elizaveta Peskova raises questions about the effectiveness of international sanctions and the measures taken to enforce them. If sanctioned individuals can circumvent restrictions, it could undermine the impact of sanctions and allow them to continue supporting Russia's invasion of Ukraine.

Obtaining an IIN is crucial for employment, setting up a phone number, and opening a bank account in Kazakhstan. A Kazakh researcher noted, "Obtaining an IIN is one of the first things resettling Russians do, since the number is necessary for employment in Kazakhstan, and also for setting up a phone number and a bank account in the country."

The IIN registration system has been identified as a vulnerability to secondary sanctions. Kazakh banks have been issuing IINs to Russian nationals without requiring their physical presence in the country. Sophia Nina Burna-Asefi highlighted this issue, stating, "Kazakh banks continue to issue Kazakh individual identification numbers (IIN) to Russian nationals without them actually needing to be in the country in person."

In response to these concerns, the Kazakh Ministry of Internal Affairs proposed a rule change in November 2023, requiring foreigners to apply for IINs in person. This rule was approved in late February 2024 and went into effect on March 25, closing one loophole in the IIN registration system, which is a key aspect of know-your-customer regulations.

Elizaveta Peskova's full name and birth date match the information associated with the IIN registered in Kazakhstan. While it is not confirmed that she has used the Kazakh banking system, the discovery of the IIN suggests this possibility.

Peskova holds a 30% stake in a Moscow-based advertising agency whose clients include various government agencies. She has publicly criticized the sanctions imposed on her, calling them "totally unfair and unfounded."

Kazakhstan has tightened entrance regulations for citizens of Eurasian Economic Union (EAES) member states, including Russia. As of January 27, EAES citizens can only stay in Kazakhstan for up to 90 days within 180 days and must register within 30 days of their entrance.

In 2022, around 2.9 million Russian nationals entered Kazakhstan, with 146,000 obtaining Kazakh identification numbers, allowing them to open bank accounts and apply for jobs. This influx highlights the significance of the IIN system in providing access to vital services.

The potential use of Kazakh IINs by sanctioned individuals like Elizaveta Peskova raises important questions about the effectiveness of international sanctions and the measures taken to enforce them.

Key Takeaways

• Elizaveta Peskova, Putin's press secretary's daughter, may have registered for a Kazakh IIN to bypass sanctions.
• IIN registration allows access to Kazakh banking system, circumventing Visa and Mastercard restrictions.
• Kazakh banks issued IINs to Russian nationals without physical presence, a vulnerability to secondary sanctions.
• Kazakhstan introduced new rule requiring foreigners to apply for IINs in person, closing a loophole.
• Peskova's IIN registration raises questions about the effectiveness of international sanctions and enforcement.