Seizing Opportunities, Minimizing Risks: Managing Compliance Risks and Due Diligence Practises in the Post-Soviet Space

Johannes Leitner spoke at DHK Business Breakfast

Central Asia and the South Caucasus are experiencing an economic boom. At the same time, increasingly stringent regulations apply to business activities in the region.Johannes Leitner, expert in the field of political risk management and business strategy, shared insights into opportunitites and risks in the region at the DHK Business Breakfast at DHK's offices in Vienna.

Building on his project experience, Johannes provided details on economic dynamics, regulatory and political risks, and classic compliance challenges and management strategies. "The regulatory environment does not affect every company equally. Retailers face different challenges than a logisticis company or equipment manufacturer," the political risk expert highlighted. However, the fact is - despite geopolitical obstacles and sanctions - there is strong growth in the region, he said.

Johannes further emphasized that the war in Ukraine is going along with geopolitical shifts of global dimension. As a result of this, a return to the pre-war constellation and business as usual is unlikely, even in the long-term.

The post-Soviet region of Central Asia, and here in particular Uzbekistan and Kazakhstan, have recently attracted increased interest from German and Austrian companies, Johannes said. In addition to the opportunities offered by the markets themselves, this is primarily due to the shift in trade flows as a result of the Ukraine war and the sanctions against Russia and Belarus. The establishment of new business partnerships, and the shift of supply and distribution chains are accompanied by compliance challenges that need to be managed against the backdrop of increasingly strict national and international compliance rules, the consultant said.

Johannes Leitner (left) and Thomas Gindele (right), head of the DHK in Austria