Kazakhstan temporarily restricts re-export of Russian grain to Uzbekistan and China

The restrictions stem from a previously established ban on wheat imports from non-EAEU countries and other members of the Eurasian Economic Union (EAEU), aimed at protecting Kazakhstan's domestic market. This ban has created challenges for the transit of Russian grain through Kazakhstan.

In addition to these restrictions, Prime Minister Olzhas Bektenov confirmed an increase in unified transit tariffs for EAEU cargo. For instance, the cost of transporting Russian grain to Kyrgyzstan via Kazakhstan has doubled, further impacting regional trade.

In response to these logistical challenges, Kazakhstan is actively developing alternative transportation routes. One key initiative is the Trans-Caspian International Transport Route, which saw a 69% increase in freight volumes from January to August 2024 compared to the same period last year. Kazakhstan has also entered agreements with Turkmenistan, Iran, and other countries to boost exports and enhance transport connectivity.

Meanwhile, tensions between Kazakhstan and Russia have surfaced in the agricultural sector. In October, Russia’s Federal Service for Veterinary and Phytosanitary Surveillance (Rosselkhoznadzor) imposed restrictions on imports of Kazakh agricultural products, including wheat, tomatoes, and flowers.

These measures, according to Russian authorities, were prompted by violations of phytosanitary standards and the discovery of quarantined pests in certain products. Additionally, Rosselkhoznadzor reported the use of fraudulent practices, where companies listed on phytosanitary certificates were found not to be conducting legitimate business operations.

Both countries continue negotiations to resolve issues related to transit and mutual restrictions, seeking to stabilize agricultural trade and transit in the region.