Since October 17, the Russian Federation has banned the transit of Kazakh grain

Since October 17, Rossilhospnadzor introduced a temporary ban (for an indefinite period) on deliveries from Kazakhstan of certain types of agricultural products, including wheat, lentils, and flax. At the same time, the transit of these products through the territory of the Russian Federation is allowed on the condition that Kazakhstan issues phytosanitary certificates directly to the country of destination and transshipment of grain from wagons immediately to the holds of ships.

 

In Kazakhstan, these restrictions were called a response to the ban on wheat supplies from the Russian Federation until January 1, 2025, and in the Russian Federation they are explained by concern for phytosanitary safety. Exporters of grain from Kazakhstan to Turkey and Europe already have difficulties with transit through the Russian Federation.

 

We will remind that on September 23, Rossilhospnadzor appealed to the Ministry of Agriculture of Kazakhstan with a request to suspend the issuance of phytosanitary certificates for certain types of agricultural products "in order to preserve the phytosanitary situation in the Russian Federation, develop greenhouse complexes, domestic selection and seed production, as well as increase the export of Russian grain and fruit and vegetable products."

 

The Grain Union of Kazakhstan considers the situation to be the beginning of a trade war and believes that the country's authorities have two options: to cancel the ban on the import of grain from the Russian Federation or to limit the import of flour, dairy and meat products and other goods. However, in response, the Russian Federation may ban the transit of coal and oil, after which the logical step will be Kazakhstan's withdrawal from the EuroAsEC. The new restrictions on the part of the Russian Federation are seen as a warning that "the Russian Federation will fiercely defend its economic interests."

 

This year, Kazakhstan plans to collect 17 million tons of wheat, of which it will need only 2 million tons for its own consumption, and the rest can be exported. The main buyers of wheat are Uzbekistan, Tajikistan, Afghanistan and China.

 

In 2020, during the covid pandemic, Kazakhstan closed the export of grain to the countries of Central Asia, which the Russian Federation took advantage of. Now Kazakhstan cannot return to those markets, because grain from the Russian Federation is of better quality and cheaper.

 

The Russian Federation states that Kazakhstan needs to lift the ban on the import of wheat from the Russian Federation both for the domestic market and for transit, without increasing the tariff for transit, as the participants of the grain market of Kazakhstan insist on.

 

The Grain Union of Kazakhstan called on the authorities to immediately resume the import of grain from the Russian Federation, shortening the validity period of its ban to November 1 or October 15, as this will help the country to quickly enter the EU markets, where a duty of 95€/t has been imposed on grain supplies from the Russian Federation.

 

In order to solve periodically arising conflicts between countries in Kazakhstan, it is proposed to create a common grain market, for which it is necessary to strengthen the interaction of the ministries of agriculture of both countries. This will allow us to jointly enter the sales markets, export Kazakh grain through the Baltic ports, and jointly solve other problems.

 

Kazakhstan and the Russian Federation are major exporters of grain, but the Russian Federation invests more in production, creating competition for Kazakhstani farmers who have to impose restrictions to sell their own grain.