Russia seeks tariff agreement with Kazakhstan on grain transit
The Ministry of Agriculture of Russia is trying to reach a new transit agreement with Kazakhstan as it wants tariffs for Russian grain suppliers to be the same as for Kazakhstani suppliers, the Interfax news agency reported, citing Russian Agriculture Minister Oksana Lut, who made this statement at a forum called «The Development of Small Agricultural Business in Russia.»
«We are trying to reach an agreement with the neighboring country to align these transit tariffs with tariffs for residents of Kazakhstan and create the same condition for all suppliers,» the minister said.
She emphasized that Kazakhstan has set a very high tariff for grain transit through its territory to countries outside the Eurasian Economic Union (EEU).
«We have to identify a fair and reasonable compromise. I hope we will come to this mutually beneficial decision soon. All in all, Kazakhstani partners are interested in cooperation with our traders because they can export their grain not only southward, but northward as well. I mean, to our ports, using our commodity markets,» the minister said.
According to Lut, Kazakhstan wants to double its grain exports by 2028, so it is interested in using Russian seaports. The minister hopes the two sides will settle the issues regarding transit tariffs within the year.
She also admitted that Kazakhstan doesn’t need Russian grain as it has harvested a record-high amount of grain, and Kazakhstani farmers are selling their product a bit cheaper this year.
«I don’t think there is a need for our grain in Kazakhstan this year. However, the situation can change due to weather, for example, as they may report a drought. This is why we have to get along with Kazakhstan and work together. Kazakhstan is our partner, and we have to align our policies with each other,» Lut underlined, adding that she had already discussed the issue with Kazakhstan’s Minister of Agriculture Aidarbek Saparov.
On Oct. 17, the Federal Service for Veterinary and Phytosanitary Supervision (Rosselkhoznadzor) of the Russian Federation banned the import of some Kazakhstani goods, including grain. The agency explained the move by claiming that Kazakhstan had allegedly used invalid phytosanitary certificates to export contaminated products to Russia over the past several years. The Ministry of Agriculture of Kazakhstan has denied all of these allegations.
In mid-January, Rosselkhoznadzor said that Kazakhstan had violated imposed restrictions and exported grains, flaxseeds and lentils contaminated with dangerous diseases to Russia.
Kazakhstan’s Ministry of Agriculture revealed that it is negotiating with Russia to lift all those restrictions. Thus, on Jan. 17, Russia removed all import restrictions on tomatoes from 36 Kazakhstani farms.
The Kazakh Grain Union described the situation as a potential trade war between the two countries. For instance, the association said that Russian restrictions are nothing more than retaliation against a ban on imports of Russian grain to Kazakhstan that was effective until Dec. 31. The government of Kazakhstan denied any links between these decisions.
