Russia has effectively stopped the export and transit of Kazakh grain. The Federal Service for Veterinary and Phytosanitary Supervision of Russia (Rosselkhoznadzor) requested that Kazakhstan suspend the issuance of phytosanitary certificates for grain and its processed products, sunflower seeds, and other agricultural crops exported to Russia, Fergana reports, citing Kazakh media.
Kazakhstan's Ministry of Agriculture received this request in mid-September. As reported by the Deputy Minister of Agriculture of Kazakhstan, Yermek Kenzhekhanuly, the request was motivated by the discovery of "quarantine objects" in the supplied products, which posed a threat to Russia's phytosanitary security.
"We have sent a response letter requesting them to provide evidence of the identified violations. For us to confirm that these violations are indeed occurring, we asked for the relevant acts from the laboratory tests and the results of these studies," said Kenzhekhanuly, adding that there has yet to be a response from the Russian agency.
Kazakhstan’s agricultural sector news outlet APK Novosti, citing grain market participants, described Rosselkhoznadzor’s request as a retaliatory measure in response to Kazakhstan's ban on the import of Russian grain, which was implemented on August 1 and will last until the end of this year. The decision was made to curb the influx of large volumes of cheap Russian wheat amid a good harvest in Kazakhstan. The Grain Union of Kazakhstan opposed the ban, warning of potential retaliatory actions by Russia that could affect Kazakh farmers. Kazakh businesses have called the situation the beginning of a “cold trade war.”
"This is a potential trade war," Yevgeny Karabanov, a representative of the Grain Union, said in an interview with APK Novosti. “Our authorities have two options: either lift the ban on Russian wheat imports, or impose restrictions on flour, dairy, meat products, and so on. But we must also consider that this could lead to a ban on the transit of coal, oil, and petroleum products… In the second case, leaving the Eurasian Economic Union (EAEU) would be a logical step. And the end of the EAEU…"
Karabanov added that the restrictions imposed by Rospotrebnadzor (the Federal Service for the Oversight of Consumer Protection and Welfare of Russia) are nothing more than an “official warning that Russia will firmly protect its economic interests.” Market participants report that Kazakhstan is experiencing difficulties in transporting grain via Russia to Europe.
Russia began hindering the transit of Kazakh agricultural products through its territory as early as September. Kazakh grain processors reported that trucks carrying cargo are being turned back at the Russian border, with border officials citing orders from Rosselkhoznadzor.
Meanwhile, Kazakhstan is expecting a large grain harvest this year – up to 17 million tons of wheat. The country only needs about 2 million tons to meet its domestic demand, with the rest intended for export.
