Emblem
Official Source of the
Prime Minister of the
Republic of Kazakhstan
Menu
Emblem
Close button

How Kazakhstan and Russia negotiating over issues of lifting restrictions on transit of Kazakhstani goods

Friday, 25 October 2019, 12:48:34

The current ban of the Russian Federation on the transit of a number of Kazakhstani goods discredits the basic principles of the Treaty on the Eurasian Economic Union, restricting the freedom of transit of goods, the press service of the Ministry of Trade and Integration of the Republic of Kazakhstan reports.

The application of the Russian Federation restrictions on transit negatively affects the economic condition of the coal industry in Kazakhstan. According to preliminary estimates, the monthly losses of Kazakh coal miners from a reduction in coal supplies amount to more than $11 million.

In July, the Kazakh side announced plans for transit through the territory of the Russian Federation to Ukraine of 103.5 thousand tons, the Russian side approved a quota of 60.2 thousand tons. In August, they requested 240.8 thousand tons, approved – 86.5 thousand tons. In September, the application was 189.7 thousand tons, the Russian side limited to 86.5 thousand tons. In October, the application was 191.9 thousand tons, the Russian Federation approved 86.5 thousand tons.

Moreover, the late approval of even these reduced volumes actually led to the abandonment of Kazakhstani goods by Ukrainian buyers.

The terms of the contracts often stipulate the buyer's obligations to purchase coal from the departure station. Late deadlines for providing information on the amount of agreed transit do not allow advance planning of export. This has already led to the disruption of supplies and the abandonment of contracts.

In addition, there are facts of unreasonable stopping of cars by the Russian railways services.

For example, in July ArcelorMittal Temirtau JSC filed an application for the transit of 80.4 thousand tons. The Russian side agreed on transit of 55.2 thousand tons, but later the volume was reduced by more than three sentences and amounted to 13.6 thousand tons. By this time, 19.6 thousand tons (288 wagons) had already been shipped. As a result, 189 cars were stopped by Russian Railways near the Russian - Ukrainian border.

Thus, Kazakhstan only in July-September did not deliver about 340 thousand tons to its Ukrainian partners.

The issue of canceling transit restrictions was considered in the framework of the Kazakh-Russian Intergovernmental Commission held Oct. 15-16, 2019, in Nur-Sultan.

The result of the negotiations was an increase in the monthly volumes of Kazakh coal transported to Ukraine by 40% – up to 120 thousand tons.

At the same time, as stated by the Minister of Trade and Integration Bakhyt Sultanov, "the proposed size does not fully cover the request of Kazakhstani coal exporters."

“In November, Kazakhstani coal exporters submitted to the Russian Railways applications for transit to Ukraine of more than 200 thousand tons (204.61 thousand tons). The fact that the Russian side unilaterally restricts our exports, from our point of view, is nothing more than a barrier,” said the head of ministry. “We will continue negotiations with the Russian side both in a bilateral format and at the EAEU site. The Eurasian Economic Union guarantees equal conditions to all participants. Including, and ensuring freedom of transit of our goods to third countries. The actions of our EAEU partners should not impede economic relations with other countries.”

For reference: The restriction of Russian coal exports to Ukraine led to a certain overabundance of this product on the domestic market of Russia. As a result, Russian consumers began to abandon Kazakhstan coal. The volume, which continues to be sold in the Russian Federation, has significantly reduced prices, which entails financial losses for coal mining enterprises. The deterioration of the financial situation of Kazakhstani coal enterprises increases the risks of delays in fulfilling obligations to contractors and the workforce and, as a result, the risks of growing social tension.


News feed
07 August 2020, 12:45
About 1.4 billion tons of cargo transported by road in six months in Kazakhstan
05 August 2020, 20:13
Interdepartmental Commission considers preliminary results of implementation of Enbek and Employment Roadmap programs
05 August 2020, 13:01
Prime Minister Askar Mamin informed about SK-Pharmacy’s measures to provide drugs to combat COVID-19
04 August 2020, 19:52
Interdepartmental Commission considers issues of Kazakhstan's access to complex of candidate vaccines for COVID-19
04 August 2020, 11:22
2.6 million students to study in distance format from beginning of academic year — Ministry of Education and Science
04 August 2020, 10:11
By new academic year, Government will provide computers to 500 thousand students from most needy families
04 August 2020, 10:03
Positive trend observed in fight against COVID-19 in Kazakhstan
04 August 2020, 10:02
Daily increase in incidence of COVID-19 in Kazakhstan decreased on average by almost one and half times — Ministry of Healthcare
04 August 2020, 09:56
In Kazakhstan, 4,422 schools provided with high-speed Internet over 8 Mbps
03 August 2020, 16:04
Government session to be held Aug. 4 in Ukimet Uyi
03 August 2020, 14:20
New program of Housing Construction Savings Bank "Zhas Otbasy" started July 1 in Kazakhstan
03 August 2020, 14:10
In 2021, Housing Construction Savings Bank plans to issue mortgage online
03 August 2020, 14:00
Transforming Housing Construction Savings Bank into Otbasy Bank and providing Kazakhstanis with housing — interview with Lyazzat Ibragimova
03 August 2020, 10:47
Shakhmardan Baimanov appointed chair of Committee on Youth and Family Affairs of the Ministry of Information and Social Development
03 August 2020, 09:32
Anuar Dzhumadildayev appointed chair of Treasury Committee of the Ministry of Finance
02 August 2020, 17:30
Video Digest: Main events of the week, No. 71
31 July 2020, 08:29
Prime Minister Askar Mamin congratulates Kazakhstanis on Kurban Ait
30 July 2020, 18:30
Yerbol Ospanov appointed vice minister of labor and social protection of the population
30 July 2020, 17:15
Increasing yield, ensuring phytosanitary safety and training of research personnel — how agricultural science develops in Kazakhstan
30 July 2020, 16:04
Allen Chaizhunussov appointed chair of the Board of QazExpoCongress
30 July 2020, 13:09
Prime Minister Askar Mamin instructs to develop additional measures to support business
30 July 2020, 08:58
Roman Sklyar's working trip to Tatarstan: Creating joint ventures and implementing investment projects
29 July 2020, 20:56
Interdepartmental Commission takes special control over implementation of President’s instructions
29 July 2020, 16:57
Increasing lending to SMEs, providing employment and social benefits to population — Ruslan Dalenov on measures to support economy
28 July 2020, 21:37
Mortgage on favorable terms and construction of affordable housing — development of housing construction in Kazakhstan
28 July 2020, 19:03
Prime Minister Askar Mamin holds meeting on development of Kyzylorda region
28 July 2020, 11:17
During pandemic, Internet and electronic government services became the first necessity — Bagdat Mussin
28 July 2020, 10:20
E-commerce market amounted to 435 billion tenge in first half of 2020
28 July 2020, 10:13
In first half of 2020, e-commerce in Kazakhstan increased by one and half times
28 July 2020, 10:06
Epidemiological situation in Kazakhstan stabilizing
28 July 2020, 10:00
Since introduction of quarantine in Kazakhstan, 29% decrease in CVI cases recorded
27 July 2020, 14:26
Government session to be held July 28 in Ukimet Uyi
27 July 2020, 12:03
Changing approaches to provision of medical care reduced burden on bed capacity of Almaty — Nadyrov
27 July 2020, 11:37
After launch of mobile resuscitation teams in Almaty, number of deaths from COVID-19 decreased
27 July 2020, 11:21
Nadyrov on COVID-19 in Almaty: Unloading hospitals, switching to telemedicine and forming drug warehouse
25 July 2020, 13:22
Video Digest: Main events of the week, No. 70
24 July 2020, 18:45
Tugzhanov in Mangystau region: Meeting with medical workers and checking warehouses of SK-Pharmacy
23 July 2020, 19:07
President Kassym-Jomart Tokayev receives Prime Minister Askar Mamin
23 July 2020, 17:24
Personnel training, teaching basics of entrepreneurship, expanding microcrediting in rural areas — how Enbek State Program implemented in Kazakhstan
23 July 2020, 09:07
COVID-19 Operational Headquarters strengthens control in regions
22 July 2020, 18:42
Eliminating spontaneous dumps, separating solid waste and protecting environment — Ministry of Ecology reports on implementation of President's instructions
21 July 2020, 22:49
COVID-19 situation stabilized in Kazakhstan: Daily growth in number of cases reduced, number of recovered increased
21 July 2020, 22:03
Kazakh-Russian plant for 1,200 new jobs to be built in Zhambyl region
21 July 2020, 14:09
Regions need to actively support projects until they receive the status of subsidized — Atameken NCE
21 July 2020, 12:19
Production of building materials in Kazakhstan increased 3.3 times — Ministry of Industry and Infrastructure Development
21 July 2020, 11:05
Over 2 thousand projects worth half a billion tenge approved under Economy of Simple Things
21 July 2020, 11:04
Number of ambulance calls reduced by 23% in two weeks — Ministry of Healthcare of Kazakhstan
21 July 2020, 10:54
Kazakhstan reaches stabilized level of epidemiological situation
20 July 2020, 18:39
Asel Zhanassova appointed vice minister of trade and integration of the Republic of Kazakhstan
20 July 2020, 17:47
Prime Minister Askar Mamin introduces First Vice Minister of Digital Development Bagdat Mussin
© 2019 - 2020 Press service of the Prime Minister of the Republic of Kazakhstan.
Developed by SoftDeCo.