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
23 October 2020, 15:41
Prime Minister Askar Mamin chaired meeting of Commission on Digitalization
23 October 2020, 15:02
Prime Minister Askar Mamin and EU Ambassadors discussed cooperation in economic recovery
22 October 2020, 18:20
Gulmira Isaeva relieved as vice minister of agriculture 
22 October 2020, 17:24
Council for Improving Investment Climate considers prospects for economic recovery in Kazakhstan
22 October 2020, 15:22
Prime Minister Askar Mamin informed about plans for development of electric vehicles production in Kazakhstan
22 October 2020, 14:54
Prime Minister Askar Mamin chaired meeting of Project Office on Entrepreneurship
22 October 2020, 12:03
Rural medical organizations presented with mobile medical complexes
21 October 2020, 09:56
Askar Biakhmetov appointed Deputy Head of the Office of the Prime Minister of Kazakhstan
20 October 2020, 14:51
Government approved project of gas supply to Almaty CHPP-2
20 October 2020, 14:38
Prime Minister of Kazakhstan Askar Mamin met with Suma Chakrabarti
20 October 2020, 13:35
Three-month supply of personal protective equipment formed in medical organizations — Alexey Tsoy
20 October 2020, 11:02
For 9 months of 2020, vaccination plan in Kazakhstan fulfilled by 100% — Ministry of Agriculture
20 October 2020, 10:27
Domestic enterprises daily produce 900 thousand masks — Beibut Atamkulov
20 October 2020, 10:17
Government considers issues of providing population with medicines
20 October 2020, 10:02
Government considers issues of veterinary and phytosanitary safety
19 October 2020, 17:13
Prime Minister Askar Mamin gave instructions on sanitary and epidemiological situation in Kazakhstan
19 October 2020, 14:36
Government session to be held Oct. 20 in Ukimet Uyi
15 October 2020, 23:56
Improving healthcare and increasing business activity — development of Almaty for 9 months of this year
15 October 2020, 15:28
Prime Minister Askar Mamin takes part in opening ceremony of Hyundai car assembly plant
13 October 2020, 13:14
Main task of clarifying forecast was to provide financial support to doctors and take proactive measures on COVID-19 — Alikhan Smailov 
13 October 2020, 13:01
Production in machine-building industry grew by 16.6% — Beibut Atamkulov
13 October 2020, 11:35
State budget expenditures executed at 99.5% — Ministry of Finance
13 October 2020, 11:13
National Bank launches remote biometric identification service for obtaining financial services
13 October 2020, 10:22
Over 9 months in Kazakhstan, investments in healthcare increased by 85.7% — Ministry of National Economy
13 October 2020, 09:49
Along with growth in real sector, recovery of activity in service sector began in September 2020 — Askar Mamin
12 October 2020, 16:34
Askar Mamin’s visit to Abu Dhabi: Kazakhstan and the UAE accommodated investment projects for $6.1 billion
12 October 2020, 16:18
Government session to be held Oct. 13 in Ukimet Uyi 
09 October 2020, 19:23
Amendments to law, social payments to electronic wallet and use of pension savings — how Ministry of Labor implements instructions of the Head of State
09 October 2020, 16:57
Prime Minister Askar Mamin presents initiatives on strengthening competitiveness of EAEU
08 October 2020, 19:06
Prime Minister Askar Mamin discusses implementation of joint projects with leadership of large Russian companies
08 October 2020, 18:44
Interdepartmental Commission adopts decisions on implementation of instructions of the Head of State
07 October 2020, 23:04
Prime Minister of Kazakhstan Askar Mamin meets with Prime Minister of Russia Mikhail Mishustin
06 October 2020, 14:58
Beibut Atamkulov: Investments in country's pharmaceutical industry grew by 5.2% and amounted to 4.1 billion tenge
06 October 2020, 14:36
National distribution system to comprehensively solve issues of reducing food chain losses and stabilizing prices — Bakhyt Sultanov
06 October 2020, 13:09
Market of Kazakhstan 100% provided with domestic freshwater fish — Ministry of Ecology, Geology and Natural Resources
06 October 2020, 12:37
Alexey Tsoy: To support domestic pharmaceutical companies, procedures for examining medicines and assessing their quality accelerated
06 October 2020, 10:53
Domestic market of Kazakhstan 100% provided with 12 commodity items — Ministry of Agriculture
06 October 2020, 10:25
Government adopts Comprehensive Plan for Development of Pharmaceutical Industry until 2025
06 October 2020, 10:08
Prime Minister Askar Mamin congratulates Kazakhstani farmers on completion of harvesting
06 October 2020, 09:56
Askar Mamin: Saturation of internal market with domestic food is a strategic task of government 
05 October 2020, 14:53
Government session to be held Oct. 6 in Ukimet Uyi
05 October 2020, 12:04
Resumption of passenger traffic between EAEU countries under quarantine discussed at EEC Council
04 October 2020, 10:19
Prime Minister Askar Mamin congratulates Kazakhstani teachers on their professional holiday
02 October 2020, 11:12
Changing approaches to attracting investments, or how investment industry of Kazakhstan adapts to challenges of the pandemic
01 October 2020, 16:59
Government considers implementation of Plan of the Nation "100 Concrete Steps’’
30 September 2020, 18:46
Prime Minister Askar Mamin discusses implementation of investment projects in Kazakhstan with Chair of EDB Nikolai Podguzov
30 September 2020, 14:53
Accounts receivable of consumers to energy companies reached 17 billion tenge — Beibut Atamkulov
30 September 2020, 13:15
In Kazakhstan, 98.2 thousand packages of medicines and almost half a million medical masks withdrawn from illegal circulation — Ministry of Internal Affairs
30 September 2020, 12:22
Service for monitoring Internet quality by population launched in Kazakhstan
30 September 2020, 11:32
Ministry of Healthcare proposes to suspend resumption of additional flights with other countries from Oct. 5
© 2019 - 2020 Press service of the Prime Minister of the Republic of Kazakhstan.
Developed by SoftDeCo.