Better to abandon Russian ports than lose southern markets — Grain Union of Kazakhstan
Kazakhstan discussed export logistics in Astana, focusing on diversifying routes and easing trade barriers. While cooperation with Russia and access to ports remain vital, exporters prioritize Central Asian and China markets, seeking predictable transit terms and reduced dependency risks.
An extended meeting involving agribusiness representatives and government officials was held in Astana to address export and logistics issues. The discussion focused on diversifying export routes for Kazakh products and removing barriers hindering foreign trade development. Particular attention was given to cooperation with Russia and access to its port infrastructure.
Grain market representatives stated that the Russian route remains challenging due to strong competition and transit restrictions. According to industry participants, Kazakh cargo often moves through Russian territory on a “residual basis.” Businesses therefore emphasized the need for clearer intergovernmental arrangements that would provide guaranteed shipment volumes and enable exporters to plan contracts with greater certainty.
At the same time, government officials noted that exports routed through Russia and Europe account for up to 60% of exporters’ revenues, making this direction strategically important. A transit transportation agreement signed by the transport ministries of both countries is currently undergoing ratification. The Russian side has expressed readiness to facilitate the transportation of Kazakh cargo, including grain, through Russian and Baltic ports, and is discussing potential tariff discounts subject to volume guarantees.
A separate route via the Kaliningrad region, with transit through Lithuania, is also under consideration. Meeting participants said Lithuania is prepared to offer transportation discounts in this direction, while Russia may provide additional incentives if stable export volumes of grain, coal, and other bulk commodities are secured. The parties intend to finalize indicative plans in the near future.
According to the head of the Grain Union of Kazakhstan, Nurlan Ospanov, southern markets in Central Asia and China are a priority for Kazakhstan. He stated that if a choice must be made between access to Russian ports and maintaining positions in southern markets, Kazakhstan would choose the latter. He warned against concessions that could allow Russian grain easier access to Kazakhstan’s traditional export destinations.
Participants also highlighted the limited capacity of alternative routes. In particular, the Trans-Caspian International Transport Route is not yet fully suited for bulk exports due to the lack of a deep-water port in Georgia. Additionally, transit through Russia carries inherent risks, as approvals may depend on market or political considerations. Exporters called for revising existing agreements to ensure more predictable and transparent international logistics conditions.
To Read more about Wheat News continue reading Agriinsite.com
Source : Ukr Agro Consult
