Russia is reportedly smuggling millions of tonnes of grain into Kazakhstan, according to an investigation by Kazakh Railways (KTZ). Data from the agriculture ministry and trade data do not match up, and the likely source of the unregistered grain is Russia. The suspected smuggling follows a refusal to lower transit fees for Russian grain. KTZ is missing out on important transit fees because of it.
According to an investigation by KTZ, Russia is illegally exporting grain into Kazakhstan. The loss-making company says that it is losing out on transit fees because of the smuggling. The illegal exports concern five to six million tonnes of grain in Kazakhstan that are unaccounted for, says KTZ. The company is still calculating the financial damage it incurred by losing out on transit fees.
KTZ’s findings come after Kazakhstan refused to lower transit fees for Russian grain. Earlier, Russia asked Kazakhstan to give it a better transit deal.
Kazakh publication ElDala points out that transit fees towards China and the rest of Central Asia are now 7,5 times higher than export fees. It allows Kazakhstan to protect the competitiveness of its exporters.
Smuggling for re-export into Uzbekistan
“We received an official report from the agriculture ministry that the grain harvest amounted to 11 million tonnes. Out of that, we exported four to 4,5 million tonnes, domestic consumption was six million tonnes”, a representative of KTZ said. “In total, we were supposed to export practically everything.” However, it now turns out that another five to six million tonnes remain in Kazakhstan.
Meanwhile, trucks are lining up at the Uzbek border for further export into Central Asia. There is an “abnormally long queue of trucks with trailers on the border of Uzbekistan”, KTZ says. “We have all the evidence: number plates, video and photo. Now we are finishing up the documents, which we will give to law enforcement agencies.”