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Export of Kazakhstan raw materials to Ukraine via Russian territory stopped

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The Atameken NCE RK brings to the attention of all entrepreneurs that since June 1, 2019 the Decree of the Government of the Russian Federation № 460-25 dated April 18, 2019 was introduced a complete ban on the export of list of goods (oil, oil coke, bituminous mixtures, ethane, benzene, toluene, etc.) from the Russian Federation (hereinafter - RF) on the territory of Ukraine and approved the list of goods, the export of which is carried out on the basis of permits issued by the Ministry of Economic Development of the Russian Federation (coal, coke, gasoline, diesel fuel, propane, liquefied gases).

In accordance with the decision, a procedure was developed between the authorized bodies of Russia and Kazakhstan to agree on the volume of exports of goods on the basis of permits issued by the Ministry of Economic Development of the Russian Federation. However, this procedure could not keep Kazakh companies out of trouble on the border between Russia and Ukraine. 

Deputy chairman of the Board of the Atameken NCE RK Yevgeniy Bolgert explained that, to date, according to the information of  KTZ-Freight transportation JSC, at the station Valuiki on the border of Russia and Ukraine 426 Kazakh cars with coal concentrate coming from Karaganda to Kryvyi Rih are idling at the border. The reason for the delay is the absence of a permit to export from Russia to Ukraine.

Despite the official recommendations of the Board of the Eurasian Economic Commission on the non-application of unilateral measures of the Russian Federation in respect of goods transported under the customs procedure of customs transit (Recommendation № 21 of December 18, 2014), domestic business continues to incur huge losses due to regular problems with the transportation of goods in transit through Russia.

While since the end of 2014, Kazakhstani entrepreneurs have been constantly faced with restrictions and prohibitions with respect to the import of goods into Kazakhstan from European countries and Ukraine, since 1 June this year, domestic exporters have faced serious difficulties. According to preliminary data, daily losses of our entrepreneurs for demurrage of railcars at the Russian-Ukrainian border, excluding contractual penalties, exceed 5 million tenge.

It should be noted that the Chamber initially predicted the risks associated with restrictions on transit through Russia and repeatedly drew the attention of the authorities and the EEC to the problems that Kazakhstani businesses would eventually face. Nevertheless, the decision has been made, and the order of interaction between the authorized bodies of Russia and Kazakhstan does not provide unimpeded transportation of goods from Kazakhstan to Ukraine and third countries.

For domestic entrepreneurs, transit through the territory of Russia is a historically established route, which is of paramount importance for the international transportation of goods. And, despite the deepening integration within the EEU and close cooperation of the Union's customs services, business is regularly left alone with the problems that arise, primarily due to the lack of dialogue and coherence in making such decisions by one of the EAEU member states. 

It should be noted that in accordance with the adopted regulations of the Russian Federation, as well as according to the written explanations of the Federal Customs Service of Russia, the ban applies to the export and transit through the territory of Russia to Ukraine, including transportation to third countries that transit through the territory of Ukraine.

The Atameken NCE RK asks all entrepreneurs to take the necessary measures to minimize the negative impact on the activities of the Kazakhstani business, taking into account the changes in respect of transportation from Kazakhstan to Ukraine.

In turn, the Chamber takes measures to resolve the situation as soon as possible at all available levels of interaction. The Atameken NCE RK sent an appeal to the Government of the Republic of Kazakhstan and prepared the official request to the EEC and authorized bodies of Russia.

If you are an exporter and have any questions on the order of export of goods from Kazakhstan to Ukraine and third countries through the territory of Ukraine, please call the Department of Economic Integration of the Atameken NCE RK: 8 7172 91 93 73.     


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