MOSCOW: Russia effectively banned the transit and import of Kazakh grain and some other agricultural products on phytosanitary grounds, which some Kazakh exporters viewed as retaliation for Kazakhstan’s earlier ban on Russian grain supplies.

Kazakhstan plans to harvest a record 27.7 million metric tons of grain this year, with an estimated 9 million tons destined for export. Kazakhstan exports its grain to Europe and Turkey through Russian seaports. The Russian agricultural watchdog said in a statement that from Sept. 23, its systems would automatically block the issuance of phytosanitary certificates for grain, grain products, sunflower seeds, tomatoes, and peppers from Kazakhstan.

The absence of such certificates implies that the goods cannot cross the border. The agency stated that the measure aimed at “preservation of Russia’s phytosanitary well-being, the development of greenhouse complexes, domestic seed production, and the volumes of export of Russian grain and fruit and vegetable products.” Kazakhstan introduced a full ban on wheat imports, including from Russia, from Aug. 21, citing expectations of a record harvest and significant carry-over stocks from last year.

“I think it is an official warning that Russia will firmly defend its economic interests,” Kazakhstan’s Grain Union head, Evgeny Karabanov, told Reuters. He said Kazakhstan’s agriculture ministry asked for an official clarification from its Russian counterpart. Kazakhstan’s grain lobby groups also accused Russian exporters of illegally supplying grain to Kazakhstan for further re-export to other Central Asian countries and Afghanistan, thereby dodging Kazakh taxes. Russia, itself a major grain producer and the world’s biggest wheat exporter, has been eyeing the Kazakh grain market as it seeks to bolster its position as a global agricultural superpower. Russian grain has also become more competitive in Central Asia due to the ruble’s recent weakness. — Reuters

Traditional allies Russia and Kazakhstan form the core of the Eurasian Economic Union, a group of ex-Soviet countries established in 2015 with the aim of creating a single market for goods, services, capital, and labor.

Kazakhstan also plays an important role as a conduit for Western consumer and industrial goods into Russia, which cannot import them directly due to Western sanctions. Kazakhstan’s Union of Grain Processors said last year that illegal supplies of Russian grain to Kazakhstan had become “a huge problem, threatening Kazakhstan’s economy.” The Russian Grain Exporters Union said on Oct 1 that it was not aware of any restrictions on Kazakh grain transit yet but added that concerns over retaliation after the import ban were justified. “We sincerely consider the ban by Kazakhstan on the supply of Russian grain and its processed products to the country to be a misunderstanding,” the lobby group said. — Reuters