Photo from UNIAN
The government of the Republic of Kazakhstan has appealed to Russian authorities to allow transit through the Russian territory of strategically important goods transported from Ukraine to Kazakhstan, as stated in a posting of the National Chamber of Entrepreneurs (NCE) of the Republic of Kazakhstan Atameken referring to NCE Deputy Chairman Dana Zhunusova.
The category of strategically important goods includes only the industrial goods that are critical for ensuring the continuity of production processes in Kazakhstan, and not food products, which are sanctioned under Russian restrictive measures, according to Zhunusova.
Read alsoTrade War: Putin steps on Ukrainian transitAt the same time, Zhunusova noted that Russian authorities' decision upon consideration of the request from Kazakhstan should not be viewed as a guarantee of a free passage of goods. Therefore, she advised Kazakh entrepreneurs to make their own risk assessment due to the current situation.
Zhunusova said the NCE has been regularly updating local businesses on recent developments. Importers who have concluded contracts with Ukrainian counterparts have been informed. A hotline for entrepreneurs has been set up to deal with the transit issues.
As UNIAN reported earlier, Ukraine's Ministry of Economic Development and Trade urged Kazakhstan to demand that the Russian Federation abolish restrictions on the transit of Ukrainian goods.
On July 1, Russia imposed additional restrictions on the transit of Ukrainian goods through its territory. Thus, the food embargo with regard to Ukrainian products and industrial goods has been extended until the end of the year. The current restrictions earlier imposed on Ukrainian goods heading to Kazakhstan now apply to transits to the Kyrgyz Republic. The legislative changes also provide for a complete ban of transit of embargoed goods.
Ukraine's Trade Representative Nataliya Mykolska stressed that the new restrictions would cause a complete halt to the transit of goods from Ukraine via the Russian territory to the Republic of Kazakhstan and the Kyrgyz Republic. Ukraine is set to raise this issue at a meeting of the Council for Trade in Goods of the World Trade Organization (WTO), which is scheduled for July 6, as well as at a meeting of the WTO General Council in late July.
Ukraine's government on July 4 announced plans to immediately introduce retaliatory measures in response to Russia's actions.
Russia's moves were largely predictable, the ministry noted. On June 24, the Ministry of Investment and Development of the Republic of Kazakhstan issued recommendations to Ukrainian carriers carrying out transportation of goods to Kazakhstan to develop alternative routes bypassing Russia for goods transportation starting from July 1, 2016. In particular, Kazakhstan proposed to use routes going through Georgia, Azerbaijan and via the Caspian Sea to the port of Aktau in Kazakhstan, as well as through Turkey, Iran, Turkmenistan and Uzbekistan.
Ukraine and Russia introduced reciprocal trade restrictions in January 2016. According to various estimates, Ukrainian producers face losses of over $1 billion due to the Russian-imposed restrictions.