A new Kazakh online system aims to monitor the import and export of goods manufactured abroad. There is a suspicion that certain Kazakh companies are after goods Russia re-export those imposed on Moscow by the West sanctions cannot be delivered there.
The Kazakh parliamentary group of the “Ak Shol” (Light Path) party recently called on the government in Astana to identify and name companies that could be involved in circumventing sanctions against Russia.
“International partners have doubts about the 22-fold increase in the volume of electronics exports Kazakhstan to Russia. They attribute this to hidden re-exports of sanctioned products from third countries in the course of so-called parallel imports. But also on a fake transit, during which goods from Europe do not even get to our country, since they are resold halfway to final customers, behind which Russian companies are hiding,” reads the question of the Kazakh deputies.
Measures against Central Asian countries?
The reason for the request to Kazakh Prime Minister Alikhan Zmailov was the results of the visit of a US-British delegation to the countries of Central Asia, led by Deputy Finance Minister for Combating Terrorist Financing and Financial Crime Elizabeth Rosenberg and Deputy Trade Minister Matthew Axelrod.
After completing talks with the Kazakh government, Rosenberg and Axelrod said at a news conference April 25 in the Kazakh capital Astana that they had made it clear to Kazakhstan and other Central Asian countries that violators of export controls and U.S. laws could be subject to secondary sanctions .
“Today we are not talking about iPhones, not about washing machines, but about components of computer technology used to power and control missiles and drones, which the Russian military machine uses to kill civilians and soldiers on the territory of Ukraine. We have been seeing since the beginning of the war saw a sharp increase in deliveries of certain goods to Kazakhstan,” stressed Axelrod.
Small traders between Russia and Kazakhstan
35-year-old Andrey, who after the announcement of the Partial mobilization in Russia returned to his hometown of Ust-Kamenogorsk in East Kazakhstan in September 2022 from Novosibirsk, where he lived for ten years, heard from the media about the visit of the US-British delegation and also about the new online monitoring system for imports and exports. However, he doubts that “American threats and restrictive measures” can in any way affect trade with Russia.
“How are you going to close the 7,500-kilometer border between Kazakhstan and Russia? That’s impossible! In eastern Kazakhstan alone, thousands of people make their living from trade with the Russian republic of Altai. There are as many small traders as there were in the 1990s. They bring from cheaper groceries there and from here they transport all kinds of equipment that is urgently needed there,” says Andrej K., who does not want to be photographed. On weekends, he himself transports “special orders” to Barnaul in Russia in his rather battered Lada.
“It’s only a two-hour drive from Ust-Kamenogorsk to the Russian border, a little over 130 kilometers, then another four hours to Barnaul. The road is good. There are no problems with the Russian border guards, especially not when you have electronics or spare parts for cars,” says the man, who now lives in eastern Kazakhstan. He is pleased that brisk trade with Russia allows him to improve his finances.
What is especially in demand in Russia
Sabit, who runs an electronics shop with a workshop in the center of Ust-Kamenogorsk, also confirms that “specific goods” are in high demand in Russia. Approximately six months after the start of Russia’s war of aggression against Ukraine the inquiries from Russia have increased.
“Initially they were interested in motherboards and memory for computers, graphics cards and other hardware. Now they want drones and action cameras. Chinese Mavic and Agras drones are in demand, and they want Xiaomi cameras for the cameras,” said the man also does not want to be photographed.
Like Andrei, Sabit and his employees often bring the ordered goods to Russia themselves. He is aware that electronics are dual-use products that are subject to sanctions from the West. Therefore, he carefully thinks out in advance the route of his trip to Russia.
“Reports about the online surveillance system initially frightened large companies that transport goods to Russia in large trucks. They cannot bypass border controls. It’s easier for us as small business owners,” says Sabit.
He could take country roads in his little car, drive through forests and mountains. For example through the Pavlodar region, which is a real loophole. “This is business! And good business for many people, considering that the income in eastern Kazakhstan is much lower than in Astana or Almaty,” says the trader.
A “singing” fountain in the center of Ust-Kamenogorsk
Associated with Russia
However, this “good business” also has a downside. Everyone who spoke to DW said that almost all goods that are currently in high demand in Russia have also become significantly more expensive in Kazakhstan.
A Chinese-made quadrocopter “for use in agriculture” cost 600,000 tenge (equivalent to 1,324 euros) a year ago; today the price is 1.4 million tenge (equivalent to 2,857 euros). Components for computers, laptops, household and office equipment are now also significantly more expensive.
“But our customers from Russia don’t seem to be particularly bothered by this price increase. The inquiries from there have not decreased. That’s good on the one hand, but on the other hand you notice that locals are buying less, which is bad,” says Andrei.
But there is another factor, according to him: “In eastern Kazakhstan there are many people who support Russia. You only have to look at the ‘singing fountain’ in the center of Ust-Kamenogorsk. It regularly ‘dances’ to the Russian song ‘Kalinka- Malinka’.” Andrei believes that if the West imposes secondary sanctions on Kazakhstan, the number of pro-Russians in the Pavlodar region and northern Kazakhstan could increase.
Adaptation from the Russian: Markian Ostapchuk.