After the introduction of sanctions against Russia, which is waging a full-scale war in Ukraine, the Russian authorities have started so-called "parallel imports", purchasing electronics through third countries. Kazakhstan also used this opportunity - in January-October 2022 alone, trading companies from Kazakhstan sold electronics and telephones to Russia worth 575 million US dollars, which is 18 times more than in the same period of 2021, the publication writes CABAR.asia.
The US government, which is a key player in the sanctions "market", has drawn attention to this situation. The Financial Crimes Enforcement Agency (FinCEN) of the US Department of Commerce has included Kazakhstan in list so-called transit points through which Russia buys sanctioned goods.
Generalized statistics of Kazakhstan's foreign trade for January-October 2022 show that trade turnover with the Russian Federation increased by 7% to 21,1 billion US dollars. At the same time, the import of Russian goods in the Republic of Kazakhstan has not actually changed. But Kazakhstan significantly increased the supply of goods to the Russian Federation - plus 22% by the same period in 2021, from 5,7 billion to 6,9 billion dollars.
In 10 months of 2022, electronics, household appliances and telephones worth 575,1 million US dollars were sold from Kazakhstan to Russia. Compared to 2021 ($30,7 million for the same period), the growth is enormous, especially given that Kazakhstan does not produce this equipment, but exports it. Thus helping the Russian Federation to circumvent sanctions.
The largest amount in these product categories belongs to computer equipment, monitors and projectors - 375,4 million dollars. Growth in one year is more than 400 times. Sales of smartphones increased fivefold - 140 million dollars.
The position of the President of Kazakhstan
The official position of Kazakhstan regarding indirect re-export is a ban on the sale of sanctioned goods to Russia. Such a position in interview of the "Russia 24" channel was announced by President Kasym-Zhomart Tokayev in the summer of 2022.
"We will continue to work. Kazakhstan in no way abandons its alliance obligations. This would be wrong and, ultimately, unjustified from the point of view of perspective. Because I am sure that Russia will cope with the current difficulties. It is a large country, with a large economy. And Russia, as evidenced by past experience, acts very well in extreme situations. Therefore, there is no doubt here. But sanctions are sanctions. We must not violate them. All the more, we receive reports that in case of violation of sanctions, so-called "secondary sanctions" will be imposed by the West on our economy. That is, very difficult, delicate work is going on," — said Tokaev.
Kazakh companies are increasing their exports of electronics to Russia
Logistic companies operating on the transport market Europe — Kazakhstan — Russia use different schemes for re-export. About this with reference to experts in the field of logistics write Forbes.ru. Among such logistical solutions are "false transit" and "resale on the way". Under such schemes, trucks with goods bought by a Kazakh buyer in Europe do not even reach Kazakhstan. The products are sold to a Russian company while still on the way.
Trade statistics indicate that Kazakhstan has significantly increased its exports to Russia of electronics that are not produced in the Republic of Kazakhstan, but are imported from other countries. Analyzing the open data of the Committee of State Revenues of the Ministry of Finance of the Republic of Kazakhstan, it is not possible to determine which goods from which producing countries are exported from Kazakhstan to Russia. Statistics on the import of electronics show that the Republic of Kazakhstan imports mobile phones, computers and household appliances not only from the USA and Europe, but mainly from Asian countries - China, Vietnam and Turkey.
What threatens Kazakhstan with "parallel imports" to Russia
Expert of the Institute of World Economy and Politics of the Republic of Kazakhstan Ladyя Parking lot noted thattariff restrictions imposed on Russia by Western countries create a number of difficulties for trade interaction. Close economic contacts with Russia became the reason for the inclusion of Kazakhstan in the list formed by the US government, in connection with the available opportunities for the transportation of limited or controlled exports to Russia and Belarus. This is a joint alert from the Financial Crimes Agency and the US Department of Commerce's Bureau of Industry and Security, which mentions Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan as frequently used transshipment points for the transit of sanctioned goods.
"There was already a precedent in Uzbekistan when the American side applied sanctions against an Uzbek company. Kazakhstan is doing everything possible to avoid such a situation. First, for the convenience of Kazakh entrepreneurs, a service containing list goods under sanctions. Secondly, the State Revenue Committee of Kazakhstan constantly monitors the import and export of goods included in the sanctions lists.
Although it must be admitted that the increase in the "logistics shoulder" (the goods must be imported into the territory of the Republic of Kazakhstan) and the need to pay VAT twice (arrival in Kazakhstan and then arrival in Russia) make this route more expensive. The use of so-called "false transit" schemes with the resale of goods through the customs warehouse procedure carries unnecessary risks. In the current situation, Astana intends to remain committed to the previously announced course - to develop cooperation with Moscow, minimizing the threat of falling under secondary sanctions," the expert notes.
Зreturnі countriesand do not want quarrel with Kazakhstanoh through re-export of sanctioned goods to Russia
On mind Ladyї Parking lot, сthe situation surrounding the re-export of prohibited goods to Russia, as well as the implementation of sanctions restrictions, is under the special control of Western countries. The relevance of the topic is confirmed by the increased volume of public statements by Western officials.
However, it must be understood that the very countries that imposed sanctions on Russia still maintain trade relations with Moscow, albeit in a truncated version. As a result, the presence of trade flows to Russia is not a sufficient reason for undermining interstate relations with regional partners, including the countries of Central Asia.
The situation may change if certain countries become rude and constantly violate the sanctions regime against the Russian Federation. For example, supplies of dual purpose goods will be carried out, which will be used for the work of the Russian military industry.
According to the results of the period from January to November 2022, the total turnover between Kazakhstan and the countries of the European Union amounted to 36,4 billion dollars, compared to 25,9 billion for the same period in 2021. Thus, the European Union remains one of the largest and most important trading partners of Kazakhstan, on which accounts for about 30% of the country's foreign trade.
The last months of last year were busy in terms of meetings at the highest level between the Kazakh side and EU representatives. Thus, in October, the President of the European Council, Charles Michel, visited Astana, and in November, the High Representative of the EU for Foreign Affairs and Security Policy, Josep Borrell.
President of the European Commission Ursula von der Leyen signed a memorandum of understanding and strategic partnership in the field of energy with Kazakhstan. The German company Svevind Energy Group concluded an agreement on the construction of a plant for the production of green hydrogen in the Mangystau region, which will be exported to European countries. The $50 billion project is planned to be launched by 2030. In fact, it is about the creation of a new industry in the country. As a result, Kazakhstan intends to continue working on strengthening the integration of strategic production chains in the direction of the EU countries.
