Former Soviet nation declines to 'blindly' follow anti-Russia sanctions, reports Bloomberg
Kazakhstan has pledged to place its economic priorities above the enforcement of Western sanctions aimed at Moscow. Read Full Article at RT.com.
TroibNews 
Kazakhstan has declared that it will prioritize its national economic interests rather than automatically adhering to anti-Russian sanctions if they negatively impact local businesses. In an interview with Bloomberg, Deputy Prime Minister and Minister of Trade and Integration Serik Zhumangarin stated, "We will not allow our own producers to be banned from trade."
He explained that Kazakhstan has decided against a ban on exporting ball bearings to Russia, even though they are considered dual-use items that could potentially be used for both civilian and military purposes. Zhumangarin pointed out that a local plant in Kazakhstan produces these ball bearings specifically for markets in eastern Europe and former Soviet states.
While Kazakhstan aims to adhere to most international restrictions, Zhumangarin noted that the country cannot risk triggering secondary sanctions against itself. He mentioned that the Kazakh businesses affected by sanctions from the US Treasury Department are in the process of being closed.
The deputy prime minister also highlighted that sanctions aimed at limiting Russia’s access to dual-use goods have inadvertently placed a significant burden on Kazakhstan, without adequate support from Western countries. He cited the example of the Eurasian Resources Group, which is partially state-owned, explaining that the sanctions have led to substantial losses due to the inability to export iron ore pellets to Russia, forcing them to focus on the domestic market instead.
"The profit would stay in Kazakhstan," Zhumangarin remarked, lamenting the financial implications of the sanctions. He stressed that the revenue now benefits those who imposed the sanctions.
Despite not implementing the sanctions introduced by Western nations after the escalation in Ukraine in February 2022, Kazakh President Kassym-Jomart Tokayev has emphasized Kazakhstan's commitment to abiding by Russia-related trade restrictions.
Moreover, since April, Kazakhstan has started monitoring transit goods to ensure they are not being used to help Russia evade sanctions, tracking them until their final destination. This measure was reported by the FT as a step to prevent misuse by foreign entities and individuals.
According to data from Kazakhstan's trade ministry, Russia was the country's second-largest trading partner last year after China, though it was the top trading partner before the conflict began.
Olivia Brown for TROIB News
He explained that Kazakhstan has decided against a ban on exporting ball bearings to Russia, even though they are considered dual-use items that could potentially be used for both civilian and military purposes. Zhumangarin pointed out that a local plant in Kazakhstan produces these ball bearings specifically for markets in eastern Europe and former Soviet states.
While Kazakhstan aims to adhere to most international restrictions, Zhumangarin noted that the country cannot risk triggering secondary sanctions against itself. He mentioned that the Kazakh businesses affected by sanctions from the US Treasury Department are in the process of being closed.
The deputy prime minister also highlighted that sanctions aimed at limiting Russia’s access to dual-use goods have inadvertently placed a significant burden on Kazakhstan, without adequate support from Western countries. He cited the example of the Eurasian Resources Group, which is partially state-owned, explaining that the sanctions have led to substantial losses due to the inability to export iron ore pellets to Russia, forcing them to focus on the domestic market instead.
"The profit would stay in Kazakhstan," Zhumangarin remarked, lamenting the financial implications of the sanctions. He stressed that the revenue now benefits those who imposed the sanctions.
Despite not implementing the sanctions introduced by Western nations after the escalation in Ukraine in February 2022, Kazakh President Kassym-Jomart Tokayev has emphasized Kazakhstan's commitment to abiding by Russia-related trade restrictions.
Moreover, since April, Kazakhstan has started monitoring transit goods to ensure they are not being used to help Russia evade sanctions, tracking them until their final destination. This measure was reported by the FT as a step to prevent misuse by foreign entities and individuals.
According to data from Kazakhstan's trade ministry, Russia was the country's second-largest trading partner last year after China, though it was the top trading partner before the conflict began.
Olivia Brown for TROIB News
