Seven individuals told Reporters that Russian firms had overwhelmed Kazakh partners with new demands to help them avoid Western sanctions and acquire required items.
As Russia invaded Ukraine on Feb. 24, 2018, the West placed sweeping sanctions on Russia’s $2.1 trillion economy, forcing Moscow to find alternative ways to acquire technology and products.
To circumvent Western bans on hundreds of commodities, dealers created a complex supply chain through foreign nations. For example, economists claim Turkey and former Soviet countries import many commodities.
The seven individuals, who requested anonymity owing to the delicacy of the topic, claimed Russian demands to assist transport bearings, airplane components, and rare earth metals through Kazakhstan’s 7,591-kilometre (4,717-mile) land border with Russia had increased.
Two sources attributed heightened Russian interest to Turkish measures to crack down on sanctioned commodities movement.
One foreign commerce executive told reporters, “This suggests the boom is just beginning.”
Kazakhstan trades mostly with Russia. Last year, Kazakh exports to Russia grew 25% to $8.8 billion, and some things sold well. Official figures revealed bearing exports quadrupled to $111 million.
Last year, plastic pipe exports increased to $12 million.
Kazakhstan also substantially expanded computer imports from Europe and Taiwan; however, how many were re-exported to Russia is unknown.
Sources say no law is broken sometimes. Complex things often have sanctioned components yet are not forbidden. They said that Kazakh customs are overwhelmed by commercial growth.
Another source stated that Russian banks imported bank card equipment and polymers from Kazakhstan.
Such business incurs extra expenditures. Kazakh businesspeople reselling products to Russia are eligible for a 12% VAT rebate. Still, the merchant claimed that those moving “suspect stuff” do not submit for it to avoid exposing the supply chain.
One source explained his involvement in the illegal trade with a Russian proverb: “For some war is sadness and despair but for others it is a chance to bloom.”