Oblast of Russia to increase trade turnover with Kazakhstan (Exclusive)

Baku, Azerbaijan, July 9

By Nargiz Sadikhova - Trend:

The increase of agriculture complex products export from Chelyabinsk Oblast (federal subject) of Russia to Kazakhstan is to equal to 10-15 percent, Ministry of Agriculture of the oblast told Trend.

“In correspondence to the project on agriculture complex export, the value of the regional production export of the complex is to amount to $150 million, compared to $108 million of last year,” the ministry said.

“Nearly 60 percent of the total volume of export accounts for agriculture and food products export to Kazakhstan. Taking into consideration the project, the increase of the export value to Kazakhstan from Chelyabinsk Oblast is to increase by 10-15 percent,” the spokesperson for the ministry stated.

“During 2018, the volume of export to Kazakhstan amounted to $64.7 million, whereas the volume of import from Kazakhstan amounted to $33.9 million,” the spokesperson added.

For the most part, the exported products are poultry meat, products of oil and fat industry, and cereal-processing industry. In turn, the imported products are mainly milk products, wheat and feedstuff.

The spokesperson further stated that the ventures that export production to Kazakhstan on the regular basis are Romkor, SITNO Holding, Soyuzpischeprom Inc., Makfa and Zlak.

“Kazakhstan is considered to be a strategic partner and a perspective market for these companies,” the spokesperson added.

Furthermore, a number of issues of trade turnover were also mentioned by the ministry.

“Among them are the decrease of competitiveness of exported food products compared to the local Kazakh manufacturers due to the high ruble rate to tenge, the increase of tariffs on the railway transport of food products in the fall and winter period and state subsidizing of some of Kazakh manufacturers’ expenditures,” the spokesperson concluded.

(1 USD = 384.45 KTZ on July 9)

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Follow the author on twitter: @nargiz_sadikh

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