Kazakh Railways Uncover a Scheme of Grey Re-export of Russian Grain to Asia

The national railway company of Kazakhstan, “Kazakhstan Temir Zholy” (KTZ), has encountered suspicious instances of increased wheat shipments to the southern regions of the country, this is reported by the railway transport news portal Railway Supply.

According to the company, there is a discrepancy between the volumes of exports, domestic consumption, and grain stocks, raising serious concerns about the potential grey re-export of Russian grain to Central Asian countries under the guise of Kazakh products.

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KTZ’s Managing Director for Production Processes, Bauyrzhan Urunbasarov, stated that the company conducted an internal investigation in the Turkestan region and Shymkent.

During the inspection, abnormally high volumes of Russian grain imports were identified, as well as significant queues of trucks at the border with Uzbekistan.

Urunbasarov emphasized that the company has evidence at its disposal, including vehicle numbers, video recordings, and photographic materials, confirming these facts.

KTZ plans to hand over these materials to law enforcement agencies for further investigation.

It is worth noting that transit tariffs for grain transportation through Kazakhstan towards China and Central Asia are significantly higher than export rates.

In particular, transit through Kazakhstan is 7.5 times more expensive than direct export. This circumstance, according to experts, may serve as an incentive for unscrupulous market participants to use schemes to circumvent tariffs.

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