Kazakhstan has vowed to put its own national economic interests first
Kazakhstan will not “blindly follow” anti-Russian sanctions, especially when they affect the economic interests of its businesses, Serik Zhumangarin, the country’s deputy prime minister and the minister of trade and integration, told Bloomberg on Friday.
The top state official highlighted that Kazakhstan had opted not to implement a ban on exporting ball bearings to Russia, despite their inclusion among the so-called dual-use materials and components that could be deployed to serve both military and civilian purposes.
“We will not allow our own producers to be banned from trade,” Zhumangarin said, adding that one local Kazakh plant makes ball bearings to a specification that’s typically only used in eastern Europe and in former Soviet countries.
Kazakhstan will continue to comply with most of the restrictions, as the former Soviet republic “won’t withstand” being targeted by secondary sanctions, according to the official, who added that enterprises in the country which had been blacklisted by the US Treasury Department are currently being shut down.
Zhumangarin emphasized that some of the sanctions that were intended to cut Russia’s access to ‘dual-use’ products have disproportionately hurt Kazakhstan instead, while Western governments have done little to compensate the Central Asian state, which shares the world’s second-longest border with Russia.
According to the trade minister, Eurasian Resources Group, which is 40% owned by the Kazakh state, has been sustaining major losses since sanctions forced the company to stop selling iron ore pellets to Russia and switch to the domestic market.
In the absence of the restrictions, “the profit would stay in Kazakhstan,” Zhumangarin said, stressing that now it “goes to those who you introduced sanctions against.”
Kazakhstan hasn’t implemented the international sanctions which were introduced against Russia by the US and its allies following the escalation of the Ukraine conflict in February 2022. However, Kazakh President Kassym-Jomart Tokayev has repeatedly said Astana would comply with the Russia-related trade restrictions.
Starting in April, Kazakhstan began monitoring goods that pass through the country for re-export, tracking them until they reach their final destination. The FT has reported that the measure was adopted in order to prevent foreign companies and individuals from helping Russia circumvent sanctions.
Last year, Russia was ranked Kazakhstan’s second biggest trading partner after China, according to the Central Asian country’s trade ministry. Prior to the conflict, Russia held the top spot.
