Russia is discussing with Kazakhstan discounts on the transit of its grain by rail

Kazakhstan and Russia are discussing the possibility of applying mutual discounts for the transportation of export goods by rail. This was reported by the press service of the Prime Minister of Kazakhstan.

Kazakhstan is interested in increasing the supply of coal and ore to Europe, while Russia demands the most favorable conditions for grain transit.

“Serik Zhumangarin (Deputy Prime Minister of Kazakhstan – ed. note) suggested that the Russian side consider applying a reduction factor to the Russian Railways transit tariff for the transportation of coal and iron ore in the direction of the port of Ventspils. For its part, Kazakhstan is ready to consider reducing the coefficient for KTZ tariffs for the transportation of Russian grain along the eastern branch of the North-South corridor,” the press service said.

According to the newspaper, the high transit tariff hinders the supply of Russian grain to Central Asia. If it is lowered, it will reduce the competitiveness of Kazakh wheat in its traditional markets. Russia has previously asked Kazakhstan to reduce or cancel the transit tariff, but the Kazakh authorities have not met these proposals.

Tags: rail transportation, Kazakhstan, export, grain