Transit of Kazakh grain through Russia to Baltic ports comes under threat

фрахт

Grain exporters from Kazakhstan have warned about growing risks to shipments bound for Europe due to uncertainty surrounding transit through Russian territory. During a meeting at the National Chamber of Entrepreneurs “Atameken,” industry representatives said there is a possibility that Russia may not approve the transit of Kazakh grain to Baltic ports. At the same time, the Trans-Caspian International Transport Route (TITR) is not yet fully prepared to handle large volumes, raising concerns about potential export bottlenecks.

According to Nurlan Ospanov, head of the Kazakhstan Grain Union, the country exports between 1 million and 2 million tonnes of grain products to Europe annually. These shipments mainly include durum wheat, barley, and lentils, with Europe representing an important and solvent market. However, Kazakhstan remains heavily dependent on transit through Russian territory, which creates logistical uncertainty and exposes exporters to external risks.

Currently, shipments through Russian ports benefit from unified tariffs within the Eurasian Economic Union, making this the most cost-effective route. However, Russian ports are heavily occupied with domestic grain, meaning Kazakh shipments are often handled on a residual basis without the ability to accumulate large export volumes. When exporters use alternative Baltic routes, they must pay international tariffs, which are nearly twice as high as the unified rates, significantly increasing transportation costs.

The Trans-Caspian route via Azerbaijan and Georgia, with access to the Black Sea, is seen as a potential alternative. However, infrastructure limitations remain a major obstacle. In particular, the port of Poti is not yet capable of handling and transshipping large grain volumes efficiently. In addition, transportation tariffs along the TITR corridor are currently about twice as high as maritime shipping costs, reducing its competitiveness.

Industry representatives warn that without reliable transit through Russia and with the TITR not yet fully operational, Kazakhstan could face serious restrictions on grain exports to Europe. Exporters are calling for lower tariffs along the Trans-Caspian route and accelerated infrastructure development. They believe these measures are essential to diversify export logistics, reduce dependence on a single transit corridor, and ensure stable access to key international markets.

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