Despite a record wheat harvest expected in Russia in 2022, Russian regulators are trying to continue to tightly control grain exports at the level of the Eurasian Economic Union (EAEU).
According to Kommersant, fearing re-exports, Russia wants all members of the union to introduce quotas and duties on its exports, and could extend restrictions on supplies to the EAEU, which are still in effect until June 30. Kazakhstan, which is interested in the development of supplies abroad, is against.
At a meeting of the Eurasian Economic Commission (EEC) on May 20, Russia insisted on introduction of quotas and duties on grain exports to third countries by all members of the EAEU, sources told Kommersant.
The Ministry of Agriculture of the Russian Federation considers the measure necessary to prevent the re-export of Russian grain through the EAEU, bypassing restrictions.
Back in August 2021, EAEU members planned to introduce a unified approach to limit the export of wheat, barley, corn, sunflower and a number of other goods. But the idea was never implemented.
Belarus imposed a complete ban on the export of wheat. Armenia and Kyrgyzstan are preparing decisions on duties and quotas. Kazakhstan is against duties, as they will prevent local agricultural producers from fulfilling international obligations. The relevant ministries of Belarus, Kazakhstan, Kyrgyzstan and Armenia did not respond to Kommersant’s request.
Dmitry Rylko, director of the Institute for Agricultural Market Studies, says that «from an abstract point of view» regulation of grain exports along the external contour of the EAEU is the right measure. But there may be problems with the implementation of the approach due to the disagreement of individual countries, the expert stresses. President of the Russian Grain Union Arkady Zlochevsky believes that only Kazakhstan will oppose it.
SovEcon Director Andrey Sizov sees no reason for Kazakhstan to accept the conditions of the Russian side.
In his opinion, this will not meet the interests of the farmers of the country, which is a major exporter. As the expert noted, the goal of the EAEU is precisely free trade, and Kazakhstan could become an important buyer of Russian grain in anticipation of a likely record harvest.
A Kommersant source is confident that Kazakhstan’s likely refusal to introduce identical measures will provoke the Ministry of Agriculture to extend a temporary ban on grain exports to the EAEU. Meanwhile, the source of the media emphasizes that it is important for Kazakhstan to receive Russian grain from July: the country grows spring wheat, harvesting of which actively begins only in August.
