Tajikistan seeks replacement of Kazakh grain with Russian gran imported on concessional terms

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This is stated in a government regulation on the plan of actions to prevent the impact of possible risks on the national economy.

It is supposed that Tajikistan will pay for Russian grain imported on concessional terms in Russian rubles.

To-date, Kazakhstan has provided the bulk of Tajikistan’s grain and flour imports.

According to data from the Agency for Statistics under the Government of Tajikistan, Tajikistan has imported more than US$60 million worth of about 203,000 tons of wheat from Kazakhstan over the first three months of this year, which is 7.6 percent fewer by weight and 12.7 percent more by cost than in the same period last year.

Tajikistan’s annual requirements in wheat are more than 2 million tons; therefore, according to the forecast of the Ministry of Economic Development and Trade (MoEDT), Tajikistan is expected to import 1.2 millions of wheat this year.

Recall, Russia on March 14 temporarily banned grain exports to the countries of the Eurasian Economic Union (EAEU), which includes Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia. However on March 31, the Russian government lifted the ban on grain exports to the members of the EAEU. A Russian government press release reported that the members of the EAEU will be able to import grain from Russia, but only after receiving authorization from the Russian Ministry of Agriculture.

On April 16, the Kazakh Ministry of Agriculture passed a decree announcing that it will limit grain and flour exports to 1 million tons and 300,000 million tons per month, respectively, for two months starting on April 16 and ending on June 15. In particular, the Agricultural Minister, Yerbol Karashukeyev specified that during this period, local grain exporters will be able to export 1 million tons of grain from Kazakhstan, but will have to supply 10 percent of this volume to the Kazakh state-owned grain regulator OJSC Food Contract Corporation (FCC).

The Kazakh government has imposed temporary limits on its grain and flour exports to stabilize domestic grain prices in response to Russia’s ban on its own grain exports.

Also note that Russia is expected to will deliver 830,000 tons of petroleum products liquefied natural gas (LNG) to Tajikistan this year on concessional terms.

Since 2013, more than 90 percent of all petroleum products have been imported into Tajikistan from Russia on concessional terms.

In accordance with amendments made to the government-to-government agreement between Tajikistan and Russia on petroleum product deliveries to Tajikistan, Tajikistan should provide its proposals on formation of the indicative fuel balances to Russia every year until September 5

Relevant bodies of the two countries should coordinate Tajikistan's internal fuel consumption volumes for the next year and sign indicative balances until October 1.

Besides, Tajikistan should provide information on implementation of indicative balances for nine months and the expected implementation of them during the current calendar year to Russia every year until November 15.

Recall, Tajikistan was exempted from paying Russian tariffs on oil and gas exports from 1995-2010 and Russia cancelled Tajikistan’s tax exemption on May 1, 2010 that resulted in gasoline prices rising in the country.

The agreement on duty-free Russian oil product deliveries to Tajikistan was signed between the governments of Russia and Tajikistan in Moscow on February 6, 2013

Under this agreement, the sides consider and endorse the indicative fuel balance for the next calendar before October 1 of each year. Fuels delivered in addition to the indicative fuel balance will be liable to export duty.

Russian petroleum products delivered to Tajikistan in the volumes not exceeding those agreed on indicative balance are not subject to re-export to the third countries.

Source: Asia-Plus