1 May 2015

Russia and Kazakhstan's Trade War

April 30, 2015

The Eurasian Economic Union, launched in January of this year and set to expand with the addition of Kyrgyzstan next month, should be a driving force of economic integration throughout the region. Trouble, however, has arisen between the EEU’s two largest economies.

Russia and Kazakhstan have been sparing since the union launched: swapping trade restrictions and disagreeing over a single currency. The trade war, if indeed it can be called such, stems directly from Kazakhstan dealing with the consequences of Russia’s looming recession. The crumbling of the ruble over the past year has flooded Kazakhstan with cheap Russian goods.

Kazakhstan’s consumer rights committee seized several kinds of Russian products over the past few months for “not meeting technical regulations.” Five tons of meat were seized by Kazakh authorities. Over two tons of milk, which Kazakh authorities say were tested and contained coliform bacteria, were also seized in March. Russia, for its part, stopped 60 tons of cheese at the border for “not meeting quality and safety requirements.”

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