Collapse On The Border Of Russia And Kazakhstan: Trade Turnover Is Down, Businesses Are Closing Down

One of Russia's leading trade routes with Asian countries is effectively blocked.

A large-scale logistics crisis has erupted on the Russian-Kazakh border, paralyzing truck traffic and jeopardizing imports from China, Kyrgyzstan and Turkey.

Because of protracted inspections and new rules, thousands of trucks carrying hundreds of millions of dollars worth of goods are stuck in Kazakhstan, effectively blocking one of Russia's main trade routes, dialog.ua.

To somehow unblock the flow of goods, Putin signed a decree temporarily allowing goods from Kazakhstan and Kyrgyzstan to be imported into Russia even without full paperwork. This measure will be in effect until December 10, but for business it was not a salvation. Sellers will still have to clear the same goods twice, first at the border and then inside the country.

According to the Baza channel, more than 10 thousand trucks have been idle for the second month. The main reason is tough inspections as part of the fight against gray imports. Russian and Kazakhstani customs officers now carefully check the contents of each car with export declarations. If, for example, the documents specify auto parts, but actually carry clothing or household goods, the cargo is sent back to temporary storage warehouses.

Because of this, thousands of Russian sellers have already lost goods worth millions of rubles. Both large suppliers and small entrepreneurs have suffered, for whom the disruption of deliveries means actual ruin. Many were unable to deliver seasonal goods in time: winter jackets, New Year decorations and even Halloween products.

The situation has caused a chain reaction: delivery times have increased from a couple of weeks to several months, and the cost of logistics, according to businessmen's estimates, may at least double. Small companies are preparing to close down, and some businesses are forced to switch to "white" deliveries with certification and a full package of documents, which is significantly more expensive.

In the meantime, a shadow market has blossomed in Kazakhstan. So-called "helpers" offer to speed up inspection for a bribe from 300 to 1000 dollars. Depending on the type of cargo, the fee can reach 10% of the container's value.

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