Grain imports from Kazakhstan not carry political risks

Grain imports from Kazakhstan not carry political risks

access_time2019-07-15 16:09:54

“Grain imports from Kazakhstan don’t carry  political risks, despite this country is a member of the Eurasian Economic Union (EAEU) as well as  Russia,” Chairman  of the Grain Importers Association Levan Silagava says.

According to Levan Silagava, despite its membership in the organization, Kazakhstan pursues an independent policy and  Russia can’t affect Kazakhstan to sell grain to Georgia.

Silagava notes that  90% of grain is imported from Russia that  increases the country's dependence on Moscow’s policy.

 “Supplies should be diversified  but the grain price should be economically profitable for the business. a possible  subsidizing of the cost of grain transportation  through the country’s territory by the Kazakh side that will allow to buy  the product at an affordable price, ”Leva Silagava explains.

In the words of Chairman  of the Grain Importers Association, Kazakhstan will  begin harvesting in September.

“We sent approximate figures to the Kazakh side about the volumes of grain we can buy in Kazakhstan - roughly, it is about 200,000 tons but it will depend on the price, ”he says.

Silagava adds that  Georgia  consumes 600,000 tons of grain per year, and in the near future Kazakhstan’s share will make 25% and  dependence on Russia will reduce by 30-35%.

Silagava  believes that it is very difficult to talk about a complete refusal from Russian grain supplies.

“In our region there are three large grain producers - Russia, Ukraine, Kazakhstan. Now we are in talks with Ukraine, but they supply grain to the European Union at zero customs rates and  it is unprofitable for them to export grain somewhere else. We can negotiate with other Black Sea countries - for example, with Bulgaria and Romania who are also major grain producers, ”Levan Silagava stresses.

According to him, Georgia’s main goal is  to increase grain that would allow to abandon imports, but this will take several years.


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