Development Potential of Russian and Kazakh Agricultural Exports to China

Abstract

Due to their vast territory suitable for agriculture, surplus production of agricultural products and geographical proximity to the northern and western provinces of China, Russia and Kazakhstan can take significant positions in the growing Chinese market. The development of international transport corridors with access to China will contribute to the increase of the competitive capabilities of the two countries and the growth of export volumes. In this context, the interstate railway corridor with Dostyk border station (Kazakhstan) as a connecting link seems very promising. The development of this direction of agro-logistics will contribute to the inclusion of Siberian and Ural regions of the Russian Federation in international trade, will be an important factor in the international role of the Republic of Kazakhstan by attracting transit cargo from Russia. The transport corridor through Dostyk is also relevant in the context of sanctions against Russia and the need to reorient trade flows with unfriendly countries to other directions. The article identifies the types of agricultural products and regions of the cargo area that are the most promising for exports from Russia and Kazakhstan through Dostyk. To assess the potential for the development of this transport corridor, the analysis of agricultural cargo export flows from Russia and Kazakhstan to China in terms of ports and border crossings is presented, the problems and bottlenecks of agro-export logistics of Russia and Kazakhstan are studied, the economic efficiency of traditional railway and container transportation is compared, and the competitiveness of Russian agricultural products supplies to China through Dostyk in comparison with other logistics directions is estimated. The findings indicate that the regions of the cargo zone of Russia and Kazakhstan have high shipping potential for railway deliveries to China through Dostyk. However, its implementation is possible under a number of conditions: changes in railway transportation tariffs and removal of export restrictions, while intensifying negotiations between countries with China to reduce the level of customs and administrative barriers.