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    Central Asia

    Russian wood industry hit hard as Kazakhstan sanctions block key route to Uzbekistan, threatening 40% of exports

    Russian wood industry hit hard as Kazakhstan sanctions block key route to Uzbekistan, threatening 40% of exports

    Russian wood processing enterprises are currently facing significant logistical challenges in exporting their products to Uzbekistan. As per reports from Kommersant, these difficulties are a result of Kazakhstan's adherence to a sanctions regime, disrupting the usual transit routes for Russian woodworking companies.

    Russian wood industry hit hard as Kazakhstan sanctions block key route to Uzbekistan, threatening 40% of exports
    Photo: Russian wood industry hit hard as Kazakhstan sanctions block key route to Uzbekistan, threatening 40% of exports 
    Source: Google Images

    Since the beginning of September, woodworking companies in the Northwestern Federal District of Russia have been unable to transport Russian panel products through Kazakhstan. This change has disrupted the supply chain that had previously allowed these companies to reach Uzbekistan and other Central Asian markets.

    The Association of Furniture and Wood Processing Industry Enterprises of Russia has reported that up to 40% of their goods were exported through Kazakhstan. This shift towards Central Asian markets came in response to the onset of the conflict in Ukraine, which prompted Russian timber merchants to reorient their export strategies away from Europe.

    Russian wood industry hit hard as Kazakhstan sanctions block key route to Uzbekistan, threatening 40% of exports
    Photo: Russian wood industry hit hard as Kazakhstan sanctions block key route to Uzbekistan, threatening 40% of exports 
    Source: Google Images

    The closure of transit routes through Kazakhstan is not only affecting access to Uzbekistan but also has broader implications for trade with Kyrgyzstan and Tajikistan. These Central Asian markets have grown in importance for Russian woodworking companies, and losing access to them is a major setback for the industry.

    In February of 2023, it was reported that Uzbekistan, along with China, had become one of the primary export markets for Russian timber producers, especially in light of Western sanctions against Russia. The attractiveness of the Uzbek market was noted as being even greater than that of China for Russian companies.

     

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    13.10.2023, 10:26   Comments (0)   1677
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