Crossroads Asia

Kazakhstan’s European Trade Problem

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Crossroads Asia

Kazakhstan’s European Trade Problem

Astana’s largest trading partner is the Eurozone and it really needs trade to pick up again.

Kazakhstan’s European Trade Problem
Credit: Tenge via Shutterstock.com

It’s no secret that Kazakhstan’s economy has suffered in the past year. The global fall in oil prices is the most important factor, but the failure of the Eurasian Economic Union to stimulate trade among members has helped deepen the hole. Persistent tension between Europe and Russia hasn’t helped the fledgling EEU. European countries still account for almost half of Kazakhstan’s trade turnover, but the volumes have fallen dramatically, according to statistics from the National Bank of Kazakhstan. The longer Russia stands at loggerheads with Europe, the more difficult a position Kazakhstan will find itself in.

Russia, the largest economy in the EEU, has seen its economy dragged down by the oil crisis but also put under pressure by sanctions imposed on by Europe and the United States. This week, Washington decided to extend sanctions that were first imposed in 2014 and the EU will decide in the coming months whether to extend its own raft of sanctions targeting Russia (the EU already decided this week to extend sanctions on 16 of 17 individuals previously sanctioned in relation to the Ukraine crisis).

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