Germany wants trade with Kazakhstan, but will honor Russia Sanctions

• Post-invasion sanctions on Russia led to Russia seeking indirect imports of technology and goods.
• Scholz highlights the benefits of this exchange for diversifying economies and enhancing resilience.
• Kazakhstan replaced Russia as the supplier of crude oil for Berlin’s Schwedt refinery.

Chancellor Olaf Scholz, during his visit to Kazakhstan, stated that Germany is keen on expanding trade with the Central Asian nation while ensuring that the trade does not serve as a means to circumvent EU sanctions on Russia.

“I am grateful for the trusting dialogue between us, through which we want to prevent trade between us from being misused to circumvent sanctions,” Scholz said.

Following Russia’s invasion of Ukraine in February 2022, the West imposed broad sanctions on Moscow, leading Russia to seek indirect ways to import technology and goods. Sources informed Reuters that Russian businesses, aiming to obtain goods banned by the West, have sometimes acquired them through companies in neighboring Kazakhstan or other former Soviet nations. The Astana government has stated that it will comply with the sanctions.

Scholz and Kazakh President Kassym-Jomart Tokayev expressed their mutual interest in increasing trade between their countries in oil, rare earths, lithium, and other raw materials.

“Both sides benefit from this exchange because it allows us to diversify our economies and make them more resilient,” Scholz said. “A very concrete example of this is the oil supplies from Kazakhstan, which helped us a lot after Russia failed as a supplier.”

Scholz and Kazakh President Kassym-Jomart Tokayev met before a broader meeting between Scholz and the leaders of all five Central Asian nations, marking a more active Western diplomatic presence in a region traditionally dominated by Russia. Kazakhstan has already replaced Russia as the supplier of crude oil for Berlin’s Schwedt refinery. Scholz’s visit follows Russian President Vladimir Putin’s recent threats to limit metal sales, including titanium, to nations deemed “unfriendly.”

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