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Accredited in the Ministry of Agriculture of the Republic of Kazakhstan
Accredited in the National chamber of entrepreneurs "Atameken" of the Republic of Kazakhstan
"We will lose export positions": Grain Union demands cancellation of illegally introduced measure by transport companies 23.01.2025 в 15:32 48 просмотров

The Grain Union of Kazakhstan filed a complaint with the Ministry of Transport. Grain producers expressed their categorical disagreement with the restriction imposed by the administration of the railways of Kazakhstan. The Union believes that the measure is illegal, grossly violates the law and puts export potential at risk, the APK News agency reports.

As noted in the document, the complaint concerns the illegality of the introduction of a restriction on the minimum flange thickness of wheel pairs and the demand for its immediate cancellation.

“The Grain Union of Kazakhstan, which unites the leading participants in the country's grain market, declares its categorical disagreement with the restriction on the minimum flange thickness of wheel pairs to 26 mm, introduced by a telegram from the administration of the railways of Kazakhstan dated 09.01.2025 with entry into force on 15.01.2025,” the Union's complaint says.

The document also states that the act is “illegal, discriminatory, grossly violates the norms of national legislation and international obligations of the Republic of Kazakhstan within the framework of the Eurasian Economic Union (EAEU), and also creates unjustified barriers to exports.”

First, the adopted measure violates national legislation.

According to the Law of the Republic of Kazakhstan “On Railway Transport”, any changes in the technical requirements for rolling stock, including the operation of wheel sets, must be accompanied by the approval of relevant regulations (resolutions or orders of competent authorities); a preliminary analysis of the consequences of such changes; notification of market participants with the provision of a transition period to comply with the new requirements.

“The telegram dated 09.01.2025 does not have the status of a regulatory act, which makes it legally null and void. The lack of justification for the changes introduced violates the provisions of Article 15 of the Law of the Republic of Kazakhstan “On Railway Transport”, which stipulates that decisions affecting the operation of rolling stock must be technically and economically justified.
The absence of a transition period violates Article 20 of the said law, which requires ensuring legal predictability and protecting the rights of wagon owners. Setting a deadline of 6 days for making changes is a blatant example of ignoring the rights of market participants,” the letter says.

Second, the measure contradicts international obligations.

“According to Article 5 of the Agreement on General Conditions for the Use of Freight Wagons in International Traffic, the operation of freight wagons in international traffic is regulated by uniform technical standards agreed upon by all participants. The established standard for the flange thickness of wheelsets (25 mm) is internationally recognized and is used by all EAEU countries. The introduction of a flange thickness requirement of 26 mm violates the principle of unification of technical standards; it contradicts Article 6 of the Agreement on General Conditions for the Use of Freight Wagons in International Traffic, which prohibits the introduction of restrictions that impede the operation of rolling stock in international traffic,” the Union noted.

In addition, according to Article 29 of the Treaty on the EAEU, participating countries are obliged to ensure equal access to public infrastructure and the prevention of discrimination.

"The introduction of a stricter standard by Kazakhstan without coordination with the EAEU creates unequal conditions for Kazakh shippers, while operators from other countries continue to work under the 25 mm standard. This act violates the principles of free movement of goods and services enshrined in Article 1 of the Treaty on the EAEU, and also threatens the stability of integration processes," the grain producers believe.

Third - economic and reputational consequences.

"Direct financial costs. Replacing wheel sets for 80% of the Kazakh wagon fleet (about 10,000 wagons) will require costs in the amount of 72 billion tenge. There are no factories in Kazakhstan for the production of wheel sets, which increases dependence on imports and makes purchases more expensive," the complaint says.

The document also lists indirect losses.

"Wagon downtime will lead to the disruption of export contracts and the payment of fines; an increase in transportation costs and downtime at cargo terminals; an increase in the cost of transportation. Kazakhstani exporters will find themselves at a disadvantage compared to foreign competitors, which will lead to a loss of positions in key markets (China, Uzbekistan, Russia), - the Union noted.

Reputational risks - failure to fulfill export obligations will negatively affect Kazakhstan's international reputation as a reliable partner.

"EAEU partners may file complaints with the Eurasian Economic Commission, which will increase the negative effect," the paper says.

The Grain Union of Kazakhstan demands that the telegram of 09.01.2025 be immediately cancelled as contradicting the Law of the Republic of Kazakhstan "On Railway Transport"; the Agreement on General Conditions for the Use of Freight Cars; the Treaty on the EAEU.

The Union also requires the use of a standard flange thickness of 25 mm for wheelsets, which complies with international standards.

In addition, the Union noted that it is necessary to exclude the possibility of introducing such restrictions in the future without preliminary consultations with market participants; coordination at the EAEU level; establishment of a reasonable transition period (at least 6 months); provision of state support in case of need to modernize the rolling stock (subsidies, preferential loans, etc.).

“The introduction of a restriction on the flange thickness of wheel pairs up to 26 mm is illegal, unjustified and discriminatory, damaging the economy of Kazakhstan and the country's export potential. Its preservation will create a precedent for further violations and destruction of the principles of the EAEU,” the Union concluded.

The document was signed by the Chairman of the Association of Legal Entities “Grain Union of Kazakhstan” Nurlan Ospanov.

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