Kazakh officials announced on Thursday that Kazakhstan had halted its grain exports to Russia. They also said they asked Moscow to prove the claims of having violated plant health rules, which Moscow cited as the reason for a ban on imports and transits of Kazakh grain.

Kazakhstan and Russia are both net grain exporters. However, Kazakhstan depends on the transit of grain through Russian territory in order to sell grain to Europe and the Mediterranean.

Both countries transship their oil to other markets.

The Russian state agricultural watchdog announced this week that, as of Sept. 23, its system would automatically block the issue of phytosanitary certificates to grain, grain products and sunflower seeds from Kazakhstan.

The goods are not allowed to cross the border without such certificates. On Thursday, the Kazakh State Railway confirmed that all grain shipments were stopped.

Yermek Kennezhekhanuly, deputy minister of agriculture in Kazakhstan, said that the Astana Government had requested more information about the alleged violations. However, Moscow has not responded and so Yermek could not elaborate on what industry players described as a possible trade war. Reporting by Tamara Vaal, Writing by Olzhas Ayezov, Editing by Mark Heinrich & Barbara Lewis

(source: Reuters)