Transit Potentials of Russia and Kazakhstan

Abstract

Russia and Kazakhstan’s membership in the Eurasian Economic Union (EAEU) has symbolized a new era of history of strategic partnership of the two now focused on economic diversification and modernization. The aim of the article is to reveal current trends, stumbling points and prospects of Russia-Kazakhstan joint utilization of transit potential in East–West and North–South international transport corridors. The research hypothesis is that cooperation between Moscow and Nur–Sultan in transit sphere might lead to an increase in the overall efficiency of economic integration within the EAEU, as well as serve as a springboard for greater transcontinental connectivity. As of today, lack of supranational transport policy in the EAEU logically breeds competition between Russia and Kazakhstan for transit flows in the East–West corridor. Thus, Kazakhstan’s railway route in China–Europe direction holds a number of comparative advantages, i.e. shorter delivery dates and cheaper freight rates than that via Russia. However, being a steadfast of deepening economic integration in the EAEU, for instance, with the aim of creation of common transport and logistics market by 2025 might force Nur–Sultan to meet Moscow’s halfway. The article concludes that in order to inclusively exploit their transit potential Russia and Kazakhstan should work out a number of collective transit-stimulating initiatives, i.e. common railway transit rates and digital systems of tracking, at the level of the Eurasian Economic Commission.