Link to article https://www.reuters.com/world/scholz-kazakhstan-we-want-trade-wont-circumvent-sanctions-2024-09-16/
Germany is pursuing more expanded trade relations with Kazakhstan due to repercussions of the Russian invasion of Ukraine. German Chancellor Olaf Scholz visited Kazakhstan on September 16th to pursue relations with Kazakhstan. The West imposed sanctions on Russia after it had invaded Ukraine in February of 2022. Russia, a big producer of oil, no longer supplies Germany with oil as it has been sanctioned. Companies based in Russia attempt to purchase and then resell goods produced in nearby countries such as Kazakhstan. Kazakhstan is attempting to abide by the sanctions and not allow Russian business to purchase sanctioned goods within its country. Germany’s Berlin Schwedt refinery needs crude oil to refine and produce to be sold on the market in Germany and throughout the neighboring countries. Since Germany’s number one supplier, Russia, no longer exports the necessary goods, Germany is looking to Kazakhstan for crude oil which it can then refine. However, Russian businesses are looking at procuring goods that have been banned in the sanctions, and they look to Kazakhstan for those goods. Both Germany and Kazakhstan want to trade oil, lithium and other natural metals without violating the sanctions on Russia.
Since Russia has invaded Ukraine, the West and parts of Europe have seriously condemned its actions. As one of the world’s largest leading producers of crude oil, Russia no longer exports oil as it has been banned by the sanctions. Therefore, countries within Europe and the Americas are looking for alternative ways to trade for oil. Germany has found one way by looking to Kazakhstan as an oil supplier as Russia has failed to produce. I believe that this trade agreement between the two countries will boost Kazakhstan’s economy and market as it is now exporting crude oil to a major oil refiner, Germany. Obviously, since Russia has been sanctioned, it no longer exports oil, which will hurt its economy. The West put these sanctions in place to hurt the Russian economy to hopefully stop the war in Ukraine as Russia will have no economic benefit as it no longer exports, or imports, goods.
Russia could possibly respond by ending its war in Ukraine. However, I don’t believe they will see more economic and cultural value in Ukraine than in the oil exporting of their country. The trade agreement between Germany and Kazakhstan will definitely solidize relations between the two countries and will boost both economies. Scholz’s visit was after President Vladimir Putin stated that he would cut back on sales of metals such as titanium to countries that were not friendly with Russia. Russia sees this alliance as a threat to their export industry but will not forfeit the war, they have suggested they will press on in cutting ties with previous trading partners.
This demonstrates two state actors creating a treaty to benefit both economies. However to recognize the UN and the EU’s (which are IGOs) sanctions on Russia, both actors in this agreement must honor the sanctions on Russia as the products they produce and trade must not fall into Russian hands.