Kazakhstan Businesses Struggle Under the Weight of Russia Sanctions

Kazakhstan Businesses Feel the Pinch of Russia Sanctions Kazakhstan, a neighbor of Russia, is experiencing the ripple effects of Western sanctions imposed on Moscow. Major Kazakh companies, previously reliant on European markets, are facing significant challenges due to increased production costs and disrupted supply chains. One business leader, Ruslan Amirov, director of a glass manufacturing company in Ornbasar, stated that "logistics are broken, the amount of products produced has decreased and become more expensive. This has become a serious problem for us." The sanctions have led to a 200% increase in production costs for some companies. The Kazakh government is responding by considering increased subsidies for affected businesses. However, economists warn that the situation is complex and the long-term effects remain uncertain. Marcel Salikhov, an economist, notes that the sanctions' impact extends beyond immediate costs, affecting various sectors and overall economic stability. The situation underscores the interconnectedness of global economies and the unintended consequences of sanctions. While the aim is to pressure Russia, neighboring countries like Kazakhstan are also experiencing economic hardship. The government's response will be crucial in mitigating the negative impacts on Kazakh businesses and ensuring economic stability.