Russia has intensified seizures of dual-use goods transiting from China, compelling companies to seek alternate routes. These confiscations, driven by Russian Directive No. 1374, have created significant logistical challenges for exporters and importers. New alternative rail pathways through Kazakhstan and Turkmenistan have emerged as potential solutions for bypassing Russia altogether.

Russia has been actively seizing dual-use goods that transit from China, significantly impacting companies’ logistics strategies as they seek alternative routes to completely circumvent Russian territory. The seized items primarily include mechanical and electronic products potentially useful to Western forces in Ukraine, as reported by News.Az citing Kyiv Post.

The South China Morning Post (SCMP) revealed that thousands of shipping containers have been affected, with many companies only learning of the confiscations after their goods entered Russia, where they are now detained by authorities. An estimated “80,000 20-foot (six-metre) equivalent units” of goods transit through Russia from China via rail each month.

Andrew Jiang, CEO of Air Sea Transport, a freight firm based in Shanghai, mentioned that the company has been avoiding routes through Russia since November 2024. Additionally, Caixin Global highlighted that these confiscations stem from Russian Directive No. 1374, which was enacted in October 2024 and expanded the list of goods banned from Russian transit to include machinery, electronics, and camouflage clothing, targeting items with dual civilian and military purposes.

Yang Jie, head of Eurasian Railway International Freight Forwarding, remarked on social media that the directive grants Russian customs the authority to detain goods suspected of having military applications. Inspections may occur at any rail station, leading to potential delays or confiscation of goods even after they have cleared the border.

The Moscow Times reported that these confiscations are also affecting Russian importers, as Chinese exporters are hesitant to ship items to Russia due to the risk of confiscation. One importer noted the logistical challenges faced when trying to send intricate items.

Moreover, the Moscow Times indicated that in March, China and Kazakhstan initiated alternative railway routes allowing merchants to bypass Russia entirely. This new route allows shipments to proceed through Turkmenistan, Kazakhstan, Iran, and Turkey before reaching European destinations.

In summary, the resurgence of Russian customs seizing dual-use goods from China presents significant challenges for international trade, prompting companies to explore alternative shipping routes to avoid Russia. The enactment of Russian Directive No. 1374 has led to increased scrutiny and delays at border crossings, affecting not only exporters but also Russian importers. As businesses adapt to these new realities, alternative rail links through neighboring countries are becoming critical for maintaining supply chains.

Original Source: news.az

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