Generolo Jono Žemaičio Lietuvos karo akademija

The special role of grain in the composition of commercial products of the agro-industrial complex is determined by its strategic importance as a main food product and a very important, and for certain branches of animal husbandry, a crucial component of feed. On the other hand, Kazakhstan has become a major grain producer due to its natural and other features. In the conditions of economic transformation, the preservation of grain production and ensuring the rational use of its development potential is largely determined by the state of market functioning. In the formation and development of the grain market, inter-industry economic relations are of paramount importance. The new situation of Kazakhstan’s participation in the world grain market, which requires scientific generalization, is connected with the formation of sovereign States and the transformation of trade between them from interregional to interstate.

The paper addresses one of the most important elements of the government’s social functions, namely, food policies in the context of agricultural import substitution. The authors analyse the state of food security in modern Kazakhstan. National interests in the food sector are analysed, as well as the main threats and risks in ensuring food security. Having analysed the state of food security in modern Kazakhstan, the authors draw a conclusion regarding a number of issues existing today in the analysed sphere, which call for solutions.

Our paper focuses on the issues of food security and agricultural trade. Specifically, we tackle the issue of economic selfsufficiency of a country using an example of the import ban on agricultural production as one form of economic sanctions. Our paper attempts to estimate the impact of sanctions in separate regions, rather then on the aggregate country level. We propose an original methodology of estimating allocation of import ban effects based on the OECD Customer Support Estimate (CSE). Our results demonstrate that in case of some agricultural products (e.g. potatoes) consumers in most of Russian regions were net beneficiaries before 2014, but the magnitude of the benefits decreased significantly after the introduction of sanctions. This provided Russian agricultural producers with more support arising from the market price differential. All in all, we find no significant evidence of the import ban impact, however after 2014 the cumulative cost paid by consumers in different regions declined significantly due to other factors, leaving consumers in the position of net beneficiaries. Our results demonstrate that despite the economic sanctions are important, they do not affect food security of neither of conflicting parties.