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500<br />

The New <strong>Silk</strong> <strong>Road</strong>s<br />

Table H: Altai-Kazakhstan trade turnover, 2000-2005:<br />

Turnover,<br />

thous<strong>and</strong>s<br />

USD<br />

Export,<br />

Thous<strong>and</strong>s<br />

USD<br />

Import,<br />

Thous<strong>and</strong>s<br />

USD<br />

share % to<br />

previous time<br />

frame<br />

2000 168109,4 129152,2 38957,2 193,4<br />

2001 190146,3 145464,7 44681,6 113,1<br />

2002 107154,7 80942,2 26212,5 56,3<br />

2003 173837,1 110937,3 62212,5 162,2<br />

2004 303442,1 189009,4 116890,6 176<br />

2005 (Jan-<br />

Sep)<br />

237763,3 171600 66163,3 104,6<br />

Impediments to inter-regional cooperation<br />

Altai’s cross-border trade is impeded by the fact that automobile <strong>and</strong><br />

railway border check-points are still poorly organized <strong>and</strong> not properly<br />

equipped. Many are even at a distance from the actual borders, resulting<br />

in delays at border crossings <strong>and</strong> reduced trade. Since January, 2001, the<br />

State Customs Committee of the <strong>Russia</strong>n Federation heavily<br />

bureaucratized the rules on goods traffic from East <strong>and</strong> South-East <strong>Asia</strong>.<br />

In Altai province only one check-point was permitted for highways, <strong>and</strong><br />

transport was re-directed to Moscow. As a result, Altai shuttle-traders<br />

were forced to buy goods in remote Eastern Siberia or in Moscow, which<br />

naturally reduced trade <strong>and</strong> increased smuggling.<br />

The following steps are now essential if Altai is again to play a role in<br />

regional trade: establish industrial ties between Altai <strong>and</strong> Kazakhstan<br />

enterprises <strong>and</strong> organize industrial complexes as necessary to build on<br />

complementarities; seek investments from abroad for the Altai economy;<br />

develop border tourism; <strong>and</strong> organize trade links between China <strong>and</strong><br />

<strong>Russia</strong> via the Altai sector of the <strong>Russia</strong>-Kazakhstan border.<br />

Altai also has significant trade with Belarus, other CIS countries, <strong>and</strong><br />

<strong>Asia</strong>. Top level visits of Altai <strong>and</strong> Belarussian delegations have resulted<br />

in many recent agreements. In the same spirit, a 2005 Uzbek delegation to

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