John Deere, the legendary American manufacturer of agricultural equipment, has officially launched local production in Kazakhstan. The new operation is based at the AGROMASH Localization Center in Kostanay, where self-propelled, towed, and mounted machinery will now be produced under the iconic green and yellow brand.
Local officials and executives are celebrating the move as a major milestone for Kazakhstan’s agricultural sector.
“Thanks to ongoing political and economic reforms in Kazakhstan, we’ve managed to form industrial cooperation with a leading American brand in agriculture — John Deere. This is a historic moment for our country,”
– Dinara Shukizhanova, President of AGROMASH
According to the project’s partners, the localization will help farmers across Kazakhstan access machinery better suited to local conditions, along with state-supported purchase programs, improved service infrastructure, and digital solutions tailored for agribusiness.
But amid all the optimism, there’s a question that can’t be ignored: is this really about Kazakhstan… or is this about Russia?
The Sanctions Backdrop
In 2022, following the invasion of Ukraine, Deere & Company officially exited the Russian market, halting sales, service, and support of its machinery in the country. Like many Western companies, John Deere aligned with U.S. and EU sanctions designed to pressure Moscow.
Since then, however, a wave of new companies has appeared in Kazakhstan — many of which were quickly registered after sanctions took effect and are believed to be de facto Russian operations. Their goal? To act as intermediaries for importing Western goods into Russia through “friendly” third countries.
Could John Deere’s new production in Kazakhstan be another potential backdoor?
Kazakhstan: Neutral on Paper, Connected in Practice
Geographically and economically, Kazakhstan is deeply intertwined with Russia. Open trade, shared infrastructure, and minimal border control make it relatively easy for goods produced in Kazakhstan to cross into Russian territory.
And that’s why this localized production — while not illegal — raises eyebrows.
Eurasia Group, John Deere’s official distributor in Kazakhstan, claims the project is aimed at supporting domestic farmers, building local expertise, and bringing cutting-edge agtech to the region.
“The project includes building three modern service centers and training programs for local specialists — engineers, agronomists, and IT professionals.”
– Company statement
Still, what’s missing is transparency on where this new “Kazakhstan-made” machinery could end up after production.
A Familiar Pattern?
This setup fits a now-familiar pattern:
- Western brand exits Russia publicly.
- A friendly country ramps up “local” production.
- Russian companies — often through new, barely hidden proxies — begin acquiring the same goods via the workaround.
It’s important to emphasize: there is currently no direct evidence that John Deere machinery is being re-exported to Russia from Kazakhstan. But given how similar patterns have emerged in other industries, the concern is valid — and the timing, notable.
A Final Note
This article represents the opinion of the author and should not be interpreted as an official accusation or statement from John Deere, AGROMASH, or any government body. The goal is to highlight potential geopolitical dynamics worth watching, especially in an era where international sanctions are constantly tested.
Sometimes, the road around restrictions is paved with “localization.” Whether that’s the case here — only time will tell.
