Baku, Astana enjoy huge potential for increase in investment cooperation Interview with Kazakh vice-minister

Vice Minister of National Economy of Kazakhstan Bauyrzhan Kudaibergenov has said in an interview with Trend that the partnership between Kazakhstan and Azerbaijan is actively developing, and the two countries enjoy huge potential and prospects for growth of trade, economic, and investment cooperation.

Cooperation between Kazakhstan and Azerbaijan

“In January-August of this year, bilateral trade turnover amounted to about 398 million dollars and compared to the same period in 2022, a 57.2 per cent increase is recorded. First of all, the key export goods from Kazakhstan to Azerbaijan are: crude oil (23.5 per cent), unprocessed aluminium (23 per cent), oil products (22.9 per cent), wheat (11.8 per cent), rails (2.4 per cent) and others," Kudaibergenov said.

According to the vice-minister, the main goods imported to Kazakhstan from Azerbaijan are: pipes, tubes, and seamless profiles of ferrous metals (29.3 per cent), excursion boats, ferries and other means for the transportation of passengers (21.5 per cent), water, including mineral and carbonated, sugar water (15.8 per cent), coke and bitumen oil (4.7 per cent) and others.

Kudaibergenov underlined that the Azerbaijani market is of great interest in terms of exports of the Kazakh processed products, adding that Kazakhstan is ready to supply more than 100 non-resource commodity items to Azerbaijan in the amount of about 300 million dollars.

"The President of Kazakhstan has repeatedly noted that for us the issue of cooperation in cargo transportation and transportation of raw materials through Azerbaijan to Europe is of vital topicality. We understand that the favourable location of both countries on important transcontinental transport and communication corridors gives us the opportunity to increase cooperation in this area," he added.

According to the vice-minister, in this context, the Trans-Caspian International Transport Route (TITR or Middle Corridor), which will be able to provide a short and cost-effective route for cargo transportation to Europe and in the opposite direction, is becoming increasingly topical.

"Experts note that within the TITR there is a two-fold growth in cargo transshipment through the seaports of Aktau and Kuryk. Thus, for 2022, about 1.673 million tons were transshipped (2021 - 840 thousand tons). For 8 months of 2023, the volume of cargo transportation increased by 85 per cent and amounted to 1.74 million tons (8 months of 2022 - 940 thousand tons)," he emphasised.

Kudaibergenov pointed out that Kazakhstan will continue active work with strategic partner Azerbaijan on mutually beneficial terms, given the long-term business relations and focus on high results.

Kazakhstan's contribution to the countries of Central Asia

As the vice-minister noted, for the first half of 2023 Kazakh companies invested in Central Asia about 67.8 million dollars, including Uzbekistan - 31.7 million dollars, Kyrgyzstan - 27.4 million dollars, Turkmenistan - 5.8 million dollars, and Tajikistan - 2.9 million dollars.

"Unfortunately, the volume of investments decreased by 35.5 per cent compared to the same period last year. Undoubtedly, external factors (geopolitical events, intensified sanctions confrontation, disruption of the logistics system, and high inflation) directly affect global flows of foreign direct investment," he noted.

According to Kudaibergenov, the decrease in investment activity is also observed around the world.

"As for attractiveness for Kazakh investors, the key areas of mutual cooperation are light industry, transportation, trade, agriculture, financial sector and other areas of the economy," he underlined.

I Forum of interregional cooperation between Kazakhstan and Kyrgyzstan

The vice-minister emphasized that the First Forum of Interregional Cooperation of the Republic of Kazakhstan and the Kyrgyz Republic, initiated by the heads of state to create a new format of interaction between the two countries was held on September 22-23, 2023. The event was organized by the Kazakh side and was held in the city of Taraz, Jambyl region.

“During bilateral meetings, topical issues of economic and social development, agro-industrial, and hydro-energy cooperation were discussed. As a result of the forum, documents were signed providing for the poultry meat supply, medical and confectionery products, complex micro fertilizers, provision of trade intermediaries, as well as the implementation of initiatives in the light industry and banking sector," he pointed out.

Kudaibergenov noted that interaction in these areas will contribute to further strengthening of cooperation and growth of mutual trade and investment.

Turkic Investment Fund

"The Turkic Investment Fund is a financial institution for economic integration of the Turkic world aimed at financing projects of micro, small and medium-sized enterprises involving the creation and modernization of physical and digital infrastructure," he added.

According to the vice-minister, the establishment of the Fund will make it possible to obtain financing for projects in priority sectors of the economy.

"Financing will be aimed especially at the development of small and medium-sized enterprises, tourism, green economy, energy, agribusiness, transport infrastructure, as well as strengthening trade and economic cooperation within and outside the region of the Organization of Turkic States," Kudaibergenov concluded.