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The National
3 days ago
- Business
- The National
Kazakhstan looks to Gulf investment as it develops the next Silk Road
Kazakhstan is working to attract more investment from Gulf states as it develops transport routes akin to the ancient Silk Road between Europe and China, the country's deputy foreign minister has told The National. Gulf countries have poured investment into the oil and mineral rich central Asian country, deputy minister Roman Vassilenko said in an interview at the Astana International Forum in Kazakhstan's capital. These nations are seen as "an important source of potential investment', he said. Emirati transport and logistics giants including AD Ports Group and DP World already work at trade and port hubs in Kazakhstan. The country is expanding capacity on the so-called 'middle corridor', a trade route following similar paths to the Silk Road, connecting China with Europe through Kazakhstan, the Caspian Sea, Azerbaijan, Georgia and Turkey. Several agreements were signed with the UAE when Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi, visited Astana last month, Mr Vassilenko said, in sectors such as artificial intelligence, health care, renewable energy and infrastructure. Kazakhstan's foreign policy stands on several legs. Russia is one. China is another one. Central Asian neighbours have a special place, of course, then the West, and then the Arab world Roman Vassilenko, deputy foreign minister of Kazakhstan AD Ports Group, the operator of industrial cities and free zones in Abu Dhabi, said it plans to invest another $600 million to expand its operations in Kazakhstan, and aims to develop a multipurpose terminal to improve trade and expand its fleet in the Caspian Sea. The investment in trade infrastructure comes as countries look to shore up supply routes for consumer goods and commodities and protect against shocks similar to those caused by the coronavirus pandemic and economic and political instability. 'Abu Dhabi Ports is already working to help Kazakhstan develop maritime infrastructure on the Caspian Sea, as well as building up tankers for transporting our oil across it,' Mr Vassilenko said. 'That is, of course, also part of the solution to the challenges that we face as we try to develop the middle corridor.' The volume of products traded on the route, including crude oil and consumer goods, has increased from 560,000 tonnes in 2021 to 4.5 million tonnes last year, Mr Vassilenko said. Relationships with the Gulf countries are focused on trade and investment, Mr Vassilenko added. Kazakhstan's wealth of hydrocarbon and mineral resources, and keenness to widen its trading base beyond traditional allies Russia and China, mean that much of its foreign policy centres around finances and economics. Ties with major powers remain important – Beijing and Moscow are Astana's largest trade partners, followed by the EU. But Kazakhstan is looking elsewhere too. 'Kazakhstan's foreign policy is sort of standing on several legs,' Mr Vassilenko said. 'Russia is one. China is another one. Central Asian neighbours have a special place, of course, then the West, and then the Arab world. It's all part of the concerted vision that we have pursued ever since independence.' Sanctions on both Russia and Iran have complicated trade for Kazakhstan and its central Asian neighbours, creating more need to bolster routes such as the middle corridor that travel through neither's land territory. Astana has adopted a neutral position on the conflict since Moscow's invasion of Ukraine in February 2022. It continues to do business with Russia, from where goods from face wash to breakfast cereal and vodka fill the supermarkets of Astana. Conflict and instability in Afghanistan have also limited north-south trading routes. 'We are not only landlocked, but we are also limited in our options, so we can trade via Russia, and we have been doing this throughout our independence,' Mr Vassinlenko said. 'Yet, we now understand that we need to develop alternative routes, and that's why the middle corridor comes in handy.' When it comes to Iran, Astana sees 'enormous' potential for trade, especially for transit to third countries, said Mr Vassilenko, who added that there are prospects for much better relations if ongoing talks between Tehran and the US reach fruition and sanctions on Iran are lifted. Sharing a naval border in the Caspian Sea, Iran and Kazakhstan had a trade volume of $303 million in 2023, according to the Observatory for Economic Complexity. The trade was dominated by Iranian exports to Kazakhstan, mostly of polymers, ceramics and tropical fruit. 'The opportunities of trading via Iran with the world for Kazakhstan are enormous, and yet they are limited now,' Mr Vassilenko said. 'Now you can still send goods via Iran, mostly food stuffs which are not sanctioned, et cetera, but it's still very limited. There is an infrastructure, and we have tried using this infrastructure in the past, meaning railways, and Iran offers beneficial tariffs for transporting our goods via railways, but generally normalisation of these relations will help.' The world's ninth largest nation by land area, Kazakhstan gained its independence in 1991 following the collapse of the Soviet Union, and produces 40 per cent of total current world supply of uranium, as well as crude oil. It also has other resources including rare earth minerals so attractive that they are becoming a leading area of policy for the country, as other nations seek to secure supplies. Increasingly important in the development of consumer electronics, electric vehicles and medical equipment, rare earth minerals are highly sought-after by countries around the world, which are rapidly seeking to secure access to supplies. In April, Kazakh authorities announced the discovery of more than 20 million tonnes of metal deposits – a reserve that, if proven, would give the country the world's third largest reserves of rare earth elements, behind only China and Brazil. Kazakhstan not only needs foreign technologies to help it mine the precious reserves, it also wants to bring in foreign geologists to explore and discover more of them. The country has agreements with German, French, British and American geologists. 'I think in the next five to 10 years, you will hear more and more about rare earth metal developments in Kazakhstan, in particular in co-operation with the West,' Mr Vassilenko said.
CNN
02-04-2025
- Business
- CNN
Connecting Continents: Kazakhstan's Pivotal Role in Driving International Cooperation
In an era marked by geopolitical uncertainties, climate change, and economic instability, international cooperation has never been more crucial, and middle powers are stepping up to serve functions once reserved for the world's superpowers. In this challenging landscape, Kazakhstan plays a unique role bridging East and West, facilitating dialogue and exchanges globally. Kazakhstan is poised to host a conversation addressing these global complexities at the Astana International Forum 2025, which is to welcome around 5,000 delegates from more than 50 countries from May 29 to 30, 2025, in the Kazakh capital. Under the theme 'Connecting Minds, Shaping the Future,' the event will focus on foreign policy, energy, and finance, as it seeks to inspire cross-border dialogue and collaborative solutions to some of the most pressing issues facing our world today. Kazakhstan's strategic position in the heart of Eurasia, bordered by Russia to the north, China to the east, Kyrgyzstan, Uzbekistan, and Turkmenistan to the south, and the Caspian Sea to the west, places it at a crossroads of major geopolitical interests and transcontinental trade dynamics. The country's multi-vector foreign policy approach prioritizes cooperation with its international partners, including its neighbors and beyond. 'By leveraging our geographic and strategic position,' says Roman Vassilenko, Deputy Foreign Minister of Kazakhstan, 'Kazakhstan is enhancing its contribution to promoting global trade, strengthening economic relations, and fostering sustainable growth both domestically and across the region.' The nation's active participation in major trade corridors, including the Belt and Road Initiative (BRI) and the Trans-Caspian International Transport Route (TITR), also known as the Middle Corridor, showcases its role in fostering trade and diplomatic relationships between East and West. In 2024, the volume of goods transported via the Middle Corridor surged by 62% to reach 4.5 million tons, while it is estimated to reach an annual throughput capacity of 10 million tons by 2027. Over 80% of goods from China and Central Asia destined for land-based transportation to Europe are transported via Kazakhstan, reflecting its role as a key transit hub in Eurasian trade. Building on this momentum, Kazakhstan aims to further contribute to regional and global development, creating bridges between continents, cultures, and nations. The nation has also worked to solidify its international reach through multinational initiatives such as the Central Asia Plus Framework, which aims to strengthen regional collaboration. 'The narrative around Central Asia is shifting towards a more cooperative region,' says Vassilenko, adding that common challenges, such as fighting global warming and ensuring sustainable economic growth, are playing a unifying role. Kazakhstan's proactive engagement in global trade and economic forums highlights its commitment to diverse partnerships, paving the way for a more resilient economic future by developing non-oil industries and funding infrastructure development and digital innovation. In 2024, this approach contributed to a 4.7% economic growth, driven primarily by expansion in non-oil sectors. Over the past year, the country has also chaired several major international organizations, including the Shanghai Cooperation Organisation, the Collective Security Treaty Organization, the Conference on Interaction and Confidence-Building Measures in Asia, the Organization of Turkic States, and the Islamic Organisation for Food Security. It continues to chair the International Fund for Saving the Aral Sea this year. As a champion of the 'Great Gain for All' principle, Kazakhstan has taken a unified approach to tackling political, social, and environmental challenges. 'It reflects our belief that cooperation, rather than competition, should be the driving force in global relations,' says Vassilenko. Aligning its actions with the United Nations' overarching commitment to global security and stability, Kazakhstan has been actively supporting UN peacekeeping efforts, deploying as many as 650 peacekeepers to participate in various missions worldwide. Since independence, Kazakhstan has allocated $600 million for humanitarian and development assistance and has also provided a neutral platform for facilitating peaceful resolutions to regional conflicts, including the Astana Process on Syria since 2017 and last year's talks between Azerbaijan and Armenia. In addition to its diplomatic endeavors, Kazakhstan is playing a crucial role in supporting the stability of global energy markets. As well as supplying 43% of the world's uranium needed to fuel nuclear power plants, Kazakhstan also produces more than half of the 34 critical raw materials of high importance to the EU. In addition to these resources, Kazakhstan is investing in green hydrogen production, as well as wind and solar energy, aiming to become a leader in renewable energy exports. By investing in energy infrastructure and pursuing policies that support energy export, Kazakhstan is positioning itself as a long-term partner for the EU in the energy domain. Through its strategic initiatives and diplomatic engagements, Kazakhstan continues to shape the course for global governance to reflect the need for peace and stability in the multipolar reality of the 21st century. Click here to learn more about Astana International Forum 2025 and Kazakhstan's vision for increased international cooperation and economic integration.
