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Kazakhstan Welcomes Turkish Investors

On 25 April, Kazakhstan’s Prime Minister Olzhas Bektenov visited Ankara where he met President of Turkey Recep Tayyip Erdogan, discussed investment cooperation with leading Turkish companies, and attended a Kazakh-Turkish business forum.

Turkey is one of Kazakhstan’s five largest trading partners and one of the top 20 investors in the Kazakh economy. The two countries’ governments are currently engaged in maintaining bilateral trade worth $10 billion.

Looking ahead, Kazakhstan plans to increase its export of 34 products, primarily from metallurgical, petrochemical, food, and engineering industries, valued at over $630 million.

Over the past year, the volume of freight transported by rail and road increased by 40%. Kazakhstan and Turkey have now set a target for a further threefold increase by developing the potential of the Trans-Caspian International Transport Route (TITR).

At the business forum, over 500 representatives of the Turkish business community were informed of Kazakhstan’s investment climate and government support for investors. It was stated that Kazakhstan and Turkey are currently implementing some 100 joint investment projects costing about $3.8 billion.

Addressing Turkish businesses, Bektenov emphasized Kazakhstan’s enormous investment potential and interest in furthering mutually beneficial cooperation with Turkey,  stating, “Kazakhstan’s key aims are transferring advanced technologies, localizing production and creating advanced processing clusters to produce high-quality products with high added value. Investors who are ready to cooperate in this direction will be provided with the necessary resources, infrastructure, and support.”

At the close of the business forum, 10 commercial contracts were signed and totalling over $180 million, included a memorandum on the export of finished products, as well as the construction of a logistics hub and factories producing soda ash, sprinkler equipment, nonwoven materials, and  assembly of irrigation equipment.

 

 

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Kazakhstan and the Taliban Discuss Transport Links

Members of Kazakhstan’s government and representatives of the Taliban have discussed expanding transportation links between Astana and Kabul, according to the Kazakh government’s press service.

The Kazakh side has said it’s ready to participate in projects to develop the Trans-Afghan corridor: the construction of the railroad routes Termez – Mazar-e-Sharif – Kabul – Peshawar and Herat – Kandahar – Spin – Buldak. The projects, say Kazakh officials, will make it possible to reduce the cargo-transit time between the countries of the region almost 90%, as well as reducing the costs. Kazakhstan is ready to participate in the construction of a Trans-Afghan highway by supplying sleepers and fasteners to Afghanistan.

Representatives of the national rail carrier Kazakhstan Temir Zholy, or KTZ, spoke about the new cargo delivery route. “Today we launched a pilot project to organize a new multimodal export route from Kazakhstan through Uzbekistan, Afghanistan, Pakistan and further by sea to the port of Jebel Ali in the UAE. The new route is organized with the participation of KTZ Express. The exporter is Kazakhstan’s Bio Synergy, and the shipping partner is Pakistan’s National Logistics Cell (NLC). The loading of cargo has already started in Pavlodar region. That cargo is aluminosilicate hollow microsphere. In Almaty, the cargo will be reloaded into containers and transferred to the cars of the Pakistani partner. From there by motor transport it will pass through Uzbekistan and Afghanistan to the port of Karachi in Pakistan. From there, two containers will be sent by sea to the port of Jebel Ali in the UAE,” commented KTZ’s managing director Bauyrzhan Urynbasarov.

The parties also discussed the possibility of arranging more flights between the countries. Under earlier agreements, air carriers from Kazakhstan and Afghanistan have the right to perform three regular passenger/cargo flights per week. Kazakhstan is ready to consider accepting more flights from Afghan airlines.

Over the past three years the volume of exports from Kazakhstan to Afghanistan has been steadily growing. In 2023, the volume of transportation by rail amounted to 2.7 million tons, of which 1.5 million tons was flour and grain.

In December 2023 Kazakhstan removed the Taliban from its list of banned organizations. According to the Kazakh Ministry of Foreign Affairs, the Taliban was no longer classed as a banned organization “in accordance with the practice of the UN [United Nations].”

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Russian Comments Put Kazakhstan’s Oil Transit to Germany Under Threat

Russia has warned Kazakhstan about the possible suspension of Kazakh crude oil transshipment to Germany through the Druzhba oil pipeline system. The stated reason is the debt of Polish pipeline operator PERN, according to a report by Reuters.

Reuters, citing people familiar with the matter, claims that Russia’s Transneft has warned its Kazakh partner KazTransOil about the suspension of oil deliveries to the Schwedt refinery. The reason for this demarche is the outstanding debts of Polish state pipeline operator PERN. If the Polish company doesn’t pay for the services of oil acceptance and transfer at the Polish transit point Adamova Zastava on the border with Belarus by June, the transit will be stopped. The amount of the debt is unknown.

PERN explained its version of the situation by citing western sanctions against Russia. Payment of money to the Russian side can lead to violations of the sanctions regime.

According to comments made by the Kazakh Ministry of Energy, the Kazakh government itself looks at the possibility of transit suspension very negatively. KazTransOil said that the plan of deliveries to Germany remains unchanged, and that negotiations with all participants of the process are underway. Curiously, the Ministry of Energy denied the Reuters report, claiming that “the information does not correspond to reality.”

In early April it was reported that the Kazakh side intends to supply 1.2 million tons of oil to the Schwedt refinery by the end of the year.

This would not be the first case involving a cessation of Kazakh oil transiting Russian territory. Earlier, there were repeated problems with the Caspian Pipeline Consortium (CPC) terminal in Novorossiysk, Russia, on the Black Sea. Some analysts believe that Russia uses oil transportation as an instrument to apply pressure to the Kazakh government.

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Kazakhstan Poised to Participate in Trans-Afghan Railways Construction

On 24 April, a Kazakhstan delegation led by Deputy Prime Minister Serik Zhumangarin met Afghan Deputy Prime Minister Abdul Ghani Baradar in Afghanistan to discuss cooperation on transport projects in Central and South Asia.

The Kazakh side announced its readiness to participate in the development of the trans-Afghan corridor through the construction of the Termez – Mazar-i-Sharif – Kabul – Peshawar and Herat – Kandahar – Spin Buldak railways.

The projects aim to reduce the delivery time of goods between the countries by almost 10-fold, as well as reduce transportation costs.

Kazakhstan’s proposed contribution to the construction of the trans-Afghan railways comprises the supply of locally- produced materials for the upper structure of the railway track, sleepers, and fastenings.

Over the past three years, the volume of exports sent from Kazakhstan to Afghanistan has grown steadily. In 2023, transportation by rail amounted to 2.7 million tons, including 1.5 million tons of Kazakh flour and grain, a 14% increase compared to 2021. In the coming years, Kazakh exports to Afghanistan are expected to increase by 40%.

The parties also discussed resuming air traffic between the countries. According to a memorandum between the aviation authorities of Kazakhstan and Afghanistan, the two countries are on course to operate three scheduled passenger/cargo flights per week.

 

 

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Azerbaijan Agrees to Talks With Armenia in Kazakhstan

Officials in Baku have agreed to a meeting of the foreign ministers of Azerbaijan and Armenia in Kazakhstan. Azeri president Ilham Aliyev stated as much at a meeting with participants of the international forum “COP29 and a Green Vision for Azerbaijan” held at ADA University, Turan.az reports.

Aliyev said that if Yerevan gives reciprocal consent, their next talks will be held in Astana. He reminded the audience of the previously concluded Madrid Principles, which were first proposed in 2007. “We have a common understanding of how the peace agreement should look like. We just need to work out the details. However, of course, both sides need time. Now there is a unique chance. When the USSR collapsed there were wars in our region, unlike the Baltic States, which started their independent life peacefully. Now we have this chance. I think COP29 is a great opportunity for this,” Aliyev said.

On April 15 Kazakhstan’s president Kasym-Jomart Tokayev paid an official visit to Armenia. Tokayev called on Yerevan and Baku to settle the conflict through negotiations, and he suggested Kazakhstan as the location for hosting the dialog. Tokayev himself spent years as a diplomat, and Kazakhstan seems to be positioning itself as an international mediator, aiming to be recognized as a significant diplomatic player on the world stage.

Commented a member of the Kazakhstan Institute for Social Development, Yernar Kushaliyev: “Kazakhstan pursues a multi-vector foreign policy, which allows it to effectively interact with various global powers and regional actors. Kazakhstan has a unique potential to play the role of the main mediator in the Eurasian region, especially in the settlement of disputes between states. The country maintains a neutral position, not participating in military conflicts, which creates favorable prerequisites for mediation and diplomacy. This position strengthens confidence in Kazakhstan as a reliable mediator and organizer of peace negotiations”.

Kushaliyev stresses that, in the context of the current negotiations, the military situation is not developing in Armenia’s favor. “Azerbaijan, in its turn, has successfully implemented a number of strategic and tactical tasks in Nagorno-Karabakh, strengthening its positions. As a result of these circumstances, it seems likely that both sides will be able to come to constructive agreements and demarcate their borders during the negotiations to be held in Astana,” he said.

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Samarkand to Host Asian Women’s Forum Next Month

The Asian Women’s Forum will be held in Samarkand this May, where participants will discuss the situation surrounding women’s rights in the countries of Central and Southeast Asia.

The forum will discuss issues related to expanding women’s rights, and reducing poverty in the region by involving women in entrepreneurship. Sessions will pay special attention to the role of parliaments in stimulating women’s participation in business, gender-oriented budgeting, elimination of gender disparity, and eradication of all forms of violence against women and children.

The participants will also focus on modern approaches and best practices in promoting the green economy, the impact of climate change on gender issues in the region — as well as protection of women’s rights and interests.

Women are now a driving force in all aspects of life in Central Asia. Addressing the 78th session of the UN Commission on the Status of Women in New York, Chairwoman of the Senate of the Oliy Majlis (bicameral parliament) of Uzbekistan Tanzila Narbayeva said that “the attitude towards women has fundamentally changed in the country. Much attention is [being] paid to their education, mastering professions and foreign languages — as well as to the development of women’s entrepreneurship.”

To date, Uzbekistan has adopted more than 40 legal and regulatory acts to improve the status of women in society, established the National Agency for Social Protection, which, among other things, provides targeted assistance to women and works specifically on the social adaptation of women returned from conflict zones in Syria, Iraq and Afghanistan.

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