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Azerbaijan, Kazakhstan Crafting Visionary Future – Run-Up To President Tokayev’s Visit To Baku

BusinessAzerbaijan, Kazakhstan Crafting Visionary Future - Run-Up To President Tokayev's Visit To Baku


(MENAFN– Trend News Agency) BAKU, Azerbaijan, March 11. Amid the global
chaos, wars, and conflicts, having genuine strategic partners takes
center stage. Azerbaijan and Kazakhstan stand out as a prime
example, demonstrating a truly friendly bond between the two
nations.

The leaders of both countries reinforce their close ties through
consistent contacts and visits. The upcoming visit of President
Kassym-Jomart Tokayev to Azerbaijan on March 11 is poised to be
another pivotal move in advancing collaborative efforts across
various domains.

Kazakhstan, standing by Azerbaijan in its endeavors to restore
territories freed from Armenian occupation, has already pitched in
with a pivotal project. President Tokayev’s upcoming visit will
mark the grand opening of this initiative – the Kurmangazy
creativity center for children in the city of Fuzuli. Fostering
cultural connections between the peoples of Azerbaijan and
Kazakhstan has consistently been a cornerstone of the multifaceted
cooperation. This particular project is set to forge stronger bonds
between two nations tied together by a shared Turkic legacy.

Over the past few years, Baku and Astana have taken their
economic partnership to a whole new level. In 2023, the trade
between Kazakhstan and Azerbaijan reached a total of $529.4
million, marking a significant 14 increase compared to
the same period in 2022, which stood at $463.3 million. Since 2020,
the trade between the two countries has seen an almost fivefold
increase, skyrocketing from $109 million. The Kazakh side
emphasizes that Azerbaijan’s market is a major focal point for
exporting processed goods from the country. Astana is all set to
deliver over 100 non-raw commodity items to Azerbaijan, totaling
around $300 million.

A major aspect of this collaboration revolves around the
shipment of Kazakh oil through Azerbaijan, destined for further
transport to Europe. In 2023, Kazakhstan moved a substantial 1.39
million tons of oil through Baku, with all this oil coursing
through the Baku-Tbilisi-Ceyhan (BTC) oil pipeline.

Furthermore, back in 2022, Azerbaijan proposed the idea to
Kazakhstan of tapping into the Baku-Supsa pipeline, reserving a
stake of up to 1.5 million tons in the pipeline. Presently,
Kazakhstan is weighing the option of making use of the Baku-Supsa
pipeline. Both Baku and Astana stay in the loop on this matter, and
both sides are keen on exploring avenues to boost the transit of
Kazakh oil through Azerbaijan.

Additionally, Azerbaijan serves as a crucial transit hub for
Kazakhstan’s uranium exports to Europe. Given that Central Asia
boasts some of the world’s largest uranium deposits and is keen on
expanding its production and processing capabilities for this
resource, coupled with the renewed interest in nuclear power
development by several European countries, Azerbaijan plays a
pivotal role in facilitating supply routes, ensuring mutual
benefits for both sides.

Azerbaijan is now in the league of the top 15 significant
investors in the Kazakh economy. In the latest business mission of
Kazakh entrepreneurs to Azerbaijan, 8 contracts totaling $55
million were inked. In addition to the thriving Turkic Investment
Fund, which has been operating successfully since May 2023 with an
initial capital of $500 million and includes both Azerbaijan and
Kazakhstan as members, there are also discussions about ramping up
investment in a bilateral format. Currently, talks are ongoing
about the potential formation of a Kazakhstan-Azerbaijan Investment
Fund between Samruk-Kazyna, the National Welfare Fund, and the
Azerbaijani Investment Holding. One key goal for the future fund is
to foster the development of port infrastructure on the both sides
of the Caspian.

Here, it is important to highlight one of the most crucial
projects, a cornerstone in the collaboration not just between
Azerbaijan and Kazakhstan but also bridging the East and the West –
the Middle Corridor. In this context, both Baku and Astana play
pivotal roles, serving as the primary architects on opposite sides
of the Caspian Sea.

To enhance cargo transportation volumes via the route, the
railway organizations of Kazakhstan, Azerbaijan, and also Georgia
established a joint venture called Middle Corridor Multimodal Ltd.,
streamlining services in a single-window format. The route is set
to leverage state-of-the-art digital technologies, and in pursuit
of this, the Kazakh side has partnered with the transnational
Singaporean company PSA, which developed the blueprint for a
seamless digital corridor. It is worth noting that our European
partners are just as keen on growing this transportation route. In
fact, they have recently backed it up with 10 billion euros for
infrastructure development along the Middle Corridor.

Azerbaijan and Kazakhstan kicked off a solid friendship ages
ago, laying the groundwork for a long-lasting system that is still
going strong. Despite facing hurdles, both countries stuck
together, and their partnership has only leveled up. All of this
would not have been possible without the dedication and focus that
President Ilham Aliyev and President Kassym-Jomart Tokayev
personally poured into developing these relations. The significant
strides taken by the leaders of both nations in recent years have
not only shaped the bilateral landscape but also propelled key
initiatives throughout the broader region. Sure, considerable
untappedpotential is still waiting to be uncovered in the future.
Looking back at the history of the both nations, it is pretty clear
– Azerbaijan and Kazakhstan are on track to keep the cooperation
alive, with the stage set for even bigger things ahead.

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