(MENAFN- Trend News Agency) BAKU, Azerbaijan, April 10. As the global
situation remains uncertain, and confrontational in many aspects,
relationship between Azerbaijan and Kazakhstan has always enjoyed a
high level of stability. The strategic partnership between Baku and
Astana was always of high importance to both nations, due to the
approach based on the principles of political liberalism jointly
shared by the nations.
Changing geopolitical landscapes, new opportunities, and
challenges are going to shape the policies aimed at fostering
cooperation between the nations in several fields.
In the context of discussing the level of bilateral relations
and cooperation between Kazakhstan and Azerbaijan, it is important
to mention that every area of cooperation constitutes strategic
importance. Azerbaijan and Kazakhstan are two countries that,
despite their differentiating characteristics, are in similar
situations and share similar foreign policy goals.
There are several directions, which are of the main focus of the
bilateral agenda of the two countries.
Energy, transport, trade - three elements of the
puzzle
Continuing cooperation in the energy and transport sectors is,
currently, the key element defining the future long-term model of
economic partnership between Azerbaijan and Kazakhstan.
The economies of both nations are highly dependent on
hydrocarbons exports, despite the gradual shift to other modes of
generating energy.
Kazakhstan has already availed itself of the opportunities
offered by Azerbaijani energy infrastructure by exporting some of
its oil via the Baku-Tbilisi-Ceyhan (BTC) pipeline. The deal signed
between SOCAR and KazMunayGas, the national oil companies of
Azerbaijan and Kazakhstan, entails the annual transit of 1.5
million tons of oil via the BTC. In April alone, KazMunayGas
intends to transit 125,000 tons of oil via Azerbaijan. Although the
volume of oil expected to be transited via Azerbaijan is
impressive, considering the early stages of such cooperation and
the possible challenges associated with the implementation of a
major project, Azerbaijan can transit more, and it is in the best
interests of Kazakhstan to increase transit via this route. This
stems from the obvious benefits to be had by both parties. From the
perspective of Azerbaijan, ensuring the safe transit of Kazakh oil
will generate tangible and intangible resources. Meanwhile, looking
at the transit through the lens of Astana reveals that transiting
oil via the BTC will help Kazakhstan, should unforeseen technical
challenges arise on other routes due to several possible
reasons.
Then, there is also“green energy”. Both Azerbaijan and
Kazakhstan initiated a shift in their energy policy doctrines,
which will ascend the countries to the status of energy exporting
states, rather than mere hydrocarbons exporters. The fact that
green energy became an important element in the agenda of Baku and
Astana makes it easier for the nations to establish long-term
cooperation in the field.
The key takeaway here is that the energy cooperation between
Baku and Astana continues and has a high growth cap.
Energy cooperation is only one part of the complete picture
because energy cooperation is impossible to implement without the
proper support of the transport sector. For Baku and Astana, the
development of transport cooperation is a strategic necessity,
considering the modern geopolitical realities. The Trans-Caspian
International Transport Route (TITR), also known as the Middle
Corridor, becomes the cornerstone of international trade, which
creates challenges and opportunities for both nations. The
opportunities are obvious, as participation in this project enables
Baku and Astana to increase their economic potential, in addition
to giving both countries the possibility to further their political
influence.
In the framework of the Middle Corridor, it is important to
mention that the project is of global importance. As trade routes
through Russia and Iran remain restricted, Azerbaijan and
Kazakhstan offer a safe passage of goods between the West and the
East. Consequently, there is much interest in the successful
implementation of the project from the decision-makers in the US,
the EU, and the Gulf States as well. The key element here is that
Azerbaijan and Kazakhstan need to ensure that the capacity of
transport sectors in both states is sufficient to guarantee the
transit of the increasing volume of goods. This objective can be
achieved by improving infrastructure and by harmonizing the
legislative foundation guiding the process.
It is not a secret that decision-makers in Azerbaijan and
Kazakhstan consider that there is significant potential to develop
trade between the nations. While the process was in full swing,
COVID-19 induced restrictions have dealt a major blow to trade
turnover between Baku and Astana. Trade turnover improved after
most restrictions were eliminated, however, it remains relatively
small with roughly $500 million, according to Kazakh estimates.
Considering the sizes of Azeri and Kazakh markets, the mutual
importance of the nations, and the policies aimed to boost trade,
this result can be improved significantly.
A new boost to bilateral relations
Azerbaijan and Kazakhstan laid a strong foundation for building
long-term relationships many years ago, which enables the countries
to continue in the same vein moving to the future. Despite the
obstacles, challenges, and other opportunities available,
Azerbaijan and Kazakhstan remained close partners, and the status
of the partnership only increased. Albeit all the progress, there
is still significant untapped potential to be explored by the
countries in the future. When looking at the past relationship
dynamics, it becomes safe to suggest that Azerbaijan and Kazakhstan
will continue the trend of cooperation, and the foundation for the
future transformation is already there.
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