(MENAFN- AzerNews)
Qabil Ashirov Read more
The economic and cultural relations between Azerbaijan and
Kazakhstan are sound, and the history of these relations traces
back thousands of years. Remaining true to their histories and
traditions, these two countries could develop good relations based
on mutual respect. Currently, Azerbaijan and Kazakhstan collaborate
in various fields. The two countries have numerous joint
initiatives that aim at strengthening cultural ties and increasing
tourist flows between the two countries. Here, it includes a number
of projects that are important both for the two countries and for
the region as a whole. This is the expansion of the capacity of the
Trans-Caspian International Transport Route (Middle Corridor), the
laying of a fiber-optic communication line (FOCL) and an energy
cable along the bottom of the Caspian Sea, the export of oil and
uranium through Azerbaijan, and the supply of wheat from Kazakhstan
to the Azerbaijani market.
First of all, today Kazakhstan is the second biggest trade
partner of Azerbaijan in Central Asia after Turkmenistan, and
Azerbaijan is the most important and strategic partner in the South
Caucasus. Since 2020, trade turnover between the two countries has
increased almost 5 times, from 109 to 529 million dollars. This is
an impressive dynamic, and the sides plan to continue increasing
volumes. The side is determined to expand it to $1bn in the near future.
Besides, Kazakhstan ranks in fifth place in a row for two years
in the country's non-oil and gas exports, through which Baku pays
special attention to diversifying its fossil-fuel-based economy.
Non-fossil-fuel exports to Kazakhstan amounted to $95m in 2023. Azerbaijan's main non-oil and gas
exports to Kazakhstan are cars, special-purpose ships, iron pipes,
propylene polymers, agricultural products, etc.
However, cargo transportation steps forward when the point is
about the economic cooperation between the two Turkic-speaking
countries. Both countries are located on the Middle Corridor, the
international trade route that links Europe to the Far East. The
Middle Corridor is a transportation and trade route that connects
Asia and Europe, passing through several countries in the region.
It is an alternative route to the traditional Northern Corridor and
Southern Corridor. The Middle Corridor offers a land route that
connects the eastern parts of Asia, including China, with Europe,
bypassing the longer maritime routes. It is worth noting that the
number of permission forms for international cargo transportation
by road between Azerbaijan and Kazakhstan has increased fivefold
over the past three years. However, the two countries do not intend
to limit themselves to these figures and want to enhance their
relations even more.
Another important point in the economic collaboration between
the two countries is oil. Azerbaijan offers an alternative route to
Kazakhstan to transport its rich fossil fuels to the world markets
through Baku-Tbilisi-Ceyhan. The volume of Kazakh oil transported
through Azerbaijani territories increases year by year.
A total of 1 million 057 thousand tons of oil
were sent from Aktau port to Azerbaijan in 2023. The sides are
determined to boost it to 2.2 million tons per year. Azerbaijan's
oil giant SOCAR and Kazakh KazMunayGaz (KMG) have already signed an
agreement in this regard. The agreement also defines the general
conditions and principles of the sale of Kazakh oil for further
processing at oil refineries included in SOCAR, as well as further
trade in regional and global markets.
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