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Swiss Holding to Invest in Kazakhstan

At a meeting on March 19th between Yerzhan Yelekeyev, chairman of Kazakh Invest, and representatives of Eurasia Swiss Holding AG, the latter announced its intention to invest in two new projects in Kazakhstan. The Swiss holding company plans to build an innovative medical centre equipped with positron emission tomography and computed tomography services. According to Gulmira Amatova, director of Eurasia Swiss Holding Investment LLP, a subsidiary of Eurasia Swiss Holding AG, the centre will provide wide public access to new technologies and methods of tomography which will significantly enhance the quality of life of cancer patients. The second initiative planned by the Swiss holding company at a cost of $62 million, comprises the construction of dairy farms and a dairy plant in Kazakhstan’s northern Kostanay region. Eurasia Swiss Holding AG looks forward to concluding an investment agreement with the Government of Kazakhstan on both projects.

Central Asia Kazakhstan International Affairs Kazakhstan Business & Economy Kazakhstan Business & Economy

Kazakhstan and China Increase Trade by 30 Percent

By the end of last year, trade volume between Kazakhstan and China had increased by 30 percent. Kazakhstan sends oil, gas and metals to China, while importing clothing, machinery and cars. Mutual trade between the countries hit $31.5 billion in 2023, which is 30.4% more than in 2022. The main share of bilateral trade between the countries is imports to Kazakhstan of $16.8 billion. At the same time, exports increased by 11.7% over 12 months to $14.7 billion. China takes 22.5% of Kazakhstan's total trade with foreign countries: 27.4% of imports and 18.7% of exports. Popular export categories include refined copper and unprocessed copper alloys, natural gas, precious and rare earth metals, as well as radioactive elements and ferroalloys. However, Kazakhstan's Ministry of Agriculture reports that in recent years the demand for organic and environmentally friendly agricultural products produced in Kazakhstan has increased among Chinese buyers -- and the export of those products to China last year almost doubled, to $1.01 billion.

Central Asia Business & Economy Kazakhstan Kazakhstan Business & Economy

Oil Products Were Kazakhstan’s Most Transported Cargo in 2023

In 2023, refined petroleum products became the most transported cargo by rail in Kazakhstan, according to the Ministry of Transport. Last year more than 27 million tons of cargo was transported by rail, up 18% from the 23.1 million tons of oil products shipped by rail in 2022, the ministry said. "Today, cargoes are mainly transported in the [directions of] China, Europe, the Russian Federation, Central Asia. Most of the transported goods are oil products," the ministry commented. The ministry also reported that under an agreement with the Eurasian Economic Union (EAEU), railway tariffs for the state railway company, Kazakhstan Temir Joly, for transportation are differentiated by type of cargo. Prices are set by the Committee for Regulation of Natural Monopolies of the Ministry of National Economy of Kazakhstan based on the national investment program. According to the Ministry of Energy of Kazakhstan, last year the country produced 89.9 million tons of oil. In January this year, crude oil production amounted to 6.7 million tons, which is 3.2% less than in January 2023.

Central Asia Kazakhstan Environment Kazakhstan Business & Economy Kazakhstan Business & Economy

North Caspian Operating Company Preparing for Onshore Oil Production at Kashagan

The drop in the surface level of the Caspian Sea has been of particular concern recently. The situation has led the North Caspian Operating Company (NCOC) -- which pumps oil at the Kashagan field in the northern part of the Caspian Sea -- to decide to implement onshore oil production. The current water level drop in the Caspian Sea has contributed to a decrease in the depth of the Ural River delta of up to 50cm in some places -- as well as the appearance of islands in the pre-delta area. Previously, NCOC had carried out improvement works and started dredging around the field's production facilities to ensure safe access for marine vessels. This increased the water depth to 4.3 meters from 2.5 meters. The NCOC's fleet consists of owned and chartered marine vessels, including hovercraft, and barges. The largest of them have a draft of 2.4-2.8 meters, which require an extra depth under the keel of 50cm for safe navigation. Emergency evacuation vessels have a draft of 2.2 meters. There have been no cases of stranding so far. The operator's representatives have stated that NCOC is constantly monitoring the level of the Caspian Sea, considering various possible scenarios, and ensuring proper conduct of operations at Kashagan. Kashagan is the largest oil & gas project in Kazakhstan. The level of oil production at Kashagan in 2023 showed record data of 18.8 million tons, or almost 380,000 barrels per day on average. In January of this year, total output from the field reached the milestone of 100 million tons of oil since the launch of production in 2013.

Central Asia Kazakhstan International Affairs Kazakhstan Business & Economy Kazakhstan Business & Economy

Kazakhstan to Expand Trade Cooperation with Chinese Provinces

On March 19th, Kazakhstan’s Minister of Trade and Integration Arman Shakkaliev met Ma Xingrui, Communist Party Secretary of China’s western Xinjiang Uyghur Autonomous Region (XUAR) to discuss strengthening Kazakh-Chinese trade cooperation and the opening of a Kazakh trade mission in XUAR’s main city of Urumqi. In 2023, trade turnover between Kazakhstan and China reached $31.5 billion, with the XUAR accounting for over 64% or $20.3 billion of the total. Referencing his country’s focus on trade cooperation with China, the Kazakh minister stated, “Targeted work is being carried out with each province and a joint action plan is being developed to increase trade and attract investment in projects in priority areas. Kazakh businesses are showing more and more interest in supplying products to the Chinese market. We very much appreciate the support of the XUAR leadership in resolving issues of access of Kazakh goods to China.” The minister further reported, “To increase trade between our countries, especially with the XUAR, the Kazakh Head of State has instructed the opening of a trade mission in Urumqi. The QazTrade organization, which is subordinate to the Ministry of Trade and Integration, will be involved in the activities of this representative office. In the future, it will become a conduit between our manufacturers and Xinjiang companies interested in purchasing products.” The parties also discussed prospective joint investment projects and in particular, interest from Kazakh businesses in Chinese investment in the construction of feedlots for cattle, the creation of meat processing facilities and processing of cereals.

Central Asia Kazakhstan Business & Economy Kazakhstan Business & Economy

EDB Boosts Investment in Kazakh Projects

In 2024, the Eurasian Development Bank (EDB) will invest no less than $1 billion in Kazakhstan, with priority sectors listed as transportation, industry, energy and environmental improvements, agribusiness, and the construction and modernization of social infrastructure. The announcement was made during a meeting on March 18th between Kazakhstan’s Prime Minister Olzhas Bektenov and Nikolai Podguzov, Chairman of the EDB Management Board. EDB is an international financial institution whose members include Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan. Podguzov reported that last year, the EDB financed several investment projects in various sectors of Kazakhstan’s economy, including the construction of a polypropylene plant, the procurement of diesel locomotives, and the development of wind farms in the Kostanay region. Kazakhstan’s share of the EDB’s annual investment surged from 48.5% in 2022 to 59% in 2023. The prime minister stressed the significance of investment in large-scale infrastructure initiatives recently listed by Kazakhstan’s president as the development of roads, housing construction, utility upgrades, and gasification of cities and villages. “The bank should prioritize major infrastructure projects,” stated Bektenov. “We are ready to enhance cooperation with the bank on mutually beneficial terms.”