Kazakhstan International Affairs - The Times Of Central Asia

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Kazakhstan Urges EEU Countries To Develop Transport Infrastructure

The Eurasian Economic Union (EEU) is located at the crossroads of east and west, north and south, which has always been a competitive advantage for the region, Kazakhstan’s prime minister Alikhan Smailov commented at a meeting between the heads of government of the EEU member countries in Almaty on February 2nd. The Russian-led economic bloc also includes Armenia, Belarus, Kazakhstan, and Kyrgyzstan. "Kazakhstan attaches special importance to the development of transit and transportation infrastructure. Over the past 15 years our country has allocated more than $35bn for this purpose. A logistics center in Lianyungang, a dry port of Khorgos, a transit highway Western Europe - Western China, a railway corridor from China to Iran have been launched. Modernization of Caspian Sea ports Kuryk and Aktau has been carried out," Smailov said, adding that the construction of Kazakhstan's terminal in Chinese Xi'an had been launched. Together with Russian, Turkmen, Indian and Iranian partners, work is being carried out on the eastern route of the North-South corridor. "We consider it important to further increase the capacity of international corridors, logistics terminals and checkpoints of our countries. I invite all EEU countries to implement joint projects to develop transit and transportation infrastructure," the Kazakh prime minister said. This year marks the 10th anniversary of the signing of the EEU Treaty. Today the EEU has a population of 190 million people, a labor market of over 93 million people and a GDP of $2.7 trillion. Mutual trade between EEU member states doubled from 2015 to 2022 and has now reached $85bn.

U.S.-Kazakhstan Relations: Trade Revenue Has Risen to Record Highs, But Investments From U.S. Side Have Fallen

According to Kazakhstan's Bureau of National Statistics, at the end of 2023 in Kazakhstan there were more than 50,000 enterprises with joint and foreign ownership. The number of legal entities and subsidiaries from the U.S. increased by 10.5% annually, with that number reaching 495 organizations. The lion's share falls to wholesale and retail trade, and parts for cars and motorcycles. Investors and businesses from the U.S. also open in Kazakhstan companies in the fields of professional, scientific and technical activity, as well as information technology and telecommunications. Slightly less activity is found in the financial, industrial, education and construction spheres. Most of the companies are located in the cultural capital of Almaty -- or the financial and political capital, Astana. Enterprises are also based in regions oriented towards extraction of energy and minerals, such as Atyrau, Karaganda and Mangistau. 2023 U.S.-Kazakhstan bilateral trade turnover reached a record high of $4bn, an increase of one-third over 2022. The main goods sent to the USA are oil, ferroalloys, sulfur, phosphorus, tantalum, lead, and uranium. Kazakhstan buys airplanes, cars and engines, medicines, as well as poultry meat and other products. Despite the positive trade figures, investments have decreased slightly. For 2023 they amounted to more than $3bn, which is half of what it was a year ago. The Kazakh Ministry of Foreign Affairs has reported that the U.S. is still among the three main investors in the Kazakh economy, along with the Netherlands and Switzerland. A special place in the relations between the two countries remains for international exchange programs. The most popular is Work & Travel, under which Kazakhstani students can go to the U.S. to work. Some end up staying for permanent residence. "My dream since childhood has been to go to America. And five years ago I took part in the Work & Travel program. I went to Wisconsin. I worked hard in order to earn as much as possible and then go to New York. I'll tell you right away, from the first day I was delighted. Of course, I was very tired, there were a lot of insurance costs and so on. But from the very first days I realized that I wanted to stay here. I like the high standard of living in the country. You can see it in medicine, culture. After the program ended, I really missed that life and travel. But I was able not only to realize my dream [of visiting], but even more -- to move. Now I have [received] my diploma, I work as an administrator in a medical center. A year ago I got married. I have big plans," said Indira Akhmetova, a former migrant worker. She has been living in the United States for seven years, got married and received American citizenship. A few issues that do weigh on Indira's American life are the expensive medical care and taxes compared to Kazakhstan. "It's scary to get sick here. If you don't have insurance, you have to pay for years...

Kazakhstan And Kyrgyzstan Address Border And Water Issues

Kazakhstan and Kyrgyzstan will be working together to open an additional checkpoint for goods vehicles on their countries’ border. They are also set to further their cooperation in the water and energy sectors. These agreements were reached at a meeting between the Kazakh prime minister, Alikhan Smailov, and the chairman of Kyrgyzstan’s cabinet of ministers Akylbek Japarov in Almaty on February 1st. Kyrgyzstan has complained for years about long lines at the Kazakh border for its cargo trucks bringing goods to Russia through Kazakhstan. The most recent big traffic jam occurred on the Kyrgyz side of the border in August 2023, when more than 600 trucks were stuck at the crossing. These delays were caused by Kazakh authorities carrying out enhanced checks on trucks entering the country from Kyrgyzstan, ostensibly to combat illegal border activity. However, the situation caused speculation that the jams were a result of a dispute over irrigation water resources between Kazakhstan and Kyrgyzstan. Irrigation water remains an issue in Kazakh-Kyrgyz relations. Last summer the southern regions of Kazakhstan experienced a severe shortage of water for their fields, while upstream Kyrgyzstan also lacked water and couldn’t supply enough of it to its northern neighbor. Kazakhstan, especially its dry southern regions, is dependent on water coming from Kyrgyzstan. At the meeting on February 1st Mr Smailov also spoke about the growing trade between the two countries, with bilateral trade growing by 12% and reaching $1.3bn between January and November 2023.

Almaty Hosts First SCO Digital Forum

The first SCO Digital Forum, bringing together IT and communication agencies from countries within the Shanghai Cooperation Organization (SCO), was held in Almaty on February 1st. The forum is part of the three-day Digital Almaty 2024 event that began today. The SCO comprises China, India, Kazakhstan, Kyrgyzstan, Russia, Pakistan, Tajikistan, and Uzbekistan. The forum was chaired by Kazakhstan’s minister of digital development, innovations and aerospace industry, Bagdat Musin. In his welcoming remarks Mr Musin said that "Kazakhstan has achieved significant success in the field of digitalization, GovTech, and IT development, confidently leading among the Central Asian countries." Mr Musin highlighted the successful Kazakhstani IT startups at the international techno-park Astana Hub. "The advantage and attractiveness of Astana Hub to international companies lie in visa and tax preferences, extraterritoriality, the possibility of online registration, and the launch of acceleration programs. Among the Central Asian [countries], Astana Hub [has become] the first partner of Google for Startups, within which a joint acceleration program 'Silkway Accelerator' was developed. Over the course of two years of collaboration, the result is a twofold increase in the number of graduate companies; these companies have already entered the markets of the Middle East, the USA, and Europe.”. Mr Musin proposed the creation of an alliance of IT parks in SCO countries to further grow innovative ecosystems, and to support startup projects and IT companies. Another area for cooperation could be the construction of fiber-optic communication lines. Utilizing Kazakhstan's transit potential will provide significant advantages for SCO countries in connecting to the internet and improving connectivity across the Eurasian continent, Mr Musin said. He proposed building fiber-optic cables along the Russia-Kazakhstan-Iran route, with access to the Indian Ocean.

Kazakhstan Could Become Main Transport Link Between Europe And Asia

Addressing the Global Gateway Investors Forum for EU-Central Asia Transport Connectivity on January 29th in Brussels, Belgium, Kazakhstan’s transport minister Marat Karabaev proposed Kazakhstan as the most sustainable main transport route between Europe and Asia. Mr Karabaev said that in the next five years Kazakhstan intends to attract investments worth €40bn ($43.3bn) in major transport infrastructure projects. During this period Kazakhstan plans to reconstruct transit corridors with a length of 4,700km and repair the roads that form the basis of the Trans Caspian Transport Corridor. “To implement these projects we propose raising funds within the framework of the EU’s Global Gateway initiative and invite European contractors to take part in the construction of roads in Kazakhstan,” Mr Karabaev said. Kazakhstan will construct 1,300km of new railway lines and modernize the existing infrastructure. This work is also aimed at increasing the transport capacity between Asia and the European Union. It is also planned to transfer 22 airports in Kazakhstan to the management of investors. To strengthen Kazakhstan’s Caspian fleet and create a container hub in the port of Aktau, investors are offered 171 hectares for the construction of terminal facilities. It is possible to transfer the seaports of Aktau and Kuryk to trust management on ship-or-pay terms, the minister said.

EU To Simplify Visa Regime For Kazakhstanis

Citizens of Kazakhstan can currently travel to 34 countries without requiring a visa, and it seems the power of the Kazakhstani passport may be set to increase further still. At the end of last week Kazakhstan's deputy minister of foreign affairs, Alibek Bakayev, held a second round of talks with the head of the EU Delegation to Kazakhstan, Kestutis Jankauskas, on the issue of EU visas. The introduction of a visa-free regime with the EU is not currently being discussed. However, the EU Schengen-area visa regime is being improved in the following areas: - introduction of a single list of documents required for a visa application; - a reduction in consular fees; - a shortening of the waiting period for applications; - increasing the validity period for multiple-entry visas. In 2024 citizens of Kazakhstan can visit 34 countries without obtaining a visa from a foreign consulate. These are: Albania, Andorra, Argentina, Armenia, Azerbaijan, Barbados, Belarus, Brazil, China, Colombia, Ecuador, the Republic of Georgia, Haiti, Hong Kong, Iran, South Korea, Kyrgyzstan, Malaysia, Maldives, Moldova, Mongolia, Nicaragua, Oman, UAE, Philippines, Qatar, Russia, St. Vincent & Grenadines, Serbia, Tajikistan, Thailand, Turkey, Ukraine, and Uzbekistan. There are also several states where one can get a "visa upon arrival" stamp immediately upon entry. These states are Zambia, Indonesia (for 30 days), Mauritius, Namibia, and the Seychelles. However, that list will shrink in the spring of 2024: Kazakhstan's temporary visa-free regime with Thailand end on February 29. According to the Global Passport Power Ranking 2024 by Passport Index, Kazakhstan's passport ranks 56th in the world in terms of freedom of movement bestowed upon its holder.