Bilateral Trade - The Times Of Central Asia

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Oil and Gas Bilateral Trade

Turkmenistan’s Gas and Türkiye’s Plans to Become a Gas Hub

A series of ongoing political consultations between Turkmenistan and Türkiye continued on 25–26 April, as a Turkmen delegation led by Deputy Minister of Foreign Affairs Ahmet Gurbanov visited Ankara, hosted by Turkish counterpart Burak Akçapar. Beyond the regular bilateral agenda of political-diplomatic, trade-economic and cultural-humanitarian cooperation, the two sides emphasized the implementation of bilateral agreements reached at the third Antalya Diplomatic Forum in early March, particularly the prospects for cooperation in the energy sector. On 1 March 2024, Turkmenistan and Türkiye signed two documents — a memorandum of understanding (MoU) and a letter of intent — aimed at strengthening cooperation in the natural gas sector. In theory, this seems to be a positive development for the two countries as well as for Europe. The two possible routes for Turkmen gas to reach Türkiye and Europe are (1) via the Caspian Sea and Azerbaijan, and (2) through Iran's existing pipeline infrastructure via a gas swap agreement. Neither one is likely to happen soon. The project to export Turkmen gas to Europe through a shore-to-shore high volume pipeline, at 31 billion cubic meters per year (bcm/y) is no longer alive after various parties have failed to realize it over the past quarter-century. It was bruited when it was announced that Turkmen President Serdar Berdimuhamedov planned to visit Brussels in late 2023 (which ended up not happening) and definitively killed when the initiative by American company Trans-Caspian Resources (headed by a retired U.S. ambassador to Turkmenistan) failed to persuade Ashgabat to construct short low-volume (8–11 bcm/y) "Platform Option" pipeline in the Caspian Sea. Gas "swaps" and Türkiye’s ambitions The idea of a "Turkish gas hub" arose from Russia's search to depoliticize trade between Gazprom and European firms by facilitating a platform where Gazprom's origination of the gas would be obscured and anonymized. Buyers and sellers could meet through Turkish intermediation. Türkiye, however, seeks to draw advantage by imposing the condition of long-term contracts with Gazprom for gas sales at below-market prices. This would guarantee a role for the Turkish intermediaries and, moreover, ensure for them a profit margin through mandatory service fees. "Swap" operations mean an exchange of gas amongst Turkmenistan, Iran and Azerbaijan; however, this would involve only a few billion cubic meters. Even if all participants agree, several questions still remain: Will swap transactions be profitable, given the price of gas in Europe? Even if Iran agreed to a Turkmen gas swap, would Tehran execute the agreement in good faith? In fact, Tehran would prefer to offer its own gas to Turkish and European markets, rather than transit competitive Turkmen gas through his territory. In addition, the gas that Azerbaijan produces for export already has contracted buyers under long-term agreements. Azerbaijan would be interested in the Turkish gas hub only if it should in future produce surpluses of gas that cannot be sold under long-term contracts. Then, such surpluses could be sold at a gas hub under short-term contracts, assuming that transit and profitability are guaranteed. Challenges to Türkiye’s...

Kyrgyzstan Education Transport Azerbaijan Bilateral Trade

Azerbaijan and Kyrgyzstan Expand Economic and Transport Cooperation

During a state visit to Azerbaijan on 24 April, Kyrgyzstan President Sadyr Japarov joined President Ilham Aliyev in bilateral talks at the 2nd gathering of the Interstate Council of Azerbaijan and Kyrgyzstan. As a result of the meeting in Baku and in support of a joint declaration to deepen relations, the leaders signed a strategic partnership agreement between Azerbaijan and the Kyrgyz Republic. In a statement to journalists, President Aliyev referred to centuries-old ties of cooperation, friendship and interaction enjoyed by Azerbaijan and Central Asia, and announced, “Today, the regions of Central Asia, the Caspian Sea and Azerbaijan are of great importance in terms of energy resources, transportation routes and trade. We are seeing great potential here and are strengthening interaction with our traditional partners from brotherly countries. Among them, cooperation with Kyrgyzstan is of particular importance.” During the meeting, the two governments signed an addendum to the agreement on the authorized capital of the Azerbaijani-Kyrgyz Development Fund, to quadruple it from $25 million to $100 million. To date, the Fund has received over 40 applications for investment projects in Kyrgyzstan and according to Aliyev, the construction of a five-star hotel financed by Azerbaijan already begun at Kyrgyzstan’s Lake Issyk-Kul, is due for completion by the end of next year. The president commended the significant increase and potential for growth in trade between Azerbaijan and Kyrgyzstan and reported Azerbaijan’s interest in investing in renewable energy projects in Kyrgyzstan. With reference to transport, he recommended that consultations proceed on coordination of transport routes in terms of digitalization and tariff policy, to make the route via the Caspian Sea and Central Asia to Europe both faster and more commercially viable. President Japarov, in turn, referenced Kyrgyzstan’s construction of a secondary school in the Aghdam district of Azerbaijan, saying, “The construction of this school is Kyrgyzstan's contribution to the restoration of peace in the regions affected by the [Azeri-Armenian] conflict.”

Bilateral Trade Kazakhstan Kyrgyzstan

Kazakhstan and Kyrgyzstan Sign Commercial Deals Worth $300 Million

On the side-lines of the Kazakhstan and Kyrgyzstan business forum on April 17 in Astana, businesses signed off commercial deals totalling $300 million. Attended by Deputy Prime Ministers of Kazakhstan and Kyrgyzstan, Serik Zhumangarin and Adylbek Kasymaliev, the forum attracted companies engaged in mechanical engineering, industry, metallurgy, construction, logistics, agriculture, pharmaceuticals, investment, and service industries. According to a report by the Kazakh Ministry of Trade and Integration, lucrative joint projects include the construction of solar power plants, a ferroalloy plant, a distribution centre in Kyrgyzstan, and the exchange of supplies of agricultural and other products. In 2023, trade turnover between Kazakhstan and Kyrgyzstan rose by 26% compared to the previous year, reaching $1.6 billion. Kazakhstan’s exports accounted for $1.1 billion, an increase of 35.8%, and imports stood at $495.2 million, an increase of 9%.

Belgium Kazakhstan Bilateral Trade

Kazakhstan and Belgium Poised to Expand Bilateral Trade

On 8 April, Kazakhstan’s Deputy Minister of Trade and Integration, Kairat Torebayev attended a meeting in Brussels with Rose Donck, Director, Head of Department State Visits – Belgian Economic Missions of the Belgian Foreign Trade Agency. The parties discussed the potential expansion of bilateral trade and an agreement was made to organize a business forum with the participation of Kazakh and Belgian companies later this year in Belgium. The last economic mission of Belgium to Kazakhstan took place back in 2010, and according to Ms. Donck, the Belgian Foreign Trade Agency is currently planning a seminar on investment, trade, and economic opportunities in Kazakhstan for 200 Belgian companies in the very near future.

Bilateral Trade

Kyrgyzstan-Turkey Business Forum Held in Ankara

Relations between Kyrgyzstan and Turkey have reached a new level in all areas, the chairman of the Cabinet of Ministers of the Kyrgyz Republic, Akylbek Japarov said at the Kyrgyz-Turkish business forum in the Turkish capital, Ankara on February 9th. According to the Prime Minister, Turkey was the largest foreign investor in Kyrgyzstan’s economy in 2022, with investments totaling $341.6m. Between January and November 2023, trade turnover between the two countries increased again, amounting to $560.5m. Japarov added that the governments of the two countries are now working to create a Kyrgyz-Turkish Investment Fund to finance large infrastructure projects. At the forum, Kyrgyzstan’s Minister of Economy and Commerce, Daniyar Amangeldiev informed Turkish entrepreneurs about opportunities in Kyrgyzstan, highlighting tax breaks and support for investors. The forum culminated in the signing of eight cooperation documents on joint projects, among them a contract for the supply of walnuts from Kyrgyzstan to Turkey. On the same day, Japarov and Turkish Vice President, Cevdet Yilmaz co-chaired the 11th meeting of the Kyrgyz-Turkish Intergovernmental Commission on Trade and Economic Cooperation. The meeting focused on the fields of economy, investment, energy, industry, agriculture, transport, tourism, healthcare, culture, and education. At the meeting Japarov stated that the establishment of a trade mission of Kyrgyzstan in Turkey will help deepen economic ties between the two states and ensure the sustainable development of cooperation in trade and investment.

Bilateral Trade

Georgia to Help Kazakhstan Develop Olive Production

Kazakhstan’s ambassador to Georgia, Malik Murzalin recently visited olive plantations in the Georgian region of Kakheti. Olive tree seedlings from this region are to be planted in several regions of Kazakhstan, the Foreign Ministry has reported. Georgian businessman, George Svanidze, who was the president of the International Olive Council in 2020, showed Murzalin the olive production and processing industry in Georgia, and spoke about plans to develop an olive industry in Kazakhstan with the support of Georgian specialists. These plans include planting the best varieties of olive trees, creating plantations, launching a processing plant, and obtaining an international certificate necessary for exporting Kazakh olives abroad. To date, an experimental planting of olive tree seedlings has been completed in Kazakhstan’s Zhetysu and Mangistau regions. This year, it is also planned to send Georgian olive tree seedlings to the Turkestan region. Svanidze stated that Georgia is ready to share its knowledge, experience and innovations in growing olives in Kazakhstan. He also promised to assist Kazakhstan in obtaining membership of the International Olive Council, the organization that controls 90% of the world's income from olive oil and 74% of its trade.