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Kazakhstan and China to Double Trade, Increase Cargo Transportation

On November 4, Kazakhstan’s Prime Minister Olzhas Bektenov arrived in Shanghai and held talks with his Chinese counterpart China Li Qiang. They discussed strengthening trade, investment, transport and logistics cooperation, agriculture, energy, and tourism. Kazakhstan and China aim to double bilateral trade turnover from last year’s historic high of $41 billion. In January-September 2024, Kazakh-Chinese trade totaled $33 billion. Bektenov stressed that Kazakhstan is ready to increase exports to China of 180 high-value-added commodity items worth $1.6 billion. Bilateral agricultural trade increased by 5.8% from January to September 2024, reflecting China’s growing demand for Kazakhstani organic and environmentally-friendly agricultural products. The sides discussed expanding the export of Kazakh grain, crops, and livestock products. Regarding the transport and logistics sector, the Kazakh and Chinese prime ministers noted that over 80% of land cargo transportation from China to Europe today passes through Kazakhstan. Therefore, Kazakhstan is interested in deepening cooperation within China’s Belt and Road Initiative framework. Bektenov noted that this globally important project, together with the Trans-Caspian International Transport Route (the Middle Corridor), running through the territory of Kazakhstan, can unlock the potential of the North-South and East-West corridors. In January-September 2024, the traffic volume along the Middle Corridor exceeded the previous year's figures by 23% and amounted to 3.4 million tons. This figure is expected to increase to 10 million tons annually by 2030. Bektenov also attended the Kazakh-Chinese investment roundtable in Shanghai, which resulted in the signing of commercial agreements with Chinese companies totaling $2.5 billion, including on energy projects and localized automotive production. Addressing the forum, Bektenov said: "Kazakhstan and China have huge potential for implementing joint investment projects. Together, we can open new horizons for interaction and increase the effectiveness of cooperation. To this end, we should actively work to expand transit opportunities, strengthen industrial cooperation, and build ties between our business communities."

Grain War: Has Kazakhstan Become Russia’s Victim?

The fall brought two headaches for Kazakhstani farmers: a rich grain harvest that coincided with an oversupply of grain on world markets, and Russia's ban on exporting Kazakh wheat to and transiting through Russia. Experts complain about the 40% failure of Kazakhstani grain exports, and representatives of farmer associations complain about low prices and high production costs and ask the government to buy their surplus products. The background is talk of a grain war between Moscow and Astana. Phytosanitary ban According to Kazakhstan's Ministry of Agriculture, this year the harvested area of crops amounted to 23.3 million hectares, of which 16.7 million were sown with cereals. Fieldwork has been completed by 99.7%. 26.5 million tons of grain were threshed. Proponents of the opinion that the agricultural authorities of Kazakhstan and Russia have entered into a hidden confrontation for external grain markets argue that Kazakhstan is a victim of this trade war. They cite the restrictions imposed by Rosselkhoznadzor in October as evidence. On October 1, the Russian agency asked Kazakhstan's Ministry of Agriculture to suspend the issuance of phytosanitary certificates for grain and its products, tomatoes, peppers, and sunflower seeds exported to the Russian Federation. On October 3, journalists asked Vice-Minister of Agriculture Ermek Kenzhekhanuly about the stage of fulfillment of this wish. He replied that the Russian side received a reply letter requesting evidence of phytosanitary control violations. According to him, Rosselkhoznadzor had not responded as of October 3. On October 17, the Russian Federal Service for Veterinary and Phytosanitary Surveillance temporarily banned imports of several types of agricultural goods from Kazakhstan. Transit of wheat, lentils, and oilseed flax seeds through Russia's territory is allowed. Still, a phytosanitary certificate for the country of final destination must be issued, and grain must be transshipped directly from railcars into the ship's holds. At the same time, deliveries of tomatoes, peppers, sunflower seeds, and melons from Kazakhstan are prohibited, even for transit. Obstacles in response to the ban However, let's carefully review the Kazakhstani press. We will find that as early as September 3rd, Kazakhstani farmers sounded the alarm—Russia is pushing our grain out of traditional markets. Representatives of the Grain Union of Kazakhstan discussed the problems Kazakh traders face with the transit of domestic grain through the territory of the Russian Federation at a session with journalists at the Agricom forum. However, they cited only two cases of such restrictions but tried to convey another message—Russia has introduced hidden obstacles because of Kazakhstan's ban on grain imports from the Russian Federation, which was imposed as early as August 1. As reported by Kazakhstan's Ministry of Agriculture, the restrictions imply a complete ban on wheat imports by all modes of transportation. Previously, the restrictive measures provided for a ban on imports of goods by road, water, and rail (except for imports to poultry and flour mills) since April. The decision was made because, despite the previous ban, grain imports from Russia exceeded 1.1 million tons in six months. Experts considered...

Turkmen Business Prepares for WTO Integration

Ashgabat recently hosted a two-day seminar on Turkmenistan's prospects for joining the World Trade Organization. The event, organized by the Ministry of Finance and Economy and the International Trade Center (ITC), brought together representatives of the country's private sector and government agencies. ITC international experts Daria Karman, Alyson Hook, and Nurlan Kulbatyrov shared practical integration experience into the global trading system with the participants. Special attention was paid to Kazakhstan, whose path to the WTO can serve as an illustrative example for Turkmenistan. Among the key topics of discussion were the need to adapt legislation to international standards, reform trade policy, and modernize mechanisms for regulating foreign economic activity. For Turkmen entrepreneurs, accession to the WTO opens access to world markets and creates favorable conditions for increasing exports. However, this will require a significant increase in local enterprises' competitiveness and the introduction of modern production technologies. According to the event organizers, the active discussion of integration processes testifies to Turkmen business's serious attitude toward international cooperation. Such seminars are part of Turkmenistan's comprehensive preparation for accession to the WTO. In the future, this should create additional incentives for entrepreneurship and increase the country's export potential. Representatives of government agencies and the business community actively participated in the seminar, which confirmed Turkmenistan's interest in deepening integration processes and expanding international trade cooperation.

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Kazakhstan and Afghanistan Seek to Increase Trade to $3 Billion

On October 22, Kazakhstan’s Deputy Prime Minister Serik Zhumangarin and Afghanistan’s Minister of Industry and Commerce, Nuriddin Azizi, signed a roadmap to increase Kazakh-Afghan trade turnover to $3 billion at a business forum in Almaty. This follows Kazakhstan’s removal of the Taliban from its list of terrorist organizations in June as part of an effort to develop trade and economic ties with Afghanistan. The roadmap includes Kazakhstan’s participation in constructing two railway lines in Afghanistan: Turgundi—Herat—Kandahar—Spin Boldak and Mazar-i-Sharif—Harlachi. It also aims to expand the range of goods in bilateral trade, develop cooperation in the chemical industry, and increase the export of Kazakh ammophos materials to Afghanistan. Additionally, the roadmap includes plans to export both new and used cars manufactured in Kazakhstan, set up service centers in Afghanistan, and build schools in the region. According to Kazakh officials, there is significant potential to increase grain and flour exports to Afghanistan while importing Afghan fruits, vegetables, dried fruits, and other food products. Kazakhstan is also interested in supporting Afghanistan’s economic development and integration into international transport corridors. In the first half of 2024, the volume of road transit from Afghanistan through Kazakhstan increased by 8%, exceeding 5,000 tons, compared to 10,000 tons last year. Deputy Prime Minister Zhumangarin noted at the forum that a railway corridor connects Kazakhstan and Afghanistan through Turkmenistan and Uzbekistan. Kazakhstan is also interested in using the Trans-Afghan corridor, which runs through the Karachi and Gwadar seaports in Pakistan, to facilitate the transit of Kazakh export cargo to markets in the Middle East and Southeast Asia. The Afghan delegation was offered access to the dry port of Khorgos on the Kazakh-Chinese border to ensure the smooth transit of Afghan goods to China via Kazakhstan. The business forum in Almaty coincided with Kazakh-Afghan negotiations on the logistics of transporting goods from China to Afghanistan and back through Kazakhstan. The event also featured an exhibition of Afghan food and industrial products.

Chinese Investment in Major Trade and Logistics Center in Northern Kyrgyzstan

On October 17, the Chairman of the Cabinet of Ministers of Kyrgyzstan, Akylbek Japarov, and the Chinese Ambassador to Kyrgyzstan, Du Dewen, attended a capsule-laying ceremony for the construction of a large trade and logistics center in the village of Leninskoye in the country’s northern Chui region. Located just north of the capital, Bishkek, and a few kilometers from the border with Kazakhstan, the Manas Trade and Logistics City, will include a trading hub, an international exhibition center, a warehouse and logistics center with bonded areas, retail marketplaces, hotels, and residential compounds. The facility will be built in partnership between a Chinese investor and a management company in which the Kyrgyz Cabinet of Ministers will have a 49% share. In his address at the ceremony, the Cabinet’s head, Japarov, stated: "We are launching a major project—not just the construction of a trade and logistics center, but an entire town. It will have 30,000 retail outlets, -cover-700 hectares, and a total investment of $4.2 billion. $700 million will be invested in the first stage of construction. This center can be compared with the largest sea ports in terms of its importance and functions." Japarov added that the creation of the facility will significantly contribute to the expansion of regional and international trade, the creation of new jobs, and the improvement of conditions for product exports. China is now one of Kyrgyzstan's largest trading partners. According to official statistics, bilateral trade reached $20 billion in 2023, 32% more than in 2022.

Almaty to Host Exhibition of Afghan Products

Kazakhstan’s Ministry of Trade and Integration has announced that an exhibition of Afghan carpets, jewelry, construction materials, household and industrial chemicals, vegetables, fruit, and food products will run from October 20 -22, at the Atakent Exhibition Center in Almaty. Afghanistan’s TOLOnews reported that a delegation led by the Taliban Minister of Industry and Commerce and 250 Afghan traders will participate in the exhibition. Akhundzada Abdul Salam Jawad, spokesperson for the Afghan Ministry of Industry and Commerce, further confirmed that 69 companies from Afghanistan will participate in the exhibition, with displays promoting various products, including carpets, dried fruit, saffron, and precious and semi-precious stones. Early in June, Kazakhstan’s President Kassym-Jomart Tokayev announced that his country had removed the Taliban from its list of terrorist organizations, in a move to develop trade and economic ties with Afghanistan. In late August, Kazakhstan’s Foreign Ministry then accredited a chargé d’affaires of Taliban-led Afghanistan to expand trade, financial, and humanitarian cooperation between the two countries.