Partnership with Kazakhstan benefits Azerbaijan within different spheres of economy such as transit, transport, energy, agriculture, railway engineering and tourism. Direct contacts between the business communities, expansion of the range of products exported between the markets of the two countries noticeably affect the amount of the bilateral trade turnover.
Kazakhstan’s Foreign Ministry has said in a message on the occasion of the 27th anniversary of the establishment of diplomatic relations with Azerbaijan that over the past three years, Azerbaijan has invested over $70 million in the western regions of Kazakhstan.
Last year, the trade turnover between the countries reached $220.7 million. The ministry noted that the constantly expanding and developing relations in the transport and logistics sphere are the driver of the bilateral trade and economic relations.
In the first six months of this year, trade turnover between Kazakhstan and Azerbaijan grew by 16 percent year-on-year and reached $136 million.
The major export products from Kazakhstan to Azerbaijan are mineral resources (oil and gas), chemical raw materials, grain, barley, tobacco products, carbon steel rolling, and electrical equipment.
Azerbaijan exports petroleum products that are extracted from bituminous materials, ethylene polymers, components for machines and mechanisms, prefabricated buildings, etc to Kazakhstan.
Kazakhstan’s Foreign Ministry noted that currently, 524 legal entities with Azerbaijani capital are registered in Kazakhstan, of which 221 are joint ventures.
The development of bilateral economic relations is facilitated by the work of the Kazakhstan-Azerbaijan Intergovernmental Commission on Trade and Economic Cooperation, said the message.
“Close interaction has been established between the Parliaments of Kazakhstan and Azerbaijan. Active work is underway to improve and further develop cultural and humanitarian cooperation. The parties exchange experience and participate in various events in the two countries. Kazakhstan and Azerbaijan are distinguished by the proximity of their positions on the main pressing issues of regional and international nature,” reads the message.
The ministry also noted that Kazakh-Azerbaijani relations are developing in accordance with the guidelines and provisions of the Strategic Partnership and Allied Relations Treaty, signed in Baku in May 2005.
Transport and logistics are major sectors of cooperation between the two countries. At present, Azerbaijan and Kazakhstan are working on promotion of a joint transport project, the Trans-Caspian International Transport Route (TITR), which involves cargo transportation from China via Kazakhstan, Azerbaijan, Georgia, and further via Turkey and Ukraine to Europe.
The two countries also actively cooperate within the framework of such international and regional organizations as the UN, OSCE, OIC, Conference on Interaction and Confidence-Building Measures in Asia (CICA), Turkic Council, CIS, etc.