27 April 2024

Saturday, 22:41

TURKIC TANDEM

New projects added to the economic agenda of the Azerbaijani-Kazakh relations

Author:

15.03.2024

Relations between Azerbaijan and Kazakhstan throughout modern history have been characterized by partnership and alliance, largely due to their shared Turkic heritage and cultural-historical connections. This has fostered strong political support and large-scale economic collaborations.

"We are thankful to Kazakhstan for its unwavering support in restoring Azerbaijan's sovereignty and territorial integrity," stated Azerbaijani President Ilham Aliyev after discussions in Baku with Kazakh President Kasym-Jomart Tokayev. President Tokayev echoed this sentiment, emphasizing the commitment to fully implement all agreements reached during the summit.

 

Brotherly Support

Kazakhstan's backing of Azerbaijan's stance on the liberation of the territories of Garabagh and Eastern Zangazur from Armenian control was clear from the outset. "Azerbaijan has secured a significant historic victory, reinstating state sovereignty. The people of Kazakhstan rejoiced at this achievement. This victory is a testament to your long-standing efforts to reclaim state sovereignty and historical truth," President Tokayev reiterated in Baku.

Kazakhstan was among the first to engage in the revitalization of these liberated lands. Prior to his visit, President Tokayev expressed his country's eagerness to partake in reconstruction projects and thanked Azerbaijani leadership for the opportunity to construct the Central District Hospital in Fuzuli. He anticipates more collaborative projects, which will aid not only Azerbaijan's development but also that of the entire South Caucasus.

On the second day of the visit, the two presidents inaugurated the Kurmangazy Children's Art Centre in Fuzuli, a symbol of Kazakh solidarity with Azerbaijan. President Tokayev affirmed Kazakhstan's readiness to support peace and stability across Eurasia. President Aliyev highlighted that the centre would serve as an educational hub for children of former IDPs and a beacon of friendship between the two nations. "This is brotherly assistance, a gift of Kazakhstan to Azerbaijan, and its support to the restoration of liberated territories," the Azerbaijani leader emphasised.

During their visit to Shusha, the presidents paid homage to Azerbaijani cultural icons Natavan, Bulbul, and Uzeyir Hajibeyli, whose monuments were desecrated during the occupation. President Tokayev was briefed on the city's master plan.

 

Transregional Route

The economic ties between Azerbaijan and Kazakhstan extend beyond politics, focusing on globally and regionally significant projects. With current geopolitical shifts disrupting logistics, the Middle Corridor through Azerbaijan and Kazakhstan emerges as a viable alternative for transcontinental trade, positioning both nations as potential key players in this domain.

President Tokayev hailed the inaugural meeting of the Supreme Interstate Council as a "historic event". The Vice Minister of Transport of Kazakhstan, Satzhan Ablaliyev, projected an increase in cargo traffic on the Trans-Caspian International Transport Route (TCITR, Middle Corridor) to 4.2 million tonnes this year. President Tokayev anticipates the total cargo volume on the TCITR to reach 10 million tonnes, envisioning further development and integration with other transport corridors. As noted by President Tokayev, this expansion is expected to enhance trans-regional integration of the South Caucasus and Türkiye with Kazakhstan, Central Asian countries, the EAEU, and China.

President Aliyev underscored the strategic importance of the TCITR, especially given the current geopolitical climate, and commended the substantial investments made by both Kazakhstan and Azerbaijan in their transport infrastructure. The symbolic welcoming of a container train with 61 containers that traversed 7,000 kilometres from China through Kazakhstan to Azerbaijan in 11 days exemplifies the operational success of this route. The train's journey, which included a transfer at a Kazakh port and delivery across the Caspian Sea to the Baku International Sea Trade Port, highlights the efficiency of the multimodal transport system.

With the Transport and Logistics Centre of Kazakhstan now operational in China, there are expectations to dispatch 10 container trains monthly to Azerbaijan. The development of the DTC digital platform and the integration of real-time tracking systems for freight transport on the railways of Azerbaijan and Kazakhstan are enhancing the transparency and appeal of the Middle Corridor.

 

Both Conventional and Alternative Energy

The burgeoning economic cooperation between the two nations is evident in the significant fivefold increase in trade turnover over the past three years, from $109 million to $529 million. This cooperation encompasses ambitious projects such as laying fiber-optic lines and energy cables along the Caspian seabed, exporting oil and uranium through Azerbaijan, and importing Kazakh wheat into the Azerbaijani market.

Kazakhstan's use of the Baku-Tbilisi-Ceyhan (BTC) pipeline for oil transport and potential plans to augment transshipment volumes were underscored by the signing of strategic agreements between SOCAR and KazMunayGas during President Tokayev's visit to Baku. These agreements aim to facilitate the purchase, sale, and increased transit of Kazakh oil through Azerbaijani territory.

KazMunayGaz has announced plans to increase Kazakh oil shipments via the Baku-Tbilisi-Ceyhan (BTC) pipeline to 2.2 million tonnes annually. Discussions are ongoing to reduce transportation tariffs along the Aktau-Baku-Tbilisi-Ceyhan route and potentially along the Baku-Supsa route as well. This builds on the 2022 agreement with SOCAR for an annual transit of 1.5 million tonnes of oil.

The economic collaboration between Azerbaijan and Kazakhstan also extends to renewable energy sources (RES). President Tokayev highlighted Kazakhstan's significant RES potential and welcomed Azerbaijan's initiative to synchronize the development of regional energy systems, including the possibility of sustainable interconnection. This effort aligns with the international climate agenda and is expected to bolster both countries' positions as electricity suppliers.

Kazakhstan's early support for the 29th session of the Conference of the Parties to the UN Framework Convention on Climate Change (COP29) in Baku underscores its commitment to addressing climate issues and fostering global cooperation. President Tokayev expressed his gratitude for the invitation to participate in the summit, recognizing it as a historic achievement for Azerbaijani state diplomacy.

The visit of the Kazakh leader to Baku resulted in the signing of new agreements, further solidifying the legal framework between the two nations. President Aliyev is scheduled to visit Kazakhstan for high-level international events, while President Tokayev will return to Azerbaijan for the informal summit of Turkic state leaders and COP29.

The strategic partnership between Azerbaijan and Kazakhstan, as affirmed by both heads of state, is deeply rooted in shared interests and cooperative endeavours, far beyond mere diplomatic formalities.



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