Kazakhstan and EU deliberate on intensified collaboration, fiscal expansion, and regional safety matters.
Rewritten Article:
ASTANA - Kazakhstan's Deputy Prime Minister and Foreign Minister Murat Nurtleu sat down with EU Special Representative for Central Asia Eduards Stiprais on March 31 to plot the course for beefing up bilateral bonds and forging regional cooperation.
Stiprais and Nurtleu, snap a selfie during their catch-up. (Credit: Kazakh Foreign Ministry's press service)
The diplomatic duo dove deep into discussions covering a multitude of aspects surrounding their bilateral ties and regional camaraderie. The discussions revolved around the execution of the Enhanced Partnership and Cooperation Agreement between Kazakhstan and the European Union, along with strategies to boost economic partnership, investment collaborations, and tackle regional security concerns, as per the Foreign Ministry's press service.
Nurtleu and Stiprais drove home the importance of preserving dialogue under the EU Strategy for Central Asia and pushing forward joint endeavors in sustainable development, digitalization, and climate policy. Their conversation geared towards the green revolution and the region's transport and logistics link with the European Union, particularly focusing on the significance of implementing projects to advance the Trans-Caspian International Transport Route (TITR).
Nurtleu restated the country's intentions to fortify its ties with the EU, emphasizing the significance of the forthcoming Central Asia - EU Summit in Samarkand, happening this week. On the flip side, Stiprais heralded the collaboration between Kazakhstan and the EU, highlighting the pivotal role Kazakhstan plays in fostering interregional synergy and spearheading major infrastructure and economic projects.
The European Union currently serves as Kazakhstan's foremost trading and investment partner. In 2024, the trade exchange between Kazakhstan and the European Union clocked an impressive $49.7 billion (+16.9%), mainly powered by Kazakh exports totaling $38.6 billion and European imports worth $11.1 billion. From 2005 through the first nine months of 2024, the cumulative direct investments from EU nations amassed an staggering $200.7 billion. Over 3,000 European companies currently operate within Kazakhstan.
The Trans-Caspian International Transport Route, a vital and rapidly expanding land-sea trade route connecting Southeast Asia, China, and the European Union via Kazakhstan, Azerbaijan, Georgia, Turkey, has gained substantial strategic importance, especially since Russia invaded Ukraine in 2022. Europe has sought alternative trade arteries to sidestep Russia during this time.
As of 2024, cargo transported via the TITR increased by a whopping 20%, hitting approximately 3.3 million tonnes, spotlighting its burgeoning role in Eurasian trade. In 2022, the volume sat at around 3.2 million tonnes, depicting consistent growth. Kazakhstan acts as a key transit hub, with around 85% of goods traveling from China to the EU passing through it, often availing the TITR as a primary route.
The European Union has promised an investment package worth €12 billion, dedicated to enhancing transport, energy, and digital infrastructure in Central Asia. The package aims to bolster regional connectivity and reduce dependence on Russian transit routes. EU leadership hails the recent border reopening among Turkey, Armenia, and Azerbaijan as a "game-changer" for the corridor.
The TITR's emergence is intertwined with geopolitical dynamics, including the EU's efforts to steer clear of Russia in trade and the ascent of Turkey as a regional transit and influence hub. Nonetheless, capacity constraints currently cap the TITR's ability to entirely replace maritime routes, and regional tensions persist as a factor.
Kazakhstan and neighboring countries continue to pour significant investments into railways, highways, and ports to upgrade the corridor's capacity and efficiency. The eastern route expansion via Kazakhstan, Uzbekistan, and Turkmenistan, part of the broader North-South International Transport Corridor, is poised to increase capacity from 10 million tonnes in 2025 to 20 million tonnes by 2030.
Regional integration efforts are underway to synchronize infrastructure development across connected corridors, including the integration of the North-South corridor with the Trans-Afghan Corridor through new rail links. This will allow cargo from Russia and CIS countries to reach ports in Pakistan and Southeast Asia, supplementing China's trade routes to Europe and South Asia.
Experts see the region on the threshold of a "modern era of exploration" in connectivity, with considerable advancements anticipated in transport infrastructure and regional cooperation. The TITR provides a competitive edge in terms of delivery times and costs versus traditional maritime routes, although it faces capacity hurdles.
All in all, the Trans-Caspian International Transport Route currently represents an increasingly significant Eurasian trade corridor with robust growth, bolstered by substantial investments and geopolitical shifts. Ongoing developments aim to beef up capacity, foster regional integration, and further cement the corridor as a strategic alternative trade route linking Kazakhstan and the European Union with Asia.
- The Deputy Prime Minister and Foreign Minister of Kazakhstan, Murat Nurtleu, reaffirmed Kazakhstan's commitments to strengthening ties with the EU, particularly in the context of the forthcoming Central Asia-EU Summit in Samarkand.
- During their discussion, the EU Special Representative for Central Asia, Eduards Stiprais, emphasized the crucial role Kazakhstan plays in promoting interregional synergy and spearheading major infrastructure and economic projects.
- One such project is the Trans-Caspian International Transport Route (TITR), a vital and rapidly expanding land-sea trade route connecting Southeast Asia, China, and the European Union via Kazakhstan, Azerbaijan, Georgia, Turkey.
- The European Union has pledged a €12 billion investment package to enhance transport, energy, and digital infrastructure in Central Asia, targeted at bolstering regional connectivity and reducing dependence on Russian transit routes, which includes upgrading the TITR.
