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SPIEF opened up new opportunities for Russian-Kazakh cooperation

Date: June 25, 2024 Time: 16:06:39

Within the framework of the XXVI St. Petersburg International Economic Forum (SPIEF-2023), the Minister of Energy of Kazakhstan, Almasadam Satkaliev, met with the Director General of the CPC, Nikolai Gorban. Photo: gov.kz

Last week, the annual St. Petersburg International Economic Forum (SPIEF) was held in the northern capital, attended by 17,000 participants from 130 countries. More than 150 officials visited St. Petersburg: heads of international organizations, foreign ministers, heads of diplomatic missions. More than 900 agreements worth 3 trillion 860 billion rubles have been signed. The forum was called “Sovereign development is the foundation of a just world. Let us join forces for the sake of future generations.”

As part of the theme “The world economy in an era of global change”, sessions and panel discussions on cooperation within BRICS+, SCO, EAEU and CIS were held. The most numerous were the delegations from the United Arab Emirates, China, India, Myanmar, Cuba, the United States and Kazakhstan.

Tested in practice

On the eve of SPIEF, a meeting was held between the Adviser to the President of the Russian Federation Anton Kobyakov and the Deputy Head of the Administration of the President of the Republic of Kazakhstan Timur Suleimenov. They discussed business cooperation, joint investment projects, Kazakhstan’s participation in key business forums hosted by Russia. The parties noted the expansion of Russian-Kazakh relations, for example, projects aimed at developing trade and economic relations, such as the North-South international transport corridor, which includes the territory of Kazakhstan. Today, more than 70% of mutual agreements between Russia and Kazakhstan are already carried out in rubles, which reduces dependence on fluctuations in the currency market and contributes to the development of interaction.

Practice has shown that Kazakhstan’s participation in the St. Petersburg Economic Forum provides this country with additional opportunities to attract investment, promote its economic and innovative projects. Kazakhstan and Russia have long successfully cooperated in sectors such as energy, transport and trade. The border between the two countries is the longest in the world, stretching for 7.5 thousand kilometers, and studies by the Eurasian Economic Development Bank indicate that around 80% of Kazakh GDP and 20% of Russia is produced in the border zone.

For many years, SPIEF has been discussing issues of cooperation in the Caspian Sea, interaction in the fuel and energy sector, in the field of transportation, customs procedures, ecology, border security, the fight against drug trafficking and illegal migration.

Last year, trade between Kazakhstan and Russia reached $26.1 billion, while in the first quarter of 2023 alone, trade between the countries increased by 10.1%. In May, Russia’s Deputy Prime Minister Alexei Overchuk said that the Eurasian Economic Union (EAEU), which includes Russia, Kazakhstan, Armenia, Belarus and Kyrgyzstan, had transitioned to national currency settlements, the share of which was 90%. .

Photo: from the SPIEF-23 website

One of the strategic projects uniting Russia, Kazakhstan and China is the “Eurasia” railway line. This project is designed to build the transportation infrastructure needed to increase trade between countries. It is also worth noting a significant increase in cargo transportation along the international North-South transport corridor, which connects Russia, through Kazakhstan, Azerbaijan, Turkmenistan and Iran, with India. In the first five months of this year alone, 80.3% more cargo was transported along the eastern “North – South” route, running through Kazakhstan and Turkmenistan, than a year earlier. Currently, Moscow, Astana and Ashgabat have developed a roadmap to eliminate bottlenecks on the route, which will increase its throughput to 10 million tons of cargo per year by 2025.

“Fertile fields” of the forum

Several important meetings took place on the sidelines of the St. Petersburg forum. Among the guests was the Minister of Energy of Kazakhstan, Almasadam Satkaliyev, the delegation also included the Chairman of the Board of the Samruk-Kazyna Fund, Nurlan Zhakupov, representatives of the Ministries of Trade and Integration, Industry and Infrastructure Development, and Economy National. They met with the heads of the Yakutia, Tomsk and Novgorod regions, as well as key Russian industry companies Rosatom, Gazprom and InterRAO.

Several important meetings for Russia and Kazakhstan took place on the sidelines of SPIEF-2023. Thus, in the course of negotiations with the Chairman of the Board of Gazprom, Alexei Miller, between Gazprom and the Kazakh company QazaqGaz, an Agreement on the transportation of Russian natural gas for consumers in Uzbekistan through Kazakhstan was signed. In addition, the parties discussed cooperation in the field of gas supply, processing and transportation.

Kazakhstan’s Energy Minister Almasadam Satkaliyev and his Russian counterpart Nikolai Shulginov have extended intergovernmental agreements on the transit of Russian oil to China in the amount of 10 million tons per year until the end of 2033.

In addition, the ministers discussed cooperation in the electric power industry and the participation of Russian companies in energy projects in Kazakhstan.

“Russia has the necessary experience and technologies in the energy industry, which are relevant, among other things, for the Kazakh partners,” the press service of the Russian department said on its Telegram channel.

Kazakhstan’s Minister of Energy held a meeting with General Director of the Caspian Pipeline Consortium (CPC) Nikolai Gorban, who briefed the guest on the company’s immediate plans. There is a program to remove bottlenecks, which will increase the production capacity of the Tengiz-Novorossiysk pipeline system to 82 million tons of oil. Since the beginning of this year, CPC has transported 29.5 million tons of oil in 272 tankers, and the total figure for the year is forecast to be at least 60 million tons. CPC currently supplies about 80% of Kazakhstan’s oil export volumes to world markets, being the safest, most logistically developed and economically profitable route.

Kazakhstan’s Energy Minister Almasadam Satkaliyev also met with Yakutia chief Aisen Nikolayev. As the head of the Russian region said, in January of this year he visited Kazakhstan, after which two trade missions were organized in the republic with the participation of Yakut IT companies, banks and jewelry manufacturers.

“Today we have a specific plan to further expand cooperation with Kazakhstan,” Nikolaev said, noting that today the republic’s innovation development fund is assisting in the entry of Yakut’s IT products and services into the Kazakhstani market. . The results of building ties are impressive: if in 2021 the trade turnover between Yakutia and Kazakhstan amounted to $1.3 million, then in 2022 this amount exceeded $80 million.

In conclusion, I would like to add that by the end of 2022, the number of types of Kazakh products exported to Russia has almost doubled, from 640 to 1050 items. Cross-border trade has intensified, for example, exports to Russia from the Aktobe region increased by 48%, from the Pavlodar region – by 36%. Kazakhstan is ready to increase exports of metallurgical, engineering and petrochemical products, food, chemical and light industry products, as well as vehicles, construction materials and pharmaceuticals.

Meetings on the sidelines of the St. Petersburg International Economic Forum create additional incentives to expand trade and economic cooperation between Russia and Kazakhstan.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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