Azerbaijan and Kazakhstan have solidified their partnership by signing 15 significant agreements aimed at enhancing infrastructure and energy projects. This milestone occurred during the recent state visit of Azerbaijani President Ilham Aliyev to Kazakhstan.
Kazakhstan and Azerbaijan: Strengthening Economic Ties
The agreements signed cover a wide array of sectors, including energy, transport, industry, and artificial intelligence. This visit is particularly noteworthy as it commemorates the 20th anniversary of the Treaty on Strategic Partnership and Allied Relations between the two nations.
Middle Corridor Connectivity
One of the pivotal projects discussed is the Middle Corridor, also known as the Trans-Caspian International Transport Route. This route connects Europe and Asia, facilitating trade through Azerbaijan and Kazakhstan. As global trade patterns shift, this corridor is poised to play a crucial role in regional connectivity.
- Freight traffic along the corridor rose by 62% last year, reaching 4.5 million tons.
- Countries involved aim to increase this volume to 10 million tons in the future.
- Construction of a major cargo hub and a Trans-Caspian ferry system is underway to support new supply chains.
Enhancing Trade and Cooperation
Both leaders expressed a commitment to double their bilateral trade, targeting $1 billion (€861 million) soon. This extensive cooperation includes an increase in joint ventures across various sectors, such as agriculture and information technology.
Energy projects were also a focal point, with an agreement established between Kazakhstan’s sovereign wealth fund Samruk-Kazyna and SOCAR, Azerbaijan’s State Oil Company. Additionally, a subsea cable project in the Caspian Sea aims to boost regional electricity trade and enhance renewable energy exports.
Future Prospects for Peace and Cooperation
The historic peace agreement between Armenia and Azerbaijan marks a new chapter for the region. During the summit, President Tokayev praised Aliyev for achieving peace with Armenia, labeling it a “historic” milestone. Aliyev echoed sentiments about the positive implications for regional stability.
Azerbaijan announced the removal of cargo transit restrictions to Armenia during Aliyev’s visit, facilitating the first shipment of Kazakh grain to Armenia. This action signals a shift towards practical peace in the region.
In conclusion, the agreements between Kazakhstan and Azerbaijan highlight a promising trajectory for infrastructural and economic collaboration. The focus on transport routes and energy projects reinforces both nations’ commitment to regional development and stability.
