Russia – Kazakhstan Bilateral Trade Reaches US$30 Billion

Russia – Kazakhstan bilateral trade is growing steadily, and has already reached almost US$30 billion, Russian President Vladimir Putin said during meetings with Kazakh President Kassym-Jomart Tokayev at the Shanghai Cooperation Organisation Heads of State summit held in Astana.

Russia remains one of the main trade and economic partners for Kazakhstan, Putin said, adding “We have many important areas. There is a very high cooperation. There are many interesting projects.”

Tokayev said that bilateral cooperation between Russia and Kazakhstan is evolving and increasing, stating that he personally has supervised the implementation of agreements and arrangements reached during Putin’s visit to the country last November. “These projects that were agreed upon during your last visit are very important. In fact, they embody the strategic nature of interaction between our countries.” Tokayev said.

In 2022 the bilateral trade volume between Russia and Kazakhstan had reached US$26 billion, with expectations in Astana and Moscow are that the volume of trade will expand still further. Year on year growth between 2021 and 2023 has averaged 15%.

As a result of the sanctions imposed on Russia, Central Asia’s trade structure began to shift. In Russia, the demand for specific goods from Kazakhstan has increased. For example, Russians now buy more Kazakh-manufactured computers, monitors, and projectors. Kazakhstan also exports iron ores and concentrates, ferrous waste and scrap, raw zinc, ferroalloys, and coal. Primary Kazakh imports however are oil and oil products, wheat and meslin, ores and concentrates of precious metals, iron bars, and gold.

It is also worth noting a significant increase in cargo transportation between Russia and Kazakhstan has occurred along the International North-South Transport Corridor (INSTC), which connects Russia with Iran and India, and the Global South via Kazakhstan, Azerbaijan, and Turkmenistan.

In total, about 8,000 Russia companies and 3,348 Russian-Kazakh joint ventures are operating in Kazakhstan. Earlier this year, Russia’s Ozon (the equivalent of Amazon) set up its first logistics center in Kazakhstan, while Wildberries, a competitor, has opened its fifth logistics center in the country.

Kazkahstan also serves as a transport conduit for China-Russia bilateral trade. Russian President Vladimir Putin meanwhile accepted the invitation of Kazakh President Kassym-Jomart Tokayev to visit Kazakhstan in November 2024.