Trade Between Kazakhstan and Azerbaijan Reaches $417.4 Million in 2023

As of the end of the first nine months of 2023, the trade volume between Kazakhstan and Azerbaijan has soared to $417.4 million, marking a historic high compared to the same period in previous years and a substantial increase of 31.9% from the corresponding period in 2022, TuraNews.kz reports citing the Ministry of National Economy of the Republic of Kazakhstan.

A significant portion of this bilateral trade is attributed to Kazakhstan’s exports, amounting to $360.1 million or 86.3% of the total trade volume. Notably, Kazakhstan’s exports to Azerbaijan witnessed a remarkable surge of 40.5%, rising from $256.2 million in January-September 2022. In contrast, the volume of imports from Azerbaijan during the same period accounted for $57.3 million.

The surge in Kazakhstan’s exports is attributed to a substantial increase in the supply of unprocessed aluminum, skyrocketing from $201 thousand to an impressive $108.2 million—an increase of 538.2%. Aluminum has now become the primary export product, constituting 30% of the overall export volume. Additionally, increased exports were influenced by rising shipments of petroleum products, climbing from $61.1 million to $74.9 million, and crude oil, escalating from $56.7 million to $73.2 million.

Beyond aluminum and energy-related products, Kazakhstan continues to supply a diverse range of goods to Azerbaijan, including wheat, rails, rolled metal, batteries, railway cars, bread and flour products, pasta, and margarine.

Conversely, key imports from Azerbaijan to Kazakhstan include pipes and profiles made of ferrous metals ($16.2 million), ferries and cruise ships ($11.6 million), and various types of drinking water, including mineral and carbonated ($9.3 million). These three product categories collectively constitute 64.8% of all imports from Azerbaijan.

In the realm of investment cooperation, the gross inflow of foreign direct investment from Azerbaijan to Kazakhstan for the first half of 2023 reached $1.2 million. Notably, Azerbaijani investments in Kazakhstan are predominantly concentrated in the energy sector, particularly in oil and gas. A significant joint project involves the laying of a fiber-optic communication line (FOCL) along the Caspian Sea’s bottom, providing Kazakhstan with alternative communication channels for global internet connectivity. The estimated cost of this project stands at 22.8 billion tenge.