Azerbaijan's investments push Kazakhstan's secondary sectors to grow

Business Materials 27 December 2017 17:31 (UTC +04:00)

Baku, Azerbaijan, Dec. 27

By Ali Mustafayev – Trend:

The total value of Azerbaijani investments in non-primary sectors of the economy of the western regions of Kazakhstan in recent years amounted to $300 million, said the head of Kazakhstan’s Mangistau region Eraly Tugzhanov at a ceremony marking the 25th anniversary of diplomatic relations between Kazakhstan and Azerbaijan, the press service of the region said in a message.

"Currently over 800 companies with Azerbaijani capital work in Kazakhstan, and more than 70 Kazakh companies successfully operate in Azerbaijan, including 52 joint ventures in various sectors of the economy," Tugzhanov said.

In January-October of 2017, foreign trade turnover of Mangistau region with Azerbaijan amounted to $41.2 million. Exports from Mangistau to Azerbaijan amounted to $26.1 million, imports from Azerbaijan to the region amounted to $15.1 million. The total trade turnover between the two countries amounts to $140 million.

Elkhan Zeynalov, the head of the Consulate General of Azerbaijan in Aktau, in turn, stressed that next year it is planned to open a large transformer plant worth $50 million of Azerbaijani investments.

One of the most important aspects of cooperation between the two countries is the transit potential. The Caucasian route, passing through Azerbaijan, will provide Kazakhstan access to European markets.

In turn, Kazakhstan helps Azerbaijan to enter the markets of Central Asia and China.

A particularly important aspect of bilateral cooperation is the work of the Kuryk and Alyat seaports. The ferry complex in the port of Kuryk is oriented to transshipment of oil products, grain, chemicals, fertilizers and other types of cargo. This year Kazakhstan, Azerbaijan and Georgia agreed on the conditions for carrying out the transportation of goods by rail and ferry in Alat-Aktau-Alyat and Alyat-Kuryk-Alyat directions.

Joint Kazakhstan-Azerbaijan enterprise Baku Grain Terminal LLC, receiving and transshipping Kazakh grain, has been operating in Baku for 10 years. Presently, its production capacity is 300 tons per hour, and the annual transshipment volume reaches 500,000 tons of grain.

Along with providing Azerbaijan with high-quality grain, the Baku terminal serves as an important link in the re-export of Kazakh grain to the Caucasian states, Black Sea regions, as well as to the EU countries.