Iran-Kazakhstan ties: A breakthrough in the making
A remarkable breakthrough in the Kazakhstan-Iran relationship was witnessed on June 19th, 2022, during Kazakh President Kassym-Jomart Tokayev’s visit to Tehran. The visit marked the 30th anniversary of the establishment of diplomatic ties between the two nations, and both sides focused on consolidating commercial-economic cooperation in various fields, including transit, logistics, industry, and agriculture, along with cultural ties.
Cordial relationship
The political relations between Tehran and Astana have been founded on the pillars of peace and amity since Kazakhstan’s independence. Iran was among the first nations to recognize Kazakhstan’s sovereignty, and over the past 30 years, the ties between the two nations have progressed, resulting in the signing of 133 memorandums of understanding thus far. Iran has always emphasized that the security, stability, and peace of Kazakhstan are of utmost significance.
Tokayev’s visit to Tehran marked a crucial step toward progress and prosperity in various spheres, further strengthening the bond between the two nations. In addition to signing nine MoUs, a joint meeting of high-ranking officials from both countries was convened, with the presence of the two presidents.
Elevating trade ties
Making reference to the substantial 50-percent surge in trade relations between Iran and Kazakhstan during the past two years, Iranian President Ebrahim Raeisi emphasized that the economic and trade potentials of the two nations make it feasible to elevate the volume of bilateral trade to $3 billion as an initial stride.
Among the MoUs signed during Tokayev’s visit to Tehran was the lifting of the visa requirement for Kazakh citizens for up to 14 days, which became operational on July 8th, 2022. In response, the demand for Iranian visas for Kazakh nationals was lifted on November 11th, 2022.
As a landlocked country, Kazakhstan is now geared up for expansive collaboration with Iran to secure access to the open seas for exporting its merchandise. In the 12 months leading up to March 20th, Iran’s exports to Kazakhstan reached a total of $195 million, signifying an increase of approximately 5% in contrast to the corresponding period of the prior year. Additionally, the value of Iran’s imports from Kazakhstan in the same period was $124 million, marking a 70% rise compared to the preceding year.
According to the data released by Kazakhstan Statistics Committee, the total value of trade between Iran and Kazakhstan in 2022 was $528 million, with Iran’s exports accounting for around $210 million, and the portion of imports from Kazakhstan totaling $318 million. Iran’s exports have experienced a 27% hike, and the overall trade between the two nations has grown by 20% in 2022.
Potential for future collaboration
Economic relations between the two countries extend beyond trade. Iran’s proficiency in pharmaceuticals, food, and petrochemical industries, construction, agriculture, and export of technical and engineering services present potential avenues for trade with Kazakhstan.
In the realm of transportation, particularly in the aviation sector, presently, there is a weekly flight operating on the Tehran-Almaty route, as well as two flights weekly on the Gorgan-Aktau route. Furthermore, in the rail transit sector, an MoU has been signed between the Islamic Republic of Iran Railways and the Kazakhstan Railway Company.
As the relationship between the two nations continues to grow, it is hoped that this will pave the way for increased peace, stability, and prosperity in the region.
The visit of Kazakh PM Alikhan Smailov to Tehran on Wednesday, was aimed at touching more developed Tehran-Astana economic ties.