Trade between Kazakhstan and Azerbaijan reached USD 417.4 million

This is a record high in comparison with the same period of last year and also exceeds the figure for 9 months of 2022 by 31.9% ($316.4 million).

At the same time, exports from Kazakhstan account for a significant share of trade between the countries — USD 360.1 mln or 86.3%. The volume of exports from Kazakhstan to Azerbaijan increased by 40.5% from USD 256.2 million in January-September 2022.

The volume of imports from Azerbaijan for the same period amounts to USD 57.3 mln.

The growth of Kazakhstan’s exports is due to an increase in supplies of unprocessed aluminum by 538.2 times from USD 201 thousand to USD 108.2 million.

Thus, aluminum became the main export commodity of Kazakhstan to Azerbaijan, occupying 30% of the total export volume. The increase in exports was also influenced by the growth in supplies of oil products from USD 61.1 mln to USD 74.9 mln and crude oil from USD 56.7 mln to USD 73.2 mln.

In addition, Kazakhstan supplies Azerbaijan with wheat, rails, rolled metal products, batteries, railroad cars, bread and flour products, macaroni, margarine, and others.

The main imported goods from Azerbaijan are ferrous metal pipes and profiles ( USD 16.2 million), ferries and cruise ships (USD 11.6 million), and drinking water, including mineral and carbonated water (USD 9.3 million). These three commodity groups account for 64.8% of all imports from Azerbaijan.

Investment cooperation between Azerbaijan and Kazakhstan

The volume of gross inflow of foreign direct investment from Azerbaijan to Kazakhstan for the first half of 2023 amounted to USD 1.2 million.

It is important to note that the bulk of Azerbaijani investments in Kazakhstan are concentrated in the energy sector, especially in the oil and gas industry.

At the same time, one of the most important projects being implemented by the parties is the project to lay a fiber-optic communication line (FOCL) along the Caspian Sea bed.

The project will allow Kazakhstan to have alternative communication channels to connect to the global Internet. Its cost is estimated at KZT 22.8 billion.