Iran provides Kazakhstan access to the Persian Gulf’s markets
Kazakh-Iranian cooperation in Caspian Sea region
The cooperation in the Caspian region was underscored, as well as the Fifth Caspian Summit’s historic importance hosted by the port city of Aktau in August 2018, with the parties referring to the need to bring about all the provisions of the Convention on the Legal Status of the Caspian Sea and the commitments made during the Summit. Signed by Azerbaijan, Iran, Kazakhstan, Russia and Turkmenistan, the Convention replaced 1921 and 1940 Iranian-Soviet treaties. Although the Sea is in the common use, its seabed and subsoil are split between the neighboring countries based on international law, thus halting non-party armed forces and holding the five Caspian countries responsible for its security and resource management.
The consultations marked the positive trend in the transit and transport and agriculture cooperation and enhancing the use of the Kazakhstan-Turkmenistan-Iran railway further accessing the Persian Gulf.
Meeting Iranian Ministers
First Kazakh Deputy Foreign Minister Mukhtar Tleuberdi held a meeting with Iranian Minister of Roads and Urban Development Mohammad Eslami and Deputy Minister of Agriculture Jihad of Iran Yazdan Seif, which went over the trade and economic cooperation’s current state and prospects, including the transit and transport potential’s development, agricultural products’ exports to Iran, and so on.
While meeting Iranian Foreign Minister Mohammad Javad Zarif, M. Tleuberdi briefed on the recent changes in Kazakhstan’s domestic policy, including First Kazakh President Nursultan Nazarbayev’s resignation and the upcoming early elections.
“Nursultan Nazarbayev is a very wise politician, who has largely contributed to Kazakhstan’s development and the enhancement of regional and global security and stability”, the Iranian Foreign Minister recalled.
He is confident that the presidential elections will be democratic.
The Kazakh diplomat noted that the country’s foreign policy will be sustained, calling good neighborliness with Iran one of the priorities of Kazakhstan’s foreign policy.
On 11 April, Mr Tleuberdi discussed with Secretary General of the Economic Cooperation Organization Dr. Hadi Soleimanpour Kazakhstan’s cooperation with the ECO.
Kazakhstan secures plots at Bandar Abbas and Amirabad ports in Iran
It was agreed to provide Kazakhstan with plots at the ports of Bandar Abbas and Amirabad to construct logistics hubs to export domestic commodities to the Persian Gulf’s markets via Iran.
Current bilateral relations between Kazakhstan and Iran
Kazakhstan and Iran continue fostering constructive and partnership relations, providing for a high-level political dialogue between the two countries.
Given Iran’s important geopolitical location in the Middle East, it is a win-win for Kazakhstan as the country diversifies its transit and transport routes to access the Persian Gulf. Some perspective areas to develop interaction occur, including the railways, so do joint ventures in transit and transport, agriculture, tourism and other areas.
The current friendly relations between Nur-Sultan and Tehran cities date back to the historic and cultural ties, reflected in many scientific works. The two countries trade Days of Persian Poetry, various cultural events.
Iran and Kazakhstan’s interaction within international organizations
With both countries having the same positions and actively interacting on numerous current global problems, the two states develop partnership within international and regional organizations, including UN, OIC, CICA, ECO, SCO, and so on. First Kazakh President Nursultan Nazarbayev’s initiatives are welcomed by Iran.
Regional and global security cooperation
Both countries share views on ongoing issues of regional and global security on a regular basis. Back in 2014, a five-year cooperation programme was signed by both Foreign Ministries, thus allowing exchange visits by delegations and political consultations at the level of Ministries and Deputy Ministers.
Close political contacts and trusting relations led to two rounds of the talks on Iran’s nuclear programme held in Almaty in 2013. During First President Nursultan Nazarbayev’s tenure, Kazakhstan largely contributed to this complex procedure. The country also hosted the Astana process talks on Syria in a multilateral setting. This all can be seen as cooperation in the regional and global security area.
Transit and transport cooperation, and Kazakhstan’s access to the Persian Gulf
The cooperation in the transit and transport area actively evolves between the two countries.
Taking advantage of the Bandar Abbas port, Kazakhstan can become a full member of the Persian Gulf’s transit and transport route. This will help Kazakhstan in diversifying its exports by entering markets of the Middle East, south Asia and Africa, thus expanding its transport routes.
The railway “Uzen-Bereket-Gorgan” will largely contribute to Kazakhstan’s transit and transport potential in the Persian Gulf, cutting North-South itineraries for transit by 600 km, and providing Kazakhstan direct overland access to the Persian Gulf.
The Kazakh-Iranian shipping company Khazar Sea Logistics (KTZ Express – as Kazakh founder, and State company IRISL – as Iranian founder) provides services in the operation of the terminal at the port of Bandar Abbas.
To reach high-level trade with countries of south, Southeast Asia and the Middle East, Kazakhstan should develop transit routes towards the Persian Gulf, thus enabling Kazakhstan to access international waters.
The construction project of the Kazakhstan-Turkmenistan-Iran railway line was elaborated to this end, seeking to scale up trade and economic ties not only Iran, but also with countries of south, Southeast Asia, the Middle East and Africa. Kazakhstan intends to step up this direction with the said ambitious goals. However, the work slows down amidst certain limitations the USA imposes.
Kazakhstan’s active work is motivated to promote largely economic interests in Iran in transit. Therefore, it is necessary to develop the logistics infrastructure in the friendly country. In doing so, Iran expressed willingness to provide Kazakh private and state-owned enterprises plots at Bandar Abbas and Amirabad ports. The terms for using these plots haven’t announced yet as the parties negotiate.
Is Iran a key partner of Kazakhstan in the region?
Kazakhstan’s multidimensional foreign policy, with Leader of the Nation Nursultan Nazarbayev being right there at the beginning, make it possible to sustain the partnership relations with Iran at the high level. These days, the bilateral cooperation’s key areas including Caspian Sea, agricultural, transit and transport, tourism cooperation, as well as other spheres.
Kazakhstan and Iran’s bilateral trade turnover stood at $516.309 million in 2018 (including exports – $426.768 million, imports – $89.541 million), the main exporting commodities from Kazakhstan to Iran include barley, steel, wheat, livestock products, some fertilizer, and importing goods include concrete, paint, varnishes, fruits and dried fruits.
Investment cooperation, joint ventures
Between 2005 and 2018, the gross inflow of direct investments from Iran to Kazakhstan comprised US$117.8 million, while the gross outflow of direct investments from Kazakhstan to Iran was US$10.5 million.
As at 1 April 2019, there are 585 legal entities, branches and representation offices involving Iran, 582 of them are functional.
Kazakhstan and Iran, which share borders in the Caspian Sea, actively work in various areas for the best interests of two countries’ people. This ensures the long-established relations between the two countries go on.
Adlet Seilkhanov
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Fifth Caspian Summit: what will the Presidents discuss?
