Azerbaijan–Kazakhstan Strategic Partnership

Azerbaijan–Kazakhstan Strategic Partnership

The official state visit of the President of the Republic of Azerbaijan, Ilham Aliyev, to the Republic of Kazakhstan at the invitation of President Kassym-Jomart Tokayev is a significant historic event aimed at further strengthening the strategic alliance between the two countries. The statements made by both leaders confirm that political relations have evolved from friendship to brotherhood, with economic and trade relations serving as the cornerstone of this cooperation. President Tokayev's remark that “the development of economic and trade cooperation is an urgent and crucial task for us” and President Ilham Aliyev’s statement that “we aim to strengthen cooperation in all directions” provide the political rationale for the growth in trade in recent years.

The Head of the Turkic World Research Center under the Center for Analysis of Economic Reforms and Communication, Vusala Jafarova said that, the figures from the last six years show that Azerbaijan–Kazakhstan trade relations have undergone a significant transformation both in terms of volume and structure. In total, between 2020 and 2025, the Azerbaijan–Kazakhstan trade turnover has increased nearly 3.8 times, which demonstrates that the economic cooperation between the two countries has entered a qualitatively new phase. In 2022, trade turnover reached 598.4 million USD, marking a 4.4-fold increase compared to the previous year. In 2023, against the backdrop of global price fluctuations, turnover decreased to 314.1 million USD, but in 2024, it increased by approximately 49.8%, reaching 470.4 million USD.

In January–August 2025, this figure increased to 547.6 million USD, with 481.6 million USD in imports and 66 million USD in exports. Approximately 90% of the goods imported from Kazakhstan to Azerbaijan fall under three categories: gold (semi-processed) – around 54%, wheat – 25%, and crude oil and oil products – 8%. These figures confirm Kazakhstan’s role as a key energy and raw material supplier for Azerbaijan.

In Azerbaijan’s exports to Kazakhstan, the share of industrial and transport sector products has been rising in recent years. According to the 2025 figures, passenger cars accounted for approximately 35% of total exports, oil and gas industry pipes and equipment – 17%, and diesel-powered cars – 10%, indicating that Azerbaijan is strengthening its role as a re-exporter and industrial supplier in the Kazakh market.

Bilateral business relations are also expanding. Currently, around 1,500 Azerbaijani capital companies are operating in Kazakhstan, while approximately 150 Kazakh enterprises are registered in Azerbaijan. From 2005 to 2025, Azerbaijan has invested 424.6 million USD in Kazakhstan, while Kazakhstan has invested 156 million USD in Azerbaijan. Investment relations between the two countries are also a key focus of the visit. Therefore, the targets voiced by the two leaders during the visit regarding the diversification of economic cooperation and the expansion of mutual investments align directly with these figures.

The trade dynamics of 2025 indicate that the transition from raw material trade to higher value-added industrial and service cooperation is already on the agenda. President Ilham Aliyev’s visit can be seen as a major political event marking the start of this new phase. To increase Azerbaijan’s export share, potential in manufacturing, agricultural products, and logistics must be strengthened.

Additionally, in recent years, the mutual tourist flow between Azerbaijan and Kazakhstan has demonstrated dynamic growth. According to official statistics, in 2023, the number of Azerbaijani citizens visiting Kazakhstan increased from 49,000 in 2023 to 51,000 in 2024, and by January–August 2025, it had reached 34,000. The number of Kazakh citizens visiting Azerbaijan increased from 58,000 in 2023 to 86,000 in 2024, marking a 49% increase. In the first eight months of 2025, this number reached 69,332. This trend highlights the intensification of tourism and business relations between the two countries, with the strengthening of transport and logistics connections facilitating the natural continuation of strategic cooperation.

During the visit, the presentation of the "Middle Corridor (Trans-Caspian International Transport Route)" project by the two presidents showcased the rapid growth of cargo turnover. The share of cargo transported through Kazakhstan’s ports in the total cargo turnover of the Baku International Sea Trade Port accounts for approximately 35% annually. In 2024, this volume reached 2.6 million tons, and in the first nine months of 2025, it had already reached 2.1 million tons.

Overall, the cargo volume along the Middle Corridor has been growing at a record pace, thanks to Azerbaijan–Kazakhstan transport and energy cooperation in recent years. Container traffic has nearly doubled, reaching 40,200 TEU. Over the past five years, the total cargo turnover has increased from 0.8 million tons (2020) to 4.5 million tons (2024), with a target of 5.2 million tons and 70,000 TEU for 2025. Kazakhstan’s main exports along this corridor include oil and oil products, metals, chemicals, and grain, while imports and transit flows consist of consumer goods, food, vehicles, and equipment.

Furthermore, the export of Kazakh oil through the Baku–Tbilisi–Ceyhan (BTC) pipeline is gaining increasing importance. Since November 2022, KazMunayGas and Azerbaijan’s SOCAR have jointly been exporting oil along this route. The volumes are steadily rising: 1 million tons in 2023, 1.4 million tons in 2024, and about 0.9 million tons in the first eight months of 2025. According to plans, annual exports through this route are expected to reach 7 million tons by 2027, with the Baku–Supsa route also being considered as an alternative. These figures confirm the growing strategic role of energy and logistics routes through Azerbaijan for Kazakhstan, indicating that the economic cooperation between the two countries has entered a deep integration phase in energy, transport, and digital infrastructure.

The political dialogue and strategic partnership between Azerbaijan and Kazakhstan have reached a new qualitative level in 2025. During the visit, the heads of state signed important documents, including the "Joint Statement on the 20th Anniversary of the Strategic Partnership Agreement," the "1st Decision of the Azerbaijan–Kazakhstan High Intergovernmental Council," and the "2nd Decision on the Approval of the Statute of the Foreign Ministers Council." These agreements are expected to strengthen bilateral cooperation in trade, investment, and infrastructure, particularly enhancing the development of the Middle Corridor projects. During the discussions, particular attention was given to expanding economic and trade relations, with an agreement to double the bilateral trade turnover and reach $1 billion in the near future.