On October 21, President of Azerbaijan Ilham Aliyev paid an official visit to Kazakhstan in Astana. Talks with President Kassym-Jomart Tokayev confirmed that the economic cooperation between the two countries is reaching a qualitatively new level, becoming one of the key pillars of Turkic integration. During the meeting, the parties signed a package of 15 documents covering energy, transport, digitalization, investment, and trade, marking the transition of bilateral relations to a phase of strategic partnership based on mutual economic interdependence and technological renewal.
In recent years, Azerbaijan and Kazakhstan have become the main economic partners of the Caspian region. According to the State Customs Committee of Azerbaijan, the trade turnover between the two countries in the first eight months of 2025 reached 547.6 million USD — more than triple the figure for the same period last year. If the current growth trend continues, the volume could reach 1 billion USD by the end of the year, setting an all-time record in bilateral relations. This target was officially confirmed as a strategic goal at the presidential level.
While the trade structure is still dominated by wheat, oil, and petroleum products, the share of goods with higher added value is growing steadily. Kazakhstan exports wheat (over 570,000 tons worth around 120 million USD), petroleum products, and metals to Azerbaijan, while Azerbaijan exports petrochemical products, construction materials, equipment, and logistics services to Kazakhstan. Thus, trade is gradually becoming more diversified, reflecting both countries’ commitment to industrialization and technological development.
Entrepreneurial cooperation also plays an important role. Today, about 1,500 companies with Azerbaijani capital operate in Kazakhstan, while roughly 150 Kazakh enterprises are registered in Azerbaijan. This process demonstrates growing business confidence in the investment climates of both countries and lays a solid foundation for expanding joint projects. Azerbaijan views Kazakhstan as an economic bridge to the markets of the Eurasian Economic Union and Central Asia, while Kazakh companies use Azerbaijan as a transit and energy hub providing access to the Black and Mediterranean Seas.
Energy remains one of the key areas of cooperation. Following the agreement between KazMunayGas and SOCAR on oil transportation via the Baku–Tbilisi–Ceyhan pipeline, transit volumes have been steadily increasing: 1.4 million tons in 2023, 1.6 million tons in 2024, and an expected 3 million tons in 2025. By 2027, this figure could rise to 5–7 million tons. For Kazakhstan, this represents a step toward diversifying export routes and reducing dependence on Russian pipelines, while for Azerbaijan, it strengthens its role as the South Caucasus’ main transit hub.
Green energy cooperation has also received a new boost. In July 2025, Azerbaijan, Kazakhstan, and Uzbekistan signed a memorandum to create the Green Energy Corridor — a transregional route for transmitting renewable electricity from Central Asia to Europe via the Caspian Sea and the South Caucasus. The project envisions the construction of a 380-kilometer underwater cable between Aktau and Sumgayit, with investments of around 1.5 billion USD. It will become part of Europe’s broader energy architecture aimed at decarbonization and sustainable development.
Investment cooperation is developing dynamically. Since 2005, Azerbaijani investments in Kazakhstan have totaled 425 million USD, while Kazakh investments in Azerbaijan have reached 156 million USD. Current joint projects include a tourist complex on Lake Alakol, logistics hubs, and the construction of a hot-briquetted iron plant with an annual capacity of 2 million tons and an estimated cost of 700 million USD.
Beyond traditional sectors, Azerbaijan and Kazakhstan are focusing on the digital economy and artificial intelligence. During the visit, the presidents toured the international center Alem.ai, where they discussed launching joint technology initiatives and startups. These steps mark a new stage of cooperation — the transition from a resource-based model to an innovation-driven one.
The results of the Astana visit demonstrated that Baku and Astana are building a multi-layered economic architecture based on mutual investment, transport, energy, and digitalization. Economic partnership is becoming not just a direction of foreign policy, but part of a long-term strategy to build sustainable connections across the heart of Eurasia, where Azerbaijan and Kazakhstan serve as the main drivers of growth and modernization in the region.
Ilgar Velizade
