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Tuesday, September 21st, 2021

Kazakhstan, Iran discuss cooperation

by May 17, 2018 Market

Today, within the framework of the Astana Economic Forum, Prime Minister of the Republic of Kazakhstan Bakytzhan Sagintayev met with Minister of Industry, Mines and Trade of Iran, Mohammad Shariatmadari.

The discussion covered issues of cooperation between the two countries in various sectors of the economy, agriculture, energy, subsoil use and industry, transport and logistics, engineering, as well as implementation of joint investment projects in the framework of industrial and innovative development.

Prior to the conversation, the Prime Minister of the Republic of Kazakhstan noted the importance of the recently signed Interim Agreement on the formation of a free trade zone between the EAEU countries and Iran.

The agreement is aimed at establishing a preferential trade regime and is based on WTO norms and international law, which will create stable conditions and rules for mutual trade between countries.

The interlocutors also discussed the prospects for cooperation in agriculture, in particular, on the supply of oilseeds and products of its processing, legumes and fodder crops.

According to the results for 2017, 979.9 thousand tonnes of agricultural products were exported from Kazakhstan to Iran for the total amount of $ 169.9 million.

In addition, work is being carried out with the largest Iranian holding Jahade Sabz for the creation of apple orchards and joint ventures in the agro-industrial complex. Currently, construction of a meat processing complex in the Almaty region is underway with the participation of an Iranian investor.

There are good prerequisites for development of cooperation in the field of subsoil use. At the moment, Kavand Nahan Zamin has successfully invested in a copper development project at the Borly field, in which more than $ 1 million has already been invested.

In addition, there is active cooperation between Asia Copper LLP and the Iranian company Gadir. The joint venture “Persian Gadir Kazakhstan Company” was established.

Currently, there is also growth in transit transportation of goods by rail. Thus, in 2017 the volume of transportation amounted to 228.56 thousand tonnes. There is also growth according to results for 2 months of 2018. The volume of cargo transportation by transit by railroad in Kazakhstan amounted to 75.77 thousand tonnes. Growth is also observed in the sphere of export-import cargo between the Republic of Kazakhstan and the Islamic Republic of Iran.

Work continues on the construction of cargo terminals in the Iranian seaport of Bandar Abbas. The successful implementation of this project will give an additional impetus to the development of bilateral relations.

It should also be noted that within the visit of the Head of our State to Iran an agreement was reached on the joint development of the Silk Road route. Kazakhstan considers it necessary to accelerate work in this direction and to form a joint working group to search for new areas for cooperation.

The conversation also covered other topical issues of bilateral cooperation in various spheres.

For reference: In January-February 2018 the trade turnover amounted to $ 127.0 million, which is 75% more than in the same period of the previous year ($ 72.7 million). Exports from Kazakhstan to Iran in January-February 2018 increased 67% and amounted to $ 110.1 million. Imports to Kazakhstan from Iran in January-February 2018 increased 138% and amounted to $ 16.9 million. For the period from 2005 to 2017 the gross inflow of direct investments from Iran to Kazakhstan amounted to $ 118.7 million, the outflow for the same period was $ 10.2 million. 231 joint ventures are successfully operating in Kazakhstan.

Source: Government of the Republic of Kazakhstan