00:10Kazakhstan is seeking to move beyond exporting raw commodities.
00:13Exports of processed goods grew nearly 18% in the first half of the year.
00:18Crude oil, however, still dominates the country's shipments.
00:21With trade turnover reaching nearly 62 billion euro,
00:24Kazakhstan's trade and investment agencies say
00:27this momentum is opening up opportunities to expand local production.
00:34Welcome to East-West Connect.
00:35We highlight business and investment opportunities in Kazakhstan
00:38and across Central Asia, connecting the region with Europe and beyond.
00:43China remained Kazakhstan's largest trading partner in the first half of the year,
00:48followed by Russia with Italy in third place,
00:51followed by Turkey, France, Uzbekistan, the Netherlands, Germany,
00:54the United States and South Korea.
00:57Imports topped 27 billion euro, up over 5% driven by demand for natural gas,
01:04power generation equipment, other railway locomotives, gold, uranium, petroleum products and machinery.
01:10The government is taking steps to make Kazakhstan more attractive to investors.
01:15Over the past four years, Kazakhstan has signed 62 investment agreements,
01:20worth around 32 billion euro.
01:22These can provide up to 25 years of legislative stability
01:25for projects worth more than around 52 million euro.
01:29In 2025, Kazakhstan signed a further 173 investment contracts,
01:34worth around 2.6 billion euro.
01:36Qualifying projects may benefit from tax incentives,
01:39exemptions from import customs duties,
01:41on equipment and components,
01:43and in-kind state grants.
01:45To discuss the biggest investment opportunities created by this growing domestic demand,
01:50we're joined by Nurlan Kulbatyrov,
01:53Deputy General Director of Kastrade.
01:57Mr. Kulbatyrov, welcome.
02:00Kazakhstan's exports are growing faster than imports,
02:03with foreign trade reaching nearly 62 billion euro.
02:05What does this tell us about the next stage of Kazakhstan's economic development?
02:09Mr. Kulbatyrov, you have right now pointed it out,
02:10that the growth in a while is always good,
02:12even if the growth in exportES.
02:15I want to mention that it is
02:17This is because in the first half of the year, the economy was 4,1% and the economy was
02:25the main driver of the economy.
02:28We have almost 10% of the economy.
02:31And as you know, when you look at the same amount of attention on the export,
02:34we see that if we turn off the products, the oil, gas, we see a good dynamic growth of these
02:44products.
02:45And I think that this is a good trend for the growth of the economy and in general for the
02:49trade.
02:49Which industries are best positioned for import substitution and where do you see the strongest opportunities for foreign investors?
02:55In general, we could develop the import on three blocks.
02:58It's commercial products, investment products, and consumer products.
03:04The commercial part where we import products may be for the end production of the country.
03:10I would like to point out that there is a great potential for the industrial sector.
03:16This is the farming industry and the deep development of agricultural products.
03:21These are the three main areas.
03:24The industrial sector can also point out.
03:27In this regard, there is a great potential for foreign investors to localization and production of these products.
03:35We see changes in the structure of Kazakhstan's imports and exports.
03:42What are the biggest shifts and what's driving them?
03:44When we talk about moving, it's, in the first of all, not only the mechanical growth of the economy, but
03:51also the expansion of the geography.
03:53And we see very good indicators on the new market.
03:58Also, I want to point out that very good growth of Turkey.
04:01In two cases, Kazakhstan's products were raised.
04:03In France, in Uzbekistan.
04:05And I think that Kazakhstan's products are more interested in other countries.
04:17The opportunity goes beyond the domestic market.
04:20Kazakhstan is also looking to expand its export base.
04:23Shipments have reached around 35 billion euro in the first half of the year, up 8.6% year on
04:30year.
04:30Crude oil remained Kazakhstan's largest export despite lower shipments than a year earlier, followed by copper and copper products, uranium,
04:39ferro-alloys and wheat.
04:41Energy and metals continue to dominate Kazakhstan's export basket, but non-resource exports are gradually gaining ground.
04:48Animal feed exports surged nearly 80%, while sunflower oil exports increased by 57%.
04:55Kazakhstan is already a major global supplier of sunflower oil and is among the top three suppliers of sunflower meal
05:02to the European Union.
05:04So what's driving this growth in Kazakhstan's oilseed exports and where are the next opportunities for investors?
05:09Joining us now is Yudhikar Ibrahimov, Chairman of the National Oil Seed Processors Association of Kazakhstan.
05:17Mr. Ibrahimov, welcome.
05:19Kazakhstan aims to increase exports of fats and oils to around 1.3 billion euro by 2028, around 60%
05:27above current levels.
05:29What's behind this rapid growth?
05:32ался for example Oh yeah, ol aside
05:32за этими результатами, конечно же, состоит масштабная
05:34трансформация отрасли, то есть переход от экспорта сельхоз,
05:38to the внутренней production production, which supports the government and, of course,
05:45brings more value to the country. If we look at the results of 2025,
05:50our value was increased in four times, to US$962 million in the US, and this is not the
05:57limit, on which we look at, and, so, therefore, we set the task to make this
06:03result in 2-3 years to US$1,5 billion. That is, that is what is really possible from Kazakhstan.
06:10What competitive advantages does the country have in oil seed processing?
06:15The basis of this, of course, is the dairy base, which has a geographic position,
06:22a system of work on the development of export logistics and the trade market.
06:27I want to stop on the dairy base, because this is the basis, and Kazakhstan,
06:35on today's day, has the most large part in Central Asia.
06:40And, so, and, plus, there are also environmental conditions, which allow
06:45to grow in the agricultural culture.
06:47We have a, say, increase the diversification and переход to the agricultural culture.
07:05Where in the value chain do you see the greatest opportunities for international investors?
07:10For foreign investors, of course, it is important, if they want to invest in Kazakhstan,
07:16then in the direction of logistics.
07:18Why is this important?
07:19Because, one thing is, when we produce our products,
07:22another thing is, when we produce our products,
07:24another thing is, when we produce our products in export directions.
07:27And, in this case, we see the need for the logistics hub to be built,
07:33and, in this case, when we produce our products in our country.
07:41And, in this case, we have an interesting role.
07:41then it will, in this case,
07:43that means, will enable the LSE product
07:46to go to other new markets.
07:49Mr. Abrahimov, thank you so much for your time.
07:53That's all for now.
07:54See you in the next episode of EastWest Connect!
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