Azerbaijan and Kazakhstan establish a new paradigm of regional cooperation

The state visit of President Kassym-Jomart Tokayev of Kazakhstan to Azerbaijan on March 11-12 signifies a pivotal moment in the burgeoning bilateral relationship between the two nations. Highlighted by Tokayev's participation in the inaugural meeting of the Kazakh-Azerbaijani Supreme Interstate Council and the unveiling of the Kurmangazy Center for the Development of Children's Creativity in Fuzuli—a project financed by Kazakhstan—this visit indicates deepening ties and shared strategic interests across the Caspian Sea.

Underpinning this diplomatic engagement is a robust framework of bilateral agreements, with 134 documents already signed, including a comprehensive program aimed at propelling cooperation forward until 2026. The anticipation of a new package of agreements, announced by President Tokayev before his visit to Azerbaijan, promises to give a new impetus to this dynamic partnership.

Economic cooperation forms a cornerstone of Kazakh-Azerbaijani relations. Since the establishment of the intergovernmental Commission on Trade and Economic cooperation in 1999, there have been significant investments between the two countries, with Azerbaijan investing about $306 million in Kazakhstan, and Kazakhstan reciprocating with $95 million in investments in Azerbaijan. The presence of nearly 900 Azerbaijani enterprises in Kazakhstan and approximately 182 Kazakhstani companies in Azerbaijan is a testament to the intertwined economic interests that span various sectors.

Despite a notable increase in trade turnover, which reached $529.4 million in 2023, marking a 14.2% rise from the previous year, there exists a potential for further enhancement, especially when compared to the higher trade volumes between Azerbaijan and other regional partners such as Turkey. The variance in export and import figures in specific commodities between Kazakhstan and Azerbaijan further highlights areas for potential growth and diversification in their trade relations.

The strategic significance of the Zangezur corridor, the prospective fiber optic cable line along the Caspian Sea's bottom as part of the Digital Silk Way project, and the ongoing collaboration in the oil sector, including the transportation of Kazakh oil via the Baku-Tbilisi-Ceyhan pipeline, underscore the multifaceted nature of this partnership. These initiatives not only bolster economic ties but also contribute to regional connectivity and development.

At the multilateral level, both countries play active roles within the Organization of Turkic States (OTG), leveraging their combined economic might, cultural ties, and strategic positions to foster broader regional integration and cooperation. The trade turnover within the OTG and its member countries' engagement in global economic processes exemplify the potential for further integration and collaboration.

Military cooperation between Kazakhstan and Azerbaijan, exemplified by the "Khazri-2023" joint tactical exercises, reflects the growing security collaboration. This partnership, driven by mutual interests in regional stability and defense capabilities enhancement, is set to expand in the coming years, highlighting the strategic depth of Kazakh-Azerbaijani relations.

The importance of logistical and transport cooperation, especially in diversifying and securing alternative routes for commodity flow, stands out as a critical area for bilateral and regional development. Initiatives like the Trans-Caspian International Transport Route and the Turkic Conglomerate of the Automotive Industry are illustrative of the ambitious projects that can redefine economic interaction and connectivity across the region.

As Presidents Ilham Aliyev and Kassym-Jomart Tokayev meet to discuss these broad-ranging topics, the visit encapsulates the strategic alignment and mutual aspirations of Kazakhstan and Azerbaijan. Poised to further strengthen their partnership, the two nations are setting a new paradigm for regional cooperation, economic development, and geopolitical significance in the heart of Eurasia.