Comparison of Azerbaijan and Kazakhstan: similarities and differences

In a move that underscores Russia's strategic interest in the South Caucasus, Sergei Naryshkin, Director of the Russian Foreign Intelligence Service (SVR), visited Baku earlier this week, holding high-level meetings with Azerbaijani President Ilham Aliyev and officials from Azerbaijan's intelligence agencies. The visit, held on October 2-3, highlights Moscow’s intention to reinforce its influence in the region amid a backdrop of growing anti-Western rhetoric from both Russian and Azerbaijani leadership.

The September 17, 2024 summit in Astana between German Chancellor Olaf Scholz and the heads of Central Asian states marks a critical moment in regional diplomacy. Kazakhstan's President Kassym-Jomart Tokayev emphasized the importance of this evolving dialogue, highlighting its strategic significance in a world grappling with geopolitical instability. As the two regions deepen their ties, this summit reflected growing attention to economic diversification, energy security, and technological cooperation.

Kazakhstan, situated at a complex geopolitical crossroads in Central Asia, is striving to maintain a delicate balance as Western powers tighten sanctions against Russia amid the ongoing war in Ukraine. While adhering to sanctions remains part of the national strategy, the country faces significant challenges in maintaining this precarious position without compromising its own economic interests or regional stability.

The outcome of the 44-day Second Karabakh War in 2020 has also influenced the geography of foreign direct investments directed at Azerbaijan's economy. According to recent statistics, after the Second Karabakh War, investments from the Russian Federation, Turkey, and the People's Republic of China into Azerbaijan's economy, particularly in the liberated territories, began to grow. However, the attraction of Western-origin foreign investments continues to face significant hurdles. The Azerbaijani government's classification of states as friendly or unfriendly is a factor, but traditional problems such as monopolies dominating the national economy, as well as the lack of an independent judiciary and legal system, are ongoing challenges that need to be addresed.