Uzbekistan and Kazakhstan Forge $1.3 Billion Deal, Target $10 Billion Trade

Uzbekistan and Kazakhstan have announced the launch of new joint projects valued at $1.3 billion (€1.18 billion) during a significant state visit by Kazakh President Kassym-Jomart Tokayev. This announcement, made in Tashkent during a meeting with Uzbekistan’s President Shavkat Mirziyoyev, comes ahead of the Seventh Consultative Meeting of Heads of State set to take place this weekend. Both leaders reaffirmed their commitment to increase annual bilateral trade turnover to $10 billion (€8.6 billion) by 2030.

In his remarks, President Mirziyoyev emphasized, “Our relations have now reached the highest level—that of a strategic partnership and alliance.” President Tokayev echoed this sentiment, asserting that the two nations are “by no means rivals or even competitors, but strategic partners, reliable allies.”

Joint Projects to Enhance Economic Ties

During the virtual launch, the two leaders inaugurated seven major projects across various sectors, including industry, construction, petrochemicals, finance, logistics, and tourism. Notable projects include the “Central Asia” International Industrial Cooperation Centre, strategically located near the Atameken and Gulistan border crossing points. This facility is expected to enhance production capabilities, provide storage solutions, and improve transport infrastructure, thereby expediting cargo delivery and reducing logistics costs.

Additional projects encompass the establishment of the head office for “Tenge Bank” in Tashkent, the initiation of the “Silkway Central Asia” multipurpose logistics center in the Tashkent region, and the development of both the “Astana” residential complex and hotel complexes in Tashkent and Kazakhstan’s capital.

Trade between Uzbekistan and Kazakhstan has already reached $4 billion (over €3.4 billion) this year alone. The two governments aim to achieve their ambitious trade target by focusing on increased mutual supplies, diversification of trade structures, and deeper industrial cooperation. An Industrial Cooperation Program worth over $8 billion (almost €6.9 billion) has been developed, covering various sectors, including chemical, geological, infrastructure, and logistics.

Infrastructure Development and Energy Cooperation

The discussions also highlighted the importance of enhancing transport connectivity and border infrastructure. Proposed routes, such as the Uchkuduq–Kyzylorda corridor, aim to increase freight efficiency via the Aktau, Kuryk, and Khorgos ports. Energy cooperation remains a cornerstone of this partnership, with both leaders acknowledging progress in joint projects in traditional and renewable energy sectors. They also committed to further coordination in water management and environmental protection, vital issues for Central Asia.

Additionally, the two countries signed an agreement regarding the joint management and utilization of transboundary water bodies, showcasing their commitment to coordinated environmental governance. Over the past year, cultural events, including ballet performances, art exhibitions, and youth festivals, have fostered stronger cultural ties between the nations.

In a gesture of goodwill, President Mirziyoyev awarded President Tokayev the “Oliy Darajali Dustlik” (“High-ranking Friendship”) honor, the highest state award in Uzbekistan. President Tokayev expressed that he sees this honor as a tribute not only to himself but also to the people of Kazakhstan, recognizing his efforts in enhancing bilateral relations.

The visit concluded with the adoption of a joint statement and the signing of 17 bilateral documents covering areas such as energy, geology, water management, customs coordination, healthcare, tourism, and youth collaboration. Experts view these initiatives as indicative of both governments’ intentions to strengthen practical collaboration and ensure steady trade growth in the years ahead.

Meanwhile, President Mirziyoyev also met with Azerbaijan’s President Ilham Aliyev to discuss the development of Uzbek-Azerbaijani relations. Since the beginning of the year, trade turnover between the two nations has increased by 15 percent, with ongoing joint projects in sectors such as automotive, energy, and tourism.