On October 21, President of Azerbaijan Ilham Aliyev paid an official visit to Kazakhstan. The talks with President Kassym-Jomart Tokayev confirmed that the interaction between the two countries is moving beyond a traditional bilateral framework and is becoming a systemic factor of regional development. Energy, transport, digitalization, and green technologies—key drivers of Eurasia’s economy in the coming decades—were at the center of the agenda.
The results of the visit demonstrated that Baku and Astana are building a multi-layered economic architecture based on mutual investments and technological exchange. The signing of a package of 15 documents was not merely a symbol of trust but a formalization of the transition to a new type of strategic partnership, where each initiative has a practical dimension and is integrated into the overall system of Turkic economic interdependence.
Energy remains one of the main areas of cooperation. Following the agreement between KazMunayGas and SOCAR on the transportation of oil through the Baku–Tbilisi–Ceyhan pipeline, transit volumes have been steadily increasing: 1.4 million tons in 2023, 1.6 million tons in 2024, and up to 3 million tons expected by the end of 2025. By 2027, this figure may reach 5–7 million tons, securing Azerbaijan’s position as the central transit hub of the South Caucasus and strengthening Kazakhstan’s independence from northern routes.
In parallel, the green agenda is advancing. In July 2025, Azerbaijan, Kazakhstan, and Uzbekistan signed a memorandum on the establishment of the Green Energy Corridor—a transregional route for transmitting renewable electricity from Central Asia to Europe. The 380-kilometer submarine cable between Aktau and Sumgayit, with an investment volume of around USD 1.5 billion, will become part of the broader European decarbonization architecture. This project underlines that Baku and Astana’s energy cooperation extends beyond the hydrocarbon paradigm, shaping a model of sustainable development for decades ahead.
Over the past few years, Azerbaijan and Kazakhstan have become leading economic partners in the Caspian region. According to the State Customs Committee of Azerbaijan, the trade turnover between the two countries reached USD 547.6 million in the first eight months of 2025—three times higher than during the same period last year. The target of USD 1 billion by year-end has been set at the presidential level as a strategic benchmark.
While wheat, oil, and metals still dominate trade, the share of higher value-added goods—petrochemicals, construction materials, equipment, and logistics services—is steadily growing. This reflects both countries’ course toward industrialization and technological renewal, shifting the emphasis from raw material exports to the creation of production and innovation chains.
Since 2005, Azerbaijani investments in Kazakhstan have amounted to USD 425 million, while Kazakh investments in Azerbaijan reached USD 156 million. Among the ongoing projects are a tourism cluster on Lake Alakol, the establishment of logistics hubs, and the construction of a hot-briquetted iron plant with an annual capacity of 2 million tons and a total cost of about USD 700 million.
This distribution of capital reflects not just mutual interest but also a shift toward a model of joint industrial modernization, where investments serve as a catalyst for regional growth. In essence, Baku and Astana are creating an “internal economy of Eurasia,” resilient to external shocks and political turbulence.
Currently, about 1,500 companies with Azerbaijani participation operate in Kazakhstan, while around 150 Kazakh enterprises are active in Azerbaijan. These figures demonstrate not only mutual interest but also a high level of institutional trust in each other’s business environments.
For Azerbaijan, Kazakhstan serves as a gateway to the markets of the Eurasian Economic Union and Central Asia, while Kazakh businesses use Azerbaijan as a transit, logistics, and energy hub providing access to the Black and Mediterranean Seas. Thus, entrepreneurial cooperation forms a solid foundation for economic integration driven by the private sector.
Beyond traditional industries, both countries are betting on artificial intelligence and digital transformation. During the visit, the presidents toured the international center Alem.ai, where they discussed launching joint startups and research platforms. This direction signals a transition toward a post-resource model of cooperation, where the key assets are human capital and technological competence.
For the Turkic world, this is a step into the future—from infrastructure projects to integration in the spheres of knowledge, data, and innovation.
President Ilham Aliyev’s visit to Astana was not merely a diplomatic event but a structural marker of a new Eurasian reality. Azerbaijan and Kazakhstan demonstrate that sustainable regional development is achievable not through competition, but through the alignment of potentials. Their partnership model represents an economic axis of trust connecting the Caspian Sea with Europe, Central Asia with the South Caucasus, and energy resources with technological capabilities.
