Kazakhstan seeking new trade routes

RUSSIA / FSU POLITICS - In Brief 06 Jul 2022 by Alex Teddy

It is more than 30 years since Kazakh independence, and still most Kazakh oil exports go via Russia. Kazakh is able to transport some directly to China. Kazakhstan is seeking to find routes to avoid transshipping oil through Russia due to sanctions. Kazakhstan is cautious about over-reliance on Russia. It has seen that cooperation with Russia on oil and gas did not work out well for Ukraine. Kazakhstan refuses to recognize the Luhansk People's Republic and Donetsk People's Republic. To do so would be to incur the wrath of the EU. Kazakhstan would like to see a stabilization of global energy markets. The Ukraine War is disrupting these markets. Furthermore, the Kazakhs want goods transport routes to be secure. Sanctions that have hit Russia have indirectly impacted Kazakhstan. The Kazakhs are implementing anti-crisis measures. Kazakhstan is having to diversity its economy and reduce dependence on Russia. In fact, China has been Kazakhstan's biggest trade partner for 10 years. The Chinese Belt and Road Initiative is becoming even more important to Kazakhstan because of difficulties in Kazakh-Russian commerce. There is no Kazakh coastline. The landlocked country is constantly seeking trade routes that lead to the sea. Nur Sultan City is discussing cooperating with Uzbekistan on a trade route through Afghanistan and on to Iran and/or Pakistan. Kazakhstan's embassy in Kabul is open, despite not recognizing the Taliban. Another route is via Turkmenistan and Iran. Rosneft is a Russian oil company which has transported oil to China via Kazakhstan. But this might have to end.  West Kazakhstan abuts onto the Caspian Sea. Kazakhstan is worried about the level of water in this lak...

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