World Geostrategic Insights interview with Tatiana Pokrovskaia on the significance of the increase in trade turnover between Russia and Kazakhstan, and the prospects for economic cooperation.
Tatiana Pokrovskaia is an international business development professional with more than 20 years of experience in the markets of Africa, CIS, Asia and the Middle East, repeatedly bringing Russian companies into international markets. She is based in St. Petersburg, Russia.
Q1 – Despite global tensions, trade between Russia and Kazakhstan has increased significantly, reaching record levels. Russia is one of Kazakhstan’s main economic and trading partners. The bilateral trade has reached $26.34 billion in 2024, with both nations aiming to increase it to $30 billion. In addition, Russian direct investment in Kazakhstan has exceeded $24 billion, with $4.5 billion invested in the last two years alone.Meanwhile, Kazakhstan has invested $8.5 billion in Russia. How do you explain the growing economic cooperation between the two countries?
A1 – Trade turnover between Kazakhstan and Russia is indeed growing significantly every year. Among the Eurasian Economic Union (EAEU) countries, the most active are Belarus and Kazakhstan. As stated by the Prime Minister of Kazakhstan, Olzhas Bektenov, in a recent meeting with the Russian Prime Minister.Mikhail Mishustin, in Moscow, “The government of Kazakhstan is determined and intends to actively work on deepening and expanding economic relations with the Russian Federation.”
In industrial cooperation, the two countries collaborate on 171 common projects worth more than 48 billion dollars, creating almost 45 thousand jobs. Russian investments in Kazakhstan are increasing, and Russia values these fraternal relations.
Much attention is paid to the development of transport and logistics corridors.
The border between the Russian Federation and Kazakhstan is the longest continuous border in the world, amounting to more than 7.5 thousand kilometers. The uniqueness of the location also lies in the acceptance of goods and transit of goods within the transport corridors. These are transits along the “North-South” corridor, in which the China-Russia-China route is especially important. There is also the East-West transport corridor.
The rapid construction of large hubs continues. In the spring of 2024, the Moscow Region, China and Kazakhstan began building a new transport and logistics hub in Selyatino to handle 40 percent of all agricultural exports from the Moscow Region. And exports to China will triple – from 180 thousand tons to 550 thousand.
The construction of an airport in the village of Satpai and the completion of the reconstruction of the Kalbata-Maika Shanghai highway lay the foundation for the opening of a large logistics hub in Zajsan. Another project involves the construction of a river port in the village of Tugyl, where cargo will be delivered by road and then transported by river to Russia. In addition, a fourth railway crossing will be created on the Chinese border. And this is not a complete list of major projects between the countries, in some of which China is partially present.
Q2 – What is the current situation regarding Russian-owned companies established and operating in Kazakhstan?
A2 – The number of operating Russian companies in Kazakhstan has reached its lowest level in the last six years, according to the National Statistics Bureau of Kazakhstan. As of April 1, 2025, there were 18.4 thousand legal entities with Russian capital in the country. This means 495 companies less than at the beginning of the current year.
The largest influx of new Russian legal entities in Kazakhstan was recorded immediately after the start of the Russian-Ukrainian military conflict – from April 2022 to March 2023.
However, now the situation has changed.
During my recent business trip to Kazakhstan, while talking to local residents, I also noticed the desire of Russians to return to their historical homeland, despite the ongoing conflict.
The most significant reduction in Russian companies was recorded in the commercial sector, with over 200 fewer enterprises (their total number is 7,500). In the IT sector, the number of companies has decreased by 70, out of a total of 2,500.
While there is investment at the state level, there is an outflow at the corporate level. The reason for this is to be found in pressure, secondary sanctions, and the deterioration of the business environment. For example, Russian IT specialists moving from the Russian Federation to foreign companies have recently been subject to mass layoffs, and this is not limited to Kazakhstan. In October 2024, the technological company Abbyy, unexpectedly, in an hour, fired almost all of its Russian employees (200 to 300 people), whom it had previously moved abroad.
Q3 – Kazakhstan plays a key role in the International North-South Transport Corridor (INSTC), which connects Russian ports to the Persian Gulf, the Indian Ocean, and global markets. Is Kazakhstan becoming an important Eurasian trade hub?
A3 – As I mentioned above, Russia and Kazakhstan are actively developing cooperation in the transport and logistics sector, implementing large-scale infrastructure projects and creating new opportunities for mutual trade and key cooperation in the development of the North-South transport corridor.
Central Asia is a region that has long remained outside the global spotlight. According to the current trend, Asia is becoming the most dynamic developing region – today it is coming to the forefront as a key link in trans-Eurasian transport flows.
However, cooperation between Russia and Kazakhstan is not only about infrastructure projects and logistics routes, but also about issues of security, water and energy resources, digital transformation, as well as youth policy, recognition of mutual interests between countries.
This aspect is certainly due to the geographical location of Kazakhstan, which is integrated into the One Belt – One Road initiative, which has played a key role in strengthening the country’s position as a strategic transit hub of Eurasia. Growing economic activity of Russia and global increase in trade with Asia contribute to strengthening and construction of land infrastructure to avoid risks and unreliability of sea routes due to sanctions pressure.
Q4 – The Russia-Kazakhstan Interregional Cooperation Forum plays a crucial role in fostering economic ties. The latest forum approved a large-scale programme of interregional and cross-border cooperation, including 150 joint initiatives to improve trade, investment, and infrastructure.The upcoming Kazakhstan-Russia Inter-Regional Cooperation Forum (Autumn 2025 in Uralsk, Kazakhstan) will focus on regional economic collaboration.What do you expect as a result?
A4 – In 2025, Uralsk will become the venue for the XXI Forum of Interregional Cooperation between Russia and Kazakhstan.
High economic integration between the countries will be discussed at the Forum, where issues of improving the business environment and creating new projects at the B2B level will be raised, strengthening business ties between entrepreneurs of Kazakhstan and Russia, developing infrastructure, and making a significant contribution to the development of civil society.
Today, Interaction at the level of the Organization of Islamic Cooperation between Kazakhstan and Russia is also being strengthened. Kazakhstan and Russia have many points of contact and grounds for developing cooperation. One of the main areas is trade. According to statistics, Russia occupies a leading place among Kazakhstan’s foreign trade partners.
The Forum is expected to initiate cooperation in the field of transport and logistics (multimodal transport corridors), energy (oil and gas processing and transportation), industry (aircraft repair and maintenance), education and culture (student and specialist exchange) and other joint projects.
We still hope for an improvement in the business environment in Kazakhstan for Russian businesses and specialists, which is what the Governments of both countries are aiming for by implementing global joint projects.
Tatiana Pokrovskaia – International business development professional.