Kazakhstan and Hungary Target $1 Billion Trade Turnover

Photo credit: Akorda

Kazakh President Kassym-Jomart Tokayev announced plans to increase trade turnover with Hungary to $1 billion during a joint media briefing with Hungarian Prime Minister Viktor Orbán on Nov. 21 in Budapest, as part of his state visit. Tokayev highlighted that Kazakhstan is offering 95 types of goods valued at $700 million, The Caspian Post reports citing Astana Times.

Outcomes of the visit

Tokayev, whose official visit to Hungary began on Nov. 19, highlighted a 9% rise in trade turnover with Hungary last year and emphasized Kazakhstan’s potential to export products from the energy, metallurgy, petrochemicals, mechanical engineering, agriculture, and construction sectors.

Since 2005, Hungary has invested $370 million in Kazakhstan. Tokayev mentioned his meetings with heads of major Hungarian companies such as MOL, OTP Group, and Gedeon Richter. He noted a $62 million agreement signed with UBM to build three feed production plants.

He also spoke about a memorandum of cooperation signed between Kazakhstan Temir Zholy Express, Hungary’s L.A.C. Holding, and China’s Xi’an Free Trade Port Construction and Operation, which is expected to strengthen trade and transport ties along the Trans-Caspian International Transport Route. Cargo deliveries along this corridor will reach 10 million tons soon, Tokayev said.

He expressed gratitude to Hungary for its involvement in the World Nomad Games and its educational grants, which have supported thousands of Kazakh students studying in Hungary.

Agreements reached during negotiations

Before the briefing, Tokayev and Orbán reached several agreements during the extended-format talks. One of them is the establishment of the Kazakhstan-Hungary Investment Fund. Key topics on the agenda were trade and economic partnership, energy, oil and gas, transport, and education.

The parties signed a joint statement, as well as a memorandum of understanding on cooperation on consular issues, an agreement on cooperation on the implementation of joint investment projects, a tripartite framework agreement on projects for compound feed and premixes production in Kazakhstan, a memorandum of understanding on banking, and a memorandum on expanding cooperation between KazMunayGas and the Hungarian MOL Group.

During negotiations with Orbán, Tokayev emphasized that the primary goal of his visit was to give new impetus to bilateral relations, especially in energy, transport, and logistics. He prioritized the implementation of joint projects in the oil and gas sector, agriculture, logistics, the nuclear industry, and the financial sector. Orbán expressed confidence that the agreements reached will serve as the foundation for the expansion of cooperation.

Investment roundtable 

Tokayev also participated in the Kazakh-Hungarian investment roundtable, which resulted in the signing of seven commercial documents in agriculture, digitization of transport infrastructure, education, and support for joint investment projects.

“More than 70 Hungarian companies, including MOL Group and Gedeon Richter, are successfully operating in our country. Joint investment projects with an investment volume of over $540 million are being developed in mechanical engineering, agriculture, and logistics,” he said.

Bilateral meetings

At a meeting with László Kövér, the speaker of the National Assembly of Hungary, Tokayev stressed the role of interparliamentary cooperation and highlighted the importance of enhancing cooperation in education and inter-university exchange. He also met with International Judo Federation President Marius Vizer, who commended Kazakhstan’s consistent measures to popularize judo and its athletes’ achievements in international competitions.

President Tokayev’s visit to Hungary follows his recent visit to Serbia as part of the efforts to strengthen Kazakhstan’s diplomatic engagement in Central and Eastern Europe.