Kazakhstan Watches Iran-Israel Conflict Closely for Potential Trade and Logistics Impact

Kazakhstan is closely monitoring the ongoing Iran-Israel conflict, hoping for a peaceful resolution, stated Deputy Prime Minister and Minister of National Economy Serik Zhumangarin during a June 23 briefing at the Senate, the upper house of Parliament.

According to Zhumangarin, it is too early to make firm predictions, The Caspian Post reports citing Kazakh media.

“We are waiting to see how the situation develops, and we still hope that a peace agreement will be reached. As for potential losses - our primary exports to Iran are food products. I do not believe these events will significantly affect that. People need to eat, regardless of the situation. Iran is a large country,” he said.

However, he underscored that Kazakhstan is paying close attention to potential disruptions in logistics.

“The only railway route to the south runs through Iran. There are no alternative rail connections in that direction. While we currently do not transport large volumes due to the poor condition of Iranian railways and challenges at station transitions, we had ambitious plans in this area. That is why we are monitoring developments carefully,” he noted.

When asked about alternative routes for goods amid the unstable situation, Zhumangarin pointed to several alternatives.

“We have backup options - we can use routes through Georgia or Chinese ports. This would complicate logistics somewhat, but if the situation has long-term consequences for us, we will evaluate options and support businesses. It is still too early to say more,” he said.

Zhumangarin also addressed concerns that changes in logistics might result in higher prices for Kazakh goods.

“I do not think prices will rise. Our goods are exchange-traded commodities - we do not set the prices ourselves. The external market determines the prices, so we sell according to market rates,” he noted.

The Kazakh Foreign Ministry called for a swift international agreement to prevent the spread of nuclear weapons in its June 22 official statement.