Baku and Astana Drive Middle Corridor Expansion with Record Trade and Investment

photo: Kazinform

Baku and Astana Drive Middle Corridor Expansion with Record Trade and Investment

Azerbaijan and Kazakhstan are expanding their strategic alliance through trade, energy, and innovation, reshaping Eurasia’s geopolitical landscape.

As President Ilham Aliyev prepares for his state visit to Kazakhstan, his recent interview with Kazinform sheds light on the growing depth and purpose of Azerbaijan-Kazakhstan relations. Far beyond protocol diplomacy, this partnership has matured into a dynamic axis of trust and strategic cooperation-one that now shapes the geopolitical architecture of the Caspian region and beyond.

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Photo: AZERTAC

President Aliyev emphasized that the political ties between Baku and Astana rest on a foundation of genuine friendship, mutual confidence, and shared vision. This alliance has evolved into a model of pragmatic statecraft, supported by a strong legal framework and a wide spectrum of cooperation in trade, investment, and culture. Today, more than 250 companies with Kazakh capital operate in Azerbaijan, illustrating how bilateral ties have translated into real economic interdependence.

The figures speak for themselves: in the first eight months of 2025, trade turnover between the two countries reached nearly $550 million - over three times the level recorded during the same period in 2024. This remarkable growth reflects how both nations have unlocked the potential of the Middle Corridor, the Trans-Caspian route linking China and Europe through Central Asia and the South Caucasus. Azerbaijan and Kazakhstan are not merely participants in this corridor, they are its driving force, modernizing its transport and logistics infrastructure and turning it into one of Eurasia’s most efficient trade arteries.

Investment flows continue to rise. Azerbaijani investments in Kazakhstan now total around $225 million , while Kazakh investments in Azerbaijan stand at 136 million. Energy cooperation remains a cornerstone of the relationship: since 2023, approximately 3.4 million tons of Kazakh oil have been exported via the Baku-Tbilisi-Ceyhan pipeline. By 2027, this figure is expected to grow to 7 million tons annually.

Meanwhile, the construction of a subsea fiber-optic cable system across the Caspian Sea will create a new digital bridge between the two nations, enhancing regional connectivity and information security.

Aliyev’s remarks also underscored the shared geopolitical dimension of this partnership. Within the framework of the Organization of Turkic States (OTS), Azerbaijan and Kazakhstan are strengthening not only economic cooperation but also the unity of the Turkic world. The OTS has become a vital platform for expanding dialogue, deepening political trust, and promoting humanitarian collaboration among member states. In Aliyev’s vision, the Turkic world is evolving into a consolidated center of influence: a community defined by shared values, cultural roots, and growing political and economic strength.

This vision aligns closely with that of Kazakhstan’s President Kassym-Jomart Tokayev, who at the recent 12th OTS Summit in Gabala warned that global geopolitical tensions pose challenges to all nations and called for coordinated action among Turkic states. His proposal to develop an “OTS+” format aims to elevate the organization’s international status even further. For both leaders, the goal is clear: strengthen security, promote stability, and confront shared threats, including terrorism and regional instability, through collective action.

Recent months have seen tangible results from this high-level cooperation. During the First Azerbaijan International Investment Forum, the two countries agreed to create the joint venture “Azerbaijan Metallurgical Company,” which will finance and operate a hot-briquetted-iron plant in Azerbaijan’s Shamkir district. This industrial project demonstrates how investment collaboration can directly contribute to the diversification of both economies.

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photo: News.az

September also brought progress in the defense and security fields. Experts from the defense ministries of both nations held consultations on financial management in the military sector, while their interior ministries agreed to strengthen joint efforts against transnational organized crime and improve the exchange of operational intelligence. These practical steps show that Azerbaijan-Kazakhstan cooperation now extends to the most sensitive and strategic areas.

Cultural and religious diplomacy, too, has found its place in the bilateral agenda. During the 8th Congress of Leaders of World and Traditional Religions in Astana, President Tokayev met with Sheikh-ul-Islam Allahshukur Pashazade, the chairman of the Board of Muslims of the Caucasus, affirming interfaith understanding as a foundation for long-term regional harmony and partnership between the two nations.

In October, the 21st meeting of the Joint Intergovernmental Commission added further momentum. Discussions centered on green energy, nuclear cooperation, and artificial intelligence, including the establishment of joint research centers focused on digital trust and technology exchange. Kazakhstan praised Azerbaijan’s leadership in climate diplomacy, particularly as Baku prepares to host COP-29, positioning itself at the heart of global environmental dialogue.

The Commission’s final protocol identified 17 priority areas of cooperation: from trade and transport to ecology, youth policy, and cultural exchange. A new agreement on electronic transport permits (e-Permit) will simplify cross-border logistics and further integrate the two countries’ infrastructure.

Azerbaijan’s participation in Kazakhstan’s 12th Civil Forum on October 15, the country’s key platform uniting government, civil society, business, and media, reaffirmed that the partnership extends well beyond state institutions. It embodies a shared approach to modernization and dialogue - one where national progress is tied to open cooperation and mutual learning.

Taken together, these developments reflect the profound transformation of Azerbaijan-Kazakhstan relations in recent years. What began as traditional interstate diplomacy has matured into a comprehensive partnership based on brotherhood, trust, and shared strategic purpose. As Ilham Aliyev arrives in Astana, the state visit is set to further deepen this alliance, not merely as a diplomatic formality but as a step toward building a resilient Eurasian future.

In an era of shifting global alliances, Azerbaijan and Kazakhstan offer a clear example of what pragmatic, trust-based cooperation can achieve. United by geography, history, and vision, these two Caspian neighbors are proving that solidarity, not rivalry, is the true foundation of strength in today’s complex world.

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Azerbaijan and Kazakhstan are expanding their strategic alliance through trade, energy, and innovation, reshaping Eurasia’s geopolitical landscape.