Kazakh experts say that unlocking transport links across the South Caucasus could unlock a major new wave of economic growth for the entire region.

Zhanar Gabdullina, Deputy Director of the Institute for Strategic Studies under the President of Kazakhstan, said that full normalization of regional transport routes could generate up to $1 billion in additional economic benefits by creating new trade corridors and growth points, The Caspian Post reports via News.Am.

She made the remarks during an expert discussion on cooperation between Armenia and Kazakhstan on May 6, highlighting already expanding economic ties between the two countries.

Gabdullina noted that more than 400 companies with Armenian capital operate in Kazakhstan, while around 100 Kazakh-backed enterprises are active in Armenia. Trade turnover between the two countries has increased nearly fivefold between 2020 and 2024.

She emphasized that future cooperation should go beyond traditional sectors, pointing instead to high-growth areas such as artificial intelligence, finance, metallurgy, chemicals, and construction materials.

Food security was also highlighted as a key pillar of cooperation, with Kazakhstan’s national grain operator ready to supply 15,000-20,000 tons of wheat via regular rail shipments.

A major focus of the discussion was the transformation of Eurasian transport architecture. Gabdullina described Armenia’s “Crossroads of Peace” as an example of a new modular logistics system designed to connect cargo flows and generate jobs.

She also pointed to new transport routes through Russia, Azerbaijan, and Georgia, which Kazakhstan officially joined in late 2025, calling it a turning point for logistics diversification.

In this emerging system, Kazakhstan is seen as a key regional hub, while Armenia plays an important connecting role in the South Caucasus.

Gabdullina concluded that the priority now is shifting from discussing potential to implementing real projects that strengthen connectivity, reduce risks, and boost the region’s overall economic competitiveness.