Kazakhstan and Cyprus Power Up Their Partnership
Kazakh and Cypriot Foreign Ministers Concur on Enhancing Bi-Lateral Relations
Hop on board as we dive into the dynamic meeting between Kazakh Deputy Prime Minister and Foreign Minister, Murat Nurtleu, and Cypriot Foreign Minister Constantinos Kombos, on March 6, 2024, in the heart of Nicosia. Their discussion centered around strengthening their relationship in politics, trade, economics, culture, and humanitarian efforts.
While cosying up for the camera, Nurtleu pointed out a jaw-dropping fivefold increase in the trade relation between Kazakhstan and Cyprus in the past year. The Cypriots' investments in Kazakhstan skyrocketed to an impressive $227 million, reported the Kazakh Foreign Ministry's press service. They brainstormed strategies to boost economic engagement to expand investment cooperation and multiply mutual trade volumes.
Kombos acknowledged the compelling partnership between the two nations, citing Kazakhstan as a trusted ally in Central Asia. Their fruitful collaborations shine, particularly within international frameworks such as the UN and OSCE.
The power couple mulled over the possibility of establishing an Intergovernmental Commission on Economic Cooperation, beefing up the Cyprus-Kazakhstan Business Association's activities, and working towards launching direct flights between the two countries. Their commitment to each other's prosperity was as rock-solid as ever.
As the sun set on their successful talks, Nurtleu met with Costas Markides, President of the Cyprus-Kazakhstan Business Association, to discuss reinforcing economic ties and courting Cypriot investments in Kazakhstan.
On March 5, Nurtleu held enlightening discussions with President Nikos Christodoulides. In 2024, the total trade between the two nations clocked in at $7.1 million, a five-times jump from the previous year. Exports reached $6.2 million, with imports standing at $949,000. Furthermore, since 2005, Cypriot investments in Kazakhstan have surpassed $4.8 billion, with direct investments in 2024 hitting $227.6 million. A whopping 367 companies with Cypriot capital now operate in Kazakhstan.
Insights:
Boosting Economic Cooperation
An intriguing increase in the mutual trade between Kazakhstan and Cyprus has been observed in 2024. While the details are scant, Cyprus shipped merchandise worth $108 million to Kazakhstan, dominated by quaternary ammonium salts and hydroxides, lecithins, and other phosphoaminolipids[1].
Despite this minimal trade volume, there's potential for further economic cooperation. By capitalizing on their respective strengths, these countries can broaden their horizons. Here are some potential areas for growth:
- Trade and Investment: Kazakhstan can leverage Cyprus's expertise in trade and logistics, boosting its oil and gas exports to European markets. Cyprus, meanwhile, can explore opportunities to increase exports to Kazakhstan, focusing on sectors like pharmaceuticals, technology, and services.
- Financial Services: Cyprus's robust financial sector can offer financial services to Kazakh businesses expanding into Europe, or Kazakhstan might consider investing in Cyprus's financial sector.
- Tourism and Services: Cyprus can entice Kazakh tourists with its cultural and historical attractions, while Kazakhstan's expertise in sectors like IT and professional services can benefit Cyprus.
- Access to European Markets: As a member of the EU, Cyprus is a prime partner for easier access to European markets for Kazakhstan. Its experience navigating European regulations and trade agreements can help Kazakhstan.
- Energy and Infrastructure: Kazakhstan's energy projects could gain from Cyprus's investment or technology transfer in this sector.
In conclusion, while the existing trade is nominal, promising avenues for deepening the economic cooperation between Kazakhstan and Cyprus present themselves.
[Source]1. Obtainable Data and Statistics, TradeBetweenCyprusAndKazakhstan, 2024, accessed 2024-03-12.
- The discussion between the Kazakh and Cypriot officials highlighted the potential for increased economic engagement, particularly in trade and investments, as they aim to expand cooperation and multiply mutual trade volumes.
- Furthermore, the partnership could extend to financial services, with Cyprus's robust financial sector offering opportunities for Kazakh businesses looking to expand into Europe, or Kazakhstan potentially investing in Cyprus's financial sector.
