Trade turnover between Kazakhstan and Russia reached a record $27 billion
Source: The DairyNews
Head of State Kassym-Jomart Tokayev and Russian President Vladimir Putin, who arrived in Astana on an official visit, took part in the plenary meeting of the 19th Forum of Interregional Cooperation between Kazakhstan and Russia via video conferencing. According to Kassym-Jomart Tokayev, interaction between Kazakhstan and Russia in the trade, economic and investment sphere, and industrial cooperation shows steady growth from year to year. This was reported by The DairyNews with reference to the Akorda press service.
“Bilateral trade turnover today reached $27 billion, which is a record figure. The volume of direct investment from Russia exceeded $20 billion. It is significant that of the over 42 thousand enterprises with foreign participation operating in Kazakhstan, almost half, that is, 19 thousand, are Russian company," Kassym-Jomart Tokayev noted in his speech.
Noting the symbolism of holding the Forum dedicated to agriculture in the real “breadbasket” of Kazakhstan – the Kostanay region , Kassym-Jomart Tokayev pointed out the enormous opportunities for expanding trade and mutually beneficial cooperation in the agricultural sector. In his opinion, Kazakhstan and Russia are the largest producers of agricultural products and are among the top ten world leaders in grain exports. States also account for almost 10% of arable land and 9% of pastures and haylands worldwide.
“In Kazakhstan, over the past 5 years, the volume of gross agricultural output has more than doubled. Exports of agricultural products have also doubled, reaching almost $6 billion. Our agricultural products are supplied to 80 countries around the world. In the global food security index for 2022, Kazakhstan ranked 32- 1st place out of 113 countries. Thus, we are consistently developing the agro-industrial complex. I am confident that at today’s Forum, new coordinated approaches will be developed to ensure the food security of our countries on the principles of equality and taking into account each other’s interests,” the President of Kazakhstan noted.
The head of state drew the attention of the Forum participants to a number of pressing issues. He was the first to mention the industrialization of the agricultural sector of Kazakhstan and said that the task had been set to increase the share of processed products in the agricultural sector to 70% within three years.
“To solve this problem, the implementation of large investment projects has begun aimed at reducing import dependence on socially important food products. In the coming years , 115 dairy farms will be built, which will increase milk production by 600 thousand tons. We will build 15 large poultry farms with a total capacity of more than 120 thousand tons of meat per year. In the next five years, Kazakhstan plans to implement almost 900 investment projects in the agricultural sector totaling 2.7 trillion tenge. The priority is the production of competitive, environmentally friendly and export-oriented products that meet advanced international standards, including Halal standards “,” said Kassym-Jomart Tokayev.
The head of Kazakhstan expressed the opinion that the insufficient implementation of agro-industrial and export potential is largely influenced by transport and logistics restrictions. For example, losses of own agricultural products due to deficiencies in logistics and storage systems in Kazakhstan and Russia reach 40%.
“An important area of our bilateral cooperation should be the development of storage infrastructure, including elevators, vegetable and fruit storage facilities. Kazakhstan plans to increase its storage capacity for climate-controlled products by 1 million tons in the near future. We have promising markets - China, India , countries of the Middle East. Considering their increasing food needs, the role of the North-South transport corridor will also increase. One of the priorities of our interaction may be the development of new logistics directions through Central Asia and increasing the capacity of existing routes to China. In this regard "We have planned a large-scale modernization of the Caspian ports of Kuryk and Aktau. In the Chinese direction, we are already implementing a project to build second tracks on the Dostyk-Moyynty section of the railway. In total, over 1.3 thousand kilometers of railways will be built in Kazakhstan in three years" ,” the President of Kazakhstan emphasized.
Another important area of cooperation in the speech was the development of modern agricultural science and the active introduction of innovations in the agro-industrial complex . The President said that Kazakhstan has begun reform in the field of science within the framework of the triune system “education - science - production” with a strengthening of the role of research universities. He proposed working on the creation of joint centers of agricultural innovation that would deal with the commercialization and industrial implementation of new technologies, including artificial intelligence.
“I take this opportunity to express the hope that our strategic partnership relations with Russia will guarantee a balanced approach to the joint rational use of water resources in the interests of the people of both countries,” Kassym-Jomart Tokayev said.
At the end of his speech, Akorda reports, the President of Kazakhstan emphasized the importance of coordinating efforts to ensure food security of the two countries in the face of unprecedented global challenges. The head of state thanked President Vladimir Putin and the Russian and Kazakh participants in the event for their fruitful joint work.
Photo: official website of the President of the Republic of Kazakhstan
Noting the symbolism of holding the Forum dedicated to agriculture in the real “breadbasket” of Kazakhstan – the Kostanay region , Kassym-Jomart Tokayev pointed out the enormous opportunities for expanding trade and mutually beneficial cooperation in the agricultural sector. In his opinion, Kazakhstan and Russia are the largest producers of agricultural products and are among the top ten world leaders in grain exports. States also account for almost 10% of arable land and 9% of pastures and haylands worldwide.
“In Kazakhstan, over the past 5 years, the volume of gross agricultural output has more than doubled. Exports of agricultural products have also doubled, reaching almost $6 billion. Our agricultural products are supplied to 80 countries around the world. In the global food security index for 2022, Kazakhstan ranked 32- 1st place out of 113 countries. Thus, we are consistently developing the agro-industrial complex. I am confident that at today’s Forum, new coordinated approaches will be developed to ensure the food security of our countries on the principles of equality and taking into account each other’s interests,” the President of Kazakhstan noted.
The head of state drew the attention of the Forum participants to a number of pressing issues. He was the first to mention the industrialization of the agricultural sector of Kazakhstan and said that the task had been set to increase the share of processed products in the agricultural sector to 70% within three years.
“To solve this problem, the implementation of large investment projects has begun aimed at reducing import dependence on socially important food products. In the coming years , 115 dairy farms will be built, which will increase milk production by 600 thousand tons. We will build 15 large poultry farms with a total capacity of more than 120 thousand tons of meat per year. In the next five years, Kazakhstan plans to implement almost 900 investment projects in the agricultural sector totaling 2.7 trillion tenge. The priority is the production of competitive, environmentally friendly and export-oriented products that meet advanced international standards, including Halal standards “,” said Kassym-Jomart Tokayev.
The head of Kazakhstan expressed the opinion that the insufficient implementation of agro-industrial and export potential is largely influenced by transport and logistics restrictions. For example, losses of own agricultural products due to deficiencies in logistics and storage systems in Kazakhstan and Russia reach 40%.
“An important area of our bilateral cooperation should be the development of storage infrastructure, including elevators, vegetable and fruit storage facilities. Kazakhstan plans to increase its storage capacity for climate-controlled products by 1 million tons in the near future. We have promising markets - China, India , countries of the Middle East. Considering their increasing food needs, the role of the North-South transport corridor will also increase. One of the priorities of our interaction may be the development of new logistics directions through Central Asia and increasing the capacity of existing routes to China. In this regard "We have planned a large-scale modernization of the Caspian ports of Kuryk and Aktau. In the Chinese direction, we are already implementing a project to build second tracks on the Dostyk-Moyynty section of the railway. In total, over 1.3 thousand kilometers of railways will be built in Kazakhstan in three years" ,” the President of Kazakhstan emphasized.
Another important area of cooperation in the speech was the development of modern agricultural science and the active introduction of innovations in the agro-industrial complex . The President said that Kazakhstan has begun reform in the field of science within the framework of the triune system “education - science - production” with a strengthening of the role of research universities. He proposed working on the creation of joint centers of agricultural innovation that would deal with the commercialization and industrial implementation of new technologies, including artificial intelligence.
Along with this, one of the strategic objectives is to provide our own seeds. Kassym-Jomart Tokayev said that the share of domestic selection in Kazakhstan for such basic crops as potatoes and sugar beets does not reach 10%. He called for an urgent correction of the current situation.
“A significant problem for us is the insufficient use of mineral fertilizers in crop production. In Kazakhstan, only 25% of the scientifically based requirement is applied, while in Russia it is almost three times more. As a result, for most agricultural crops the yield in Kazakhstan is still significantly lower, than in other leading agricultural powers. Russia is one of the largest exporters of organic fertilizers in the world. Due to the reorientation of sales markets, the import of Russian fertilizers into Kazakhstan has significantly increased with corresponding consequences for Kazakh enterprises. I believe that we should not compete with each other in the domestic market of the EAEU. We need to jointly look for ways to increase the availability of fertilizers for our farmers and enter foreign markets. Kazakhstan adheres to the position that in order to strengthen global food security, food products, fertilizers and seeds should be exempted from international sanctions," noted Kassym-Jomart Tokayev.
The president named the impending shortage of water resources as another pressing problem for Kazakhstan. The situation is aggravated by the high level of water intensity in key sectors of the domestic economy, especially agriculture.“I take this opportunity to express the hope that our strategic partnership relations with Russia will guarantee a balanced approach to the joint rational use of water resources in the interests of the people of both countries,” Kassym-Jomart Tokayev said.
At the end of his speech, Akorda reports, the President of Kazakhstan emphasized the importance of coordinating efforts to ensure food security of the two countries in the face of unprecedented global challenges. The head of state thanked President Vladimir Putin and the Russian and Kazakh participants in the event for their fruitful joint work.
Photo: official website of the President of the Republic of Kazakhstan
