Kazakhstan offers Armenia to consider new alternative logistics route

ArmInfo. We want to offer Armenia an alternative logistics route that will significantly reduce  time costs for cargo carriers and which has a competitive price.  President of the "Astana" Diplomatic Club Kaiyrbolat Sakhmetov said in a conversation with an ArmInfo correspondent Within the framework  of the meeting of the business delegation of Kazakhstan with the members of the  Union of Manufacturers and Businessmen of Armenia (UMBA).

He said that it is about the Iran-Turkmenistan-Kazakhstan route,  which is actively used today for cargo transportation between these  countries. "Since you border Iran, I think this proposal might be  interesting. Diesel fuel is inexpensive in Iran and Turkmenistan. We  border on Turkmenistan and Iran and are connected to it by rail.  Armenia can load its products onto Iranian trucks or railways, the  goods will be delivered to a dry port on the border with Turkmenistan  and from there they can be loaded onto our trains in the direction of  any point in Kazakhstan, Central Asian countries, China," explained  the head of the Club.

He noted that Armenia is of great interest to Kazakhstan in the South  Caucasus. Primarily due to its membership in the EAEU. He also  pointed out the recent economic achievements of Armenia. In  particular, Mr Sakhmetov noted that the high per capita GDP of  Armenia ($8.2 thousand in 2023, ed. note) is a good incentive for  Kazakh entrepreneurs and investors.

The head of the Club said that the delegation's visit was due  precisely to the intention to explore the industrial potential of  Armenia, to find niches where mutually beneficial cooperation can be  increased. He named the IT sector as one of the key areas, noting  that he was impressed by the results of the industry (at the end of  2023, its volume totals $2.2 billion, ed. note.), and the number of  startups that, in his opinion, can successfully operate in  Kazakhstan. "Kazakhstan is a large country with a population of 20  million people, which has close ties with neighboring countries in  Central Asia. We are a digital state where e-commerce is actively  developing, with Internet coverage of 95%, exporting various  technological solutions to a number of countries. And we could find  common ground with Armenia in this matter," Sakhmetov emphasized.

He added that there are also prospects for implementing joint  projects, including industrial cooperation. "Unfortunately, our  business community is not so well aware of the potential of Armenia.  And the purpose of our visit is to give impetus and increase  cooperation in small steps. There are already positive dynamics. But  our goal is to increase the volume of mutual trade turnover to half a  billion dollars within 1-2 years," the head of the Diplomatic Club  emphasized.  The representative of Kazakhstan said that the  delegation will stay in Armenia for 5 days, and in addition to visits  to industrial enterprises, meetings are also expected at the Yerevan  Municipality, the Ministry of High-Tech Industry, etc. The delegation  included entrepreneurs from various sectors of the economy, including  IT, logistics, tourism, trade, industry, etc.

Summing up, he confidently noted that this is just the beginning, and  the intensity of visits, including mutual ones, will increase.   Established in 2018, "Astana" Diplomatic Club is engaged in  diplomatic and cultural activities, which is carried out through  informational and organizational support of Club members, holding  open and closed events.

Among the Club's objectives is to organize a platform for discussing  current issues of interaction in the field of culture, business and  the development of international relations, as well as assistance in  establishing productive relationships with Kazakh and foreign  embassies and consulates, representative offices of international  organizations and business communities.

According to the RA Statistics Committee, foreign trade turnover  between Armenia and Kazakhstan in 2023 reached $100.5 million,  demonstrating a 2.4-fold increase over the year. At the same time,  exports increased 3.8-fold to $71.3 million, with imports growing by  23.6% to $29.2 million.