Kazakhstan has no outlets to the open seas but increasingly offers a “sea” of opportunities to economic operators and entrepreneurs, particularly Italians, thanks to a growing economy increasingly characterized by an autonomous dynamism, a public apparatus progressively able to adapt to changing global contexts, a political-institutional framework clearly leaning toward Western standards, and a social landscape that seeks to leave behind heavy legacies of the last century. A set of opportunities that are particularly enriched in 2024.
Indeed, 2024 was a key year for strengthening the partnership between Kazakhstan and Italy. An important moment in January was the state visit of President of the Republic Kassym-Jomart Tokayev to Rome, which opened a new chapter in the history of relations between the two countries. During the visit, in fact, the Strategic Partnership that was signed in November 2009 was increased and strengthened. During the visit, among other things, a “round table” on “Kazakhstan – Italy” investments was held with the participation of 35 leading Italian companies. This was followed by the signing of several important documents aimed at developing bilateral cooperation in many areas: economy, trade, investment, energy, culture, tourism and other fields. In addition, 20 trade agreements, worth $1.5 billion, were formalized.
The diplomacies of the 2 countries had, in 2024, additional moments of meetings and exchanges aimed at strengthening cooperation at various levels and cementing existing good relations; prominent among them was the visit of the President of the Senate of the Parliament of Kazakhstan Maulen Ashimbayev to Italy in April, during which he met with Senate President Ignazio La Russa.
Italy ranks first among Kazakhstan’s trading partners in Europe and third among all countries trading with Kazakhstan, behind Russia and China, mainly due to the flow of oil extracted by the ENI group, which has been operating since 1992 in the vast Caspian Sea fields. The volume of investments made by Italy in various sectors of the Kazakh economy since 1992, from oil and gas to construction, light industry, agriculture, tourism and trade, now amounts to more than $9 billion.
Today more than 300 companies with Italian capital are already successfully operating in Kazakhstan, including companies such as ENI, SDF, PetroValves, engaged in major projects in the country. But other sectors, besides energy, which has certainly been a booster for the development of Kazakhstan’s economy, offer spaces for cooperation, investment and collaboration.
Trade and economic relations between our countries have a solid foundation and interesting potential for further growth. Machinery and clothing are among the most exported Italian products to Kazakhstan, but there is ample room to gain further interesting market shares. Promising, moreover, are the opportunities in the logistics sector that are opening up for Kazakhstan in connection the rail and land networks useful for connecting Europe and the Far East and making the Central Asian country a central hub.
Mineral resources certainly remain, however, among the most important economic sources. Kazakhstan, in fact, possesses substantial natural resources. It occupies 12th place in the world for oil reserves (and aspires to enter the top 10 producers) and 14th for gas reserves. Kazakhstan also ranks first in the world for uranium production and 2nd for its reserves. Coal, zinc, tungsten, barium, silver, lead, chromium, copper, fluorite, molybdenum and gold are present in large quantities.
Entrepreneurial possibilities, however, are not only confined to traditional sectors but also extend to areas of development with high technological and scientific content, for the project to build a nuclear power plant and projects related to the production and exploitation of hydrogen.
Also in order not to be overly dependent on black gold quotations, the Kazakh government has initiated major plans aimed at production diversification, the enhancement of the transport sector as a transit hub between China and Europe, the modernization of agriculture, and an extensive digitization process. Alongside reforms of a more distinctly economic nature, other reforms aimed at modernizing and reformatting the political system and unbureaucratizing the institutional set-up have been in the pipeline.
The efforts of Kazakhstan’s politicians to grow a middle class, with an entrepreneurial vocation, constitutes a significant boost for the possibilities of economic cooperation, especially for operators from Italy, which enjoys, in the large Central Asian country, one of the highest reputational assets.
The authorities in Astana, moreover, are aware that the country’s progress and the economic and social growth of its citizens cannot be entrusted solely to the exploitation of subsoil resources and, for this reason, they want to create a diversified and dynamic economic ecosystem. The process of internationalization of the economy, therefore, turns out to be a major factor in the success of the reforms undertaken. The choice to look decisively at liberal models represents a challenge for which there is every reason for success.
