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Kazakhstan-EU Dialogue Emphasizes Strategic Importance of Middle Corridor

By Vusala Abbasova July 11, 2024

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The Middle Corridor serves as a vital link for East-West connectivity, bridging China and Europe through Kazakhstan. / Official website of the Prime Minister of Kazakhstan

The Trans-Caspian International Transport Route (TITR), commonly known as the Middle Corridor, took center stage at the 15th meeting of the Kazakhstan-EU dialogue platform. 

Held in Astana, the meeting was chaired by Kazakh Prime Minister Olzhas Bektenov and attended by Kestutis Jankauskas, Ambassador of the European Union to Kazakhstan, along with heads of diplomatic missions from EU countries. The discussions focused on the development of this critical trade route, hailed as one of the most promising directions for regional commerce.

“TITR provides the most competitive delivery time (12–15 days), ensuring maximum attractiveness for trade flows,” stated the press release published on the prime minister’s website. The Middle Corridor serves as a vital link for East-West connectivity, bridging China and Europe through Kazakhstan.

The dialogue underscored the EU’s role as one of Kazakhstan’s primary partners, contributing over 40 percent of foreign investments and accounting for about 30 percent of the nation’s foreign trade. Kazakhstan’s strategic position and access to the Caspian Sea bolster its capacity to support East-West transport projects. Currently, about 85 percent of products shipped from China to the EU pass through Kazakhstan. As of May 1, 2024, cargo transportation via the TITR saw a 14 percent increase from the previous year, reaching 1.4 million tonnes, which included equipment, consumer products, and agricultural commodities.

Participants of the event also expressed a keen interest in maximizing the Middle Corridor’s vast potential. To this end, the Middle Corridor Multimodal joint venture was established last year at the Astana International Financial Center (AIFC). This company provides services on a one-stop-shop basis, guarantees delivery times, and pursues a coordinated policy for developing multimodal services on the China-Europe/Türkiye-China route. 

The meeting also highlighted the European Global Gateway initiative as a key driver for new investment opportunities in the transport sector.

"The EU is a significant investment and trade partner for Kazakhstan,” stated Bektenov. “We are committed to enhancing cooperation across all priority areas. The government values the EU’s contributions and remains open to proposals for further strengthening our partnership.” 

European representatives, in turn, commended Kazakhstan’s efforts to improve the business climate, noting the stability and attractiveness of its economy for European enterprises. The meeting concluded with a mutual commitment to advancing trade and economic relations, aiming to elevate the strategic partnership.

Relations between Kazakhstan and the EU are deep-rooted, formalized in the Enhanced Partnership and Cooperation Agreements (EPCA), which came into effect in 2020. Covering 29 areas of activity, including trade, investment, innovation, and infrastructure development, these agreements have bolstered bilateral ties. In 2023, the EU was Kazakhstan’s largest trading partner, accounting for 37 percent of the country’s total exports and 27.9 percent of its trade. The EU also led in foreign investment, with 54.8 billion euros of total foreign direct investment (FDI) stock in 2022, marking a 5.5 percent increase from the previous year.

The Middle Corridor offers a more economical and quicker trade route compared to the Northern Corridor, reducing travel distance by 2,000 kilometers. Spanning approximately 4,250 km of rail and 500 km of seaway, the route traverses China, Kazakhstan, Uzbekistan, Turkmenistan, the Caspian Sea, Azerbaijan, Georgia, the Black Sea, and Türkiye, ultimately connecting to the European market. Effective utilization of the Middle Corridor is expected to unlock significant economic opportunities for South Caucasian and Central Asian countries, leveraging the $600 billion annual China-Europe trade.

Establishing logistical centers and free trade zones at the ports of Azerbaijan, Kazakhstan, and Turkmenistan will further deepen Trans-Caspian cooperation.