Kazakhstan and Mongolia set $500 million trade goal as leaders meet in Astana

Kazakhstan and Mongolia have agreed to expand trade, energy and transport cooperation following high-level talks between their leaders in Astana.

Kassym-Jomart Tokayev and Ukhnaagiin Khürelsükh met in the Kazakh capital to discuss a broad agenda, ranging from trade and energy to transport connectivity, signalling a renewed effort to strengthen ties after years of limited engagement. Following the talks, members of the official delegations signed 13 agreements intended to give fresh momentum to bilateral cooperation.

Trade ambitions and economic potential

At the centre of the discussions was trade. Speaking after the meeting, Tokayev said the two countries intend to raise bilateral trade to $500 million within the next few years. Current volumes remain relatively low: trade reached $130 million last year, up 7.7%.

Both sides acknowledged that this does not reflect the true potential of their economies and highlighted the need to expand the range of goods and reduce barriers that continue to limit business activity.

• Kazakhstan targets $3 billion trade with Afghanistan through new transit links
• Kazakhstan ratifies Tajikistan treaty and UK partnership deal

Alongside trade, the leaders also focused on improving practical links between the two countries. Direct flights between Astana and Ulaanbaatar are expected to resume later this year, a move seen as essential for facilitating business contacts and easing travel between the two capitals.

Energy cooperation in focus

Energy cooperation was another key topic on the agenda. Separate talks between government officials explored the possibility of supplying Kazakh oil and petroleum products to Mongolia, as well as sharing expertise in geological exploration and extraction.

For Mongolia, which relies on a limited number of suppliers, this could help diversify energy sources, while Kazakhstan would gain access to an additional export market.

• Kazakhstan and Türkiye set sights on $15 billion in trade as economic ties deepen
• Kazakhstan and Armenia expand cooperation as South Caucasus transport routes reopen

Transport and logistics featured prominently in the discussions. Mongolia, which has no access to the sea, depends heavily on routes through Russia and China. Kazakhstan, by contrast, is a major transit hub linking Asia and Europe and offers alternative routes, including access to the Trans-Caspian corridor.

In this context, the two sides also agreed to move forward with the construction of a road that will directly connect Kazakhstan and Mongolia, a project that could significantly improve overland connectivity and facilitate trade flows between the two countries.

Analysts note that while both sides stand to benefit, Mongolia has a more immediate interest in expanding these connections. Kazakhstan, however, also sees value in diversifying its transit partnerships and strengthening its position within Eurasian transport networks.

The visit itself carries political weight. Khürelsükh is in Kazakhstan from 20 to 23 April, marking the first visit at this level in nearly 20 years. The previous presidential visit took place in 2007, and the current talks are expected to set a new tone for bilateral relations in the years ahead.

Tags

Kazakhstan Kazakhstan Economy Global trade Mongolia News