Kazakhstan and Russia announce $8 billion in joint projects as Europe deepens Central Asia engagement

Kazakhstan and Russia are set to launch 27 new joint projects worth $8 billion, signalling a notable expansion in bilateral economic cooperation.

The announcement was made during Kazakh Prime Minister Olzhas Bektenov’s official visit to Moscow on April 21, where he met with his Russian counterpart, Mikhail Mishustin.

“This is a historic figure,” Bektenov said, referring to the $4 billion in Russian investment Kazakhstan received in 2024—a 32% increase over the previous year.

Currently, more than 23,000 companies with Russian participation operate in Kazakhstan, making up nearly 40% of all foreign enterprises in the country. These companies are active in critical sectors such as mechanical engineering, metallurgy, and chemicals. Notably, one in every three foreign-capital enterprises in Kazakhstan involves a Russian partner.

Bilateral trade reached $27.8 billion in 2024, and both nations aim to raise that to $30 billion in the near term. Over the past 20 years, Russian investors have poured $26 billion into Kazakhstan, while Kazakh businesses have invested approximately $9 billion in Russia.

Moscow continues to underscore Kazakhstan’s role as a strategic partner in the Eurasian region, with nearly 70% of trade conducted through direct cooperation between regional authorities.

Meanwhile, European interest in Central Asia is growing. Italian Prime Minister Giorgia Meloni is set to visit Uzbekistan on April 25–26, followed by a trip to Astana to participate in the inaugural “Central Asia–Italy” summit. Leaders from all five Central Asian nations are expected to attend.

Italy’s engagement with Kazakhstan is especially robust. Italian companies, active in the country since 1992, are involved in energy, agriculture, mechanical engineering, and hydropower projects. The country is already one of Kazakhstan’s top three trading partners and ranks fifth in foreign direct investment. In 2024 alone, bilateral trade has approached $20 billion.

This European outreach follows the recent Central Asia–EU Summit in Samarkand, where the European Union unveiled a €12 billion investment package aimed at deepening economic ties with the region.

Kazakhstan’s global importance is also rising due to its vast reserves of rare earth minerals. Just days before the EU summit, Kazakh authorities announced the discovery of a major rare earth deposit in the Karaganda region, estimated to hold nearly one million tons of critical elements such as cerium, lanthanum, neodymium, and yttrium—materials vital to digital and green technologies.

The “Central Asia plus one” format has become a popular diplomatic tool for Western countries — whether it’s the EU, Germany, the United States, Japan, or now Italy. As global competition for influence intensifies, Central Asia is emerging as a focal point of international diplomacy. And each new summit is no longer just a formality — it’s part of a broader geopolitical contest for the heart of Eurasia.

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