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Kazakhstan, the European Union's new key partner

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This year, there is a great rapprochement between Europe and Central Asia. Indeed, the interest in this region of the world is growing. The visit of Charles Michel, President of the European Council to Kazakhstan and Uzbekistan, Emmanuel Macron, the French President, who welcomed on November 29 and 30 his counterpart Kazakh President Tokayev at the Elysee Palace, the European Union-Central Asia Summit that took place in Astana on October 27, 2022, the Global Gateway project between Central Asia and the European Union, etc. Therefore, the following question deserves to be asked: How to explain the growing interest of Europe in Central Asia and specifically in Kazakhstan, writes Derya Soysal.

In the face of geopolitical crises, such as the one between Russia and Ukraine, countries are trying to establish other agreements in order to reduce their dependence on Russia and their vulnerability to geopolitical and economic crises. Moreover, this decade, the planet is facing a shift in economic powers. We are no longer faced with an Earth ruled by a few poles of power. On the contrary, new countries are becoming powers and are beginning to carry weight on an international scale, including Kazakhstan. Certainly, France, and the European Union in general, are trying to increase bilateral agreements with this country and this will intensify towards the end of 2. Let's try to understand the growing interest towards this country.

Kazakhstan, a former Soviet republic, is a country in Central Asia, south of Russia, west of China and north of Uzbekistan. It is the 9th largest country in the world in terms of surface area. This country has a very strategic position as it is located at the crossroads of the world's major powers. As mentioned above, Russia is in the North, it is on the Silk Road connecting China to Europe and linking India to Russia. It is not for nothing that the French-German ARTE program has made a program called Central Asia: at the crossroads of the worlds. In terms of strategic position, Kazakhstan has a capital place. It is the only country in the region that borders both Russia (7600 km in common) and China (ARTE). Its strategic position attracts great powers such as China, Russia, Turkiye but also the European Union. However, it is not only its geographical position that is attractive to other powers. Therefore, from an economic point of view, agreements are intensifying in the field of energy, transport and perhaps infrastructure, given that Kazakhstan intends to play an increasing role in the flow of goods between Europe and China. In this regard, Konopelko, A. (2018) writes: "As a top trading partner and the foreign investor in Kazakhstan, attempting to deepen bilateral relations and review its previous policy towards Kazakhstan and the post-Soviet Central Asian region (The post-Soviet Central Asian region unites five former Soviet republics: Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan)."

Certainly, Kazakh President Kassym-Jomart Tokayev visited Paris on Tuesday 29 and Wednesday 30 November to strengthen the ties between France and this Central Asian country, a highly strategic region that Paris and Europe do not want to leave to Russian, Chinese, Turkish or American influences. The visit "will have a very political and strategic objective", says the Elysée. It is a question of "consolidating our relationship, of amplifying our dialogue in a difficult context also for the countries of Central Asia", they explain. Moreover, this visit comes less than a week after the visit of another head of state in the region, Uzbek President Shavkat Mirzioev (Euractiv). Kazakhstan's Deputy Foreign Minister Roman Vasilenko said: "There is no question of us distancing ourselves from Russia, but at the same time we want to develop our relations with the West" (Barluet, A. 2022, lefigaro.fr).

In Paris, "we are waiting for the signature of several commercial agreements", according to the Kazakh source, citing an agreement for the ramp-up of Alstom's locomotive factory in Astana, or another for a photovoltaic installation in the south of the country. Thus, there is clearly a growing interest on the part of the European Union in Kazakhstan and Central Asia in general. In summary, during the meeting between Macron and Tokayev, the two presidents expressed their readiness to continue close cooperation in the implementation of the Enhanced Partnership and Cooperation Agreement between the Republic of Kazakhstan and the European Union. In this regard, they welcomed the holding of the first European Union-Central Asia Summit in Astana on 27 October 2022.

Everywhere we can read that Central Asia is a coveted region. Indeed, the French television channel France 24 has made a program called: “Central Asia, a region so coveted” (l’Asie centrale, une région si convoitée). During his intervention on France 24, Michael Levystone, specialist on Central Asia, said that "Kazakhstan has gigantic natural resources that are just waiting to be exploited." He adds that "Kazakhstan, since 1994, has been carrying a policy of multi-pronged diplomacy to rebalance international partnerships, excluding Russia and China." Let's not forget that Kazakhstan is the key economic partner of Russia and China in Central Asia. Kazakhstan is Russia's gateway to Central Asia. As the Central Asia specialist Levystone points out, Russia and China are not the only partners of Kazakhstan. The Netherlands is also the leading trade partner with the country (ARTE). Kazakhstan is one of the main suppliers of uranium and crude oil to France (Joint communiqué between France and Kazakhstan of November 30, 2022, via Viepublique.fr).

As stated in the paragraphs above, Kazakhstan attracts for its natural resources. The country is full of natural resources. It is rich in oil, natural gas, coal, metals, uranium (40% of world reserves). The country is the heavyweight of the regional economy, as the ARTE program says, and holds the ⅔ of the regional economy. The ARTE program, Central Asia: at the Crossroads of the Worlds, points out that Kazakhstan is experiencing a growth in partnerships and increasing its agreements by getting along with everyone. In fact, we are facing a real multi-dimensional diplomacy as it sells its wealth to Moscow, Beijing, the European Union (the first commercial partner of the country), Turkiye but also the United States. This is why the country is a great wealth in terms of nuclear, photovoltaic, rare earths, infrastructure ... It is therefore enormously coveted by the great powers. Kazakhstan therefore intends to multiply the factors of links with France and Europe. "Kazakhstan and France want to relaunch their partnership" we can read as a title of the French newspaper lefigaro.fr.

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In this regard, Konopelko, A. (2018) provides figures:"“The European Union as a whole is the first foreign investor in Kazakhstan, and more than half of total gross foreign direct investment (FDI) in Kazakhstan has come from European Union countries”.

In 2014, Kazakhstan’s total trade with the European Union reached more than €30 billion (more than US$52 billion). In 2015, bilateral trade exceeded €22 billion, having decreased by €8 billion. The European Union recorded a trade deficit of €10 billion with Kazakhstan. In 2016, EU-Kazakhstan trade reached nearly €18 billion. Mineral (petroleum) products made up 84.8% of total Kazakh exports to the European Union. In 2015, the share of the European Union in total Kazakh exports amounted to over 46.7% and the EU share in total Kazakh trade reached 33.8% (European Commission. Directorate-General for Trade 2016).

Konopelko, A. (2018) adds that “Two thirds of the EU investment is directed towards the exploration and extraction of natural resources (mainly oil, gas and metals). Undoubtedly, the energy sector plays a crucial role in bilateral relations between Kazakhstan and the European Union”.

"The interest of the Europeans for Central Asia is energy resources while Russian hydrocarbons are under embargo (...), and transport corridors between China and the EU," Michael Levystone, a French researcher associated with Ifri and specializing in Central Asia, summarized for AFP. On the other hand, "the sanctions against the Russian economy encourage Central Asian countries to want to diversify their partnerships on the international scene. Kazakhstan is indeed coveted at all levels.

Alstom chairman and CEO Henri Poupart-Lafarge said: “I am optimistic about Alstom’s partnership with Kazakhstan. Kazakhstan’s geographical location, attractive climate for foreign direct investments and growing demand for mobility solutions, creates the right environment for Kazakhstan to not only be a transit hub in the region but also position itself as a competitive industrial base” (Railway technology.com)1.

Finally, Kazakhstan is also a crucial energy partner for Europe. Kazakhstan remains the third largest non-OPEC (Organization of Petroleum Exporting Countries) energy supplier to the EU, behind Russia and Norway.

Jose Manuel Barroso, the former President of the European Commission, confirmed that Kazakhstan is an important and reliable energy partner for the EU and the new bilateral Partnership and Cooperation Agreement will enhance mutual cooperation in the energy sector and moves beyond WTO and Energy Charter Treaty commitments (Barroso 2014).

"In light of the current uncertainties in energy security in Europe, for example, Kazakhstan is determined to continue playing a role as a reliable and trustworthy energy partner," a Kazakh source told EURACTIV. Discussions are also expected in the nuclear field as the country, a major exporter of uranium, wants to build a nuclear power plant, the source said. Not to mention that, in the face of the climate crisis, the world is turning to solutions to achieve the energy transition and climate objectives. With this in mind, the European Union is working to establish partnerships on hydrogen and clean technologies with developing countries, starting with Kazakhstan (Romano, V. 2022, EURACTIV).

At the COP27 conference in Egypt on Monday (7 November), Commission President Ursula von der Leyen signed a memorandum of understanding with Kazakhstan's Prime Minister Alikhan Smailov, establishing a "strategic partnership" between the two sides (European Commission).

President of the Commission Ursula von der Leyen said: “A secure and sustainable supply of raw materials, refined materials and renewable hydrogen is a key layer to help build a new, cleaner foundation for our economies, especially as we move away from our dependency on fossil fuels. This partnership with Kazakhstan shows Europe's commitment to work with partner countries on our shared commitments to a greener and more resilient future in line with the Global Gateway Strategy and the objectives of the REPowerEU Plan. I would like to thank Prime Minister Smailov of Kazakhstan for his efforts and look forward to our cooperation.”

In conclusion, Kazakhstan is a country rich in resources and a key partner for global giants such as Russia, China and Europe. Faced with rising tensions between Europe and Russia, Kazakhstan is becoming a kind of backup for the European Union and allows the latter to multiply its international partners. Not to mention its strategic position which makes the country a growing regional power between Europe and Asia. So that the partnership between Europe and Kazakhstan increases, Kembayev, Z. (2016) noted that “the author argues that the EU-Kazakhstan partnership can develop to the full extent of its potential provided that the EU and post-Soviet countries would be committed to the idea of creating a Wider Europe, i.e., a distinct region based on common values and shared interests”.

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REFERENCES

Asie centrale : à la croisée des mondes - Le Dessous des cartes | ARTE, https://www.youtube.com/watch?v=aDu0XQK6kBA

Barluet, A. (2022) Le Kazakhstan et la France veulent relancer leur partenariat” online via https://www.lefigaro.fr/conjoncture/le-kazakhstan-et-la-france-veulent-relancer-leur-partenariat-20221128

Barroso JM (2014) Statement by President Barroso following his meeting with Mr Nursultan Nazarbayev, President of Kazakhstan. http://europa.eu/rapid/press-release_SPEECH-14-675_en.htm. Accessed 14 July 2015Return to ref 2014 in article

Communiqué conjoint entre la France et le Kazakhstan sur les relations entre les deux pays, le 30 novembre 2022, online via https://www.vie-publique.fr/discours/287388-presidence-de-la-republique-30112022-france-kazakhstan

COP27: European Union concludes a strategic partnership with Kazakhstan on raw materials, batteries and renewable hydrogen, online via https://ec.europa.eu/commission/presscorner/detail/en/IP_22_6585

Euractov; Emmanuel Macron accueille le président Kazakh Tokaiev et pousse l’Europe en Asie centrale, online via

European Commission. Directorate-General for Trade (2016) European Union, Trade in goods with Kazakhstan. http://trade.ec.europa.eu/doclib/docs/2006/september/tradoc_113406.pdf. Accessed 2 Apr 2017Return to ref 2016 in article

Kembayev, Z. (2016). Partnership between the European Union and the Republic of Kazakhstan: Problems and perspectives. European Foreign Affairs Review, 21(2).

Konopelko, A. (2018). Eurasian Economic Union: a challenge for EU policy towards Kazakhstan. Asia Europe Journal, 16(1), 1-17.

L'Asie centrale, une région si convoitée FRANCE 24, online via https://www.youtube.com/watch?v=nQK71TNbDrw

Railwaytechnology.com, Alstom and Kazakhstan partner to boost local rolling stock production, online via

, https://www.railway-technology.com/news/alstom-kazakhstan-rolling-stock-production/

Romano, V. 2022, Un « partenariat stratégique » entre UE et Kazakhstan sur l’hydrogène vert et les matières premières, via Euractiv, online https://www.euractiv.fr/section/energie/news/un-partenariat-strategique-entre-ue-et-kazakhstan-sur-lhydrogene-vert-et-les-matieres-premieres/

1Railwaytechnology.com, Alstom and Kazakhstan partner to boost local rolling stock production, online via

, https://www.railway-technology.com/news/alstom-kazakhstan-rolling-stock-production/

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