Kazakhstan and Russia Strengthen Economic Ties: 175 Projects Worth $56.6 Billion

Data recently released by Kazakhstan's Ambassador Extraordinary and Plenipotentiary to Russia, Daurian Abayev, shows that the two countries have 175 joint investment projects totaling $56.6 billion, of which 114 have been completed and 30 projects worth approximately $4.4 billion are underway. These projects cover key economic sectors such as industry, machinery manufacturing, agriculture, geological exploration, and mineral resource development.

This large-scale investment cooperation plan marks a new height in the economic integration of the two countries. In November 2025, Russian President Vladimir Putin and Kazakh President Kassym-Jomart Tokayev will sign a declaration in Moscow on elevating relations between the Republic of Kazakhstan and the Russian Federation to the level of a comprehensive strategic partnership and alliance, marking a new stage in the comprehensive strategic partnership and alliance between Russia and Kazakhstan.

01 Strategic Relationship Upgrade: From Partner to Alliance

During their meeting in November 2025, the two heads of state agreed to elevate bilateral relations to the level of a comprehensive strategic partnership and alliance. President Putin stated that the talks were conducted in a "pragmatic and constructive atmosphere," yielding fruitful results that fully reflected the "sincere friendship, good neighborliness, and mutual trust" between the two countries.

The declaration explicitly states that the centuries-old friendship and alliance between Russia and Kazakhstan are inviolable, and both sides are determined to support each other in the face of global challenges and threats, jointly resisting any attempts to undermine the political stability of their respective countries. The declaration also outlines specific pathways for deepening cooperation in areas such as political security, economic integration, knowledge-intensive industries, and cultural exchanges.

President Tokayev described the Moscow trip as "one of the major events of the year," emphasizing the historical significance of the declaration, which reflects the high level of mutual trust and broad prospects for cooperation between the two sides. This visit effectively responded to Western speculation about Kazakhstan's "strategic shift," laying the foundation for long-term cooperation in key areas such as the economy, energy, and science and technology.

02 Trade and Investment Cooperation: Scale and Depth Expand Simultaneously

Russian-Kazakh trade relations have shown a sustained and rapid growth trend. Bilateral trade reached $28.7 billion in 2024, accounting for one-fifth of Kazakhstan's total foreign trade, making Russia one of Kazakhstan's most important trading partners. Of particular note is that the proportion of settlements in local currencies between the two countries has exceeded 96%, significantly enhancing the financial sovereignty of both nations.

Regarding investment cooperation, there are over 20,000 Russian-invested enterprises in Kazakhstan, accounting for nearly half of all foreign-invested enterprises in the country. Both sides are implementing the "Comprehensive Plan for Economic and Trade Cooperation to 2030," expanding cooperation in areas such as industry, energy, and digitalization.

The scale of investment cooperation between the two countries is substantial, covering a wide range of sectors. Of the 175 joint investment projects currently underway, 114 have been completed, and another 30 projects, valued at approximately US$4.4 billion, are in progress. These projects cover key economic sectors such as industry, machinery manufacturing, agriculture, geological exploration, and mineral resource development.

These joint projects reflect the deepening trend of economic integration between the two countries, creating new jobs, improving production infrastructure, and promoting technological exchange.

03 Energy and Infrastructure: A New Dimension of Cooperation

Energy cooperation is a core pillar of Russian-Kazakh economic cooperation. According to the declaration, Russia and Kazakhstan will deepen cooperation in the energy sector, covering the extraction, production, transportation, and supply of energy sources such as oil, natural gas, coal, and electricity. Both sides agreed to continue creating conditions to ensure the smooth transportation of energy resources, in order to safeguard the economic and energy security of both countries.

Cooperation in the natural gas sector is particularly prominent. Both sides will advance high-quality gas supply projects to northern and eastern Kazakhstan, making it a priority area of ​​bilateral cooperation. Gazprom has a long-standing and stable supply of natural gas to Kazakhstan and is studying ways to expand supply to meet the gas needs of major industrial enterprises in northern and eastern Kazakhstan.

Nuclear energy cooperation has emerged as a new area of ​​cooperation between the two countries. Construction of Kazakhstan's first nuclear power plant commenced in August 2025. This nuclear power plant, constructed by Rosatom, is located on the shores of Lake Balkhash, with a designed installed capacity of 2.4 gigawatts and a total investment of US$14 billion to US$15 billion. It is expected to be completed between 2035 and 2036.

Infrastructure connectivity is also a key area of ​​cooperation. The two countries will focus on advancing projects such as the North-South Corridor and the Trans-Caspian International Transport Corridor, improving cross-border logistics and infrastructure conditions, and further enhancing the regional connectivity system. Meanwhile, both countries are committed to improving the capacity of their land border crossings and expanding air and sea freight transport.

04. Collaboration within Multilateral Frameworks

Both Russia and Kazakhstan attach great importance to strengthening cooperation within multilateral mechanisms. The two heads of state stated that they will continue to maintain close communication and cooperation within multilateral frameworks such as the United Nations, the Shanghai Cooperation Organisation (SCO), and the Eurasian Economic Union (EAEU) to promote regional peace and development.

President Tokayev particularly emphasized that the two sides will continue to strengthen cooperation within multilateral mechanisms such as the EAEU, the SCO, the Commonwealth of Independent States (CIS), and the Collective Security Treaty Organization (CSTO). This cooperation within multilateral frameworks provides a broader platform and a more robust institutional guarantee for bilateral relations.

In the field of space cooperation, the two sides agreed to establish an interstate committee to jointly conduct flight tests of the Soyuz-5 and Baiterek rocket systems. Diplomatic sources pointed out that this cooperation is of "fundamental significance" for developing technical partnerships in the defense and space sector. The two countries continue to jointly operate the Baikonur Cosmodrome and maintain close cooperation in space research.

05 Prospects for Russia-Kazakhstan Cooperation from a Global Perspective

The deepening of Russia-Kazakhstan economic cooperation occurs against the backdrop of a reshaping global geoeconomic landscape. Experts analyze that, given Russia's continued external pressures, this visit and the signing of the declaration are a strong response to speculation by some Western experts regarding the so-called "strategic drift" of Astana.

Bilateral cooperation is continuing to deepen.

Some analysts also point out that without economic diversification, both economies will remain reliant on resources and compete with each other in many areas, including metals, food, and oil and gas. The declaration points the way for the development of bilateral relations and creates a favorable political environment, but trade barriers and the risk of sanctions will persist.

In the long term, the bilateral economic plan for 2026-2030 formulated by the two countries will lay the foundation for future cooperation. This plan includes measures to expand production cooperation, promote trade, and improve the efficiency of joint projects. Driven by increased bilateral trade, strengthened industrial and logistical links, and the integration process of the Eurasian Economic Union, bilateral cooperation is continuing to deepen.

With joint flight tests of the Soyuz-5 and Baiterek rocket systems by Russia and Kazakhstan, and the construction of Kazakhstan's first nuclear power plant, bilateral cooperation has expanded from traditional energy trade to high-tech and strategic emerging industries. This cooperation not only promotes economic development in both countries but also provides new impetus for economic integration in Central Asia and across Eurasia.

Russia and Kazakhstan are deepening economic cooperation to jointly address the complex changes in the global economy. With the advancement of the 2026-2030 bilateral economic plan, this cooperation will inject greater certainty into regional economic development.