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24x7Report > Blog > Finance > Kazakhstan’s Evolving Afghanistan Policy
Finance

Kazakhstan’s Evolving Afghanistan Policy

Last updated: 2024/01/23 at 5:33 PM
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As the worldwide group experiences a turbulent and unpredictable interval, Kazakhstan, alongside different nations, faces a variety of challenges and dangers. A well timed reorientation and adjustment of each its exterior and inside insurance policies could allow the nation to successfully deal with these challenges and even extract advantages from them.

For instance, the Ukraine struggle uncovered vulnerabilities stemming from Kazakhstan’s intensive financial and commerce relations with its northern neighbor, Russia. In gentle of this, the Kazakh authorities has more and more targeted on creating resiliency in managing the safety, commerce, and logistical challenges it’s dealing with right this moment. Amongst these challenges are varied restrictions relating to northern commerce routes, in addition to considerations in regards to the potential introduction of secondary sanctions. Coping with these challenges, the Kazakh authorities realized the significance of discovering new markets, commerce routes, and financial alternatives for the nation.

On this atmosphere, Kazakhstan has emerged as a mannequin for revising its overseas coverage in favor of cooperation with South Asia in service to this quest for brand new prospects. This transfer might be checked out as an try and diversify away from its heavy dependence on Russia, paired additionally with a rigorously crafted balanced place towards each the US and Russia. 

There’s another approach to view these shifts, nonetheless, in keeping with which Russia is presumably an actor gently pushing Kazakhstan towards the south, as Moscow can even profit from commerce routes to via Central Asia. As was stated by Russian President Vladimir Putin final July, “the worldwide transport hall ‘North-South’ will present Russian items with a shorter path to the African continent and again to Russia.”

Whatever the motivation, there was a noticeable improve in Kazakhstan’s curiosity in South Asian nations, significantly Afghanistan. Certainly, in December Kazakhstan’s International Ministry determined to exclude the Taliban from its listing of terrorist organizations.

Afghanistan’s market (as an importer of business and agricultural merchandise) and its place (as a commerce route that may join Central Asia to nations reminiscent of Pakistan, with vital ports) are each critically necessary to Kazakhstan and form its rising new Afghanistan coverage.

Kazakhstan’s Commerce Relations with Afghanistan.

Kazakhstan’s help for Afghanistan is rooted not simply in issues of regional stability but additionally Astana’s personal financial pursuits in rising commerce hyperlinks via Afghanistan into South Asia.

Though Kazakhstan has by no means formally acknowledged the Taliban authorities in Afghanistan, it has been pragmatic about contacts with the Taliban and maintained financial and commerce relations with the nation. The primary high-level interplay between Kazakhstan and the Taliban authorities occurred on September 2021, lower than a month after the Taliban assumed management. Kazakhstan’s then-Ambassador to Afghanistan Alimkhan Yessengeldiyev met with Appearing Taliban International Minister Amir Khan Muttaqi in Kabul, the place they dedicated to strengthening financial cooperation. 

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Collaboration for the revival and extension of commerce and financial hyperlinks contributed to a considerable improve in commerce turnover between the 2 nations. In 2022 the amount of commerce between Kazakhstan and Afghanistan reached a report $987.9 million, twice as a lot because the earlier 12 months ($474.3 million). By November 2023, the commerce between the 2 nations had decreased to $583 million, with it unlikely to have jumped dramatically within the ultimate month of the 12 months. 

In an interview with journalists in Could 2023, Kazakhstan’s Deputy Prime Minister and Minister of Commerce and Integration Serik Zhumangarin said, “Politics is politics, economics is economics,” when discussing commerce with Taliban-controlled Afghanistan. His intent was to convey that even with out recognizing the Taliban authorities and whereas disagreeing with their home insurance policies, it’s attainable to have a fruitful bilateral commerce relationship because it brings advantages to either side. Kazakhstan’s method is pragmatic and sensible, provided that Afghanistan has grow to be a serious marketplace for the sale of Kazakh merchandise. 

In January 2023, Afghanistan turned one of many high 10 buying and selling companions of Kazakhstan due to the export of  $133.8 million worth of diesel-electric railway locomotives to Afghanistan. As compared, the export of a single locomotive was equal to the amount of whole month-to-month commerce of Kazakhstan with Kyrgyzstan and Azerbaijan. 

The Kazakh-Afghan enterprise discussion board held in April 2023 in Kabul was a big funding in strengthening current ties. In the course of the discussion board, they introduced the opening of a buying and selling home within the Afghan capital. This contrasts with the closure of the Commerce Illustration of Kazakhstan in Russia final 12 months. 

Kazakhstan’s Pursuits in Transport and Logistics 

As beforehand talked about, Kazakhstan appears to have far larger pursuits in cooperation with Afghanistan utilizing the geographical location of the nation as a commerce hall for reaching South Asian ports. Kazakhstan is especially curious about collaborating within the reconstruction and growth of Afghanistan’s infrastructure, particularly within the fields of transport, vitality, and agriculture. This was evidenced by a March 2023 assembly between Muttaqi and Yessengeldiyev. The aim of the assembly was to debate the event of the railway system in Afghanistan.

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Nevertheless, Kazakhstan doesn’t border Afghanistan and doesn’t have any current routes put in. This actuality is predicted to push Kazakh authorities to deepen collaboration with different Central Asian nations, significantly Uzbekistan, within the building of trans-Afghan transit and logistical initiatives.

Kazakhstan has already taken steps to assist restore Afghanistan’s rail potential. The Afghanistan Railway Authority and the Kazakhstani firm Integra Development signed a contract to renew building work on a railway department from Rozanak Station to Rabattaryan Station (43 kilometers) in October 2023. 

Moreover, one other profit that Kazakhstan might get pleasure from is participation within the mining trade as Afghanistan is reportedly wealthy in sources reminiscent of copper, gold, valuable stones, and others. Based mostly on a survey of solely 30 % of Afghan territory, the U.S. Geological Survey (USGS) estimated the nation’s useful resource wealth to be round $1 trillion. This has attracted many events, reminiscent of China, and can also curiosity Kazakhstan. Taliban spokesman Zabihullah Mujahid just lately declared that Kazakh corporations, amongst others, are anticipated to put money into the mining sector, vitality manufacturing, and hydroelectric initiatives in 2024.

Home Motivations 

The primary think about Kazakhstan’s home politics that influences its current method towards Afghanistan is the current cadre reshuffle. In September 2023, then-Minister of Commerce and Integration Serik Zhumangarin, identified for his pragmatic views on Kazakhstan’s approaches to Afghanistan, was promoted to the place of deputy prime minister. This means top-line help for his views relating to the institution of pragmatic financial ties with Taliban-ruled Afghanistan and means that they are going to be additional solidified in Kazakhstan’s overseas coverage agenda.

Furthermore, additionally in September 2023, the institution of a Ministry of Transport was introduced, signaling the nation’s readiness to dedicate particular consideration to infrastructure and transportation initiatives, each domestically and internationally. 

Late final 12 months, Kazakhstan dispatched a brand new ambassador to Kabul, Alim Khan Yasin Gildayev. He met with Muttaqi on December 29.

One other inside issue that influences Kazakhstan’s coverage is public opinion relating to energetic cooperation with Afghanistan. Kazakh professional Eldaniz Gusseinov, of the Heartland Knowledgeable-Analytical Heart, informed The Diplomat that the Kazakhstan-Afghanistan Enterprise Discussion board held in April 2023 triggered some criticism and considerations amongst part of Kazakhstan’s inhabitants. Individuals expressed worry of their nation’s convergence with a state dominated by a “terrorist group.” 

However then again, as described above, the Kazakh authorities clearly understand the significance of Afghanistan’s involvement in regional processes and the advantages that Central Asian nations might get from usable trans-Afghan routes. 

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Potential Challenges to Kazakhstan’s Afghanistan Coverage

Whereas shaping its rising coverage towards Afghanistan, the Kazakh authorities should consider the fact that the Taliban’s authorities remains to be not acknowledged by the worldwide group. This lends a level of unpredictability to the situation. 

One other necessary downside is that in keeping with Collective Safety Treaty Group (CSTO) data, there are greater than 20 terrorist organizations working within the territory of Afghanistan, a complete variety of roughly 10,000 people. The potential goals of those varied teams aren’t essentially identified in full, however their presence poses a possible risk to the broader area. It is a trigger for concern as a result of a safe atmosphere is required to successfully exploit the potential of trans-Afghan rail routes. 

With the intention to totally understand commerce routes that can join Kazakhstan to South Asia’s main buying and selling ports, it is going to be necessary for Kazakhstan to proceed creating ties with Uzbekistan. Regardless of the present optimistic trajectory of relations between Kazakhstan and Uzbekistan, there are potential conflicts between the 2 that would injury Kazakhstan’s plans.

Lastly, Kazakhstan’s Afghanistan coverage may very well be hindered partly by Astana’s membership within the Eurasian Financial Union. The requirement of consensus inside the union relating to sure commerce insurance policies could complicate Kazakhstan’s ambitions in Afghanistan, or on the very least chip away at Kazakhstan’s means to independently develop such financial and commerce relations.

Conclusion 

The financial and political penalties of the struggle in Ukraine arguably prompted Kazakhstan to look extra severely southward to Afghanistan and South Asia. Nevertheless, it’s value noting that though Kazakhstan is wanting away from its northern neighbor, this initiative additionally aligns with Russia’s pursuits. Russia is a attainable beneficiary of the exact same commerce routes by which Kazakhstan is presently most . 

The Kazakh authorities are looking for entry to South Asia’s seaports by aiding within the growth of routes throughout Afghanistan. The belief of such commerce routes require Kazakhstan to take steps in strengthening cooperation with the opposite nations of Central Asia, particularly Uzbekistan, which presently manages the development of the trans-Afghan railway route from Termez via Mazar-i-Sharif, Kabul, and on to Peshawar, Pakistan. 

Kazakhstan’s current exclusion of the Taliban from its listing of terrorist organizations speaks loudly relating to their angle towards the Taliban authorities, confirming a dedication to additional shut cooperation. If the relative peace in Afghanistan continues, Kazakhstan’s Afghanistan coverage will pragmatically forge forward as cooperation deepens. 

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