Minister of Economy Visits Kazakhstan, Emphasis on Energy
Last week, the new Minister of Economy and Sustainable Development of Georgia, Natia Turnava, made an official visit to Kazakhstan. Within the framework of the visit, the 10th meeting of the Intergovernmental Commission on Economic Cooperation between Georgia and Kazakhstan was held. Turnava and her counterpart, the Minister of Industry and Infrastructure Development of the Republic of Kazakhstan, Roman Sklyar, signed a protocol confirming continued cooperation in several key areas.
The meeting was also attended by representatives of ministries and interested companies of the two countries. Main topics of discussion included bilateral trade, attracting investment, agriculture, transportation, communications, information technology, innovation, science, tourism, healthcare, and industry.
“We have discussed many strategic issues, including our transit corridor, the further development of the concept of the so-called ‘middle corridor,’ as well as transparent tariffs that will make freight cargo movement easier in the corridor and utilize the transit function of our countries more,” said Turnava. The parties positively evaluated the work that has been done so far on developing the Trans-Caspian transport route. They agreed to continue efforts to develop the two countries’ transit potential through several avenues, including establishing competitive tariff conditions, reducing delivery times, and increasing the volume of freight traffic along the Trans-Caspian corridor.
She emphasized that both Georgia and Kazakhstan play an important role in attracting cargo flows from China to Europe via the Black and Caspian Seas. Turnava noted that the parties also “discussed the intensification of ferry traffic on the Black and Caspian seas, as it is a part of the middle corridor.”
Sklyar praised ongoing mutual efforts to promote exports, which resulted in a 29% increase in turnover in the first two months of 2019 to $13 million. Overall, the ministers agreed that the Intergovernmental Commission on Economic Cooperation between Georgia and Kazakhstan has established itself as an effective mechanism and platform for discussing and resolving important issues of bilateral cooperation.
Also during her time in Kazakhstan, Turnava met with Kazakh Energy Minister Kanat Bozumbayev. At their meeting, the pair discussed the potential for Kazakh investments in Georgia. Bozumbayev discussed the possibility of investing in a petrochemical plant in Georgia aimed at exporting products to third countries, which Turnava fully supported, saying “We have achieved an agreement to work jointly on this investment and this project may play a crucial role in the petrochemical industry.”
In a press conference after the meeting, Turnava said that “the energy sector is one of the priority sectors for Georgia-Kazakhstan cooperation. Amid the growing volume of oil extraction, it is of crucial importance for Kazakhstan to have the opportunity to diversify oil supplies to western markets. In this respect we have common interests. We have discussed how to expand Georgia’s transit potential and increase the attractiveness of the Georgian market for our Kazakh partners.”
Another major outcome of Turnava’s visit: after meeting the Kazakh Deputy Prime Minister Zhenis Kassymbek, an agreement was made that Kazakhstan will considerably increase grain imports to Georgia, the Georgian minister noted after her meeting with the Deputy Prime Minister of Kazakhstan. “As a result of our negotiations in Kazakhstan, the Kazakh Government will subsidize the transportation of grain to Georgia and lower tariffs to 50%,” Turnava announce, noting that the agreement will help diversify Georgia’s grain market, reducing reliance on Russian imports.
By Samantha Guthrie
Image source: Ministry of Economy and Sustainable Development of Georgia