Kazakhstan and Iran to discuss oil and gas imports
Kazakhstan’s President Kassym-Jomart Tokayev will visit Iran for talks with Iranian counterpart President Ebrahim Raisi today.
Both Presidents are expected to sign a number of bilateral agreements. Tokayev will be accompanied by a Kazakh business delegation. A key objective for the world’s largest landlocked country is to increase Kazakh trade through Iran’s Shahid Rajaee port on the Strait of Hormuz. Chief amongst this trade are oil and gas exports.
A memorandum of understanding is almost certain to be signed by the two leaders for further oil, gas and petrochemical cooperation. Astana has been seeking alternative ports to export its oil to the world. Currently, 96% of Kazakh oil exports go through Russian ports but have been mistaken for Russian oil and suffered rejection in the EU and US. Tehran—itself also suffering fallout from western sanctions on Russian oil—has long wanted to join the Eurasian Economic Union, of which Kazakhstan is a founding member. Making itself more valuable to Astana through its ports at a time of need for Kazakhstan has high strategic value for Iran.
Expect to see increased volumes of oil exports through Iran as the year progresses and as the EU ban on Russian oil comes into full force by year’s end.
Download the Daily Brief app to stay ahead of geopolitics with daily, short, forward-looking analysis of geopolitical events before they hit the headlines.
