President of Kazakhstan Kassym-Jomart Tokayev will embark on an official visit to Italy and the Vatican on January 18-19. There, he is expected to meet with Italian President Sergio Mattarella and Prime Minister Giorgia Meloni. More about the objectives of the visit and where Kazakhstan’s relations stand with Italy is in the latest article.
Thirty-two years of bilateral relations
This will be Tokayev’s first official visit to Italy as President of Kazakhstan.
Kazakhstan and Italy established diplomatic relations on August 21, 1992. In October 1992, the Embassy of Italy in Kazakhstan was opened, and in 1996, Kazakhstan opened its embassy in Italy.
First President of Kazakhstan Nursultan Nazarbayev visited Italy six times. Oscar Luigi Scalfaro was the only one among the presidents of Italy to visit Kazakhstan in May 1997.
Italy’s Minister of Foreign Affairs and International Cooperation Antonio Tajani was on an official visit to Kazakhstan in September, further deepening bilateral ties.
A milestone in the bilateral cooperation was an intergovernmental agreement on strategic partnership signed by Kazakhstan and Italy on November 5, 2009.
Leading trade partner
A detailed examination of the economic ties between Kazakhstan and Italy shows that bilateral trade dynamics have witnessed notable fluctuations over the past few years.
According to the Bureau of National Statistics, in 2018, trade stood at an impressive $13.2 billion, with exports contributing $11.7 billion and imports totaling $1.5 billion. A dip was observed in 2019, with the overall trade reducing to $9.95 billion. Exports accounted for $8.38 billion, while imports reached $1.58 billion.
In 2020, amidst global challenges, the trade volume further decreased to $7.58 billion. Exports were recorded at $6.64 billion, and imports stood at $973.2 million.
A recovery was evident in 2021 as the trade figures rose to $9.68 billion. Exports saw an increase to $8.89 billion, and imports decreased to $786.3 million.
The trade volume between Kazakhstan and Italy in 2022 reached $14.9 billion, marking a significant 54 percent increase compared to 2021. Exports accounted for $13.85 billion, while imports totaled $1.05 billion.
The latest data for January-October 2023 shows the trade turnover amounted to $13.1 billion, with exports contributing $12.1 billion and imports totaling $1 billion.
Despite a modest increase of 0.7 percent, Italy maintains its position as Kazakhstan’s third-largest strategic trading partner after Russia and China, constituting over 11.5 percent of the country’s total external trade turnover for 2022, compared to 9.5 percent in 2021.
For decades, crude oil constituted much of Kazakh exports to Italy. The export of crude oil and raw petroleum products from Kazakhstan to Italy from January to October 2023 amounted to 20.1 billion tons, valued at $11.8 billion. Italy is the largest consumer of Kazakhstan’s oil among European nations.
The key areas of trade and economic cooperation are energy, exploration and extraction of natural resources, construction, infrastructure, transport, communications, agriculture, science and technology. As of October 2023, the number of registered companies with Italian participation in Kazakhstan is 303, primarily engaged in construction, trade, and scientific-technical activities.
In the energy sector, the prominent partner for Kazakhstan in the oil and gas industry is Eni, which is present in the exploration, development, and production of hydrocarbons and natural gas.
Eni is a joint operator of the Karachaganak onshore field in western Kazakhstan, holding a 29.25 percent stake, along with state-owned KazMunayGas (10 percent), Royal Dutch Shell (29.25 percent), Chevron (18 percent) and Lukoil (13.5 percent).
The company is also part of the consortium responsible for the North Caspian Sea Production Sharing Agreement (NCSPSA), which governs operations in the giant Kashagan oil and gas field. Its stake here is 16.81 percent, along with KazMunayGas (16.88 percent), Shell (16.81 percent), ExxonMobil (16.81 percent), TotalEnergies (16.81 percent), CNPC (8.33 percent) and Inpex (7.56 percent).
Eni partners with KazMunayGas to operate the Isatay and Abay blocks located in Kazakh waters in the Caspian Sea.
Additionally, it is also present in the renewable energy sector, boasting two wind power facilities situated in Badamsha within the Aktobe region. The company also announced the launch of a project that involves the creation of a hybrid power station fuelled by gas, photovoltaic energy and wind power, which will promote the use of a combination of various technologies for the generation of decarbonized electricity.
The potential for trade remains untapped, said Prime Minister Alikhan Smailov during his meeting with Italy’s Minister of Foreign Affairs and International Cooperation Antonio Tajani in September last year. He announced the readiness to boost Kazakhstan’s exports to Italy across 110 product categories, exceeding $900 million.
In February 2022, a delegation from the SDF Group transnational conglomerate visited Kostanay to initiate the establishment of a production facility for tractors and combines in collaboration with AgromashHolding. The corresponding agreement was signed in March 2021.
In March 2022, a delegation from the PetrolValves Group visited the West Kazakhstan Region to commence the construction of a valve manufacturing plant in partnership with Merlion Development Group.
Investments
In terms of investments, the National Bank of Kazakhstan reports a gross influx of investments from Italy totaling $7.3 billion from 2005 to the first half of 2023. Notably, the gross investment inflow from Italy to Kazakhstan in 2022 stood at $288.6 million, marking a remarkable 2.3-fold increase compared to the previous year.
During the first half of 2023, Italy invested in Kazakhstan, contributing $75.9 million. According to the Kazakh Foreign Ministry, based on the criteria set by the Committee on Investments, Italy falls within the top category of countries attracting foreign investments.
Several high-profile visits and events have underscored the strengthening ties between Kazakhstan and Italy, including the business forum in Rome in June 2022.
The commencement of regular passenger flights by the Italian airline NEOS on the Milan-Almaty route on June 12, 2022, further enhances connectivity between the two nations.
As of 2023, according to Kazakh Invest national company, the pool of investment projects of Italian businesses in Kazakhstan consists of 15 projects worth $159 million.
As both countries actively explore investment opportunities and strengthen diplomatic ties, the recent business forums and bilateral visits are pivotal in fostering a robust and mutually beneficial relationship between Kazakhstan and Italy. As part of the visit, Tokayev will participate in the Kazakh-Italian investment round table and hold meetings with the top management of leading Italian companies.
Cooperation in culture and education
In education, more than 30 agreements have been forged between Kazakh and Italian higher education institutions, including notable partnerships between Al-Farabi Kazakh National University and the University of La Sapienza in Rome, as well as collaborations between the Kazakh National University of Arts and the State Conservatories of Salerno and San Pietro a Majella in Naples. There are also student exchange programs involving universities such as Sapienza, Salerno, Cassino, Naples, and Ferrara.
In a recent meeting with Kazakhstan Minister of Culture and Information Aida Balayeva, Italian Ambassador to Kazakhstan Marco Alberti highlighted the inauguration of the Italian Cultural Center in Almaty in 2023, marking the first of its kind in the Central Asia and Caucasus region. He outlined the center’s primary mission to promote the Italian language and culture and draw attention to emerging creative talents.
Ambassador Alberti also expressed a keen interest in collaboration with Kazakhstan’s universities. In 2024, the embassy plans to open a center for Italian-Kazakh culture in Kazakhstan, focusing on the creative industry.
October 2023 witnessed the signing of an agreement to establish a branch of the University of Genoa at Amanzholov University in Ust-Kamenogorsk. This landmark initiative allows Kazakhstan’s students to pursue education at the Italian institution’s branch and earn dual degrees.
Expectations from the visit
In line with the Country Investment Program for Italy for 2021-2025, seven targeted industries and 44 specific companies have been identified for collaboration. Notable entities include Leonardo, an Italian multinational company specializing in aerospace, defense and security, Fincantieri, an Italian shipbuilding company, SDF Group, an Italian agricultural machinery manufacturer, and various companies in sectors such as aviation, agriculture, and technology.
Considering Italy’s ample potential in agriculture and Kazakhstan’s abundant resources, cooperation in the agri-food sector remains a promising area.
Italy’s agricultural sector and agri-food system strongly contribute to the country’s economy, accounting for around 2% and 15% of the GDP respectively, data from the European Commission shows.
European countries have also been paying more attention to the Trans-Caspian International Transport Route, or the so-called Middle Corridor, which starts from Southeast Asia and China, and runs through Kazakhstan, the Caspian Sea, Azerbaijan, Georgia and further to European countries. Italy, located in the center of the Mediterranean, will not be an exception, as it may significantly benefit from its involvement in this project.
Overall, the substantial impact of Tokayev’s upcoming visit to Rome is undeniable, further solidifying the nation’s constructive, multi-vector foreign policy.
It is also expected to give an additional impetus to the expansion of bilateral partnership horizons in new areas in energy, transportation, agriculture, and IT, along with the promotion of Kazakhstan’s initiatives, including in agriculture, mutual trade and economic cooperation, green energy, food industry, and oilfield services.
Meeting with Pope Francis
Tokayev is also expected to visit the Vatican on January 19, where he will meet with Pope Francis. The last time they met was in September 2022 in Astana, when Pope Francis visited the Kazakh capital to attend the Congress of Leaders of the World and Religious Traditions.
Pope Francis was making an apostolic visit to Kazakhstan for the first time in 2022, the year that marked the 30th anniversary of the establishment of diplomatic relations between Kazakhstan and the Vatican. Back then, he commended the diversity of many ethnic groups living in Kazakhstan.
“There are almost one hundred and fifty ethnic groups and more than eighty languages in the country. These are peoples with different histories, cultural and religious traditions, which together form an incredible symphony and make Kazakhstan a unique multiethnic, multicultural and multi-confessional laboratory, pointing to its special vocation – to be a meeting country,” he said at a meeting with representatives of civil society and the diplomatic corps in September 2022 in Astana.
There were only two visits by heads of the Catholic Church to Kazakhstan. The first time was when Pope John Paul II paid a state visit to Kazakhstan on Sept. 22-25, 2001, just a few weeks after the 9/11 tragedy.( Source: Kazinform)
