President Kassym-Jomart Tokayev’s comments about economic diversification and infrastructure during the recent expanded government meeting present opportunities for increased Western cooperation with Astana and other Central Asian governments.
Tokayev stated, “Transit is a huge advantage for us in the international competition for cargo transportation. This advantage must be fully and effectively utilized,” but also noted that foreign direct investment in Kazakhstan declined by 36% in the first three quarters of 2024 compared to the same period in 2023.
Darren Spink gave an interview to The Astana Times YouTube channel.
His remarks on the development of the Trans-Caspian International Transport Route (also known as the Middle Corridor) should be of particular interest to policymakers in Washington and London. As highlighted by the World Bank, the Middle Corridor enhances trade route diversification and strengthens regional connectivity, offering a route approximately 2,000 kilometers shorter than the Northern Corridor. Increased U.S. and U.K. investment in this corridor would provide American and British companies with viable alternatives to existing transportation routes that are vulnerable to geopolitical tensions and potential sanctions.
Tokayev stressed the need for investments into the Trans-Kazakhstan railway, specifically the Moiynty-Kyzylzhar railway line and modernizing existing routes linking the Kyzylzhar station to the Aktau port.
Other priority projects for Kazakhstan include the urban railway bypass for Almaty, a railway connection between Kazakhstan and Uzbekistan, which will increase regional trade, and modernization of the Port of Aktau, which will help bolster Kazakhstan’s role in Caspian Sea transport. These investments are crucial for ensuring Kazakhstan remains a key transit hub in this rapidly evolving geopolitical landscape, particularly as Russia’s war in Ukraine disrupts traditional Eurasian trade routes. Strengthening the Middle Corridor would also serve as a counterbalance to China’s Belt and Road Initiative, offering Western nations a more secure and diversified supply chain route through Central Asia.
As Kazakhstan advances its multi-vector foreign policy and seeks to deepen commercial ties with the West, the new governments in the United States and United Kingdom—emphasizing pragmatic engagement—offer opportunities. For example, UK Foreign Secretary David Lammy advocates for progressive realism—a strategy that applies realist approaches to advance progressive policy goals while ‘acknowledging the world as it is.’ Meanwhile, London’s appointment of Lord John Alderdice as the UK’s trade envoy for Central Asia creates opportunities for the United Kingdom to pursue strategic investments aligned with its national interests, particularly in infrastructure development and natural resource exploration. The UK’s and America’s development finance corporations – British International Investment and the U.S. International Development Finance Corporation (USDFC), respectively – should seek to engage the private sector for investments in Kazakhstan’s infrastructure and natural resource sectors.
As the U.S. and UK seek to diversify supply chains and reduce dependence on China and Russia, Kazakhstan presents an attractive alternative. Increased investment in Kazakhstan’s energy sector, particularly critical minerals mining, would not only strengthen economic ties but also contribute to global efforts for cleaner and more secure rare earths sources.
During his confirmation hearing, Secretary of State Marco Rubio stated that every U.S. policy must be justified by answering the question: Does it make America safer, stronger, and more prosperous? When asked by Senator Steve Daines (R-MT) whether he would support the removal of Kazakhstan’s Jackson-Vanik amendment, Secretary Rubio called the designation an ‘absurd relic of the past’ and noted that Kazakhstan has already met the conditions of a market economy.
Granting Kazakhstan Permanent Normal Trade Relations (PNTR) would eliminate outdated trade restrictions that currently limit economic potential between the two countries. Several post-Soviet states have already received PNTR status, resulting in enhanced trade relations and economic integration with the West. Failure to grant PNTR to Kazakhstan unnecessarily harms Astana’s reputation, complicates U.S.-Kazakhstan commercial ties, and jeopardizes U.S. strategic interests, including cooperation on energy resources and rare-earth elements. Removing this trade barrier would not only support Kazakhstan’s continued economic modernization but also create new opportunities for American businesses looking to expand in the region. As the U.S. and its closest ally, the United Kingdom, seek to diversify supply chains and rebuild their respective industrial bases, Kazakhstan’s vast natural resources, including oil, gas, and rare-earth elements, make it a crucial power in helping shape global resource security.
The author is Darren Spinck, a research fellow for the Henry Jackson Society, the United States.
Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the position of The Astana Times.
