Kazakhstan, a country located in Central Asia, produces about 2% of the world's oil and is also a major supplier of uranium and chrome. It is now striving to diversify its exports beyond raw materials. The government of Kazakhstan sees part of the solution in attracting investors to capitalize on the increasing domestic consumption, and projects are underway to replace imports and expand the country's export potential.
Increasing Trade Deficit and Investment Opportunities
According to reports, Kazakhstan recorded a trade deficit of over 7.5 billion euros in the first half of this year, with trade turnover reaching nearly 62 billion euros. China has been recognized as Kazakhstan's largest trading partner during this period, followed by Russia and Italy. Meanwhile, Turkey, France, Uzbekistan, the Netherlands, Germany, the United States, and South Korea are also among the top ten trading partners.
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Imports accounted for nearly 44% of total trade turnover in the first half of this year, which is a 5.4% increase compared to last year. The demand for natural gas, power generation equipment, railway locomotives, gold, enriched uranium, petroleum products, and machinery has been the main drivers of Kazakhstan's imports. According to Nurlan Kalbatyrov, Deputy CEO of KazTrade, the industries with the best potential for import substitution include machinery, pharmaceuticals, advanced agricultural processing, and construction.
Surge in Processed and Agricultural Product Exports
Kazakhstan is currently the largest exporter of sunflower oil in Central Asia and is working to increase its exports of these products to 1.3 billion euros by 2028. This goal is driven by the country's favorable geographical and climatic conditions for growing oilseed crops, as well as government support for this sector. Over the past five years, the area planted with sunflowers has increased 2.3 times. The head of the Kazakhstan Oilseed Processors Association, Yedikar Abragimov, reports rapid growth in this sector due to government support, a strong base of raw materials, Kazakhstan's geographical position, and the development of export logistics.
Foreign investments are also on the rise. In 2025, total direct foreign investment inflows reached nearly 18 billion euros, representing a 14.4% increase compared to the previous year. Kazakhstan is striving to move towards import substitution and domestic production by attracting foreign investment and reducing its dependence on imported goods.
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