As part of the visit of EU Commissioner for International Partnerships Jozef Síkela to Astana, the European Union and Kazakhstan signed on March 13 a Critical Raw Materials partnership with the EBRD to support sustainable and innovative mining and processing and 200 million Euro loan agreement between the EIB and the Development Bank of Kazakhstan — investing in renewable energy and modern transport infrastructure that will connect Kazakhstan even more closely to Europe and Asia.
Asked if, given the current global geopolitical climate, these deals secure much-needed minerals for Europe and boost energy security reducing reliance on Russia, China and other countries, Anitta Hipper, EU Spokesperson for Foreign Affairs and Security Policy, told NE Global on March 14, “Kazakhstan is one of the EU’s closest partners in Central Asia, and an important country for our Global Gateway Strategy, which supports our partners’ strategic autonomy and resilience as well as our own by building mutually beneficial partnerships.”
She stressed that the EU’s partnership with Kazakhstan has a great potential to strengthen both Europe and Central Asia, creating real opportunities for trade, green energy, and digital innovation. “It can deliver mutually beneficial results that will contribute to new opportunities, sustainable growth, economic security and a resilient future for both regions,” the EU Spokesperson for Foreign Affairs and Security Policy said.
“Modern economies depend on reliable partners for both resources and connections and, in this sense, the partnership with Kazakhstan is a natural fit, built on shared ambitions and expertise,” she added.
“Together, through Global Gateway, we are building a partnership that delivers real results – for Kazakhstan’s growth and for Europe’s energy transition. The two agreements signed in Astana will allow us to advance our cooperation even further,” she said.
Asked about the role of Kazakhstan in EU external policy and future steps, Hipper reminded that the EU and Kazakhstan have been partners since the country’s independence in 1991. “Since March 2020, the EU and Kazakhstan have in place an Enhanced Partnership and Cooperation Agreement (EPCA), which elevated relations to a new level,” she said.
The EPCA creates an enhanced legal basis for EU-Kazakhstan relations, providing a broad framework for reinforced political dialogue, comprehensive sectoral cooperation and promoting mutual trade and investment, the EU Spokesperson for Foreign Affairs and Security Policy said, adding that the EPCA also enhances concrete cooperation in 29 other key policy areas, including: justice and home affairs, economic and financial cooperation, energy and transport, environment and climate change, employment and social affairs, culture, education and research.
Furthermore, the EU is Kazakhstan’s main trade partner, representing around 28 percent of Kazakhstan’s external trade in 2023.
“At the regional level, the EU Strategy on Central Asia adopted in 2019, provides an excellent framework to strengthen regional cooperation by taking advantage of new opportunities in the region and addressing common challenges together,” Hipper said.
EIB Global €200 million loan to support energy transition and transport infrastructure
The European Investment Bank’s global arm, EIB Global, has signed a €200 million loan agreement with the Development Bank of Kazakhstan (DBK). “This financing will support investments made by public and private entities in sustainable transport infrastructure – including the Trans-Caspian Transport Corridor (aka TITR)– and in projects focused on diversifying renewable energy sources, as well as other climate-related initiatives,” EIB said in statement on March 13.
The investment will support Kazakhstan’s national road operator KazAvtoZhol with its road rehabilitation programme, which aims to improve connectivity and the quality of infrastructure across the country. “This initiative is key to making progress on the Trans-Caspian Transport Corridor project, a critical component of the European Union’s Global Gateway strategy that aims to strengthen links between Europe and Central Asia. It is also the first concrete result of the four memorandums of understanding that EIB Global signed with the Development Bank of Kazakhstan and the Central Asia Republics at the EU-Central Asia Investors Forum in January 2024,” EIB Global said.
In the transport sector, the financing is expected to support the rehabilitation of 5,000 km of national and regional roads and to improve accessibility for passenger vehicles and freight transport. Modernising infrastructure will also enhance road safety and climate resilience.
Up to now, we have seen mostly diplomatic talk, high-profile investment conferences and promises from the EU’s Global Gateway Initiative, but finally real implementation is starting.
In the energy sector, the loan will finance investments in renewable electricity generation, helping Kazakhstan make the transition from fossil fuel-based energy to clean and sustainable power sources. These investments are expected to reduce CO2 emissions by replacing fossil fuels with renewable and more cost-effective energy solutions
During his visit to Kazakhstan, Síkela also met with Kazakhstan’s President Kassym-Jomart Tokayev, who emphasized the priority of cooperation with the EU, calling it a key partner for Kazakhstan. Discussions focused on developing transport corridors, logistics, sustainable energy, and digital solutions. Both sides reaffirmed their readiness for further coordination, including within the Central Asia – EU format, the office of the president said.
