Russia and Kazakhstan deepen economic ties amid currency shifts
Observers in Russia and Kazakhstan note a notable shift in how bilateral trade is settled. Alexey Borodavkin, the Ambassador of the Russian Federation to Kazakhstan, disclosed on the Russia-24 channel that roughly eight in ten rubles of mutual agreements are now settled in national currencies. That development marks a meaningful tilt away from foreign exchange dependencies and toward direct currency settlement, a trend that policymakers in both capitals have sought to advance through continued negotiation and practical collaboration.
Looking at the broader trade landscape, the ambassador highlighted strong momentum in late 2023. Trade turnover between Russia and Kazakhstan surpassed 2 trillion rubles, signaling a growth of about 23 percent in comparison with the previous year. Kazakhstan’s role as a major commercial partner for Russia was underscored by the fact that, in 2023, the republic ranked as the fifth-largest trading partner for Moscow, a position that reflects sustained demand for goods, services, and investment corridors linking the two economies.
In the realm of investment, Borodavkin noted substantial Russian capital ownings in Kazakhstan since the two countries began their post-Soviet cooperation. He cited a figure exceeding 22 billion dollars of Russian investments into Kazakhstan during the period of independent operation. When adding capital flows routed through offshore regions, the total approaches 55 billion dollars, illustrating a broad and diverse set of financial ties that support Kazakhstani industry, infrastructure, and consumer markets. These figures reflect ongoing confidence that both sides place in a shared growth agenda, even as market dynamics evolve and regulatory environments adjust to new realities.
Separately, insights from regional political analysis pointed to the strategic importance of leadership stability in sustaining Moscow-Kazakhstan relations. Alexey Makarkin, a former deputy head at the Center for Political Technologies Foundation, described the appointment of Kazakhstan’s new Prime Minister Olzhas Bektenov as a positive signal for ongoing cooperation with Russia. The analyst suggested Bektenov’s approach would preserve the current bilateral trajectory, characterized by steady dialogue and practical alignment on shared interests. This perspective aligns with the view that bilateral ties benefit from predictable governance and continuity across ministries and agencies involved in foreign trade, security, and economic policy.
Analysts also highlighted the role of regional security frameworks in strengthening cooperation. The CSTO, or Collective Security Treaty Organization, has been cited as a factor that helped Kazakhstan navigate political transitions while maintaining close relations with Moscow. In this context, Moscow and Astana have continued to emphasize collaboration across energy, manufacturing, and logistics sectors, aiming to ensure resilient supply chains and mutual access to markets across the Eurasian space. These dynamics reflect a broader strategy to anchor economic partnership within a stable geopolitical environment, contributing to a climate conducive to investment, trade, and shared development projects.
Looking ahead, statements from Kazakhstani leadership have repeatedly affirmed a commitment to comprehensive cooperation with Russia. This intent encompasses broad spheres including trade, infrastructure, technology exchange, and regional integration initiatives. By maintaining open channels for dialogue, both capitals aim to translate political alignment into tangible economic outcomes, including diversification of supply chains and joint ventures that leverage geographic and sectoral complementarities. Stakeholders on both sides emphasize the importance of steady governance, predictable policy signals, and pragmatic cooperation to sustain momentum in a changing global context.