Not Participating In Sanctions To Europe, Kazakhstan Focuses On Promoting The Economy

Illustration of the Russian War in Ukraine (Photo: Doc. Wikimedia Commons)

JAKARTA - At a time when many countries imposed sanctions, Kazakhstan still had its stance not to impose it on Russia. This is in order to advance the national economy.

"We do not discuss or plan to be involved in imposing sanctions. Our focus is on bringing benefits to our country's economy," said National Economy Minister Alibek Kuantyrov in Astana, Friday (17/3).

A number of countries, including the United States and EU members, have imposed various sanctions on Russia after Moscow began its invasion of Ukraine on February 24, 2022.

Kazakhstan realized that its country was indeed pinched between the parties involved in the Ukraine war.

Kuantyrov underlined the fact that Kazakhstan has close ties in terms of geography and history, both with Russia and Ukraine.

"We must act within the framework of providing benefits to the people, nation and integrity of the Kazakh region. That's why we implement economic policies," he said.

Although he did not participate in imposing sanctions on Russia, said Kuantyrov, Kazakhstan would ensure its territory would not be used by various companies to avoid applicable sanctions.

At the same time, he said, Kazakhstan remains in a trade relationship with Russia and other countries.

Economic Challenges

Kuantyrov admits that risks regarding geopolitical conditions and conflicts among related countries are still the biggest challenge for Kazakhstan's economic agenda.

But by referring to Kazakhstan's various achievements throughout 2022, he stressed that his country was able to adapt to various deteriorating global economic problems.

"First of all, we managed to maintain positive economic growth," he said.

According to initial data he mentioned, Kazakhstan's economy in 2022 increased by 3.2 percent year-on-year.

This growth, he said, was mainly driven by increased investment and foreign trade.

In 2022, investment in capital will continue to increase by 7.9 percent, recorded at 15.1 trillion tenge (around Rp513.72 trillion).

Kuantyrov estimates that the direct foreign investment flow (FDI) in 2022 is estimated at 27 billion US dollars (around Rp412.65 trillion).

"And we expect further improvements in the FDI to occur in the coming years," he said.

He also revealed that many foreign companies want to move activity centers to Kazakhstan.

Throughout the past year alone, he said, there were more than 20 companies that had relocated to Kazakhstan.

Kazakhstan targets that 401 companies from 38 countries will relocate activities to the country, including those from Germany, the United States, Switzerland, Japan, and Italy.

Currently, said Kuantyrov, the government is holding negotiations with 50 other companies regarding the relocation to Kazakhstan.

"We hope that the transfer by international companies and Russia will continue," he said.