Astana – Belgrade: Achievements of 28 years of partnership
Kazakhstan’s President Kassym-Jomart Tokayev is set to make an official visit to Serbia. This year marks 28 years since the establishment of diplomatic relations between Kazakhstan and Serbia. Over the decades, the two nations have strengthened bilateral cooperation in trade, investment, and cultural exchange. Highlighting Serbian companies’ contributions to Kazakhstan’s economy, it is notable that their projects extend beyond constructing oil depots to include building metro stations in Almaty. Why the development of transport and logistics routes is one of the key areas of cooperation with Serbia is explained in the analytical report by a Kazinform News Agency correspondent.
According to the Kazakhstan Institute for Strategic Studies (KazISS) under the President of Kazakhstan, this visit by President Tokayev to Serbia is the first in a long time. The last time Kassym-Jomart Tokayev visited the country was in 2016, when he served as Chairman of the Senate of the Parliament of Kazakhstan. It was the first and only visit by a Kazakhstani leader to the Balkan state.
Political dialogue
Serbia is a close and reliable partner of Kazakhstan in the Balkans. Diplomatic relations between the two countries were established on December 10, 1996. In 2011, the Republic of Serbia opened its embassy in Astana, Kazakhstan. In 2019, Kazakhstan opened its embassy in Serbia.
Presidents of Serbia have visited Kazakhstan four times (three official visits: October 6-7, 2010, August 27-29, 2015, and October 9-10, 2018) and once on a working visit on June 9, 2017, when Serbian President Aleksandar Vučić participated in the opening ceremony of the international exhibition Astana EXPO-2017.
In May 2024, President Kassym-Jomart Tokayev held a phone conversation with Serbian President Aleksandar Vučić, during which they discussed enhancing bilateral cooperation, including the implementation of previously reached agreements and the organization of President Tokayev’s visit to Belgrade in the second half of the year. The two leaders also exchanged views on several pressing regional and international issues.
The KazISS explained why, at this stage, one of the priority directions has become cooperation within the framework of the Trans-Caspian International Transport Route development project.
“The trust-based and partnership-oriented nature of relations between Kazakhstan and Serbia is highlighted by Serbia’s support for Kazakhstan’s bid to chair the OSCE, its hosting of EXPO-2017 in Astana, and its candidacy for a non-permanent seat on the UN Security Council for 2017–2018. It is also worth noting the strong inter-parliamentary ties between Kazakhstan and Serbia. In the National Assembly of Serbia, a friendship group with Kazakhstan has been established, and in the Kazakh Parliament, there is an Inter-Parliamentary Cooperation Group with Serbia,” commented Alisher Abdreshev, a leading expert in the European and American Studies Department at KazISS.
The foundation of bilateral cooperation between Kazakhstan and Serbia consists of 24 documents of various levels, including international agreements. The expert also highlighted the significant trade and transportation potential between the two countries.
“The trade turnover between our countries is just over $90 million. Clearly, this does not reflect the existing potential. We see Serbia as a reliable partner in Southern Europe and the Balkans. An important area of cooperation with Serbia is the development of transport and logistics routes, particularly the Trans-Caspian International Transport Route, which aims to establish reliable transport links between Central Asian and European markets,” said Alisher Abdreshev.
Mutual trade
According to Kazakhstan’s State Revenue Committee, the volume of bilateral trade in 2023 amounted to $91.2 million (a 23.3% increase), including Kazakhstani exports of $11.4 million (+38.7%) and imports from Serbia of $79.8 million (+21.3%).
Data from Kazakhstan’s Ministry of Trade and Integration shows that trade turnover between Kazakhstan and Serbia for January-September 2024 reached $69.4 million, 9.7% lower than the same period in the previous year ($76.9 million).
Exports from Kazakhstan to Serbia during this period grew by 15.4% to $10.5 million. The growth in exports to Serbia is attributed to increased supplies of mineral fertilizers (by $6.4 million), polypropylene polymers (by $2.4 million), textile packaging bags (by $248,200), sawn timber (a 3.1-fold increase or by $115,600), dried legumes (by $101,100), lighting equipment (an 8.1-fold increase or by $82,900), and measuring instruments (hydrometers, thermometers, pyrometers, barometers) (by $69,800).
Imports to Kazakhstan from Serbia for January-September 2024 decreased by 13.1% to $58.9 million. The reduction in imports from Serbia is related to a decrease in the supply of paper, cardboard, and cellulose wadding (by 44.5% or $11 million), asbestos-cement products (by 98.9% or $10.4 million), aluminum sheets, plates, strips, or tapes (by 69.8% or $5.2 million), instruments and apparatus for measuring liquid and gas characteristics (by 97.7% or $1.3 million), liquid pumps (by 38.9% or $730,900), plastic pipes, hoses, and fittings (by 54.7% or $655,300), and tires (by 56.6% or $629,000).
Investment cooperation
According to the National Bank of Kazakhstan, the inflow of foreign direct investment (FDI) from Serbia since 2008 has amounted to $17.4 million, while capital outflow during the same period reached $17.3 million, resulting in a positive balance of $0.1 million. In 2023, the volume of FDI from Serbia to Kazakhstan reached $2 million, and in the second quarter of 2024, capital inflow amounted to $0.4 million.
Currently, 11 companies with joint ownership (4 active) and 47 companies with Serbian participation (37 active) are registered in Kazakhstan. These organizations primarily operate in construction, automobile trade, professional, scientific, and technical activities, as well as services.
The Ministry of Trade and Integration of Kazakhstan highlights that the Serbian company “Energoprojekt-Visokogradnja” had previously operated successfully in Kazakhstan. The company contributed to building metro stations in Almaty, administrative and residential buildings, medical facilities, and oil depots in various cities.
Additionally, there is a strong tradition of collaboration in seed production. Kazakhstani students and researchers intern at Serbian research institutes such as the NS Seme Institute of Field and Vegetable Crops and the “Zemun Polje” Corn Institute. For over 30 years, Kazakhstan’s “Budan” LLP and Serbia’s “Zemun Polje” have been producing hybrid corn seeds of Kazakhstani varieties, which account for 85% of corn sowings in Kazakhstan. Furthermore, NS Seme actively participates in the development of sunflower cultivation in Kazakhstan.
In September 2024, representatives of Kazakhstan’s Ministry of Trade and Integration and “Kazakh Invest” held meetings with Serbian companies to discuss the potential for joint investment projects. During these meetings, the Serbian company “ICCE” was introduced to the potential of Kazakhstan’s electrical engineering sector. It was highlighted that automation projects across various industries significantly contribute to industrialization and human capital development. Notably, “ICCE” provides turnkey electrical and automation solutions in over 20 countries.
“Kazakh Invest” also reported a meeting in Belgrade with “Hipol”, Serbia’s only polypropylene producer. The company expressed interest in implementing projects in Kazakhstan. Their plant produces up to 35,000 tons of polypropylene annually. Additional discussions with Serbian companies such as “Gerovit”, “GOŠA FOM”, and “Sigma Ltd” highlighted Kazakhstan’s investment climate and tools for attracting investments. The Serbian side showed great interest in potential joint projects and expressed a strong desire to strengthen cooperation with Kazakhstani partners.
On November 12, 2024, a Kazakhstan-Serbia business forum was held in Belgrade, providing a platform to explore economic cooperation opportunities between Astana and Belgrade. The forum featured business dialogues and B2B meetings where Kazakhstani businesses engaged with Serbian companies in various sectors, including medicine and pharmaceuticals (Aeromed Technology Group, Grand Pharmaceutical doo Beograd), logistics, and the automotive industry/transport (CMA CGM Pomorska Agencija doo, EMA DOO VF Holding, Trans Cargo Logistic doo).
The prospects and new areas of cooperation were also discussed in Belgrade during the third meeting of the Kazakhstan-Serbia Intergovernmental Commission on Trade and Economic Cooperation in September 2024, led by Kazakhstan’s Deputy Prime Minister Serik Zhumangarin.
According to Deputy Prime Minister Zhumangarin, Kazakhstan sees significant potential for trade cooperation, offering over 90 types of non-resource-based goods worth more than $500 million, including products from metallurgy, petrochemicals, food, and engineering industries. Kazakhstan aims to increase exports of agricultural products, including legumes, onions, buckwheat, cereals, wheat, and livestock products such as fish, honey, poultry, horse meat, beef, and dairy. The country is also considering pork exports and plans to import breeding cows and genetic material from Serbia to support the development of its dairy farms.
Transportation was another key topic, with Zhumangarin emphasizing that Kazakhstan’s “open skies” policy allows for increased connectivity, potentially making Serbia a transit hub to Europe. He also highlighted the importance of utilizing the Trans-Caspian International Transport Route for cargo transit between Kazakhstan, China, Serbia, and Europe.
Cultural ties
Every year, Serbia hosts performances by leading Kazakhstani creative groups, including the Maxim Gorky State Academic Russian Drama Theatre, the Dina Nurpeissova Academic Orchestra of Kazakh Folk Instruments, the T.Zhurgenov Kazakh National Academy of Arts Ensemble, the Karaganda Regional Drama Theatre named after K. Stanislavsky, and the Astana Opera.
The Embassy of Kazakhstan in Serbia also organizes thematic events such as film days, Kazakh cuisine festivals, and photo exhibitions. Sports diplomacy is also thriving, with Serbia hosting training camps for Kazakhstan’s basketball team Astana.
In June 2024, an exhibition titled “Women of the Great Steppe” was held in Serbia. It showcased photographs of prominent Kazakh women who contributed to the development of Kazakhstan’s culture, art, science, politics, and sports throughout history. Visitors also had the opportunity to experience Kazakh national cuisine and literature translated into Serbian.
