Kazakhstan is Italy’s main economic partner in Central Asia, and Italy is Kazakhstan’s largest trading partner in the European Union and one of the leading investors in Kazakhstan’s economy. — underscored President Kassym-Jomart Tokayev of Kazakhstan and Giorgia Meloni, the President of the Council of Ministers of Italy in their joint statement, adopted in Rome on 18 January 2024.
During his official visit to Italy, Tokayev also held talks with Italian President Sergio Mattarella, addressed an investment round table of the business communities of the two countries, and also held a number of bilateral meetings with the heads of some major Italian companies.
The round table has been followed by inking 18 commercial agreements worth over $1.5 billion dealing with diverse sectors of the Kazakhstan economy. The event was attended by CEO’s and presidents of more than 40 companies.
Tokayev’s visit to Italy laid the groundwork for future Italian-led infrastructure projects, promising further economic expansion.
This significant development builds upon an already vibrant relationship: bilateral trade currently stands at $15 billion, with strong potential to reach $20 billion in the near future.
Italy’s commitment to Kazakhstan goes beyond trade. Foreign direct investment has steadily climbed to $7.3 billion, reflecting the presence of over 300 Italian companies operating in the country, including such large investors as ENI, SDF Group, PetroValves, Maire Tecnimont, IVECO, Tenaris and others.
Future plans – Italy will be involved in a number of crucial infrastructure projects in Kazakhstan
The deals struck on the sidelines of the investment round table envision the construction of a number of important industrial facilities in Kazakhstan.
The national oil and gas company KazMunaiGas and the Italian ENI, the 13th largest oil and gas company in the world, signed a document on the implementation of a joint project for the construction of a hybrid power plant with a total capacity of 247 MW.
The manufacturer of textile equipment Cormatex and the Kazakhstan investment development fund Kiid signed an agreement on the creation of a consortium for the construction of a plant for the production of thermal insulation materials in Aktobe. The first batch of finished products is planned to be released in 2024.
The agreement between Samruk-Kazyna JSC, QazaqStroy LLP and Ballestra Industrial Group is aimed at the implementation of the project for the construction of a sulfuric acid plant with a capacity of 800 thousand tons per year in the Turkestan region. Ballestra is a leading licensed contractor for the production of sulfuric and phosphoric acids.
The agreement between TNK AGROFIRMA LLP and Bonificheferraresi provides for cooperation in the field of organic grain production. Bonifiche Ferraresi is one of the largest Italian agricultural holding engaged in the cultivation and marketing of agricultural products.
JSC NC KAZAKHINVEST and Simest have agreed to cooperate in attracting Italian companies to Kazakhstan to open joint ventures. The association “Simest” is engaged in financial support of Italian companies, facilitating their entry into foreign markets.
Framework agreement between JSC NUH Baiterek and SACE setts a limit on insurance of transactions with Italian participation in investment projects in priority sectors of the economy.
A cooperation agreement between Samruk-Energo JSC and Ansaldo Energia SpA provides for the reconstruction of Almaty Thermal Power Plant-3 with the construction of a combined cycle gas plant with a capacity of up to 544 MW;
Memorandum of Cooperation between NCE “Atameken” and Confiindustria aims at supporting Italian enterprises in Kazakhstan and Kazakhstani enterprises in Italy, as well as strengthening economic and trade relations between businesses in Kazakhstan and Italy.
Kazakhstan invites Italian investors to develop untapped wealth of rare earth metals
Fueled by the technological revolution and soaring global demand, Kazakhstan has extended an invitation to Italian investors to join forces in unlocking the nation’s vast potential in rare earth metals.
President Tokayev, during an investment round table in Rome, emphasized the critical role collaboration can play in harnessing this strategic resource.
“The World Bank estimates Kazakhstan holds over 5,000 undiscovered mineral deposits, with a value exceeding $46 trillion,” Tokayev declared.
“We are already a leading producer of 19 out of the 34 most crucial raw materials for the European Union’s economy”, he added.
“Deposits of 9 more types of minerals, such as cobalt, tungsten, lithium and others, can be developed with the necessary investments,” he said.
In addition, President of Kazakhstan invited Italian business to the following areas: service maintenance of the oil and gas industry, renewable energy, transport and logistics industry, agriculture, biotechnology and pharmaceuticals, IT industry.
During Tokayev’s visit to Rome, it was agreed that the Italian airline NEOS will open flights Astana – Rome, Astana – Milan, as well as flights from Italy via Aktau to India.
Central Asia+Italy meeting to be held in Rome in 2024
In a joint statement, Tokayev and Meloni reaffirmed the two countries’ desire to create a solid and promising foundation for cooperation between the European Union and Central Asia, as well as to strengthen regional dialogue in Central Asia.
According to the text of the statement, a meeting in the CA+Italy format will be held in Rome in 2024, and such a meeting in 2025 in 20025.
Signed documents
Documents signed following the meeting of President Tokayev with the President of the Council of Ministers of Italy Giorgia Meloni.
- Agreement on the status of burial sites of servicemen killed during World War II between the Government of the Republic of Kazakhstan and the Government of the Italian Republic;
- Memorandum of Understanding and Cooperation between the Ministry of Justice of the Republic of Kazakhstan and the Ministry of Justice of the Italian Republic;
- Memorandum of Understanding between the Ministry of Culture and Information of the Republic of Kazakhstan and the Ministry of Culture of the Italian Republic;
- Memorandum of Understanding between the Ministry of Science and Higher Education of the Republic of Kazakhstan and the Ministry of Universities and Research of the Italian Republic;
- Memorandum of Understanding between the Academy of Public Administration under the President of the Republic of Kazakhstan and the National School of Public Administration of the Italian Republic;
- Agreement between the Kazakhstan Fund “Samruk –Kazyna” and the Italian group of companies Cassa Depositi i Prestiti on the creation of a joint investment fund and investment in the fields of manufacturing, energy and logistics;
- A joint final investment decision between the Kazakh national company KazMunaiGas and the Italian company ENI on the implementation of a joint project for the construction of a hybrid power plant (WPP, SPP) with a total capacity of 247 MW.
Documents signed following the results of the investment round table
- Cooperation Agreement between JSC Samruk-Kazyna and Cassa Depositi e Prestiti SpA
- Joint final investment decision between JSC NC KazMunayGas and ENI
- Project Implementation Agreement between JSC Samruk-Kazyna, TOO Qazaq Stroy and Ballestra
- Memorandum of Cooperation between the Development Bank of Kazakhstan and SACE
- Memorandum of Cooperation between JSC NC KAZAKH INVEST and Simest
- Memorandum of Cooperation between NCE “Atameken”, “Confindustria” and “Confindustria Kazakhstan”
- Cooperation Agreement between Samruk-Energo JSC and Ansaldo Energia SpA
- Memorandum of Cooperation between JSC “National Welfare Fund “Samruk-Kazyna” and “ENI”
- Memorandum of cooperation between JSC “National Welfare Fund “Samruk-Kazyna” and “Maire Tecnimont”
- Memorandum of Institutional cooperation between the Development Bank of Kazakhstan and SACE
- Framework Agreement between KazTransKaz Aimak JSC and Pietro Fiorentini SpA (an Italian company that develops, designs and creates technologically advanced solutions for the natural gas supply chain)
- Memorandum of Cooperation between the Ministry of Transport of the Republic of Kazakhstan and NEOS Airline
- Agreement between KIID and Cormatex
- Project implementation agreement between Qyzyljar and PROSOL (a leading Italian company producing ingredients for human nutrition, infants and animals)
- Memorandum of Understanding between QazaqGaz Scientific and Technical Center and Nuovo Pignone International (Center of Excellence for the design and production of gas turbines)
- Memorandum of Cooperation between the L. N. Gumilyov Eurasian National University, the Union of Green Hydrogen of Kazakhstan and GREEN SPARK ITALY SRL
- Memorandum of Cooperation between TNK AGROFIRMA LLP and Bonifiche Ferraresi
• Memorandum of Cooperation between KazTransGas Aimak and ENI. ///nCa, 20 January 2024 (photo credit – Akorda)