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The event is themed as “Fulfilling the potential of trade and economic cooperation between Russia and Kazakhstan: New challenges and opportunities.”

Following the plenary session of the forum, the leaders of Russia and Kazakhstan took part, via videoconference, in the opening ceremony of a branch of Al-Farabi Kazakh National University at Dostoevsky Omsk State University. This is the first branch of a Kazakhstani university to open in Russia. Vladimir Putin and Kassym-Jomart Tokayev authorised the initiation of the university branch’s registration procedure.

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President of Russia Vladimir Putin: Mr President, friends,

I would like to extend a wholehearted welcome to the participants and hosts of the 20^th anniversary Russia-Kazakhstan Interregional Cooperation Forum, which is taking place in Ufa.

Regional ties are absolutely important. In fact, they are the foundation that makes the progressive and sustainable development of our bilateral relations possible. It makes absolute sense that the most recently held Russia-Kazakhstan regional forums have been held concurrently with the top-level visits.

Notably, during today’s talks with President of Kazakhstan Tokayev, the issues of strengthening mutually beneficial partnerships between the constituent entities of the Russian Federation and the regions of the Republic of Kazakhstan took the centre stage.

We have approved a large-scale programme of interregional and cross-border cooperation, which includes about 150 joint initiatives aimed at creating favourable conditions for the comprehensive development of the regions of the two countries, improving the quality of life, and diversifying Russia-Kazakhstan economic ties.

Your Forum is also devoted to trade and investment cooperation between Russia and Kazakhstan, and as far as we know, you are discussing in detail its various aspects ranging from building up cross-border trade and investment and expanding industrial cooperation to developing logistics infrastructure and improving transport connectivity and boosting tourism and youth exchanges. We discussed this today as well.

Representatives of 30 constituent entities of the Russian Federation and 13 Kazakh regions have gathered in Ufa. These regions are most widely involved in practical activities to expand bilateral ties.

The overall commitment of all Forum participants to achieving concrete results and seeking to implement new projects is critical. This is evidenced, in particular, by an impressive set of interregional agreements, memorandums, and business contracts scheduled for signing.

Importantly, Kazakhstan has firmly established itself as our country’s key economic partner. In turn, Russia is Kazakhstan’s second largest investment partner and foreign trade counterparty. As of the end of last year, bilateral trade reached a record high at nearly $30 billion, and in January-September of this year, it exceeded the $20 billion mark. Moreover, business transactions between the border regions of the two countries account for a significant portion of mutual trade.

Russia is among the largest investors in Kazakhstan’s economy as well. The total amount of Russian accumulated capital investment in Kazakhstan stands at $13 billion. Currently, about 60 large joint investment projects are being implemented in machine building, the chemical industry, and agriculture. Notably, the regions of the two countries make a significant contribution to implementing them.

Our companies from the Urals, Volga, and Siberian Federal Districts are actively engaged in Kazakhstan's energy development programmes. In April, an intergovernmental agreement between Russia and Kazakhstan was formalised, stipulating the construction of new contemporary power plants in the regional centres of Kokshetau, Semey, and Ust-Kamenogorsk. A joint project to upgrade hydroelectric generation facilities on the Kazakh segment of the Irtysh River is presently under consideration. The Russian company, RusHydro, expressing interest in participation, possesses extensive expertise in the construction of hydroelectric power stations in full compliance with environmental safety standards and sustainable water management practices.

Rostselmash has effectively localised the manufacturing of tractors and combine harvesters within enterprises situated in the Akmola Region. Kazakhstan enjoys a continuing supply of components and spare parts for Russian and collaboratively manufactured agricultural machinery icluding from the Rostov and Chelyabinsk Regions.

In September, the production of engine components for KAMAZ lorries commenced in the Kostanay Region, with the enterprise anticipated to achieve its full operational capacity in the first quarter of 2025. In the Karaganda Region, the production of car tyres has been initiated with Tatneft's involvement. A Russian-Kazakhstani enterprise producing mineral fertilisers is operational at the Karatau phosphorite deposit in southern Kazakhstan. In February, production of thermal insulation materials, under the Russian brand TekhnoNikol, began at the Kairat industrial zone in the Almaty Region. A polyethylene plant is currently under construction in the Atyrau Region, with its products intended for distribution not only within the regions of Russia and Kazakhstan but also to third countries’ markets. This commodity is in high demand globally.

The regional authorities are vigorously supporting efforts at the governmental level in Russia and Kazakhstan to establish a unified transport infrastructure, as extensively discussed today. They aim to optimise logistical corridors and enhance the traceability of goods. The eastern route of the International North–South Transport Corridor, extending from Russia and Belarus to the Indian Ocean coast, traverses Kazakhstan. Since the year's commencement, over one million tonnes of cargo have been transported via this corridor.

Interregional collaboration in science and innovation is advancing dynamically. For instance, researchers from Moscow's Kurchatov Institute and Tomsk Polytechnic University are engaged in work on the Kazakhstan Material Testing Tokamak. In concert with their Kazakh counterparts, they are conducting pioneering research in fusion, physics, plasma, and advanced energy sources.

Numerous educational institutions in Moscow, St. Petersburg, the Volga Region, Siberia, and the Urals maintain robust connections with Kazakh partners. Russian universities are instrumental in training highly skilled personnel for Kazakhstan's economy, with approximately 60,000 Kazakh students currently pursuing studies in our country.

Overall, Russia and Kazakhstan possess a wealth of experience in constructive collaboration, presenting extensive prospects for further cooperative endeavours. We anticipate that the regions will persist in making substantial contributions to the development of the Russian-Kazakh comprehensive partnership. I am confident that the President of Kazakhstan shares my sentiment that the leadership of both countries will continue to endorse all your beneficial initiatives.

I wish the participants of the Ufa Forum every success and the very best. Thank you for your attention.

President of Kazakhstan Kassym-Jomart Tokayev: Mr President, forum participants,

I am delighted to welcome you to the 20^th anniversary Kazakhstan-Russia Interregional Cooperation Forum.

It is symbolic that the Forum is taking place in Ufa, a unique city with a dynamically developing economy and rich cultural heritage. We know that Ufa recently marked its 450^th anniversary.

Over two decades, the Forum has become an effective venue where the tone is set for strengthening the strategic partnership between our countries.

Cooperation in trade and economic and investment spheres, as well as industrial cooperation, demonstrates steady growth dynamics. The Russian President has just mentioned this. Indeed, trade numbers are up and last year it reached an impressive $27 billion, with Russia accounting for almost 20 percent of Kazakhstan’s foreign trade. The total volume of direct Russian investment has approached $25 billion. The annual inflow of investment has grown significantly, doubling to $3 billion as of the end of last year.

There are 23,000 Russian and joint venture companies successfully operating in Kazakhstan, which makes almost half of all our enterprises with foreign participation. In cooperation with leading Russian companies, high-tech projects are being implemented in areas such as the production of polyethylene, butadiene, mineral fertiliser, machine-building equipment, and hydrocarbon production. This clearly demonstrates the high level of economic integration between our countries.

I am confident that today’s Forum will become a starting point for developing new coordinated approaches to expanding trade and economic cooperation between the two countries on the principles of mutually beneficial and equal partnership. In this regard, I would like to elaborate on the key issues of inter-sectoral cooperation.

First, cooperation in the fuel and energy sector between our countries has reached a whole new level. In conjunction with Lukoil, we began to develop a large Kalamkas Sea – Hazar offshore field. The investment in the project will amount to over $6 billion.

In addition, Russian partners are widely involved in carrying out oil and gas chemical projects. In conjunction with SIBUR, in 2022 we commissioned the largest polypropylene plant in Central Asia with a capacity of 500,000 tonnes per year. Today, this enterprise not only provides raw materials for Kazakhstani processing facilities, but also exports products to Russia, China, Turkiye and other countries.

In September, construction of a polyethylene plant with a capacity of 1.2 million tonnes per year began. Jointly with Tatneft, a project on butadiene production with a capacity of 340,000 tonnes per year is being implemented.

Considerable progress has been achieved within the gas industry. For the first time, the transit of Russian gas to Uzbekistan via Kazakhstan has launched. Moreover, an agreement has been executed with Gazprom concerning the transit of Russian gas to Kyrgyzstan, and deliberations are underway regarding long-term supplies of Russian gas to Kazakhstan. These initiatives are poised to significantly bolster the energy security across the Central Asian region.

A year prior, we signed an intergovernmental agreement concerning measures to ensure the parallel operation of the energy systems of Kazakhstan and Russia. The execution of this agreement is expected to fortify the foundation of our energy sector partnership. From our perspective, we are committed to finalising the ratification of this pivotal document in the imminent future.

Practical collaboration has been established concerning the construction of thermal power plants in the cities of Kokshetau, Semey, and Ust-Kamenogorsk.

Our alliance is also advancing robustly in renewable energy resources. Projects with a cumulative capacity of 370 megawatts have already been actualised in Kazakhstan with the involvement of Russian partners. Pursuant to the agreements reached, plans are in place to initiate an additional 1 gigawatt of sustainable energy generation in the near term. There exists substantial potential for further expansion of collaboration in this domain.

Turning to the second point, this year commemorates the fifth anniversary of the programme of joint actions in industrial cooperation. Under this programme, 93 collaborative projects, attracting nearly $18.5 billion in total investment, have been realised, resulting in the creation of over 22,000 jobs.

This year, in collaboration with Tatneft, a tyre manufacturing facility with a design capacity of 3.5 million units annually was launched in the city of Saran.

In conjunction with KAMAZ, the localisation of machine-building equipment production is intensifying. This October, a significant project for the production of iron castings, with a capacity of up to 40,000 tonnes annually, was launched in Kostanay. The opening of a plant for manufacturing drive axle components is anticipated next year.

Currently, 49 additional projects, involving an investment in excess of $29.5 billion and the creation of approximately 20,000 jobs, are in progress. EuroChem and Uralchem are engaged in large-scale projects in the Jambyl Region for the production of mineral fertilisers. The commencement of these facilities will not only satisfy domestic market demands but will also enable export activities. Furthermore, 26 additional projects are being developed, which will enhance industrial cooperation between our nations.

Addressing the third point, Kazakhstan and Russia possess substantial potential for amplifying cooperation within the agricultural and industrial sectors. Russia has attained commendable success in developing the agro-industrial sector, import substitution, and the incorporation of contemporary technologies within the industry. It is unsurprising that Russia currently holds the premier position in the structure of Kazakhstan's foreign trade in agro-industrial commodities.

Kazakhstan is making great efforts to advance its own agro-industrial sector. This year, our agricultural workers achieved a record grain harvest of nearly 27 million tonnes. This is particularly noteworthy in the year marking the seventieth anniversary of the commencement of Kazakhstan's virgin lands development.

Moreover, we have embarked on numerous large-scale projects aimed at diminishing reliance on imports for essential food products. Over the forthcoming years, 116 state-of-the-art dairy farms will be established, enabling us to increase milk production by 600,000 tonnes.

Plans are underway to commission 29 meat poultry facilities with a combined capacity exceeding 220,000 tonnes of meat annually, alongside 11 egg poultry farms capable of producing 850 million eggs per year.

Our nations possess a truly colossal export agro-industrial potential. I strongly believe – as we have discussed it today – that our countries should not compete within the domestic market of the Eurasian Economic Union, nor in export markets, as such rivalry is evidently counterproductive to integration and collaboration overall.

We devoted significant attention to this issue during our discussions and have reached a consensus. Rather, we can unite our efforts to emerge as a pivotal food hub for agricultural exports to third-country markets.

Currently, China stands as a dependable partner and a consistent consumer of our products. For oilseeds and grains alone, its annual demand in global markets is estimated at approximately $90 billion, and for meat, nearly $30 billion. We can complement one another to enhance trade with our eastern neighbour.

To realise this objective, our governments need to actively pursue joint production ventures. For instance, in collaboration with the ECO-Culture company, a major project to construct a greenhouse complex spanning 500 hectares has been initiated in the Turkistan Region. There should be an increase in projects of this nature. For instance, there are substantial opportunities in deep processing of wheat, oilseeds, as well as meat and dairy products.

The fourth point pertains to reinforcing the transport and logistics infrastructure across the Eurasian region. This matter holds strategic significance for both Kazakhstan and Russia. Consequently, by 2030, we aim to repair 11,000 kilometres and build over 5,000 kilometres of new railways.

To enhance the transport sector's efficiency, advanced digital technologies are being implemented in our country. A critical priority for us is establishing a network of modern multimodal centres and dry ports internationally. A successful example of such cooperation is the construction of a new transport and logistics centre at Selyatino station in the Russian Federation. At the opposite end of the transit corridor, cargo will be amassed at the recently completed Kazakh terminal in the Chinese city of Xi'an. Thus, in effect, pivotal nodes of the unified cargo transit system along the China-Kazakhstan-Russia route are being established.

In alignment with the strategic interests of our nations, we intend to launch the construction of the new Ayagoz-Bakhty railway line, which will enhance throughput capacity towards China to 20 million tonnes annually.

We attach particular importance to the development of the critical North-South transport corridor. Last year, over two million tonnes of cargo traversed this route, yet we consider it entirely feasible to escalate this volume to 20 million tonnes per annum. As a supportive measure, Kazakhstan has introduced a 50 percent reduction on cargo transit fees along this corridor this year.

Our interest also extends to the joint development of the Trans-Afghanistan corridor, which holds the potential to become a stable and secure pathway providing access to South Asian and Middle Eastern countries.

Fifthly, the tourism sector is experiencing dynamic growth in both our countries. Kazakhstan offers visa-free travel to citizens of 86 nations and maintains direct air connections with 31 countries worldwide.

Efforts are consistently underway to enhance transport accessibility to key resort areas. Currently, comprehensive plans are being worked out to develop the Almaty mountain cluster, beach tourism along the Caspian coast, and the Shchuchinsk-Borovsk urban resort zone.

We observe with keen interest the significant achievements of the tourism industry in the Russian Federation. Our countries possess all the prerequisites for further advancement in this sector: a favourable geographical location, diverse natural landscapes, and a rich, unique historical and cultural heritage. I am of the opinion that collaborative efforts in the tourism sector can yield substantial economic benefits.

For Russian tourists in Kazakhstan, there exist no linguistic or cultural barriers. We are united by a shared culture and a common history. In the first nine months of this year alone, the mutual tourist exchange between our nations surpassed five million people.

Forum participants,

Collaborative endeavours to broaden trade and economic cooperation enable us to adapt to contemporary challenges and establish a robust foundation for the sustainable growth of our two countries' economies. It is imperative that we sustain the high calibre of our multifaceted cooperation.

Continuing efforts to simplify cross-border procedures and eliminate trade and logistics barriers are crucial to ensuring favourable conditions for Kazakh and Russian businesses. I am confident that the comprehensive package of agreements signed during the Forum, along with the specific initiatives proposed, will not only unlock the considerable potential of interregional cooperation but also provide a strong impetus for the economic development of our countries.

In conclusion, I wish to extend my best wishes for productive deliberations, prosperity, and success to all participants, and to express my gratitude to President Vladimir Putin and the Government of the Russian Federation for the exemplary organisation of the Forum in the city of Ufa.

Thank you.

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