Iran-Kazakhstan partnership expands in energy and trade

Iran and Kazakhstan are expanding their economic and strategic cooperation, highlighted by the visit of Iran’s President Masoud Pezeshkian to Astana and Ashgabat. The visit focused on transport, energy, agriculture, and logistics, showing Iran’s role as a key southern route for Kazakh exports.

Iran’s ports on the Caspian Sea and Persian Gulf and its rail network offer Kazakhstan shorter and more secure access to global markets compared with traditional Russian routes. Kazakhstan, with limited maritime access, relies on Iran as the only Central Asian partner providing a southern corridor.

Since 1999, the Neka port in Iran has been used for oil swaps, allowing Kazakhstan to deliver crude northward while receiving southern volumes in return. The system grew from 1,600 barrels per day in 2002 to 2.4 million tons in 2006, though much of Iran’s capacity remains unused.

Discussions continue about resuming these swaps and building a larger pipeline through Turkmenistan, capable of transporting 1 million barrels per day, though US opposition has delayed the project.

Kazakhstan’s foreign policy focuses on diversification, maintaining ties with Russia and China while engaging with the West. Cooperation with Iran provides an alternative route for energy exports and reduces reliance on a single corridor.

For Iran, its proximity to Central Asia and access to the sea position it as a regional trade and transport hub. Investments in ports, rail links, storage, and border facilities improve the flow of Central Asian energy through Iran and support Iranian trade. Sanctions limit full potential, but existing oil swap and transit arrangements provide a working framework.

Agriculture is also a key area of trade. Kazakhstan exports over 500,000 tons of barley annually to Iran, meeting domestic demand while providing Kazakh farmers access to a large market. Plans for joint economic zones in Golestan and Mangystau provinces aim to expand cooperation in manufacturing, logistics, and infrastructure.

Currently, about 700 Iranian companies operate in Kazakhstan, mainly in industry, agriculture, and infrastructure, while Kazakh firms invest in Iran in mining, food production, logistics, and transportation. Energy resources form the backbone of this relationship, with Kazakhstan holding the largest oil reserves in Central Asia and Iran possessing 137.6 billion barrels of oil and 1,045 trillion cubic feet of gas.

Transport integration is advancing through a three-country railway linking Kazakhstan, Turkmenistan, and Iran over nearly 900 kilometers. This railway will make it easier to move grain and industrial goods, providing an alternative to routes through Russia.

Cultural and historical ties, including shared heritage along the Silk Road and Kazakh communities in Iran, support economic collaboration. Programs planned from 2026 to 2028 will expand educational, cultural, and scientific cooperation, deepening the partnership beyond trade and energy.

Overall, energy swaps, transport corridors, joint economic zones, and cultural programs are creating a multi-dimensional Iran-Kazakhstan relationship, integrating economic, strategic, and soft power priorities. The partnership strengthens Kazakhstan’s southern access for exports while enhancing Iran’s role as a regional hub.

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