On the Importance of Black Sea Ports
Translated from Russian with the help of AI. Original: Russian version
On the importance of Black Sea ports, the Trans-Caspian corridor and Kazakhstan's possible participation in the BSTDB for logistics and trade.
Kazakhstan's nearest seaports are those on the Black Sea, reached through Russia and Georgia. Kazakhstan has no direct access to them, which is a major obstacle to building efficient logistics routes. Kazakhstan even owns a port of its own, in Batumi. In the current geopolitical situation, having alternative routes is critically important, which makes a multi-vector policy in the Black Sea region increasingly relevant. By using the Caspian Sea and its established relations with Azerbaijan and Georgia, Kazakhstan can make effective use of this corridor to transport a wide range of cargo. President Kassym-Jomart Tokayev has repeatedly spoken about the importance of developing this route.
Recently, Teniz Capital Investments Banking placed on the AIX the first tranche, worth USD 100 million, of a bond programme of the Black Sea Trade and Development Bank (BSTDB). The financial infrastructure created at the AIFC is becoming an important part of Kazakhstan's regional development strategy, and we have yet to make full use of its potential.
The BSTDB is one of the oldest development institutions, operating since 1997. Its shareholders include 11 countries, among them states with no direct access to the Black Sea that nonetheless recognise the importance of taking part in the initiative: Albania, Greece, Azerbaijan and Armenia.
The bank finances infrastructure projects in its shareholder countries. Despite geopolitical tensions between some of the Black Sea states, it has worked effectively by keeping its activities free of politics.
Apart from oil from the countries of our region, China is one of the main suppliers of cargo to the Black Sea region. Using the Middle Corridor, the so-called Trans-Caspian International Transport Route, China delivers millions of tonnes of cargo to Europe and other countries. Kazakhstan plays a key role on this route, since the longest overland section runs through our territory.
In this respect, it is crucial for Kazakhstan to take part in Black Sea projects. Yet Kazakhstan is not a member of the BSTDB, even though the bank, recognising the importance of developing relations with Kazakhstan, chose the AIFC as the venue for raising investment. We should therefore pay attention to this institution and perhaps build closer relations with it at the government level, which is not happening at present.