TEHRAN – Iran and Kazakhstan signed a memorandum of understanding (MOU) to invest in and develop a dedicated terminal and logistics center at Shahid Rajaee Port, the country’s largest commercial port on the Persian Gulf.

The agreement was signed in the presence of Kazakhstan’s ambassador to Iran, senior officials from Kazakhstan’s Export Development Fund, and Saeed Rasouli, acting head of Iran’s Ports and Maritime Organization (PMO), along with members of the organization’s executive board.

Rasouli stated that Iran is prepared to review Kazakhstan’s business plan within a month of receiving it and will finalize a model contract following approval. Under the terms of the MOU, the Kazakh government is expected to submit its investment plan within three months.

“Iran serves as Kazakhstan’s gateway to open waters,” Rasouli said, emphasizing Iran’s support for foreign investment, including Kazakhstan’s, as part of efforts to enhance trade and transit cooperation between the two countries. He noted that with 1,800 kilometers of coastline and access to international waters, Iran has substantial potential for logistics and transit development with neighboring nations.

He also reassured stakeholders that despite a recent fire incident at Shahid Rajaee Port in Hormozgan Province, port operations continue at full capacity. “Currently, 35 vessels carrying oil, mineral, and containerized cargo are docked and being serviced without disruption,” Rasouli said, assuring shipping companies and traders of uninterrupted access to maritime and port services.

Hormozgan Governor Mohammad Ashouri echoed the government's commitment to expanding and equipping Iran’s commercial ports and said the Kazakh investment would directly enhance bilateral trade and economic relations between Tehran and Astana.

Kazakhstan’s Ambassador to Iran, Ontalap Onalbayev, expressed condolences over the recent incident at the port and described the investment as a strategic opportunity for Kazakhstan. He thanked Iranian authorities for their cooperation in facilitating the joint project and said the development of a logistics hub in Bandar Abbas would strengthen bilateral ties.

Kazakhstan’s Export Development Fund chairman Mohammad Kaldybayev called Shahid Rajaee Port a key gateway for Kazakh exports and imports and praised Iran’s Ports and Maritime Organization for its support.

Iran signals readiness to export engineering services to Kazakhstan

In a related development, Iran’s Vice President and head of the Planning and Budget Organization Seyed Hamid Pourmohammadi met with Kazakhstan’s Deputy Prime Minister Galymjan Koishibaev on the sidelines of the first ECO Sustainable Development Forum in Arkadag, Turkmenistan.

Pourmohammadi conveyed Iranian firms’ readiness to export technical and engineering services to Kazakhstan. He proposed establishing a barter settlement system for goods and services and recommended that the Kazakh ambassador in Tehran be tasked with deepening bilateral relations.

“I propose that one Iranian and one Kazakh company be designated to open new avenues of cooperation between the two countries,” he said.

Koishibaev confirmed that strengthening ties with Iran is a priority of Kazakhstan’s foreign policy and said Kazakhstan is interested in importing dates, fruits, and vegetables from Iran. He also stressed the need to enhance transport links, revive trade corridors, develop port infrastructure, and strengthen railway connectivity between the two countries.

Iran’s non-oil export to Kazakhstan increases 38.5% in a year

The value of Iran’s non-oil export to Kazakhstan increased by 38.5 percent in the past Iranian calendar year 1403 (ended on March 20), as compared to the preceding year, Trend News Agency reported.

As reported, Iran exported about 360,000 tons of non-oil goods worth $203 million to Kazakhstan in the previous year, indicating also two percent growth in terms of weight, year on year.

Iran had exported 353,000 tons of non-oil commodities valued at $146 million to Kazakhstan in the Iranian year 1402.

Iran-Kazakhstan non-oil trade stood at 470,000 tons wort $244 million in the previous Iranian year.

Agricultural products and foodstuffs, tobacco products and petrochemicals were the major non-oil goods exported from Iran to Kazakhstan in the past year.

The growth in export volume reflects the expansion of economic cooperation between the two countries and the increasing interest of the Kazakh market in Iranian products.

In mid-February, Iran and Kazakhstan reaffirmed their commitment to expanding economic and trade relations, with both countries aiming to increase bilateral trade to $3.0 billion.

During a business forum in Tehran attended by Iranian Agriculture Minister Gholamreza Nouri Ghezeljeh and Kazakh Trade and Integration Minister Arman Shakkaliyev, officials and private sector representatives discussed economic cooperation.

Nouri emphasized that while Iran and Kazakhstan have made continuous efforts to enhance political, economic, and cultural ties, their collaboration still falls short of its full potential.

He highlighted the importance of bilateral trade in sectors such as agriculture, mining, tourism, and industry, noting that Iran’s strategic position in West Asia and Kazakhstan’s role in Central Asia create exceptional opportunities for businesses.

He also stressed the need for stronger trade infrastructure, enhanced transport links, and supportive policies to facilitate sustainable economic growth.

Nouri pointed to the roadmap agreement signed between the two governments, which sets a $3.0 billion trade target, as a sign of their serious commitment to expanding ties.

He also underscored the importance of addressing banking and trade regulations, resolving quarantine issues related to livestock and plant products, and fostering mutual trust to support commercial exchanges.

Also during the forum, Shahpour Alaei-Moghaddam, Iran’s deputy minister of agriculture, described the growing trade between Iran and Kazakhstan as a reflection of Tehran’s broader regional engagement strategy.

He noted that bilateral trade reached $302 million in the first 11 months of 2024, marking an 8.1 percent increase compared to the previous year.

He also pointed to the formation of joint agricultural committees, trade agreements, and research collaborations as key tools in strengthening economic ties.

During his visit to Tehran, Shakkaliyev also met with Iran’s Minister of Industry, Mining, and Trade Mohammad Atabak in which Atabak also reiterated that that Tehran and Astana aim to increase their economic and trade exchanges to $3.0 billion, in line with agreements reached by the leaders of both countries.

He emphasized that the Eurasian Economic Union (EAEU) trade agreement would facilitate interbank transactions between Iranian and Kazakh traders.

In the meeting, which was also attended by the Kazakh ambassador to Tehran, and an accompanying economic and trade delegation, Atabak noted that despite the long-standing economic and commercial ties between Iran and Kazakhstan, the current trade volume does not reflect the full potential of their relationship.

Atabak highlighted that senior officials from both countries are committed to expanding trade in line with their industrial and economic capabilities, stating that achieving a $3.0 billion trade volume is within reach.

He pointed out that banking obstacles remain a major challenge in bilateral trade, but under the EAEU agreement, these barriers are expected to be removed.

The official emphasized Iran’s extensive mineral resources, stating that Iran can supply all types of metallic and non-metallic minerals required by Astana. He also noted that barter trade could be an option based on mutual needs.

He also highlighted Iran’s expertise in various fields, including technical and engineering services, and expressed interest in expanding knowledge exchange and cooperation in these sectors.

He stressed the importance of logistics and railway transport in boosting trade volume between the two countries.

Atabak welcomed the prospect of mutual food exports and underscored the need to meet agreed-upon standards.

He concluded by announcing the formation of a working group to operationalize areas of cooperation at the expert level, assigning specialized deputy ministers from the Industry, Mining, and Trade Ministry to oversee various aspects of Iran-Kazakhstan collaboration.

In a separate meeting, Iranian Chamber of Commerce Head Samad Hassanzadeh stressed that trade volume between the two countries does not reflect their full industrial and commercial potential.

He noted that Iran currently imports agricultural products and semi-assembled engines from Kazakhstan, while Iran has strong export potential in food industries, petrochemicals, engineering services, and construction projects.

Hassanzadeh called for the swift implementation of previous trade agreements, pointing out that many signed memorandums have not been effectively put into practice.

He also suggested expanding tourism and academic exchanges, including student scholarships, to deepen bilateral cooperation.

He emphasized that overcoming logistical and banking hurdles would be essential to reaching the $3 billion trade target.

Amir Abedi, head of the Iran-Kazakhstan Joint Chamber of Commerce, identified financial transactions as the main barrier to trade expansion, urging both governments to facilitate banking operations and ensure Iranian businesses can operate smoothly in Kazakhstan.

EF/MA