March 16, 2007

Energy and wheat trade continue to prosper between Iran, Kazakhstan
 

Trade and energy relations between Iran and Kazakhstan have improved over the last few years with wheat and oil as the major products being exchanged, said Kazakh ambassador to Iran Yerik Utembayev.

The trade volume between the two countries rose from US$700 million in 2004 to US$900 million in 2005. This figure stood at US$1.2 billion in the first eight months of 2006.

Utembayev said that the port of Amirabad in northern Iran is a vital point in Iran-Kazakhstan economic relations, noting that every year some 1.2 million barrels of oil are exported from Aktau (in Kazakhstan) to Iran via this port. Iran then transports this oil to the Arab states of the Persian Gulf region.

On the other hand, Kazakhstan sells Iran a good amount of wheat. He noted that a shared wheat silo under construction in Amirabad port will become operational next year.

Kazakhstan is already exporting nearly US$1 billion worth of wheat to Iran through barter deals.

The envoy said different provinces in his country had established official relations and cooperation with Iran's northern province of Mazandaran.

Meanwhile, Utembayev said, a wheat silo, which is currently being built jointly by Iran and Kazakhstan in Amirabad port, would become operational in the next Iranian year (to start March 21).

He said joint ventures between the two countries would help promote bilateral trade and are taking measures to develop oil and gas cooperation.