Kazakhstan and Germany Deepen Ties in Energy and Critical Minerals

Kazakhstan's Prime Minister Olzhas Bektenov and German Minister for Economic Affairs and Energy Katherina Reiche met in Astana on June 29 to discuss expanding cooperation in investment, industry, energy, transport logistics, and critical minerals. The meeting marked a significant step in deepening the strategic partnership between the two countries. Bektenov emphasized that Germany is one of Kazakhstan's key trade, economic, and investment partners in the European Union, and that President Kassym-Jomart Tokayev attaches great importance to cooperation with Germany. He reported that bilateral trade reached $4.4 billion in 2025, a 9.5% increase from the previous year, and trade from January to April reached $1.4 billion, up 5.9% from the same period in 2025. Since 2005, Kazakhstan has attracted approximately $7.8 billion in German investment, with last year's investment rising by 28.5% to $700 million.

Bektenov stated that the goal is to transform traditional trade and investment cooperation into a more advanced industrial and technological partnership. He expressed interest in taking industrial cooperation to a new level through production localization, technology transfer, and training of highly qualified personnel. The officials pointed to the experience of CLAAS and Horsch in Kazakhstan's agricultural machinery sector as evidence that phased production localization can work, and suggested that the model could be expanded to other industries. Reiche, who is the first German economy minister to visit Kazakhstan in 19 years, commended the development of bilateral ties and said there is ample room to expand them. She stressed that supply security requires diversification and concrete projects, not declarations of intent.

Reiche noted that in 2025, Kazakhstan was Germany's fourth-largest oil supplier, delivering 10.4 million tons. She emphasized that a future-ready industry in Germany needs raw materials mined in Kazakhstan, while Kazakhstan needs German capital and technology to create more value added domestically. She described the relationship as a long-term partnership with clear benefits for both sides, not one-sided supply contracts. As a strategic partner, particularly in energy and raw materials, Kazakhstan can help strengthen Germany's economic resilience and supply security. Deeper trade relations, new industrial value chains, and complementary strengths are expected to support shared growth and economic momentum.

Reiche also met with Kazakhstan's Minister of Energy Yerlan Akkenzhenov to discuss expanding technological partnership and investment in infrastructure. They explored opportunities for further supplies of Kazakh oil to Germany to meet production demand from key enterprises. The ministry stated that export logistics are being adjusted in a timely manner to current macroeconomic conditions, and Kazakhstan is flexibly redirecting flows to fulfill commercial agreements with partners, including via the Caspian Pipeline Consortium (CPC) and alternative routes.

These developments indicate that economic relations between Kazakhstan and Germany are evolving beyond mere trade volumes into a deepening partnership in strategic sectors. Cooperation in energy and critical minerals is particularly crucial for both countries' energy security and economic diversification goals. Germany's efforts to reduce energy dependence on Russia and Kazakhstan's strategy to attract foreign investment make this partnership even more significant. In the coming period, the cooperation between the two countries is expected to strengthen further with new projects and investments.