Nur-Sultan, Kazakhstan – The European Union and Kazakhstan have recently signed four memorandums worth over 800 million euros at the Global Gateway Investors Forum for the EU – Central Asia Transport Connectivity. One of the main goals of these deals is to further develop the Middle Corridor, representing an alternative to the existing East-West routes. According to a recent article in Geopolitics, the energy-rich country has offered its Caspian Sea ports of Aktau and Kuryk, as well as 22 airports, to European investors for management to build a strong transit hub between Asia and Europe.
Nikola Mikovic, the author of the article, states that about 85% of goods in transit on land from China to Europe are transported through Kazakhstan. The country plays a significant role in the transportation of oil to the European Union and several other European countries outside the EU. The Mangystau province, where the Caspian Sea ports of Aktau and Kuryk are located, is seen as key to developing the Middle Corridor (the Trans-Caspian International Transport Route).
Kazakhstan is among the top exporters of oil to the countries of the European Union, with the Atyrau and Mangystau provinces being the primary suppliers. In 2023, the EU accounted for two-thirds of the total export of Kazakh oil, and Europe as a whole, for almost three-quarters of it.
The Central Asian nation produces approximately 1.8 million barrels a day (mb/d), equivalent to 2 percent of the world’s total oil output. Last year, Kazakhstan has been delivering a little less than 1.0 mb/d to the EU, and a little more 1.0 mb/d to Europe as a whole. This makes Kazakhstan a crucial player in the global oil industry, as it is a major supplier for the European Union.
However, the article also sheds light on the ongoing oil workers’ strikes in the Mangystau province, which have been ongoing for several months. The International Trade Union Confederation has demanded that all sanctions against the striking workers be dropped and that necessary measures are taken to ensure the resolution of the labor dispute through social dialogue and in line with the principle of freedom of association.
The strikes have impacted the cities of Aktau and Zhanaozen, as well as the village of Zhetybai and the Tupkaragan district, where hundreds of local people are on strike. Despite efforts by Kazakhstan’s national oil company to end the strike and solve problems through constructive dialogue, the conditions in the region are unlikely to change in the near future.
Zhandarbek Кakishev, a former member of the Republic of Kazakhstan Parliament Senate, has warned of the potential for a social explosion in Kazakhstan’s oil-producing region if the current situation persists. These protests and strikes serve as indications that little has changed for the better in the region since the January Events of 2022.
As the situation unfolds, it remains to be seen how Kazakhstan and the EU will address the ongoing labor dispute and its implications for the oil industry and transportation sector. The future of Kazakhstan’s role in the global oil market and its relationship with the EU may be influenced by the outcomes of these strikes and the efforts to address the underlying issues in the region.