By Vusala Abbasova
Current negative trends in the global economy have significantly affected the Central Asia economy.
The situation in Ukraine and the sanctions imposed on Russia, as well as the current situation of the Russian ruble had an impact on Kazakhstan linked to Russia through Customs Union.
The occurrence of the crisis decreased Kazakhstan's trade turnover with the Eurasian Economic Union (EEU) countries by 21 percent for the first half of current year, in comparison with the same period of last year, according to the Statistics Committee of the Ministry of National Economy of Kazakhstan.
The total amount of the trade turnover amounted to $7.806 billion, including the country's export in the amount of $2.351 billion (decrease by 26.8 percent) and the import in amount of $5.455 billion (less by 18.2 percent) for the reported period.
Kazakhstan exports mainly mineral products that amounted to 51.3 percent of total exports to the EEU, while chemical products totaled 20.3 percent, metals and metal products made up 16.7 percent, and livestock products, ready food products reached 4.0 percent.
Kazakhstan mostly imported cars and equipment from the countries of the EEU, which is amounted to 30.8 percent of total imports from the EEU, while the imported mineral products made 15.0 percent, metals and metal products totaled 14.5 percent, chemical products - 14.0 percent, and products of animal and vegetable origin, prepared foodstuffs -12.9 percent.
The close economy ties between Russia and the Central Asia countries became the reason of the economic slowdown in the region.
The investment climate in the region for the last year became too risky for the foreign investors because of the sanction war between the West and Russia and the decrease of oil prices, which fell below $50 a barrel in half a year, according to the report of the Minchenko Consulting communications holding.
The expansion of the so-called Islamic State of Iraq and Levant (ISIL) project is also a potential risk for the Central Asian region as well. Geopolitical turbulence and unfavorable conditions in the global commodity markets negatively affect the region’s investment attractiveness.
Moreover, the fall in the world oil prices will force many oil production companies operating in Kazakhstan to revise their production and investment plans.
Experts believe that Kazakhstan’s oil production is likely to decrease given the oil price decline in the world oil market.
The country’s statistics show that Kazakhstan decreased oil and gas condensate production by 1.2 percent in January – December 2014 as compared to the same period of 2013. The country produced 67.927 million metric tons of oil in this period (2.2 percent decrease).
The energy-rich Kazakhstan has three largest projects such as Karachaganak, Kashagan, and Tengiz, whose development and expansion influence on the production of country's petroleum liquids.
Karachaganak field oil reserves amount to 1.2 billion tons while natural gas reserves are estimated at 1.35 trillion cubic meters. About 49 percent of Kazakhstan's gas production and 18 percent of oil production are extracted from this field.
The large Kashagan oil and gas field is located in the north of the Caspian Sea, which oil production started in September 2013.
The Tengiz field in the west of the country is one of the deepest and largest oil fields in the world with total reserves in amount of three billion tons (26 billion barrels).
Follow us on Twitter @AzerNewsAz