Representatives of German business are concerned about the riots in Kazakhstan.

The ninth largest country in the world is the most important economic partner for Germany in Central Asia, said the chairman of the East Committee of the German Economy, Oliver Hermes, on Thursday and warned of damage to the economic and investment location Kazakhstan.

Othmara glass

Volunteer

  • Follow I follow

President Kassym-Shomart Tokayev issued an order to fire on Friday to get the insurgents under control.

The Internet connection was also cut and the Russian-led military alliance, Collective Security Treaty Organization, asked for help.

Moscow is said to have sent 3,000 soldiers.

Kazakhstan is also part of the Eurasian Economic Union, Russia leases the Baikonur spaceport there.

Trading turnover over 3.86 billion euros

Kazakhstan ranked 53rd among Germany's foreign trade partners in 2020, with a trade turnover of 3.86 billion euros.

In the first ten months of 2021, Kazakh exports to Germany grew by almost 47 percent to three billion euros.

At the same time, German exports there shrank by more than six percent to 1.1 billion euros.

In addition, the country is one of the most important crude oil suppliers in Germany and the EU.

According to the Commerzbank commodity experts, Kazakhstan has an oil production of 1.6 million barrels per day.

According to the Federal Statistical Office, 7.2 million tons of crude oil and natural gas were imported from Kazakhstan to Germany that year.

“It also has rare earths and other essential metals for high technology,” says Hermes.

Kazakhstan as a logistics hub

In 2012 the German government signed a raw materials agreement with Kazakhstan. Almost 100 different metals and minerals have been found in Kazakh soil so far. 30 percent of the world's chromium deposits and a quarter of all manganese ore deposits are found here, as well as large amounts of uranium, chromium, zinc, copper and iron ores. The development of the mining sector is a high priority for the government. The agreement was never actually implemented because Kazakhstan wanted direct investments in the country, but German companies were more likely to supply machines.

According to the specialist Hermes, Kazakhstan is increasingly relying on the development of green technologies, renewable energies and hydrogen.

The country could thus play an important role in the German energy transition.

"Not least as a logistical hub between the EU, the EU's eastern neighbors and Asia, the Central Asian country is of immense importance within the framework of the EU's new connectivity strategy."

Around 480 German companies are active in the country.

The Eastern Committee estimates that the German investment volume is 1.3 billion euros.

Well-known names such as the building materials manufacturer Knauf, the industrial gas group Linde, the agricultural machinery manufacturer Claas, Siemens Energy and Heidelberg-Cement are prominently represented.

In addition, more than 40 percent of the world's uranium is produced in Kazakhstan.

Uranium prices have risen nearly twelve percent since Tuesday to $ 47 a pound (453.59 grams).

Given the country's importance as the world's largest supplier of uranium, "it would be like the Saudis had problems with their oil," Jonathan Hinze, president of UxC LLC, a leading nuclear fuel market research and analysis company, told Arab news broadcaster Al Jazeera.

People would act even though there was no immediate uranium shortage.

The world's largest uranium producer Kazatomprom announced that the operation of the mines has not yet been affected by the unrest.