Kazakhstan’s landlocked geography limits direct access to foreign markets and raises transport costs. To strengthen its role as a transit hub, Kazakhstan is prioritizing infrastructure development and alternative trade routes like the Trans-Caspian Trade Route, which connects Central Asia to Europe via the Caspian region. Russia’s war in Ukraine and resulting sanctions have accelerated these efforts, while also attracting foreign companies relocating from Russia. Despite mixed progress in Eurasian integration through the Eurasian Economic Union (EAEU)—hindered by poor implementation and rising geopolitical tensions—Kazakhstan continues to engage in multilateral diplomacy, including its 2023 chairmanship of the Shanghai Cooperation Organization and 2026 chairmanship of the Eurasian Economic Union.
Kazakhstan is undertaking structural reforms to reduce state involvement in the economy and foster a more transparent, market-driven business environment. However, its heavy reliance on oil and dependence on the Caspian Pipeline Consortium—which transports 80 percent of its crude exports through Russia—leave it vulnerable to external shocks and geopolitical risks. Complicated relations with Russia and global oil market fluctuations continue to weigh on macroeconomic stability. While Kazakhstan has improved its standing in the Corruption Perception Index, moving from 124 in 2018 to 88 in 2024, corruption remains entrenched.
The government has announced multiple reform initiatives and maintains active dialogue with U.S., U.K., Canadian, and EU stakeholders to improve the investment climate. Key areas of concern include strengthening the rule of law, enforcing intellectual property rights, increasing transparency and predictability in regulatory development, ensuring consistent legal interpretation, modernizing outdated standards, and reforming tax enforcement.
For more information on the investment climate, see the 2025 State Department Investment Climate Statement.