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EBRD plans to invest 1.25 bln euros in Kazakhstan for China-Europe cargo route

The European Bank for Restoration and Development plans to invest 1.25 billion euros ($ 1.36 billion) in 2 Kazakh projects to increase the capacity of a ChinaEurope cargo transport route bypassing Russia, the head of the EBRD said on Friday.

The route, called the Trans-Caspian or Middle Corridor, is shorter than a northern route through Russia and is becoming significantly crucial for East-West trade offered Western sanctions on Moscow due to its invasion of Ukraine.

The land and sea transportation corridor for products would be an economic advantage for nations whose territories it crosses, including Kazakhstan, Azerbaijan and Georgia.

The Trans-Caspian job, I imply, the development of the connection as an option to the Russia trade pattern is very essential, EBRD President Odile Renaud-Basso told Reuters.

She stated EBRD had signed a memorandum of understanding with the Kazakh state train business for a potential 750 million euro investment. The other project, worth 500 million euros, is to rehabilitate the Aktobe-Ulgaisyn roadway in Kazakhstan's Western Aktobe region, she said in an interview.

The bank is likewise purchasing green energy projects in Kazakhstan and the Main Asian area as an entire, Renaud-Basso said, pointing out a battery energy storage job for renewable manufacturers in Uzbekistan as an example.

EBRD likewise prepares a 270 million euro deal with Kazakh state electrical grid operator KEGOC to connect more renewable energy producers to the grid.

She stated the bank, which this year purchased a 5% stake in Kazakh flagship carrier Air Astana throughout its preliminary public offering, was keen to participate in more privatisation offers.

The EBRD anticipates Kazakhstan's economy to grow 5.5% next year compared to this year's 4% growth, partially due to the expansion of the huge Tengiz oilfield.

(source: Reuters)