Kazakhstan Quadruples Oil Production, Boosts Exports to Germany

Kazakhstan's oil production has grown fourfold since independence, with the country nearing an annual output of 100 million tons, underscoring the strategic importance of the sector for the nation's economy. President Kassym-Jomart Tokayev highlighted ongoing modernization of key refineries and major projects such as a new gas processing plant and a polyethylene plant with over $7 billion in investments, aimed at boosting energy potential and job creation. In 2025, oil exports to Germany via the Friendship pipeline increased by nearly 19%, reaching 190 thousand tons in August, with plans to potentially double annual exports if demand rises. Meanwhile, Kazakhstan's agro-industrial complex continues steady growth with a 3.7% increase in gross agricultural output and significant capital investments supporting food production. However, the country faces inflationary pressures as annual inflation accelerated to 12% in August 2025, driven by rising prices in food and non-food sectors, including meat, oils, utilities, and gasoline. These economic dynamics reflect Kazakhstan's efforts to balance growth in energy and agriculture sectors while managing rising consumer costs.