Why are Russians willing to “sprinkle money” in Kazakhstan?

In recent years, Russian investors have looked abroad in search of financial stability and asset diversification. According to data from the Central Bank of Russia, Russians will deposit more than 5.8 trillion rubles in foreign banks in 2023.

The main destinations for Russians are the CIS countries, Georgia and Turkey, and Kazakhstan was one of the most popular destinations for asset transfers last year and this year. Whether it is from the perspective of saving money or investing in the international market, Kazakhstan is very popular. why is that?

Save and add value

Regardless of what is happening in the political arena, the desire to save and make money with money has only grown, given concerns about new sanctions and risks to the Russian economy. A weak ruble and a recovery in U.S. stocks will only fuel that desire.

Why Kazakhstan has become a popular investment platform? Kazakhstan is a friendly region for Russia, with almost all experts applauding the country’s financial and digital infrastructure.

Some advantages of Kazakhstan’s investment environment:

convenient language

It is easier to open an account at a bank or agency in Kazakhstan than in other countries. In addition, a lot of software is in Russian, and the company provides professional Russian services.

common background

Over the past 30 years, Russia and Kazakhstan have accumulated rich experience in exchanges and formed a solid regulatory and legal framework. The two countries have played an important role in the process of integration in the post-Soviet space, especially within the framework of the Eurasian Economic Union.

reliable mechanism

On the one hand, there is the geographical proximity, and on the other hand, the mechanism of parallel imports, which allows you to avoid sanctions restrictions. As is customary, the Russian company moved its offices to Kazakhstan, from where it can export its products without restrictions. Of course, this is also good for Kazakhstan – this is how new jobs are created and the tax base grows.

longest border

Has the longest border in the world. According to the Eurasian Development Bank, about 80% of Kazakhstan’s GDP is formed in the region bordering Russia, while Russia accounts for 20%.

In addition, Kazakhstan itself, as a hub leading to the world market, can truly become a “safe haven”. President Tokayev’s foreign policy focuses on peace and cooperation, which is one of the reasons for attracting Russian investors.

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