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Kazakhstan’s balancing act

Astana has struck a happy medium between neither antagonising nor warming to Moscow

January 3, 2025

7 min read

January 3, 2025

7 min read

Photo by Joel Heard on Unsplash.

In early 2017, the United Nations General Assembly (UNGA) officially declared December 12 the International Day of Neutrality at the behest of Turkmenistan—a member state which remains ‘frozen in time’ and walled off from much of the outside world.

Neutrality has been defined by the very same body as, “abstaining from participation in armed conflict and maintaining an attitude of impartiality”. In the context of the ongoing Russo-Ukrainian war, however, the term has become synonymous with fence-setting and sanctions-busting – particularly when it comes to emerging economies from the Global South.

Far from contenting itself with being a mere onlooker, Kazakhstan has consistently demonstrated its willingness to mediate conflicts both in the regional vicinity as well as further afield. Kazakhstan’s credibility as an honest broker stems from its aversion to ‘bloc mentality’ and embrace of multilateralism.

Having hosted 22 rounds of Syria peace talks as part of the so-called Astana Process prior to Bashar al-Assad’s unexpected deposition earlier this month, Kazakhstan pulled out all the stops to end the carnage in a theatre of war where it has little skin in the game relative to format guarantors Russia, Iran and Türkiye.

Furthermore, on May 10, 2024, the Armenian and Azeri foreign ministers held negotiations in Almaty concerning border delimitation. However elusive a lasting settlement still seems, President Kassym-Jomrat Tokayev convincing both sides to give diplomacy another chance after previous discussions in Moscow, Brussels and Washington yielded no major breakthrough reflects his administration’s preparedness to play peacemaker and bridge ostensibly irreconcilable differences between Yerevan and Baku.

As far as an increasingly assertive and result-oriented Astana is concerned, taking on the ‘Karabakh dossier’ could serve as a stepping stone to help resolve more high-stakes conflagrations in Eastern Europe and West Asia.

Lines in the sand

Ever since voluntarily surrendering the world’s fourth largest nuclear arsenal and closing down the Semipalatinsk Test Site post-independence, Kazakhstan has thrown its weight behind the global disarmament movement. It vouched for and oversaw the implementation of the Joint Comprehensive Plan of Action (JCPOA),withtwo discussions between the P5+1 (US, UK, France, Russia, China and Germany) and Iran taking place in Almaty in 2013.

In terms of boosting regional connectivity, Kazakhstan is positioning itself as a key node in the Eastern section of the International North-South Transport Corridor (INSTC)—a multi-modal trade artery stretching 7,200 kilometres from St Petersburg to Mumbai via Iran and the Persian Gulf.

Although the ‘friend to all, enemy to none’ ethos has long been woven into Kazakh statecraft, Russia’s ‘special military operation’ was a litmus test of its southern neighbour’s ability to navigate the ensuing geopolitical minefield via high-wire diplomatic manoeuvring.

In stark contrast to comparatively hawkish ex-USSR states such as Ukraine and the Baltics, Kazakhstan views Russia as an unavoidable reality it does not have the luxury of downgrading, let alone rupturing, relations with. If anything, maintaining the current status quo is an insurance policy against territorial encroachment by a former coloniser on the march with whom the Central Asian giant shares a 4,500-kilometre land border and close people-to-people links.

That said and notwithstanding more than 80 per cent of Kazakhstan’s crude oil exports passing through the Kremlin-funded Caspian Pipeline Consortium (CPC), Tokayev has never shied away from drawing a line in the sand and pushing back against blind allegiance to Russia—be it opting out of BRICS+ accession, announcing plans to scrap the Cyrillic script, banning Victory Day celebrations or refusing to recognise the independence of ‘quasi-states’ Donetsk and Luhansk while seated alongside Vladimir Putin at the 2022 St Petersburg International Economic Forum (SPIEF).

Air Astana was also among the first international airlines to cease all civilian flights to and from the Russian Federation after the full-scale of Ukraine began.

‘Win-win cooperation’

Whereas the prevailing school of thought in most Western capitals is that dialogue with Russia amounts to a lost cause, Kazakhstan does not consider silent treatment a constructive means of achieving one’s ends in the realm of international relations—however ideologically disparate the parties in question may be.

The fact that Astana recently de-listed the Afghan Taliban as a terrorist outfit on the assumption that they are here to stay speaks volumes about its ‘peace through trade’ approach vis-à-vis even the most unsavoury regimes. Mercantile considerations aside, Kazakhstan provided 2.6 billion US dollars worth of humanitarian aid to Afghanistan in 2023 and has around 4,500 Afghan students enrolled in its universities.

Over and above not making business sense, taking part in any Western-led sanctions crusade against Russia would place Kazakhstan on a slippery slope of backing future G7 or OECD campaigns to cut other non-democratic rivals – namely China – down to size. Such action does not jibe with what Kazakh Deputy Foreign Minister Roman Vassilenko described at a recent conference in Abu Dhabi as the country’s ‘national mentality’ of pursuing ‘win-win cooperation’ over ‘zero-sum, exclusionary games’.

Needless to say, Kazakhstan has always been a flag-bearer for greater pan-Asian stability, prosperity and coordination.

It is worth recalling that the Conference on Interaction and Confidence-Building Measures in Asia (CICA)—a multi-national forum founded in 1992 that now comprises 28 full-fledged members and 10 observers—was the brainchild of Kazakhstan’s first leader Nursultan Nazarbayev.

He also established the Congress of Leaders of World and Traditional Religions—a platform aimed at promoting interfaith harmony and unity among diverse confessions—and proposed creating the Organisation of Turkic States (OTS) back in 2006.

Furthermore and by virtue of being in power at the time, Elbasy was largely responsible for Kazakhstan’s admission to influential Eurasia-centric groups—notably the Shanghai Cooperation Organisation (SCO) and the lesser known Economic Cooperation Organisation (ECO) which it assumes chairmanship of in 2025.

Hedging Kazakhstan’s bets

Meanwhile, Kazakhstan’s engagement with China scaled new heights and took on a more multi-faceted dimension under Tokayev’s watch. As a fluent Mandarin speaker who lived and studied in Beijing during the 1980s, he has injected new vigour into the already flourishing Sino-Kazakh partnership and come across as a staunch proponent of the Belt and Road Initiative (BRI).

Bilateral trade in the first 10 months of 2024 stood at 33 billion US dollars, as compared with the preceding year’s record turnover figure of 41 billion US dollars. Kazakhstan’s dealings with Iran are on a similarly promising trajectory as non-oil trade from March to August 2024 reportedly rose by 17 per cent year-on-year.

Despite historically viewing Central Asia as a battering ram against Taliban-controlled Afghanistan, US policymakers are coming to terms with just how indispensable an ally the region’s most resource-rich and strategically-situated state is amid a rapidly-evolving world order.

Kazakhstan’s balanced and pragmatic foreign policy is often mistaken for Kremlin-friendly posturing by Western heavyweights, yet the sobering reality is that they have very few levers at their disposal to strong-arm a fiercely independent Eurasian powerhouse into changing course.

Granted, middle-class Kazakhs still flock to Euro-Atlantic countries for leisure, higher education and better career prospects. Kazakhstan also holds annual consultations with the United States within the C5+1 framework and entered into an Enhanced Partnership and Cooperation Agreement (EPCA)with its largest trading partner—the European Union—in 2015.

Nonetheless, hedging Astana’s bets to such a degree that it does not end up beholden to any single external actor or get caught in the crosshairs of ‘Great Power Competition’ has been the capstone of Tokayev’s legacy.

Photo by Joel Heard on Unsplash.

Saahil Menon

Saahil Menon

Saahil Menon is an investment analyst.

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Case study: Global technology company

1. The Client

A global technology company operating across EMEA, with a regional HQ in Istanbul. The company manages 20+ markets, handling everything from brand campaigns to strategic partnerships.

Role we worked with: The EMEA Head of Marketing (supported by two regional managers).

2. The Challenge

Despite strong products and a respected global brand, the regional team was struggling with:

  • Misaligned strategy across markets → campaigns executed with inconsistent narratives.
  • Slowed growth → lead generation plateaued despite increasing spend.
  • Internal friction → marketing, sales, and product teams disagreed on KPIs and priorities.

Traditional fixes (more meetings, more reporting) only created more noise.

3. The Sprint

We ran a 10-day Remote Reinvention Sprint with the regional HQ team.

  • Day 1–3: Intake → Reviewed decks, campaign data, and plans.
  • Day 4: Sprint Session (90 mins) → Breakthroughs:
    • Sales and marketing had different definitions of “qualified lead.”
    • 40% of spend was going into low-potential markets.
    • The team assumed the problem was lack of budget, but it was actually lack of alignment.
  • Day 5–10: Synthesis → Insights distilled into a Clarity Brief + Insight Canvas.
4. The Breakthrough

The Sprint uncovered that the issue wasn’t budget, but fragmentation.
Three sharp insights unlocked a way forward:

  1. Unified KPIs bridging marketing + sales.
  2. Market prioritisation → shifting budget to 5 high-potential markets.
  3. Simplified narrative → one EMEA core story, locally adaptable.
By just realigning resources and focus, the client could unlock an estimated £250,000 in efficiency gains within the next 12 months — far exceeding the Sprint’s value guarantee. The path to higher returns was already inside the business, hidden by misalignment.
5. From Sprint to Action (4 Pillars Applied)

With clarity secured, Reinvantage didn’t suggest “more projects.”

Instead, we used the Sprint findings to create laser-focused next steps — drawing only from the areas that would deliver the most impact:

  • Readiness → Alignment workshops for sales + marketing teams. New playbooks clarified “qualified lead” definitions and reduced internal disputes.
  • Foresight → A market-opportunity scan identified which 5 countries would deliver the highest ROI, removing the guesswork from allocation.
  • Growth → Guided the reallocation of €2M budget and designed a phased rollout strategy that protected risk while maximising return.
  • Positioning → Built a messaging framework balancing global consistency with local nuance, ensuring campaigns spoke with one clear voice.

Because the Sprint had stripped away noise, these actions weren’t generic consulting ideas — they were directly tied to the breakthroughs.

6. The Results
  • +28% increase in qualified leads across the region.
  • 30% faster campaign rollout due to streamlined approvals.
  • Budget efficiency gains → €2M redirected from low-return to high-potential markets.
  • Internal cohesion → marketing + sales now use a single shared dashboard.
The client came in believing they needed more budget.
The Sprint revealed that what they really needed was clarity and alignment.

With that clarity, the four pillars became not theory, but practical tools to deliver measurable impact.

The Sprint guaranteed at least £20,000 in value — but in this case, it helped unlock more than 10x that within six months.

Case study: Regional VC fund & accelerator

1. The Client

A regional venture capital fund and accelerator focused on early-stage tech start-ups in the Baltics and Central Europe.

The fund had raised a new round and was under pressure to deliver stronger returns while also building its reputation as the go-to platform for founders.

Role we worked with: Managing Partner, supported by the Head of Portfolio Development.

2. The Challenge

Despite a promising portfolio, results were uneven.

Key issues:

  • Scattered portfolio support → no consistent playbook for start-ups, every partner did things differently.
  • Weak differentiation → founders and co-investors saw the fund as “one of many” in the region.
  • Stretched team → too many small bets, not enough clarity on which companies to double down on.

The leadership team knew something was off, but disagreed on whether the issue was pipeline quality, market conditions, or internal capacity.

3. The Sprint

We ran a 10-day Remote Reinvention Sprint with the partners and portfolio team.

  • Day 1–3: Intake → Reviewed pitch decks, pipeline funnel data, and start-up performance reports.
  • Day 4: Sprint Session (90 mins) → Breakthroughs:
    • No shared definition of a “high-potential founder.”
    • Support resources were spread too thin across the portfolio.
    • The fund’s positioning was more reactive than proactive — it didn’t own a distinctive narrative in the market.
  • Day 5–10: Synthesis → Insights consolidated into a Clarity Brief + Insight Canvas.
4. The Breakthrough

The Sprint revealed that the challenge wasn’t pipeline quality — it was lack of focus and positioning.

Three core insights provided the turning point:

  1. Portfolio Prioritisation Framework → defined clear criteria for where to double down.
  2. Founder Success Playbook → standardised support model for portfolio companies.
  3. Differentiated Narrative → repositioned the fund as “the accelerator of reinvention-ready founders.”
These shifts alone gave the fund a path to add an estimated £2M+ in portfolio value over the following 18 months, by concentrating capital and resources where they could move the needle most.
5. From Sprint to Action (4 Pillars Applied)

With clarity from the Sprint, Reinvantage created a tailored support plan:

  • Readiness → Coached partners on using the new prioritisation framework and trained the team on deploying the Founder Success Playbook.
  • Foresight → Ran scenario analysis on regional tech trends, helping the fund anticipate where capital would flow next.
  • Growth → Guided resource reallocation across the portfolio and supported new co-investor pitches for top-performing start-ups.
  • Positioning → Crafted a sharper brand story for the fund, positioning it as the reinvention partner for globally minded founders.
6. The Results
  • 10 portfolio companies onboarded to the new Playbook → greater consistency of support.
  • Raised follow-on capital for 3 top start-ups with the new prioritisation framework.
  • +26% increase in inbound deal flow from founders citing the fund’s new positioning.
  • Stronger internal cohesion → partners aligned on where to focus resources.
The client thought the problem was pipeline quality.
The Sprint showed it was actually lack of clarity and focus inside the firm.

By applying the four pillars, Reinvantage helped turn scattered effort into concentrated value creation.

The Sprint guaranteed at least £20,000 in value; here it set the stage for multi-million-pound upside in portfolio growth.

Case study: International impact Organisation

1. The Client

A large international impact organisation focused on entrepreneurship and economic empowerment.
The organisation runs multi-country programmes across Eastern Europe and Central Asia, often in partnership with global donors and corporate sponsors.

Role we worked with: Senior Programme Director, responsible for regional coordination.

2. The Challenge

The organisation had launched a flagship regional initiative supporting women entrepreneurs, but the programme was underperforming.

Key issues:

  • Fragmented delivery → each country office interpreted the programme differently.
  • Donor frustration → reporting lacked consistency and clear impact metrics.
  • Lost momentum → staff energy was spent on administration rather than scaling success stories.

Traditional programme reviews had produced long reports, but no real alignment or action.

3. The Sprint

We ran a 10-day Remote Reinvention Sprint with the regional leadership team and representatives from two country offices.

  • Day 1–3: Intake → Reviewed donor reports, programme KPIs, and field feedback.
  • Day 4: Sprint Session (90 mins) → Breakthroughs:
    • Donors cared about quantifiable outcomes, but reporting focused on stories.
    • Staff were duplicating efforts across countries, wasting time and resources.
    • The initiative lacked a clear theory of change — everyone described its purpose differently.
  • Day 5–10: Synthesis → Insights distilled into a Clarity Brief + Insight Canvas.
4. The Breakthrough

The Sprint revealed that the issue wasn’t donor pressure or programme design — it was a lack of shared framework and alignment.

Three critical insights reshaped the path forward:

  1. One Unified Theory of Change → agreed narrative for why the programme exists.
  2. Core Impact Metrics → clear, comparable KPIs across all countries.
  3. Smart Resource Sharing → digital hub to stop duplication and accelerate knowledge flow.
By eliminating duplicated reporting and clarifying what success looks like, the client saw they could save the equivalent of £100,000 in staff time annually — while also unlocking stronger donor confidence and follow-on funding opportunities.
5. From Sprint to Action (4 Pillars Applied)

Armed with Sprint clarity, Reinvantage proposed a laser-focused support plan:

  • Readiness → Trained programme leads on using the new metrics and integrated them into existing workflows.
  • Foresight → Analysed donor trends and expectations, aligning the initiative with the next funding cycle.
  • Growth → Developed a funding case based on the new unified theory of change, securing higher renewal chances.
  • Positioning → Crafted a regional success narrative and storytelling toolkit, helping them showcase results consistently across markets.
6. The Results
  • 30% less time spent on reporting → freed capacity for programme delivery.
  • Donor satisfaction improved → positive feedback on the clarity of impact evidence.
  • Secured new funding commitment → one major donor increased their contribution by 20%.
  • Stronger internal morale → staff felt they were working with clarity, not chaos.
The client thought it needed better donor management.
The Sprint revealed it needed a shared foundation across its teams.

By anchoring on the four pillars, Reinvantage turned alignment into efficiency gains and fresh funding opportunities.

The Sprint guaranteed at least £20,000 in value; here it unlocked both six-figure savings and future-proofed funding.

Case study: National digital development agency

1. The Client

A national digital development agency tasked with driving the government’s digital transformation agenda, including e-services, citizen portals, and smart city pilots.

Role we worked with: Director of Digital Transformation, supported by IT and service delivery leads from three ministries.

2. The Challenge

The agency had strong political backing but faced hurdles in implementation.

Key issues:

  • Siloed projects → each ministry developed digital tools independently, leading to duplication.
  • Citizen frustration → services were digital in name, but still required multiple logins and offline steps.
  • Funding pressure → international partners demanded clearer impact in the short term.

The agency wanted to accelerate momentum but struggled to get alignment across ministries.

3. The Sprint

We ran a 14-day Immersive Reinvention Sprint with the agency’s leadership and digital focal points from three ministries.

  • Day 1–3: Intake → Reviewed strategy docs, donor reports, and citizen feedback data.
  • Day 4: Immersive Sprint Session (half-day) → Breakthroughs:
    • Each ministry had different definitions of “digital service.”
    • 20% of budget was going into overlapping pilot projects.
    • Citizens’ top frustrations were known — but not prioritised.
  • Day 5–14: Synthesis → Insights consolidated into a Clarity Brief + Insight Canvas.
4. The Breakthrough

The Sprint revealed that the biggest blocker wasn’t lack of funding, but lack of shared priorities.

Three practical insights stood out:

  1. One Definition of Digital Service → agreed across ministries.
  2. Quick-Win Prioritisation → focus on top 3 citizen pain points (ID renewal, business registration, healthcare booking).
  3. Shared Resource Map → pool budgets to eliminate duplication.
These changes alone allowed the agency to unlock £75,000 in immediate savings and deliver 2–3 visible improvements in the next quarter — meeting donor expectations and building citizen trust.
5. From Sprint to Action (4 Pillars Applied)

Based on the Sprint clarity, Reinvantage proposed a modest, targeted package of support:

  • Readiness → Facilitated inter-ministerial workshops to embed the “one digital service” definition.
  • Foresight → Analysed citizen feedback trends to shape the quick-win roadmap.
  • Growth → Supported the reallocation of funds to joint projects, reducing overlap.
  • Positioning → Crafted a communication plan highlighting early digital wins to donors and citizens.
6. The Results
  • 2 pilot services integrated into the central portal (ID renewal + healthcare booking).
  • Budget savings of £75,000 from eliminating overlapping projects.
  • Citizen satisfaction up modestly → call centre complaints on digital services dropped by 12%.
  • Donor confidence improved → short-term impact report received positive feedback.
The client thought it needed more funding and bigger projects.
The Sprint revealed it first needed clarity and alignment.

By applying the four pillars to a targeted scope, Reinvantage helped deliver visible results within a single quarter — proving progress to citizens and donors and laying the groundwork for deeper transformation.