GAS COOPERATION BETWEEN AZERBAIJAN AND RUSSIA    TO BE CONTINUED

 

Trade Representative of the Russian Federation to the Republic of Azerbaijan Yuri Shchedrin met with the member-companies of the Caspian Integration Business Club (CIBC) January 25 to discuss perspectives of cooperation between companies of the Caspian-Black Sea region's countries, in particular between Azerbaijan and Russia. Ambassador Extraordinary and Plenipotentiary of the Russian Federation to the Republic of Azerbaijan Vassili Istratov took part in the meeting as an honorary guest.

 

Yuri Shchedrin dwelt on significant growth rates of the trade turnover between the two countries. In 2006 it grew by 30% and totaled $1.5 billion. According to him, the rates of economic development in Azerbaijan are impressive, whereas Russia showed stable macroeconomic indicators in 2006.

The RF Trade Representative thinks that personal relations between President of Russia Vladimir Putin and President of Azerbaijan Ilham Aliyev exert positive influence on bilateral relations between Azerbaijan and Russia.

At the moment the contractual basis between the two states consists of 60 agreements. "Nobody doubts that the relations between the states depend upon the trade and economic collaboration", Y. Shchedrin stressed. Nonetheless, he believes that in 2007 trade turnover will reach $2 billion, the level set by the Heads of State of Azerbaijan and Russia. The trade turnover will lose nearly $500 million due to ceased gas import from Russia to Azerbaijan. "We still do not know how and at the expense of which sources this gap will be filled. However, we carry out consistent work in this direction. This objective is of high priority for the Trade Representation of the Russian Federation to the Republic of Azerbaijan", Y. Shchedrin stressed.

According to him, it is necessary to systemize the trade turnover to make it independent upon the conjuncture of the market, first of all upon that of the energy market.

"For this purpose we develop relations with the Ministry of Economic Development of Azerbaijan, CIBC and other public organizations", Y. Shchedrin said.

At the same time, the session of the Azerbaijan-Russian Intergovernmental Commission is scheduled to be held in April 2007 in Moscow.

Y. Shchedrin considers it "too important to join efforts so as to involve business-structures of Azerbaijan and Russia to take active part in the trade and economic partnership".

The Trade Representative outlined core perspective directions of cooperation, in particular metallurgy and machine-building. At the same time, according to Y. Shchedrin, outlooks of energy cooperation are being viewed now; for example, the opportunity to use Azerbaijan's gas storage capacity by Gazprom in view of supplying natural gas to the southern regions of Russia in winter.

He called upon Azerbaijan companies to invest into regions of Russia. In response to questions asked by companies-members Y. Shchedrin laid stress on the necessity to create favorable business conditions for Azerbaijan companies in Russia and kindly requested the representatives from the Ministry of Economic Development of Azerbaijan who took part in the meeting to create the same conditions for Russian companies in Azerbaijan.

The Head of the RF Trade Representation in the Republic of Azerbaijan expressed readiness to support small and medium companies willing to work in the Russian market.

Ambassador Extraordinary and Plenipotentiary of the Russian Federation to the Republic of Azerbaijan Vassili Istratov supported development of the bilateral relations. According to him, the nomenclature of the trade turnover between the two countries exclusive of energy carriers consists of high value-added goods, which is the basis for expanding the bilateral cooperation.

"There are great perspectives of trade-economic relations between Russia and Azerbaijan. Unfortunately, import from Russia prevails within the turnover. In 2006 it exceeded $1 billion", Head of Entrepreneurship Development Department of the Ministry of Economic Development of Azerbaijan Samir Nuriyev said.

According to him, "here Azerbaijan businessmen have great opportunities and the potential to ramp up export of Azerbaijan goods and products to the Russian market".

According to Elshan Mammadzadeh ,Head of the Debarment for Investments & International Economic Cooperation of the Azerbaijani Ministry of Economic Development, private investment of Azerbaijan companies in the Russian economy has no limits.

As President and CEO of CIBC Telman Aliyev said, the meeting was arranged in view of intentions of some Azerbaijan companies to work in the Russian market and Russian companies in the markets of Azerbaijan.

Yuri Shchedrin and Vassili Istratov answered many questions put forth by companies-members. During the meeting,  Yuri Shchedrin and Ambassador Extraordinary and Plenipotentiary of the Russian Federation to the Republic of Azerbaijan Vassili Istratov were presented with honorary membership certificates of CIBC.

Companies from Azerbaijan, Georgia, Kazakhstan, Turkey, Russia, Ukraine, Latvia, Iran and other countries also took part in the CIBC event.