“KAZAKHSTAN IS EXPECTED TO SHOW INTEREST IN CASPIAN SEA-GDANSK TRANSPORT CORRIDOR PROJECT” - Krzysztof Krajewski, Ambassador Extraordinary and Plenipotentiary of Poland to the Republic of Azerbaijan
Caspian Energy (CE): Mr. Krajewski, after the Krakow Summit the relations between Azerbaijan and Poland have acquired a special dynamism. What areas of the bilateral cooperation are of high priority for the two countries today?
Krzysztof Krajewski, Ambassador Extraordinary and Plenipotentiary of Poland to the Republic of Azerbaijan: Azerbaijan and Poland are taking advantage of the positively developing political ties. I would like to stress, the friendly relations between H.E. President of Poland Lech Kaczynski and H.E. President of Azerbaijan Ilham Aliyev contribute much to this process. It can be proved by the fact that our President Lech Kaczynski has visited Baku twice. His first visit was an official one, whereas for the second time he arrived as a special quest of the GUAM Summit in Baku. It is noteworthy the first GUAM-Poland summit took place in Baku.
Contacts and understanding between the presidents create a favourable climate for development of mutually beneficial relations between our countries. On this account the heads of several ministers of Poland and Azerbaijan paid mutual visits and held consultancies on different levels this year.
There are no negative concerns in the bilateral relations between our countries. We have nothing to explain to each other. Our countries did not face any conflicts in the past. We have many examples of pleasurable mutually beneficial cooperation.
Today Poland wants to be present in this region. We are sure this is an important region from the geopolitical viewpoint. For us Azerbaijan is a stable and rapidly developing partner, which benefits funds from crude hydrocarbons sales and invests them to promote the economic progress. We are much interested in the economic cooperation with Azerbaijan and as you know we continue working with Azerbaijan in this field.
CE: How would you evaluate the results of the Krakow Energy Summit? What perspectives does this cooperation open up between the countries of the region?
Krzysztof Krajewski: Indeed, the Krakow Energy Summit is one more example of our cooperation. A political decision has been worked out on the ground of the summit’s outcomes to enable Azerbaijan, Georgia, Ukraine and Poland to take advantage of energy cooperation. We are interested in oil deliveries to Poland from the Caspian region. Speaking about the Caspian region I also imply Kazakhstan. And, as is known, the Krakow Energy Summit outlined the ways of the project’s implementation.
Experts involved in this concern properly fulfill the schedule of tasks set at the Krakow Energy Summit. Expert meetings were held in Poland and Georgia. The presidents expect the experts to present a Caspian Sea-Gdansk transport corridor project implementation schedule at the next meeting to be held on October 10-11 in Vilnius.
CE: How will the country’s oil-and-gas branch develop?
Krzysztof Krajewski: We target diversified crude hydrocarbons supplies to Poland and would like to find a source to import oil and gas to Poland. For instance, gas consumption in Poland is 15 billion m3 of gas a year. One third of this gas accounts for in-country recourses, while the rest volumes are imported. 60% of purchased gas is supplied by Russia.
That is why we want to find other sources. In late 2006 Azerbaijan also envisaged problems with gas supplies. I guess you understand our intention to diversify gas deliveries. But first of all we are interested to purchase oil in the Caspian region.
CE: Why can you not buy oil in Ceyhan?
Krzysztof Krajewski: The port of Ceyhan is remote from our oil refineries, while the infrastructure for getting Caspian oil through the Black Sea is almost available now. Oil is supplied to the Georgia’s cost of the Black Sea and then can be delivered by tankers to Odessa. The Odessa-Brody oil pipeline already exists. It is just necessary to build the Brody-Plotsk section to make oil supplies to oil refineries in Plotsk available. We purchased oil refineries in other EU countries. So, we have to secure oil flows for these plants.
At the same time, the construction of the Brody-Plotsk section should be economically cost-effective. This is not only a matter of political concern. We hope Kazakhstan will show interest in this project. Actually, even now Kazakhstan does not reject participation in it.
CE: What is Poland’s opinion about the Nord Stream project?
Krzysztof Krajewski: We have some doubts in this regard. First of all, we are sure the Nord Stream gas pipeline is of no interest for the EU states. Secondly, it also imposes great environmental threats.
CE: What is the level of oil and gas consumption in Poland? How does the country settle energy security-related concerns? What share do Azerbaijan energy resources occupy in this regard?
Krzysztof Krajewski: By 2020 Poland’s energy needs will exceed 200 terawatt. That is why we need more energy feedstock. Nowadays 90% of electrical energy is generated from coal.
On the whole, by 2030 the EU states will have to import over 80% of consumed natural gas. To date, the import share outside EU has reached 50%.
Poland’s oil reserves are very small and evaluated as 19.5 million tons. Poland’s oil output is approx 800,000 tons per annum.
CE: What is Poland’s foreign trade turnover with the EU and CIS states? What is the structure of export-import operations? What are the volumes of the trade turnover between Azerbaijan and Poland? How will it grow in follow-up years?
Krzysztof Krajewski: Following last year’s results, the Poland’s export to the CIS states amounted to EUR 8,268 billion whereas import was EUR 12,463 billion. Export to the EU countries made EUR 68,790 million, while import was EUR 63,697 million. As you see the Poland’s commodity turnover with other countries has positive net balance.
The current goods turnover between Poland and Azerbaijan exceeds EUR 60 million. In particular, Poland’s export to Azerbaijan is EUR 56 million and EUR 5.2 million accounts for import. As per the structure of goods turnover between Poland and Azerbaijan, Poland supplies Azerbaijan with pharmaceuticals, engine parts, meat products, furniture, and confectionery, while Azerbaijan imports mainly cotton, propane, nuts, heating iron, etc.
CE: How did the Poland’s long-range development strategy change upon the country’s accession to the common economic space of the EU? How would you evaluate the investment climate in Poland after the accession to the EU?
Krzysztof Krajewski: The Poland’s economy is taking advantage of the common operation mode throughout the EU states. According to EU rules, Poland benefits from a free access to the European markets and, as you can see, we have a positive net balance in trading with the EU countries. This is connected with the high demand on our products across the European Union. In London and other large cities of the EU there are shops of Poland’s manufacturers. We enter the European market, our goods cause interest.
The investment climate of Poland is very attractive. Following the results of 2007, we enjoy the lowest inflation level at 1.5%. In 2006 the GDP growth in Poland was 6% and this is a good indicator on the EU states.