|
|
WE HAVE NO KNOWLEDGE OF THE OPPORTUNITIES OF EACH OTHER
Political relations form a basis of economic cooperation of our countries. On this view, there are no disagreements between Uzbekistan and Azerbaijan. We take the same positions on all regional and global problems as well as with regard to C.I.S.
Warm relations between the Presidents, traditional friendship of our nations, the identity of our cultures, rites, habits are a good ground for the development of relations between our states. More than 70 agreements have already been signed at various levels. That is quite another matter how they work. Many agreements should be revitalized.
As to economic relations, the levels of their development somewhat are behind and their commercial and economic performance is very low. Where do the reasons lie?
In the first place, the reason seems to be that we do not know the opportunities of each other. Other reason is that we are looking to industrialized western countries as a model and as a solution for our political ans economic needs. We are banking on a predictable and reliable West. There is a distrust of the newly formed countries. It is for the most part of concern to the quality of the goods produced.
Uzbekistan and Azerbaijan are young states and what we are building economic relations is a new phase in the revival of the multifaceted links between the young states. In Soviet times the links were close and centralized. Now the young nations work directly with each other. For some while past there have been signed seven additional agreements aimed at development of bilateral economic relations. An analysis of the yet signed agreements was carried out and the moves and measures, which are necessary for intensifying and expanding our economic relations, were taken and enacted into law. We are pleased to say that three agreements aimed at development of relations in oil and gas sector as well as machinery construction and mapping feature among these treaties.
Over time we figure on opening the Uzbekistan Shopping Center in Baku. It will co-ordinate economic relations between the two countries as Uzbekistan’s leading economic development body. The project will allow to give Azeri party an insight into economic export potential of Uzbekistan. Azerbaijan will benefit from purchasing cement and building materials in large quantities in Uzbekistan. Now these relations work in a spontaneous manner. And it badly reflected upon pricing. Competitive pricing and sensitivity to market requirements will be the measure of the Center’s success. All of the goods manufactured in Uzbekistan and designed for Azerbaijan will be available to all strata of Azerbaijan’s population and be sold through the Uzbekistan Shopping Center. It also concerns other export goods produced in Uzbekistan, for example, cars made in Uzbekistan by Nicsi, the joint Uzbek-Korean venture
To more completely set out our car-making sector products, we slate to open a representative office of Uzbek-Autocanat. A bus-producing plant has recently come on stream in Samarkand. Its produce also will be presented in Azerbaijan. Apart from other things, the products of the plants manufacturing chemicals will be shown as Azerbaijan much needs similar feedstock. The Shopping Center would have two lines for its activities. They are selection of export goods for Uzbekistan and selling our goods in Azerbaijan’s market.
EXPORT IS ONE OF BASIC LINES IN GAS SECTOR DEVELOPMENT
There are big prospects for cooperation in the Uzbekistan oil and gas sector. Addition to political independency, Uzbekistan must be self-sufficient economically. Today we supply themselves with fuel resources fully. If we used to purchase hydrocarbon feedstocks in Russia, now we does not only meet our needs for domestically produced goods but also started exporting final refinery products.
It has happened due to quickening the pace of drilling appraisal wells. As a result, two fields with large oil reserves were discovered and the construction of two oil refineries in Bukhara and the second phase of an oil refinery in Fergana was begun. Innovative oil processing facilities were built and brought on stream by the consortium formed from Technip of France, Japanese Marubeni and Gava of Turkey.
In that regard, Neftegasprom of Uzbekistan (the Uzbekistan Ministry of upstream oil & gas industry) offered Azerbaijan’s leadership to upgrade some three million of Azeri crude oil into refinery products. It is anticipated that all the eastern regions will be supplied with the oil products manufactured or they in the form of gasoline and kerosene can be used as payment for Azeri crude oil acquired.
There are also blueprints of how to sell aircrafts brought out by an airplane-making plant in Tashkent. It is a modified airplane IL-114 designed for middle-distance flights. On the basis of the airplane-making plant a leasing company has been founded. It offered acceptable conditions, that is, it agrees to sell the aircrafts on credit to AZAL.
In addition, Uzbekistan’s oil and gas processing plants under construction need respective equipment. In Azerbaijan there are currently the enterprises specializing in manufacturing the equipment of this kind but, unfortunately, it does not meet international standards. I hope that after upgrading and refurbishing the existing enterprises producing goods designed for export, this line of cooperation will be mutually beneficial.
At present Uzbekistan one of the world’s leading producers of natural gas. Uzbekistan’s total natural gas production averages 60 billion cubic meters per year. The pipelines linking Bukhara to Ural and other conduits were laid in Soviet times and gas was carried in the gas pipelines to Europe. Gas is currently delivered to the neighboring states – Russia, Kazakhstan, Kirgizstan, Tajikistan as well. Before the recent events have happened in Afghanistan, gas was also supplied to Afghanistan. Ukraine is also supplied with Uzbek gas.
Natural gas is also planed to export to world markets by using the Caspian projects that are under design or at advanced stages of commissioning. But it is the outlooks for the future. Above all, we need to specify the volumes of gas designed for internal requirements. In Uzbekistan there is a program under implementation to turn around a social infrastructure, i.e., the program is posed to gasify the entire republic. As early as now more than 70 percent of population centers in Uzbekistan have already been gasified.
THE SIGNING OF AGREEMENTS ON GAS PIPELINE IS A GREAT ATTAINMENT OF AZERBAIJAN
We congratulate Azerbaijan’s all nation on the occasion of its great achievement at OSCE summit meeting in Istanbul, during which a packet of agreements on a gas pipeline was signed. It is a great attainment of Azerbaijan’s foreign and internal policy and economy. It is natural that there are many rivals, which are opposed to this project. It is a more commercial than a political issue for the individuals and countries. But, above all, decisions must be based on commercial considerations. I think the ends will be justified because main gas producers are Turkmenistan, Uzbekistan and Azerbaijan, which their geographical location forms a chain. Thus the countries will supply gas to world markets in this succession. Therefore we are very favorable to the signing of the agreements on the trans-Caspian gas pipeline construction project. We welcome it and hope that over time Uzbekistan also will be involved in the project.
As to oil production, the output in Uzbekistan is very insignificant compared with the results of production operations in Azerbaijan and Turkmenistan. So oil flow from Uzbekistan will not have a substantial impact on the amounts of crude oil transported by littoral Caspian states. Exploration operations are under way intensively in Uzbekistan’s upstream oil and gas industry. The amounts of oil products will supply in full the republic’s domestic needs and even be exported in small quantities to Kirgizstan.
UZBEKISTAN IS ONE OF MAIN PARTICIPANTS OF GREAT SILK WAY PROJECT
Uzbekistan’s participation in the Great Silk Route project is a question of vital importance to it as our country is an inland, landlocked one. The way laid by our ancestors seemed to be required by the life itself.
It is first the shortest route towards sea and the easiest and most safe route. In due course, it coupled two cultures – the cultures of West and East. Thank to the Silk Road, Europe learned of the existence of gunpowder, glass, porcelain, silk. Therefore the revival of culture and science, the flouring of which dates back to the Middle Ages, took place along the entire route. The Uzbek President Islam Karimov announced it at TRASECA conference in 1998.
We are making every effort for the project to be put into practice as soon as possible. In 1998 about 700,000 tons of cargoes was carried through the corridor. A question of increasing the freight movement through the route is under study. To do it, it is essential to set a competitive transit payment, which will allow the silk route to score and boost a competitive advantage over the northern line toward Russia, far-eastern direction and southern route toward Benderabas (Iran). A question of establishing a carrier, which some Uzbek shippers as well as the Caspian Shipping Company, the naval port of Baku and Azeri Rail will take a share in, is under consideration.
The carrier is to facilitate the attraction of large cargo flows through the corridor. We have an accord with the ambassadors of Kazakhstan and Turkmenistan to hold a joint meeting in Baku with participation of all ministers and departments of the countries involved in delivering the Great Silk Way project. An objective of the meeting is to look into all the existing problems and find an overall solution to them. We schedule to increase the turnover between our countries as well as to extend interactions to other sectors of economy.