Azerbaijan, Spain to boost trade ties
By Aynur Jafarova
Azerbaijan and Spain are interested in developing economic interactions.
The remarks were made by Azerbaijan's Economy and Industry Minister Shahin Mustafayev at a joint business forum held in Baku on April 24.
The Azerbaijani-Spanish business forum was held as part of Spanish Minister of Foreign Affairs and Cooperation José García-Margallo y Marfil's visit to Azerbaijan.
"Political relations between our countries can become a solid basis for this. Our countries continue to develop the necessary legal basis. We have already signed an agreement on avoidance of double taxation. We have also agreed to accelerate work on signing an agreement on mutual encouragement and protection of investments," Mustafayev noted.
The minister went on to say that interest in cooperation was also confirmed by the participation of several dozens of Azerbaijani and Spanish entrepreneurs at the business forum.
"Trade turnover between our countries reached $140 million in 2013, which shows a great potential for developing cooperation," he added.
In his remarks, José García-Margallo y Marfil informed the guests of his country's economy, and said Azerbaijan and Spain enjoy great potential to develop economic relations.
The business forum was followed by a press conference.
The Spanish minister told journalists that Spain is interested in participating in the Southern Gas Corridor project.
"Around 30 Spanish companies operate in Azerbaijan. There are fairly modest figures in trade turnover and investment, which means that we have work to do, particularly in the energy sector and the Southern Gas Corridor project," the minister said.
However, the prospects for cooperation between Azerbaijan and Spain are not confined to this, he noted.
"The delegation includes representatives of tourism structures. Over six million tourists visit Spain every year and we are ready to share our experience and projects with our Azerbaijani colleagues in the sphere of tourism and recreation," the Spanish minister said.
The gas to be produced at the second stage of Azerbaijan's Shah Deniz field development will be the main source of the Southern Gas Corridor, which envisages the transportation of the Caspian gas to the European markets.
The Shah Deniz consortium announced the selection of TAP as the main route for transporting its gas to Europe in late June. Another pipeline which was vying for Azerbaijan's gas transportation to Europe was Nabucco West.
Azerbaijan agreed to sell over 10 billion cubic meters of natural gas a year from the second phase of its Shah Deniz development to nine companies in the European Union in September 2013.
The contracts were signed for 25 years between SOCAR and the European utilities, including Axpo Trading AG, Bulgargaz EAD, Depa, Gas Natural Fenosa, Hera Trading Srl, Shell Energy Europe, Enel SpA, E.ON SE, and GDF Suez SA.
The initial capacity of TAP will amount to 10 billion cubic meters per annum with the possibility of expanding to 20 billion cubic meters per annum.
TAP's shareholders include BP (20 percent), SOCAR (20 percent), Statoil (20 percent), Fluxys (16 percent), Total (10 percent), E.ON (9 percent), and Axpo (5 percent).
The construction project of TAP is planned to start in 2015.