Lithuania keen to attract Azerbaijani investments in economic zones
By Trend
The Lithuanian government is ready to introduce certain benefits
and guarantees for Azerbaijani investors in order to attract them
to economic zones, said Lithuania’s Ambassador to Azerbaijan Valdas
Lastauskas in his interview with Trend.
“Today, there are Azerbaijani investments in the tourism sector of
Lithuania. This is, firstly, the construction of hotels in the
zones of business tourism,” noted the diplomat.
“Many Azerbaijani investors are interested in this type of
activity, and benefits and guarantees are being considered for
them.”
Lastauskas said that Lithuania has five free economic zones, which
may be interesting for Azerbaijani investors.
He noted that Lithuania’s seven free economic zones are located in
the country’s economic centers and offer excellent conditions for
business development by providing ready industrial areas with
necessary infrastructure supporting services and tax benefits.
The enterprises that will work in these zones are exempt from
income tax for six years, and will pay a tax in the amount of 7.5
percent in the next ten years, said the diplomat.
He went on to add that those enterprises don’t pay revenue taxes
and real estate taxes.
Via Lithuania one can also enter the European market, and Klaipeda
Seaport, railway lines, highways are a good opportunity for this,
the ambassador said.
Azerbaijan also opens good opportunities for Lithuanian investors,
Lastauskas said.
In May 2016, Baku hosted the meeting of representatives of railway
agencies of Lithuania, Belarus, Ukraine, Moldova, Romania,
Bulgaria, Georgia and operators of the 'Viking' train project.
The Azerbaijan Railways CJSC submitted a letter on joining the
Viking international railway project. The protocol was signed by
all participants of the project. Azerbaijan’s Karvan Logistics was
defined operator of the 'Viking' train through the country’s
territory.
The diplomat noted that Lithuania supports this project and is
doing everything possible to make this supply route of goods from
the East to the West and from the South to West via the Baltic Sea
and further to Scandinavia attractive.
"There are many players in the market,” Lastauskas added.
“According to the statistics, the freight traffic among Western
Europe, the Far East and China tripled from 2005 to 2015. It means
that the flow will continue to increase.”
“The best conditions for the transportation of these goods should
be offered,” the ambassador added. “In this regard, the project has
good opportunities. The route covers several countries. A number of
technical
issues, including those in the field of customs procedures, must be
solved."
“There are no obstacles for the development of cooperation in the
economic sphere,” the diplomat added. “It is possible to improve
relations in this field and increase the trade turnover level.”
The diplomat said that the trade relations between Azerbaijan and
Lithuania expanded and the trade turnover increased from 2011 to
2015.
"The crisis has affected the economic relations between Azerbaijan
and Lithuania since 2016 and the trade turnover even slightly
decreased,” he added. “But the main thing is that all main
conditions for work are available. We have a good legal framework
that protects investments and
joint projects. The cooperation between regions of the two
countries is being more and more developed every year and it is
beneficial for both countries."
There are many areas for cooperation, the envoy said, adding that
the most important is desire and mutual interest.
“Lithuania is glad that Azerbaijan and the European Union intend to
soon start negotiations on a strategic partnership agreement. This
will also expand opportunities of Lithuania as an EU member country
for further strengthening of cooperation with Azerbaijan,” he
said.
The European Council adopted a mandate for the European Commission
and the high representative for foreign affairs and security policy
to negotiate, on behalf of the EU and its member states, a
comprehensive agreement with Azerbaijan in November 2016.
The new agreement should replace the 1996 partnership and
cooperation agreement and should better take account of the shared
objectives and challenges the EU and Azerbaijan face today.
The agreement will follow the principles endorsed in the 2015
review of the European Neighborhood Policy and offer a renewed
basis for political dialogue and mutually beneficial cooperation
between the EU and Azerbaijan.
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