Azernews.Az

By Nazrin Gadimova

The volume of Azerbaijan's investments in Kazakhstan's economy since 2005 exceeded $130 million.

President of Azerbaijan Export and Investment Promotion Foundation (AZPROMO) Rufat Mammadov announced the news at an Azerbaijani-Kazakh business forum held in Baku on February 28.

"The results of 2013 show that trade turnover between Azerbaijan and Kazakhstan amounted to $360 million, while the volume of Azerbaijani companies' investments in Kazakh economy since 2005 amounted to $130 million," Mammadov said.

Mammadov also said 712 companies with the Azerbaijani capital, including their branches and representative offices, operate in Kazakhstan, while 52 Kazakh companies are registered in Azerbaijan.

He said Azerbaijan is interested in expanding the range of the agricultural products supplied to Kazakhstan and creating an agro-industrial enterprise and a logistics center.

"A logistics center is currently under construction in Aktau. But the potentials of our countries allow us to consider the construction of other similar centers," Mammadov said.

He further said the Azerbaijani side is ready to discuss establishing enterprises for the production of construction materials in Kazakshtan.

"The construction sector is one of the economy's fast-developing sectors. We can bring a number of know-hows to this sector in Kazakhstan," he said.

"We are ready to expand the supply of electrical and mechanical engineering products, and develop cooperation in some areas of industry, particularly in the petrochemical, light, and food areas. Our companies could also offer their services for cleaning up contaminated land and waste water. I know this problem worries the Mangystau Provinve."

Chief of Staff at Azerbaijan's Economy and Industry Ministry Samir Veliyev, in turn, said all the prerequisites for the development of cooperation between the businessmen of the two countries are being created, and holding business forums plays a major role in this respect.

Speaking at the forum, Mayor of the Mangystau Provinve Alik Aydarbayev said Azerbaijan is Kazakhstan's main political and economic partner in the Caucasus.

"There are successful joint ventures. One of these ventures is the Baku Grain Terminal launched in 2007, which receives imported wheat from Kazakhstan. This project has been expanded, and an additional complex worth over $2 million and a flour mill complex worth over than €2.6 million were built," Aydarbayev said.

The Caspian Sea opens up opportunities for the development of bilateral cooperation, the mayor of the Mangystau Province said.

"It is necessary to use the transport capacity of the Caspian Sea. The Mangystau Provinve is a unique region from this perspective; it's the only region in Kazakhstan that has a developed transport infrastructure, sea port, and special economic zone. More than 150 enterprises, and companies, legal entities operate in the region with the participation of Azerbaijan, and the foreign trade turnover of our region with Azerbaijan amounted to $46 million in late 2013. The current level of cooperation does not reflect its real potential, and I am sure the index of interaction between our countries will only grow even future," Aydarbayev said.

The event, organized by AZPROMO with the support of the Economy and Industry Ministry, was held in the framework of a two-day visit of the Kazakh delegation to Azerbaijan. The business forum brought together more than 70 companies from the two countries.

The Kazakh delegation also met with Azerbaijan's Economy and Industry Minister Shahin Mustafayev, and the two sides discussed the prospects of developing cooperation between Azerbaijan and Kazakhstan's Mangystau Province.

Addressing the meeting, Mustafayev highlighted the fact that relations between the two countries are based on the principles of mutual respect and effective cooperation, pointing to the special role of mutual visits by the presidents of Azerbaijan and Kazakhstan, and the ongoing negotiations.

The minister said the two countries formed a broad regulatory contractual basis, and more than 20 documents were signed just in the economic field.

Mustafayev added that there are about 50 companies with the Kazakh capital in Azerbaijan, while Kazakhstan has more than 300 Azerbaijani companies in fields such as industry, agriculture, construction, and trade.

Aydarbayev, in turn, said Kazakhstan is interested in the further expansion of ties with Azerbaijan, and informed Mustafayev about the ongoing projects in Kazakhstan in various industries.

"During the meeting, the sides exchanged views on furthering the areas of cooperation, the export of Azerbaijan's agricultural products in the western regions of Kazakhstan and the construction of the required logistics center, the study of Kazakh experience in creating special economic zones, the possibility of the participation of the two countries' companies in joint projects, the exchange of information about investment projects, and other issues," Azerbaijan's Economy and Industry Ministry said in a statement.

The previous business forum was held in Baku in August, 2013. As a result of the forum Azersun Holding, AZPROMO, and JSC Special Economic Zone "Seaport Aktau" signed a memorandum of understanding.

The State Customs Committee (SCC) has announced that trade turnover between the two countries amounted to $371 million in 2013.

The export of Azerbaijani goods to Kazakhstan hit $64.2 million, while imports reached $306.7 million. Trade turnover between the two countries decreased by 5.7 percent in 2013.

The main exports of Kazakhstan to Azerbaijan are mineral resources (oil and gas), chemical raw materials, grain, barley, tobacco products, rolled carbon steel, and electrical equipment. Kazakhstan imports oil from bituminous materials, polymers and components for machinery, and prefabricated constructions.