Ulyukayev: Russia views Azerbaijan as priority partner
By Nazrin Gadimova
Business cooperation with Azerbaijan - the most dynamically developing country of South Caucasus - is one of the major priorities of the Russian foreign policy, Russian Economic Development Minister Alexei Ulyukayev told local media.
"There is a free trade regime between the two countries," he said. "Meanwhile, the two sides have signed a number of international and intergovernmental agreements," "Moreover, Baku is actively establishing good relationships with individual subjects of the Russian Federation."
The Russian minister said logistics and transport restraints are the main obstacles to the development of mutual trade. "Meanwhile, partial legal frameworks prevent active investment by two sides," he added.
"During the Baku talks, me and my colleague - Azerbaijan's Economy and Industry Minister Shahin Mustafayev - discussed mechanisms for broadening the transit of goods and combining transportation by road, rail, air and sea. In particular, we will establish a ferry between the ports of Baku and Olya. Azerbaijan, Kazakhstan and Turkmenistan have long established a ferry service and now the rapid establishment of a similar transport link with Russia will significantly reduce the costs of freight. Construction of logistics centers in both countries is a different issue. Azerbaijani investors intend to build one of these logistics centers in Yekaterinburg," Ulyukayev said.
He said increasing the volume of mutual investment is important as well, adding that Russia and Azerbaijan have to agree on a number of issues in the legislative field.
"The main issue is an interstate agreement on the Promotion and Reciprocal Protection of Investments which will provide a firm legal basis for raising funds, primarily for industry, high-tech and innovative projects," he said.
"During the talks in Baku ,significant progress was made on this issue: signing of the agreement is scheduled for July, 2014. Our states can increase the volume of mutual investment to many billions of dollars with the formation of a stable legal framework. In particular, the Russian business is considering the possibility of establishing joint production of railcars, power equipment and tools for mining and oil and gas transportation in Azerbaijan. The project in the metallurgical complex with complete production cycle in Azerbaijan is also very attractive for us," Ulyukayev underscored.
Azerbaijan's Gabala hosted the Azerbaijani-Russian interregional forum entitled "Interregional cooperation: new opportunities for growth" on June 23-24. The two countries signed six interagency agreements and five business contracts during the event.
Russia is the main trade partner of Azerbaijan in the CIS. Over the past ten years, the volume of Azerbaijan's investment in Russia's economy amounted to around $1 billion, $200 million of which fell on 2013.
According to Azerbaijan's State Customs Committee, the trade turnover between the two countries amounted to $755.45 million in January-May 2014. At the same time, Azerbaijan's imports from Russia amounted to $512.83 million.
About 570 Russian companies are operating in the country, and over $628 million was invested in fixed capital.