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Russia confirms protection of mutual investments with Azerbaijan

4 November 2015 17:52 (UTC+04:00)
Russia confirms protection of mutual investments with Azerbaijan

By Nigar Orujova

Russia has confirmed its readiness to promote and mutually protect investments with Azerbaijan.

President Vladimir Putin has signed the law on ratification of the agreement between the governments of Russia and Azerbaijan on promotion and mutual protection of investments, the president’s official website reported on November 4.

The agreement, which was signed in Astrakhan on September 29, 2014, aims to provide the most favorable environment to the investors of the two countries.

The agreement is aimed at creating favorable conditions for the development of mutually beneficial trade-economic and scientific-technical cooperation between Russia and Azerbaijan, according to the document.

The agreement also guarantees the protection of investments against forcible seizure under nationalization or expropriation. Exceptions are cases where such measures are taken in the public interest, subject to the procedure established by the laws of the Contracting Parties.

The agreement applies to all investments made by investors from January 1992.

To date, Russia has invested more than $ 1.8 billion in Azerbaijan’s economy. On its part, Azerbaijan invested in the Russian economy over $1 billion of investment over the past 10 years.

Azerbaijan and Russia are continuing to strengthen business cooperation, thus increasing number of mutual agreements and business forums.

The ratification of this agreement will allow investors from Russia and Azerbaijan to operate in a long-term, stable and predictable legal environment, protect their interests, as well as strengthen economic and trade cooperation between the two countries, which meets the interests of Russia.

Last year Russia ranked seventh among all countries investing in Azerbaijan, and in the first half of this year, Russia has rose to fourth place.

The trade turnover between Azerbaijan and Russia amounted to $1.34 billion in this January-September (8.74 percent in the total volume of foreign trade turnover of the country), which is almost two percent less than the same period last year. The decrease is connected with economic troubles around the world.

There are over 600 companies operating with Russian capital in Azerbaijan, including major manufacturers like Gazprom, LUKOIL, KAMAZ and VTB Bank.

About 200 Russian companies in Azerbaijan are 100 percent financed by Russian capital and 300 are part of a joint venture.

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Nigar Orujova is AzerNews’s staff journalist, follow her on Twitter: @o_nigar

Follow us on Twitter @AzerNewsAz

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