Azernews.Az

Nigar Hasanova

Read more

Italy currently stands as one of Azerbaijan's main trade partners, with a mutual trade turnover exceeding 15 billion US dollars. It has been a partner since 2020, and last year, according to the statistics of the State Customs Committee, products worth 15 billion 208 million dollars were exported from Azerbaijan to Italy. Besides, products worth $477 mln and 903 thousand were imported from Italy to Azerbaijan.

While the oil and gas sector has traditionally dominated economic relations, recent years have witnessed a diversification of cooperation into the non-oil sector. A total of 114 Italian companies operate in various sectors in Azerbaijan, including industry, construction, trade, agriculture, communication, and services.

Oil and gas firms, as well as non-oil companies, are active players in the Italian market. They are contractors on 277 projects totaling 9.9 billion dollars in the oil and gas industry, while they are involved in 37 projects totaling 708 million dollars in the non-oil industry.

Italy's position in Azerbaijan's energy environment is particularly significant concerning the Trans Adriatic Pipeline (TAP) project. At the border between Greece and Turkey, TAP joins TANAP directly to transmit natural gas to southern Italy via the Adriatic Sea, Greece, and Albania. About 10 billion cubic metres of natural gas were delivered to Italy via the Trans Adriatic Pipeline (TAP) in 2023. Additionally, the consortium stated that TAP will be able to supply an additional 1.2 billion cubic metres of gas annually starting in 2026.

Natural gas from the massive Shah Deniz field in the Caspian Sea's Azerbaijani region is transported to Europe by TAP. The 878 km pipeline spans the Adriatic Sea, Greece, Albania, and Southern Italy before connecting with the Trans Anatolian Pipeline (TANAP) at the Turkish-Greek border near Kipoi.

TAP uses current and planned interconnectors to make gas supply to countries in Southeast Europe easier. TAP is linked to Interconnector Greece Bulgaria (IGB), which began conducting business in October 2022 and provides Bulgaria with Caspian gas, thus boosting the security of energy supply in yet another European nation. The landfall in Italy, along with the TAP exits in Greece and Albania, offers several options for additional gas transportation from Azerbaijan to the larger European markets.

Several other fields show this positive trend between these two countries, starting from the economy to several areas of the countries.

With roots dating back over a century, the relationship between Azerbaijan and Italy has stood the test of time and evolved into a multidimensional strategic partnership. Even during the People's Republic era, Italy played a crucial role, holding the mandate for Azerbaijan. Following Azerbaijan's regaining state independence, the economic and political ties between the two nations continued to improve.

A significant milestone in this enduring partnership was marked on February 20, 2020, when President Ilham Aliyev visited Italy, underscoring the high level of relations between the two countries. During this visit, the Joint Declaration on Strengthening the Multidimensional Strategic Partnership between the Republic of Azerbaijan and the Republic of Italy was signed in Rome. This declaration paved the way for enhanced cooperation not only in the oil and gas sector but also across various facets of the economy, encouraging Italian investments in Azerbaijan's industry, agriculture, infrastructure, tourism, transport logistics, and more.

The concept of multidimensional partnership denotes a future-oriented collaboration aimed at achieving common goals such as peace, stability, and prosperity in the regions of mutual interest. The agreement signed between Azerbaijan and Italy holds paramount importance in safeguarding mutual interests, fostering global and regional security, and nurturing the development of bilateral relations.

When it comes to bilateral relations, Italy, renowned for its advanced technological expertise, particularly in agriculture and industry, plays a pivotal role in Azerbaijan's development projects. Italian companies participating in investment projects, industrial zones, agroparks, and the establishment of logistics centres contribute significantly to Azerbaijan's economic growth. The introduction of new technologies from Italy to Azerbaijan has been a focal point of discussions, with more than 25 documents addressing this aspect signed during President Ilham Aliyev's visit to Italy. The collaboration extends beyond the economic realm, with cultural and educational initiatives fostering deeper ties. The establishment of the Cultural Centre of Azerbaijan in Italy, along with the erection of a monument to the great Azerbaijani poet Nizami Ganjavi in Villa Borghese Park, reflects the commitment to cultural exchange.

In the field of education, the memorandum of understanding for Italy-Azerbaijan University between ADA University and five leading Italian universities was signed in September 2021. The purpose of Italy-Azerbaijan University is to contribute to the growth aspirations of Azerbaijan by innovating while being rooted in its authentic cultural identity and traditions and deploying the know-how of Made in Italy.

The program portfolio intends to build management capacity and manpower in strategic sectors and high-demand areas. To establish programs, ADA will benefit from the outstanding expertise of the leading Italian universities, namely Luiss in brand-conscious management, the Università di Bologna in food and agriculture, Politecnico di Milano and Sapienza Università di Roma in architecture, design, and urban studies, and Politecnico di Milano in engineering, including engineering of sustainable energy.

Italy has played a crucial role in providing diplomatic support and media coverage, especially during critical moments such as the Patriotic War. Italian media outlets, including Il Giornale newspaper, Adnkronos news agency, Notizie Tiscali, Notizie Yahoo, Occhio Notizie, Telenicosia, Politicamente Corretto, Agenzia Nova, and others, highlighted Azerbaijan's rightful position and reported on the war crimes committed by Armenia.

In a testament to the enduring and strategic nature of cooperation, President Ilham Aliyev recently received a delegation led by Fabrizio Di Amato, the chairman of the Italian company Maire Tecnimont Group, through a video conference. Maire Tecnimont Group, which has been operating in Azerbaijan for over seven years, has been actively contributing to Azerbaijan's industrialization.

The company's involvement in projects worth over 1.6 billion euros and its commitment to expanding activities in Azerbaijan highlight the depth of strategic cooperation. President Aliyev expressed hope for increased participation of Italian companies in the restoration and construction projects in the recently liberated territories.

As Azerbaijan and Italy continue to strengthen their ties, the prospect of an Italy-Azerbaijan University in Baku adds a new dimension to educational cooperation. The determination to expand relations and contribute to the development of industries, coupled with the ongoing cooperation in the non-oil sector, positions Azerbaijan as a significant partner for Italy in energy and beyond.

The development of the strategic partnership between Azerbaijan and Italy not only reflects the resilience of diplomatic relations but also underscores the potential for Azerbaijan to emerge as a crucial partner for Europe in the energy sector. The comprehensive collaboration across economic, cultural, and educational domains sets the stage for continued growth and mutual benefit in the years to come.

---

Follow us on Twitter @AzerNewsAz