Azernews.Az

By Sara Israfilbayova

Russian Minister of Economy Maksim Oreshkin stressed the importance of removing restrictions and barriers in bilateral trade between Russia and Azerbaijan.

Oreshkin made the remark at the 8th Russia-Azerbaijan Interregional Forum in Stavropol, Russia on September 28. The forum, organized by the Economy Ministry of Azerbaijan and the Economic Development Ministry of Russia, was attended by a delegation including 120 people, led by Economy Minister Shahin Mustafayev.

“An increase in trade turnover in export and import of goods between Azerbaijan and Russia has been observed for the first time since 2015,” Oreshkin said. “In January-July 2017, the trade turnover between the countries amounted to $1.5 billion and increased by almost 80 percent compared to the same period of 2016.”

The minister further said that the pharmaceutics is one of the promising spheres of cooperation. “Hayat Pharm joint pharmaceutical company is being established in Azerbaijan. The total preliminary investments there exceed 70 million euros,” he reminded.

Stressing that the Russian economy is recovering and the correct dynamics of domestic demand positively affects bilateral relations with Azerbaijan, Oreshkin noted that a representative office of the Russian Export Center Groupis expected to be opened in the country by the end of 2017.

Russian Export Center JSC was established as a specialized organization representing a "single window" for working with exporters in the field of financial and non-financial support measures, including through interaction with profile ministries and agencies that carry out functions to develop Russia's foreign economic activity.

Earlier, it was reported that a representative office of the Russian Export Center Group should be opened in 2018.

Mustafayev also expressed satisfaction with the current bilateral relations in the economic sphere.

The minister stated that the adaptation of the Azerbaijani economy to the new economic conditions is under completion, adding that the Azerbaijani government expects the economic recovery and its sustainable growth.

“This year, we celebrate the 25th anniversary of the establishment of diplomatic relations between Azerbaijan and Russia,” he stressed. “During this period, our relations have steadily developed. These relations were brought up to the level of strategic partnership due to the efforts and political will of the presidents of the two countries.”

The minister further mentioned that the sides signed over 200 different agreements during the period of cooperation.

“Trade relations are an important sphere of ​​our cooperation,” he said. “Russia is one of the main trade partners of Azerbaijan. For this reason, Azerbaijan established its first trade representative office in Russia, which testifies to the great importance that we attach to our relations with Russia.”

Today around 700 companies with Russian capital are operating in the country. Russia has recently invested over $3 billion in the Azerbaijani economy, while Azerbaijan has invested more than $1 billion in the Russian economy.

There are 650 joint companies operating in the Azerbaijani market, such as Lukoil Overseas, AvtoVAZ, Kamaz and VTB. There are agreements between Rosneft and Azerbaijan’s energy giant SOCAR for joint exploration and production of oil and gas.

Further Oreshkin said that Russia and Azerbaijan are negotiating the possibility of increasing gas exports from Russia to Azerbaijan.

In September 2015, Gazprom began deliveries of natural gas to Azerbaijan under a contract concluded for five years with the possibility of extension. The contract provides for the supply of up to 2 billion cubic meters of gas to Azerbaijan per year. At the end of 2015, the parties discussed the possibility of increasing supplies, taking into account the prospects for growth in gas consumption in Azerbaijan.

Governor of the Stavropol region Vladimir Vladimirov, taking his turn, emphasized that Russia’s Stavropol region can double the supply of agricultural products to Azerbaijan up to 3-4 million tons of products per year.

“Azerbaijan is our long-term and reliable business partner,” Vladimirov said. “The total turnover [between Azerbaijan and Stavropol region] is a little over $130 million a year but I am sure that is not the limit."

Further he touched upon tourism adding that more than 100,000 Azerbaijanis rest in the Caucasian Mineral Waters, which is 6 percent of the total tourist flow.

Talking about the cooperation in the sphere of tourism, Mustafayev confirmed that many Azerbaijanis visit the Stavropol Krai, they know very well the mineral and healing waters of this region.

He went on to say that Azerbaijan may start supply of mineral water from the Stavropol Krai of Russia.

Mustafayev said the latest technology was introduced at the Rokadov Mineral Water OJSC. “Azerbaijan can become a consumer of this water,” added the minister.

Azerbaijani Ambassador Polad Bulbuloglu, addressing the forum, stressed that the Azerbaijani and Russian presidents are paying big attention to development of relations between the two countries’ regions.

“Azerbaijan and Russia are neighbors; they have lived, live and will always live side by side,” the ambassador said. “It is not a secret that both peoples are linked by centuries-old traditions of friendship. A big Azerbaijani diaspora lives in Russia and the biggest Russian diaspora in the Caucasus lives in Azerbaijan,” he added.

Further the sides signed five documents: Memorandums on “Intentions to Implement an Investment Project on Construction of a Greenhouse Complex for Production of Vegetable Products”, “Intentions to Implement an Investment Project for Establishment of a 400-room Sanatorium-Hotel Complex”, and “Intentions to Implement an Investment Project for Construction of Rusel Sanatorium.

An agreement on cooperation between the government of Astrakhan Region and the Executive Power of the Narimanov District of Baku, as well as an agreement on cooperation between the Azerbaijan-Russia Business Council and the Union of Chambers of Commerce and Industry of Stavropol Region were also signed at the forum.

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