Russian company to enter local market
By Mirsaid Ibrahimzade
Russian companies demonstrate continuous interest in Azerbaijani market due to the familiar structure, preferential tax and customs regimes and availability of different transport routes which ease logistic issues.
Starting from the autumn of 2019, Russian company Rosyarpak, which specializes in the production of paper bags and flexible packaging in Yaroslavl region, plans to start export to Azerbaijan.
“Our participation in the business mission of the Yaroslavl entrepreneurs in Azerbaijan turned out to be very productive - Azerbaijani companies reacted with interest to the products of Rosyarpak. We entered the target market - there is no paper packaging manufacturer in Azerbaijan. In the autumn we will begin supply,” Lyubov Labayeva, Commercial Director at Rosyarpak, told Russian media.
The organizer of the business mission of the Yaroslavl region to Azerbaijan was the Export Center of the Yaroslavl Region. The delegation included representatives of companies in the region that produce packaging, spare parts for agricultural machinery and auto chemistry.
“Russia and Azerbaijan have a preferential customs regime; this gives an advantage to local goods. The Azerbaijani market is attractive for Russian suppliers, we can offer decent quality and competitive prices,” General Director of the Center Natalia Bagrova noted.
According to the Center, the export of the Yaroslavl region to Azerbaijan amounted to $13 million (an increase of 71 percent compared to 2017) in 2018.
The export structure includes ferrous products, fuel, mechanical equipment and machinery, glass and glass products, paper and cardboard, wood and wood products, pharmaceuticals, rubber and rubber products, printing and paint and varnish products.
Rosyarpak, located in Pereslavl-Zalessky town, was founded in July 2002. The staff of Rosyarpak consists of 115 people. Over the years of successful work, Rosyarpak has already produced several billions of paper bags.
Azerbaijan is one of the main economic partners of Russia among the CIS countries and Russia remains one of Azerbaijan’s main foreign trade partners. Interregional cooperation plays an important role in the development of Russian-Azerbaijani trade and economic relations and the increase in trade turnover. Russia ranks first in terms of export of non-oil products from Azerbaijan.
The trade turnover between Azerbaijan and Russia amounted to $2.55 billion in 2018, which is 19.1 percent more than in 2017, according to Azerbaijan’s State Statistics Committee. The share of trade operations with Russia in 2018 accounted for 8.25 percent of the total foreign trade turnover of Azerbaijan.
It is noteworthy that the value of investments by Russian companies in Azerbaijan amounted to $4.4 billion, and the Azerbaijani investments in Russia stood at $1.2 billion. In 2018, the trade turnover between the two countries exceeded $2.5 billion.
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Mirsaid Ibrahimzade is AzerNews’ staff journalist, follow him on Twitter: @MirsaidIbrahim1
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