Azernews.Az

By Leman Mammadova

Azerbaijan and Montenegro enjoy successful partnership in various spheres, particularly in the sectors of energy, tourism, real estate and banking.

Azerbaijan is the main foreign investor in Montenegro, Dusko Markovic, Montenegrin Prime Minister, said at the Azerbaijan-Montenegro business forum held in Baku on June 25.

In his words, the bank established in Montenegro with Azerbaijani capital today demonstrates successful performance.

“Azerbaijan has already invested 260 million euros in the Portonovi project in Montenegro. Moreover, our countries cooperate in the field of energy, in the implementation of large-scale gas pipeline projects TAP and IAP,” said the prime minister.

Markovic stressed that Montenegro invites Azerbaijani business to invest in agriculture and transport, in which the European partners are seriously interested. He further added that in turn, Montenegro is ready to provide a wide range of preferences stimulating investment.

Speaking at the event, Sahil Babayev, Azerbaijani Minister of Labor and Social Protection of the Population, said that Azerbaijan can use the experience of Montenegro in the field of alternative energy, as the development of this area is attractive for Azerbaijan.

He further added that Azerbaijani companies can get access to European markets and Balkan countries through Montenegro. “Montenegro is the gateway for Azerbaijani goods to the Balkan countries and Europe, and Azerbaijan is the gateway for goods from Montenegro to the countries of the South Caucasus and the CIS.”

Babayev noted that business relations have noticeably activated between the two countries, there are joint projects. “There is a serious potential for cooperation between Azerbaijan and Montenegro. But it is not fully implemented, so we need to expand bilateral partnership in many areas, including trade, real sector, transport etc.”

At the same time, the minister underlined that good political relations provide the basis for expanding economic cooperation. The trade between countries has increased significantly since 2018.

He went on to say that Azerbaijan has invested in the construction of a large tourist center in Montenegro, and implements other projects, in particular in traditional and alternative energy, and the transport sector.

Further, the minister invited the business circle of Montenegro to invest in Azerbaijan, in particular, in agriculture, industry, etc.

“The diversification of the national economy, which implies a decrease in energy dependence and the development of the non-oil sector, is a priority of the state policy of Azerbaijan,” noted Yusif Abdullayev, Acting President of the Azerbaijan Export and Investment Promotion Foundation (AZPROMO), adding that serious steps are being taken in this direction, including in the area of investment promotion and export expansion.

In his words, real steps are being taken in order to increase the share of the non-oil sector in the country's GDP.

Abdullayev stressed that currently, AZPROMO is doing a great job to attract foreign investment to the country from European countries, including Montenegro, and in turn, Azerbaijan creates the necessary conditions to invest in various areas of Montenegro.

The head of the company underlined that Azerbaijan has created optimal conditions for the development of the business climate and the promotion of foreign investment in the country. “Thus, this opportunity can also be taken by our partners in Montenegro, who can invest in Azerbaijan and jointly participate in the development of new business promotion mechanisms in the two countries, with the subsequent entry into new markets.”

In turn, Ivan Saveljic, Vice President of the Montenegrin Chamber of Economy, said that Montenegro regards Azerbaijan as an important partner in tourism.

He noted that countries have great potential for cooperation, and such forums give impetus to the development of partnerships, and highlight the most attractive segments in terms of economic feasibility.

“Montenegro is actively building up its potential in the tourism industry, and has high rates in this area among the countries of the European continent. We are interested in deepening cooperation in the field of tourism and in increasing tourist traffic from Montenegro to Azerbaijan and vice versa,” he added.

Saveljic further pointed out that Montenegro also plans to use the mechanisms thanks to which Azerbaijan has seriously advanced in the Doing Business international ranking. “We intend to learn from Azerbaijan’s experience in developing priority economic areas.”

The vice president also noted the importance of political cooperation, adding that, as a member of NATO, Montenegro supports the policy of Azerbaijan aimed at ensuring stability and peace in the region.

Later, on the sidelines of the forum, Montenegrin Prime Minister Dusko Markovic told journalists that Azerbaijan will significantly increase investment in Portonovi Resort project. In his words, Azerbaijani Azmont Investments will invest more than 900 million euros in this large project.

“Currently, this is the most ambitious project being implemented in Montenegro, and it is expected that the first stage will be completed by the end of 2019 with the commissioning of Portonovi Village Marina Residence apartments,” he said.

The Portonovi Resort complex includes a hotel, SPA-centre, yacht port, residences, villas, houses, and restaurants. The developer of the project is Azerbaijan’s Montenegro-based Azmont Investments company.

The protocol on the establishment of diplomatic relations between Azerbaijan and Montenegro signed in 2008 can be considered the beginning of bilateral mutually beneficial cooperation. After the opening of the diplomatic mission of Azerbaijan in Montenegro and of the Honorary Consulate of Montenegro in Azerbaijan, bilateral relations have further developed.

The establishment of the Joint Commission on Economic Cooperation between the governments of Azerbaijan and Montenegro in 2013 is an indication of the importance of cooperation between the two countries.

Montenegro successfully cooperates with Azerbaijan in the energy sector. Montenegro’s cooperation with Azerbaijan in this sphere is currently based on activities related to the Ionian-Adriatic Pipeline (IAP). IAP, which is expected to be connected to the Trans Adriatic Pipeline (TAP), will pass through Montenegro as well.

IAP is a proposed natural gas pipeline in Southeastern Europe that will stretch from Albania through Montenegro and Bosnia and Herzegovina to Split in Croatia. The capacity of the pipeline will amount to 5 billion cubic meters of gas per year.

Montenegro is also interested in joint participation with Azerbaijan in renewable energy projects, particularly on the use of solar energy.

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Leman Mammadova is AzerNews’ staff journalist, follow her on Twitter: @leman_888

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