Azerbaijani-Russian trade may hit new record in 2013
By Nigar Orujova
Trade turnover between Azerbaijan and Russia may hit a new record high in 2013, Russian Ambassador Vladimir Dorokhin said at a meeting of the Caspian-European Integration Business Club (CEIBC) on Wednesday.
The main topic of the meeting was Azerbaijani-Russian economic cooperation. Ambassador Dorokhin expressed satisfaction with the relations established between the two countries.
"As of 11 months [of 2012], the trade turnover reached $3.2 billion, which is a record in the history of relations between the two countries," Dorokhin said. "Trade rose by 23.3 percent compared to the same period of last year. As regards this year, we expect growth up to $3.3 -3.5 billion. Taking into account the growth rates, we expect a new record in 2013."
Azerbaijan shares fourth and fifth place with Uzbekistan on the list of Russia's trading partners among CIS nations.
Dorokhin said that equipment, vehicles, metal products, chemicals and other goods dominate Russian exports to Azerbaijan, while around 60 percent of Azerbaijani export falls to mineral resources and 30 percent to food and agricultural products.
According to Dorokhin, the lack of an agreement between Azerbaijan and Russia on the protection of mutual investments slows down their growth.
"The main reason behind the delay in the conclusion of the agreement is fundamental differences regarding the definitions of national sectors. Russia will not sign an agreement without defining national sectors, while Azerbaijan has no intention to back down from its position. Therefore, entrepreneurs will have to work within the existing framework at the moment," Dorokhin said.
He said that to date, Russian businessmen have invested about $60-70 million in the Azerbaijani economy.
According to Dorokhin, this volume is very low and stems from the fact that the scope of business projects is limited in the non-oil sector of Azerbaijan due to this sector's being new and continued development, as well as limited opportunities of the Russian business.
In particular, the governments of the two countries are not yet able to reach a compromise on the issue of extending the agreement for a particular period. Azerbaijan offers to make it applicable to the whole history of bilateral cooperation, while Russia insists on a coverage period beginning in 1992.
Dorokhin said the average amount of a money transfer from Russia to Azerbaijan was $617 in 2012, which is the highest among CIS countries.
"Anywhere from 600,000 to 3 million Azerbaijanis live in Russia," Dorokhin said. "There are different figures, but the numbers regardless of the source are high."
He said that currently 88 flights and 10 train trips a week are made between the two countries. Bus trips on 29 routes are made from the Azerbaijani city of Zagatala to Russia and new trips will be available in the future.