Azerbaijan among top foreign investors in Turkey
By Aynur Jafarova
Azerbaijan ranks third for the number of companies established with foreign investment in Turkey in May 2013, the Union of Chambers and Commodity Exchanges of Turkey said last week.
As for Azerbaijani capital placed in the neighboring country, 27 companies with Azerbaijani investment were established in Turkey last month, according to the report.
It said 399 companies were established in Turkey in this period. Syria with 61 companies tops the list, followed by Germany with 37 companies.
As of the end of 2012, the number of companies with Azerbaijani capital in Turkey reached 1,100.
Mutual investments between Azerbaijan and Turkey exceed $10 billion. The amount of Azerbaijani investments in Turkey in the coming years is projected at $21 billion.
According to the 2012 results, trade turnover between the two countries amounted to $2.12 billion. Turkey ranked first among the foreign trade partners of Azerbaijan for the volume of imports ($1.520 billion) with a share of 15.75 percent in Azerbaijani imports.
Earlier Azerbaijani state energy company SOCAR's Vice President Suleyman Gasimov said that SOCAR will proceed in making major investment in the projects in Turkey next spring.
"Work with export-import banks is in the final stage. We plan to start attracting funds of the banks in March next year. Prior to that, we will use both internal funds and funds of the State Oil Fund of Azerbaijan. Currently, a large amount of money is required. We plan to spend up to $1 billion by the end of 2013," Gasimov said.
SOCAR is one of the world's most well-established oil companies, active in Turkey since May 30, 2008. The volume of investments that SOCAR will invest in the projects in Turkey is estimated at $17 billion.
SOCAR is involved in a number of major investment projects in Turkey, including the construction of the Trans Anatolian gas pipeline (TANAP), Star refinery and others.
TANAP will bring gas from Azerbaijan to the European edge of Turkey, and could be connected with either Nabucco or TAP pipeline. The TANAP project envisages construction of a pipeline from the eastern border of Turkey to the country's western border to supply gas from Azerbaijan's giant Shah Deniz gas condensate field in the Caspian Sea. Initial capacity of the pipeline is expected to be 16 billion cubic meters per year. Around 6 billion cubic meters will be delivered to Turkey, while the rest will be transported to European markets.
The Star refinery's processing capacity is expected to be 10 million tons of oil and it will be capable of refining such oil grades as Azeri Light, Kirkuk and Urals. Annual production at the refinery will equal 1.6 million tons of naphtha. STAR Refinery is scheduled for commissioning in 2015 and it will contribute significantly to the economy of the region and country by creating employment and increasing competitiveness.