Azerbaijan and EIB discuss coop, ink framework agreement
By Nigar Orujova
Azerbaijan and the European Investment Bank (EIB) signed a framework agreement regulating the bank's activity in the country, Azerbaijan's representation to the European Union said on August 30.
An Azerbaijani delegation left for Belgium on August 28 to discuss the prospects for cooperation and participation in joint projects with the EU and EIB.
The agreement, which indicates Azerbaijan's obligations to the bank, as well as the status granted to the bank in the country, was signed as a result of a meeting between Azerbaijani Economic Development Minister Shahin Mustafayev and EIB Vice President Wilhelm Molterer.
During the meeting the parties exchanged views on the prospects of cooperation between Azerbaijan and the European bank.
The EIB plans to finance projects funded by the EU within its European Neighborhood Policy. Priority will be given to regional projects involving two, three or more countries, for instance, Georgia, Turkey and other states. These projects are expected to affect the development of Azerbaijan and other countries.
The EIB earlier expressed its willingness to invest in the development of the railway infrastructure in Azerbaijan, offering about $500 million for the purpose.
The EU is Azerbaijan's main foreign trade partner. The share of foreign trade operations between Azerbaijan and the EU exceeded 41 per cent of the country's total turnover volume last year and the figure amounted to 43.7 percent in the first six months of 2013.
The share of investments by the EU countries in the fixed capital and in Azerbaijan's oil sector amounted to 51 per cent and 36.5 per cent respectively in the total bulk of the country's foreign investment over 10 years.
To date, Azerbaijan has signed agreements on cancelling double taxation with 20 EU member states and on mutual protection of investments with 17 countries. In addition, joint intergovernmental commissions have been created with 13 countries.