Azernews.Az

By Nigar Orujova

Azerbaijan is searching for new forms of economic cooperation with countries of the region under the current world economic crisis. In the current situation, joint efforts by countries have become more important to reduce the impact of the crisis.

This issue was discussed at a session of the Council of CIS Heads of State in Burabay town, Akmola Province, Kazakhstan on October 16.

“The trade turnover between the CIS countries has fallen and there is an objective factor here taking into account the specific processes that occur in the world,” said Azerbaijani President Ilham Aliyev addressing the meeting. “Many of the national currencies of the CIS member states lost their power.”

The trade turnover between Azerbaijan and CIS countries decreased by 13.7 percent a year in the annual quantities in the first nine months of 2015, according to the Azerbaijan State Customs Committee. A 1.8-fold decrease was noted in exports, while imports declined by 0.4 percent.

This is connected to the fact that many of the national currencies of the CIS member states have lost their power.

“Since we keep calculations in dollars, this is naturally reflected in statistics with a minus sign,” the head of state stressed noting that he would like to join the idea of Russian President Vladimir Putin on the elaboration of the issue on transition to valuation in national currencies.

“This will allow us to avoid certain financial risks, which are not related to our business and strengthen our national currencies, further advance the cause of economic integration,” the president stressed.

The use of national currencies in mutual trade between the CIS countries increased over the past decade. While ten years ago the share of national currencies in export-import operations amounted to five percent, today it exceeds 25 percent. However, this index is still low. Azerbaijan is ready to participate in this area as the country is aimed at increasing non-oil exports.

Azerbaijan pursues an independent economic policy, which allows the country to maintain its investment-grade rating, despite a reduction or change in the ratings of neighboring countries.

However, deep integration into the global economy increases the impact of the crisis on the economy of Azerbaijan.

The head of state noted that the CIS countries that possess natural resources – oil and gas – have shown the best resilience to the crisis among many other oil and gas producing countries.

As hydrocarbon resources fall in price, the main factor of economic growth should be non-oil exports.

“Azerbaijan is actively involved in issues of transport security, and we also invite all the CIS countries to join the initiative that we put forward, including joint initiatives with some member countries of the Commonwealth,” he added.

Azerbaijan is now developing a role in transport projects and has already received two container trains from China through Kazakhstan. This means that the East-West corridor has begun to take a new shape, which will provide an opportunity for closer integration of countries located along the way, and those close along this transport route.

At the same time, the CIS area can be regarded as the most important market for Azerbaijani goods, including the largest markets, such as Russia, Ukraine, Belarus and Kazakhstan.

The head of state noted that Azerbaijan is working on the North-South corridor with Russia and Iran and serious agreements have already been reached, as the project promises huge financial profits. This route is the most convenient and the shortest way linking the huge markets of China, India, Iran, Azerbaijan, Russia and Europe.

President Aliyev also invited partner countries to join the project in the form of participation, investment, etc.

The third issue that was raised by the Azerbaijani president at the event was the strengthening of security measures in the region.

“No country in the world can feel completely safe without all-sided cooperation of the international community in the fight against terrorism,” he noted.

The president noted that there are both external and internal reasons for terrorism. “Therefore, joint efforts to resolve socio-economic issues, issues of strengthening security, the fight against terrorism – all this is now a major agenda of our countries.”

“Azerbaijan for its part will continue to make every effort to fight against international terrorism,” the head of state stressed.

At present, there are many possible areas and forms of cooperation for the resolution of economic relations with the CIS countries, and Azerbaijan need to choose the highest priority among them.

The markets of Russia, Kazakhstan and Belarus are attractive for Azerbaijan in terms of cooperation in the agricultural sector and supply of local products to these countries. Tourism is another highly rated priority area.

Ultimately, Azerbaijan can develop relations with the CIS countries in the sphere of petro-chemistry, in turn, importing products that are not produced in the country.

By all accounts, Azerbaijan has much to offer and is eager to develop cooperation in all spheres in the region, which cannot go unnoticed.

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Nigar Orujova is AzerNews’s staff journalist, follow her on Twitter: @o_nigar

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