Azernews.Az

By Nigar Orujova

Turkey and Azerbaijan should increase their efforts in the field of joint investments, Turkish Ambassador Ismail Alper Joshgun said in an interview with Trend news agency on Wednesday.

Joshgun said it is time for Azerbaijani and Turkish investors to jointly invest in third countries.

According to the ambassador, joint projects between Azerbaijan and Turkey have a significant impact on the global economy. The Baku-Tbilisi-Kars railway project can be mentioned as an example. If one takes into account its connection to railway projects in Afghanistan, Central Asia and Europe through the Marmaray project, they too have a global impact.

Economic relations between Turkey and Azerbaijan are at a fairly high level. As of 2012, bilateral trade turnover amounted to $4.2 billion, Joshgun said.

"Despite a good level of economic relations between the two countries, I believe that these figures do not reflect the real potential for cooperation that exists in reality," he said. "The two countries must make an effort to use the existing potential," Joshgun stressed.

The energy and transport sectors are the main areas of cooperation between the two countries, and this includes projects such as the successful Trans-Anatolian Gas Pipeline (TANAP), which is to be implemented in the near future, Azerbaijani state energy company SOCAR's investments in Turkey, in particular, in the construction of the new Star refinery in Izmir, a port construction in the Aliaga complex and others, he said.

Construction of a railway from the Nakhchivan Autonomous Republic of Azerbaijan to Igdir in Turkey is also being considered.

"Today, each of the countries is conducting operations on its own territory," he said. "After preliminary work is over, Turkey and Azerbaijan will work together to implement this project."

Along with the economic partnership, Azerbaijan and Turkey cooperate closely in the international arena, which is a result of the policy pursued by the presidents of the two countries, Joshgun said.

"The third element of strengthening the relations between Turkey and Azerbaijan is the growing interest of Turkish investors in the Azerbaijani economy, as well as strengthening the Azerbaijani private sector in the Turkish economy," Joshgun said. "Taking into account all of these aspects, one can say that the trade turnover and mutual investment, and, as a result, the economic partnership between Azerbaijan and Turkey, will continue developing."

Joshgun noted that a meeting of the strategic partnership council is expected to be held between Turkey and Azerbaijan this year. However, the date and venue of the Council meeting are yet unknown.

The most interesting areas for Turkish investors in Azerbaijan are agriculture and construction, which is rapidly growing, as well as tourism, Joshgun believes. Despite its relatively small territory, Azerbaijan has unique features of nature and climate, which makes the country very attractive for tourists, he said.

Joshgun stressed that besides the above-mentioned spheres, the two countries can also cooperate successfully in the field of telecommunications. Turkey has extensive experience in this field, and while cooperating with Azerbaijan, the country could carry out a number of projects in the field.

Azerbaijani investors may also be interested in the Turkish tourism, electronic industry and energy.

Along with existing tourism projects, Azerbaijan and Turkey could create a single tour package, Joshgun said.

"The countries could implement a project to redirect tourists," Joshgun added. "So, tourists who visit Turkey may familiarize themselves with Azerbaijan's tourism potential and vice versa. Tourists could get the opportunity to visit the two countries."

The number of tourists that visited Turkey in 2012 increased by 1.7 percent, reaching 36.7 million compared to 2011, the Turkish Statistical Institute reported earlier.

Turkey's tourism revenues in 2012 increased 1.8 percent, reaching $23.4 billion compared to the same period of 2011.

Around 75.1 percent of tourism revenues were received from foreign tourists.

Joint defense industry production

Azerbaijan and Turkey could implement a project on joint production in the field of defense industry, which is the main topic discussed at the state level between the two countries, Joshgun believes.

He added that there are agreements on trade in products of the defense industry between Turkey and Azerbaijan, which are being successfully implemented.

"Turkey has recently achieved good results in the development of the defense industry," he said.

Joshgun stressed that currently Turkey has achieved significant results in the defense industry and produces such goods as fighter aircraft, tanks and military satellites.

Export of Turkish defense industry goods increased by 35.7 percent and hit $1.2 billion in 2012 compared to 2011, Turkish Defence Industry Exporters Council said in a report earlier.

In 2012 the biggest quantity of defense industry produce worth $490 million was exported to the U.S. Parts of combat aircraft and helicopters were mainly exported to this country. The second biggest export of defense production was made to the UAE -- worth $101 million; the UAE is followed by Saudi Arabia with $99 million.

Nagorno-Karabakh conflict

Joshgun also said Turkey and Azerbaijan are trying to promote the role of the OSCE Minsk Group in the settlement of the Armenia-Azerbaijan conflict over Nagorno-Karabakh through consultations with each other.

"Turkey and Azerbaijan are not going to give up on the issue of the Nagorno-Karabakh conflict. The two countries are holding consultations regarding what can be done to stop the Armenian occupation in the shortest possible time," Joshgun said.

He said the international community and the Minsk Group in particular are passive in this matter as there is no open military conflict in the region. Turkey and Azerbaijan are trying to explain to the world that the absence of warfare is not a guarantee of peace and security, that sporadic clashes occur, resulting in casualties of the Azerbaijani and Armenian army.

Joshgun noted that stability in the region can only be achieved after the occupation of Azerbaijani territories ends.

"The occupation of Azerbaijani lands by Armenia is the main obstacle to normalization of the situation in the region. Development of the entire region can be considered only after ending the occupation of Azerbaijani lands," Joshgun said.

Turkey has always supported and continues to support Azerbaijan in the Nagorno-Karabakh conflict and this support is the result of close relations between the two countries, he said.

According to Joshgun, despite the fact that all international organizations and in particular the UN support the just position of Azerbaijan in the Nagorno-Karabakh issue, there has been no progress in the peace process for more than 20 years.

The conflict emerged in 1988 when Armenia made territorial claims against Azerbaijan. The two South Caucasus neighbors fought a lengthy war that ended with the signing of a precarious cease-fire in 1994. Armenian armed forces have since occupied over 20 percent of Azerbaijan's internationally recognized territory. Peace talks brokered by Minsk Group co-chairs Russia, France and the U.S. have been largely fruitless so far. Armenia has not yet implemented the U.N. Security Council's four resolutions on a pullout from Nagorno-Karabakh and the seven surrounding regions.