Azernews.Az

By Sabina Idayatova

Azerbaijani state oil company SOCAR has said it does not expect its projects implemented in Georgia to be affected by the October 1 parliamentary elections that set the course for a change of power in the neighboring country.

"SOCAR is implementing all its projects in accordance with international standards and legislative requirements of the Georgian government, and a change of power in the neighboring country will not affect the company's activity," SOCAR President Rovnag Abdullayev told journalists on Tuesday.

"Four years ago we made our first international investment in Georgia, and today we hold 50 percent of that market, with our own distribution network for oil and oil-based products," Abdullayev said. "SOCAR also oversees the gas distribution network in Georgia, because up to 90 percent of gas imports to that country come from Azerbaijan. We are the biggest taxpayers in Georgia and implement the most large-scale projects, so I don't believe that someone would kill the goose that lays the golden egg."

Playing a big role in the Georgian energy market, SOCAR currently owns over 30 gas distribution networks in the neighboring South Caucasus republic, as well as 100 gas stations. The company also supplies gas and gas products to Georgia.

Georgia intends to implement projects to build new hydro-power plants, which will increase its capacity in the electricity sector, and Azerbaijan has pledged to invest in the project. Another important joint project is the construction of a new SOCAR plant in the free industrial zone in Kulevi, Georgia for carbamide production.

The SOCAR head said Azerbaijan has established a broad legal framework to promote and protect foreign investment and has extensive experience. SOCAR is ready to cooperate with major foreign companies, taking into account Azerbaijan's interests and the principles of economic efficiency, he said.

Running filling stations in Azerbaijan, Georgia, Ukraine and Romania is one of SOCAR's successful projects as well.

The number of SOCAR gas stations in Georgia reached 96 in May and will be further increased to 125, a SOCAR official said.

Azerbaijan and Georgia broadly cooperate in regional energy development, transportation and other important partnership projects. The main routes for the delivery of Azerbaijani fuel -- Baku-Supsa and Baku-Tbilisi-Ceyhan oil pipelines and Baku-Tbilisi-Erzurum gas link -- cross Georgia.

The two countries are implementing a joint large-scale railway project -- Baku-Tbilisi-Kars, and Azerbaijan has provided a $775 million loan for the purpose.The railway will connect Georgia with Turkey and Europe.

Azerbaijan has long been the second biggest trading partner of Georgia. According to the Georgian statistics body, Azerbaijan accounts for 12.2 percent of Georgia's foreign trade.

Georgian exports to Azerbaijan include cement, locomotives and other railway vehicles, mineral and chemical fertilizers, sparkling water, alcoholic beverages, glass and glass products, as well as pharmaceuticals. Azerbaijan, in turn, exports oil and oil products, natural gas, plastic products, furniture, etc.

SOCAR's office in Georgia is also implementing social projects including funding construction and reconstruction of schools, kindergartens, roads and stadiums.