Belarus ready to establish assembly factories in Azerbaijan

Belarus is ready to establish assembly factories producing farm machines and tractor equipment in Azerbaijan, First Deputy Premier of Belarus Vladimir Semashko said as he met with First Deputy Prime Minister of Azerbaijan Yaqub Eyyubov at the session of the Belarus-Azerbaijan intergovernmental commission on trade and economic cooperation on 27 August, BelTA has learnt.

Vladimir Semashko emphasized the importance of the project to assemble Belarusian tractors and vehicles at Ganja Automobile Plant in Azerbaijan. “We can assemble 800 tractors per year there,” Vladimir Semashko said. He emphasized that the tractor assembly production should be integrated into production of other farm machines and agricultural equipment used in Belarus tractor. “Our country produces virtually all kinds of farm machines, we meet all our needs in agricultural equipment,” Vladimir Semashko said. Therefore, Belarus can offer its technologies to Azerbaijan.

In 2011 Belarus and Azerbaijan considerably boosted the bilateral trade. “It is largely attributed to supplies of Azerbaijani oil to Belarus,” the First Vice Premier said. He thanked Azerbaijan for the oil supplies that helped maintain the operation of Belarusian companies. Oil supplies from Azerbaijan to Belarus were suspended later.

In a bid to boost the bilateral trade the two countries should consider more commodities that can be dealt in. “We have reserves to promote Belarusian products. We can offer equipment and machines for oil production. Besides assembly production of trucks and tractors, we are considering production of municipal vehicles and buses,” Vladimir Semashko said.

He emphasized the importance of raising Azerbaijani investments into Belarus. In 2011 these investments were estimated at $12 million. The figure is not big, but it is seven times bigger than the year before. Belarus is interested in Azerbaijani investments and our country is also ready to invest in the economy of Azerbaijan, the First Vice Premier said.

In 2011, the Belarus-Azerbaijan trade exceeded $1 billion (up seven times). Belarus` export made up $200 million (up by 43% compared to the last year). Belarus` major exports to Azerbaijan were component parts and equipment for vehicles and tractors ($21 million). The export of tractors and truck tractors was estimated at $12.4 million, engines at $9.2 million, timber at $6.2 million.

In 2011 Belarus imported from Azerbaijan crude oil to the tune of $816.4 million, oil products to the amount of $3.9 million, tobacco raw materials, and juices.

In H1 2012 the bilateral trade declined against the backdrop of termination of supplies of Azerbaijani oil to Belarus. The state procurement by Azerbaijan of MAZ vehicles assembled at Ganja Automobile Plant reduced, too. As a result, the bilateral trade made up $92.3 million, down by 84.1% compared to the same period last year. The export made up $85.7 million (down by 30.6%), import stood at $6.6 million (down by 98.5%). However, in H1 2012 the export grew across all the industries by 10-44% except for machine building and pharmaceutics.


/AzerTAc/