Azerbaijani-Russia trade turnover to skyrocket in 2013

Source: AzerNews

Azerbaijan and Russia will reach a record level of bilateral trade in 2013, according to Russian trade representative in Azerbaijan Yuri Shchedrin.

The two countries are focused on achieving the $4 billion mark, he told Trend news agency on July 30.

"A record level of trade turnover between Azerbaijan and Russia was already achieved in 2012. There is full confidence and hope that record levels of bilateral trade will be reached this year," the trade representative said.

According to Shchedrin, the Azerbaijani-Russian trade turnover has significantly increased. The increase is indicated by the growth seen in January-May. According to Russian statistics, the growth rate has hit 47.2 percent, while according to Azerbaijani statistics, it reached 38.3 percent.

Last year, bilateral trade amounted to $3.4 billion.

"The main point is that earlier, Azerbaijan was among Russia's top five trading partners among CIS countries," Shchedrin said. "At present, it is among four countries and the leading partner of Russia after Kazakhstan, Belarus and Ukraine."

"The top-level meetings will give a significant impetus to the development of bilateral cooperation in the economic, energy and other areas," Shchedrin added.

There is extensive legal framework between Azerbaijan and Russia, with more than 30 economic documents already signed.

Currently, work is underway to expand the legal framework in energy, transport and other sectors. A package of documents is expected to be signed during Russian President Vladimir Putin's visit to Azerbaijan scheduled for August.

Azerbaijan has invested about $563 million in the Russian economy over the past ten years. At present, 479 companies with Russian capital operate in Azerbaijan. Around $468 million has been recently invested by the Russian side in the Azerbaijani economy.

At present, 71 out of 83 regions of the Russian Federation have been involved in foreign trade with Azerbaijan. Visits, business forums and business meetings are being organized to further expand bilateral relations.

12 business forums, business meetings and exhibitions have been conducted with Russia's entities over the last three years. This contributes to further expansion of relations between Azerbaijan and the Russian regions.

Hefty Azerbaijani investment expected

Shchedrin went on to say that Azerbaijani entrepreneurs are preparing for significant investments in the Russian economy despite the lack of an agreement on mutual protection of investments between the two countries.

According to him, the process of coordination is underway. Negotiations on the Chelyabinsk province, Karachay-Cherkessia, Krasnodar Territory, the Moscow province and some other regions of Russia are being held.

"Azerbaijani investors have intensified their activity in the Russian market. They are ready and there are examples of significant investments in the economy and the social sphere of Russia and its regions," he said.

However, according to Shchedrin, Azerbaijan and Russia are still unable to reach agreement on a draft agreement on mutual protection of investments.

The main reason of the delayed conclusion of this agreement is substantial differences over the determination of national sectors. The Russian side will not sign an agreement without determining the national sectors, and Azerbaijan has no intention to back down from its stance either.

"The agreement will not be signed within the upcoming summits. So, entrepreneurs will have to work under the existing rules," Shchedrin added.

In particular, the governments of the two countries are yet unable to reach compromise on the issue of the agreement's timing. Azerbaijan offers to refer it to the entire history of cooperation between Azerbaijan and Russia, while the Russian side insists on the coverage period from 1992.