Azerbaijan inviting Hungarian business for larger cooperation

/By Azernews/

By Amina Nazarli

Members of Hungarian government, business structures and companies operating in different fields got together in the capital of Azerbaijan on June 28, as part of the sixth meeting of the joint intergovernmental economic cooperation commission.

The Hungarian delegation, also comprised by businessmen in industry, agriculture, consulting and banking services, is led by Foreign and Trade Minister Peter Szijjarto.

Speaking at the event Economy Minister Shahin Mustafayev invited the Hungarian companies to work actively in the country, noting that Azerbaijan has good conditions for business. However, he remained dissatisfied with the number of Hungarian companies operating in the country.

“So far there are only six companies with the Hungarian capital in the country. This is a small figure. I think that in the future Hungarian companies will work more actively in Azerbaijan,” Mustafayev added.

Despite the minister stressed that relations between the two countries are developing very successfully and in all directions, including trade.

"For five months of 2016 the trade turnover between the two sides increased by 62 percent. It is true, the figure [the volume of trade] is small and does not satisfy any of the sides. We believe that potential is much more. I would also like to note that transformers were the first product exported from Azerbaijan to Hungary," he said.

The economy minister also said that Hungarian companies can launch production of medicine in Azerbaijan.

Mustafayev further went emphasizing that Hungarian companies are ready to join the construction of the North-South transport corridor, and the issue was discussed during the meeting on the same day with Hungarian Foreign Minister.

During the meeting, Hungarian Eximbank expressed desire to discuss the possibility of providing financial support for the implementation of the project, designed to connect northern Europe to South-East Asia, passing through Azerbaijan. The North-South corridor, from India to Helsinki, with a length of 7,200 kilometers is designed to carry more than 10 million tons per year.

Hungary is also interested in providing engineering services in equipment supply services.

Peter Szijjarto, addressed the event, voicing that Azerbaijan is the only alternative source that can provide energy security of Europe.

“We talk a lot about the need to diversify energy supplies, and the only short-term solution, conducive to ensure Europe with gas, is Shah Deniz field in Azerbaijan. That is why, on the EU-Azerbaijan relations, we want to sign an agreement on strategic partnership as quickly as possible. We would like the EU and Azerbaijan to cooperate more closely,” he said.

The Shah Deniz field, one of the world's largest gas-condensate fields, was discovered in 1999. Its reserves are estimated at 1.2 trillion cubic meters of gas. Overall, the field has proved to be a secure and reliable supplier of gas to Azerbaijan, Georgia, Turkey, and Europe.

Hungarian minister also emphasized that Azerbaijan can count on Hungary during the negotiations on the liberalization of the visa regime with the EU.

The foreign minister went on noting that Hungarian EXIM Bank plans to open credit line for Azerbaijani PASHA Bank in the amount of $5 million, which is sure to contribute to further development of cooperation between the two countries.

EXIM Bank has already opened a credit line of 200 million euros for the development of cooperation between companies of the two countries.

Speaking about the cooperation between the two countries in general, Szijjarto said that political ties, established between the two sides in recent years have given a great impetus to the development of cooperation in trade and economy, adding that there are also opportunities for cooperation in ICT, energy and agriculture. “ICT is a very important area of cooperation between the two countries and is worthy of close attention,” noted the minister.

“We will be happy if the devaluation of the national currency in Azerbaijan will not affect the decrease in imports of agricultural products from Hungary. We believe that the export of agricultural and food products has always been a driving force in bilateral trade turnover,” he emphasized.

Following the meeting the two sides inked a Memorandum on Understanding. In accordance with the document, goods manufactured in Azerbaijan, but not having certificates of origin issued by the relevant authorities of the country, will not be admitted by Hungary.

Hungary, in turn, will inform its legal entities and individuals, so that they refrain from investing or providing any service in the occupied territories of Azerbaijan.

The memorandum also provides for the expansion of cooperation in several spheres including trade, investment, industry, energy, transport, ICT, health, education, culture, tourism, agriculture, the environment, youth, sport and science.

The sides signed a Memorandum of Understanding between the Sumgayit Chemical Industrial Park and the Association of Industrial, Scientific and Technological Innovation and Hungary parks.

The fifth meeting of Azerbaijan-Hungary intergovernmental commission was held in Budapest in April 2015. During that meeting, the parties signed a protocol, in accordance with which they agreed to expand the cooperation in making investments, industry, energy, tourism, agriculture, trade, environmental protection, water industry, ICT, culture, sports, science and so on.