Minister says Azerbaijan’s economy grew in 1H2021

By Azernews

By Ayya Lmahamad

Azerbaijan’s economy grew by up 2 percent while the non-oil sector showed five-percent-growth in the first half of 2021, Economy Minister Mikayil Jabbarov has said.

Addressing “The business mission of Russian companies under the auspices of Roseksimbank JSC” event held in Baku on July 23, Jabbarov said that “all these indicators point to the diversification of the economy.”

Jabbarov noted that growth is observed in tax fees and customs, adding that gold and foreign currency reserves continue to grow, which gives an additional impetus to the country’s economic growth.

Ties with Russia

Furthermore, the minister underlined that Azerbaijan aims to increase the trade turnover with Russia in 2021.

Noting that last year was marked by a reduction in trade turnover between the two countries, Jabbarov stressed that at the moment the economies of both Azerbaijan and Russia are growing, which has an impact on economic cooperation.

The minister underlined that the trade turnover between Russia and Azerbaijan increased by four percent in the first half of 2021, compared to the same period of 2020.

Addressing the event, Azerbaijan’s Transport, Communications and High Technologies Minister Rashad Nabiyev said that the business relations with Russia open new opportunities for business players.

Noting that Azerbaijan is developing relations with Russia in the field of passenger and cargo transportations, the minister stated that throughout 2020, it was possible to maintain the cargo transportation growth, which amounted to about eight million tons.

“In addition, after the liberation of Azerbaijan’s territories, new realities emerged, new transport corridors will soon be unblocked, which will contribute to the growth of cargo turnover not only between Russia and Azerbaijan but also in the whole region,” he said.

The minister also noted that the positive dynamics of cargo turnover will contribute to the renewal of the vehicle fleet of Azerbaijan.

“To date, about 85 percent of trucks in Azerbaijan have been in operation for 10-15 years, which is a positive moment for Russian automakers. The new vehicles will ensure the efficiency and speed of goods delivery.”

Nabiyev added that Azerbaijan is also interested in Russian experience in the information technology field.

During the meeting, Roseksimbank’s Board Chairman Azer Talybov emphasized that the Bank will be a reliable partner of Azerbaijan and this, in turn, will increase the efficiency of cooperation.

“Our loans to both banks and entrepreneurs will increase the attractiveness of the business, its investment policy,” the board chairman added.

Moreover, noting that the business environment is an important component of the economic interaction between the two countries, Russia's Deputy Minister of Economic Development Dmitry Volvach emphasized that economic interaction between the two countries will reach a new level.

“The trade turnover between the two countries is growing, and this is a positive trend. There are also ample opportunities for further improvement of indicators,” the deputy minister noted.

He added that the Russian and Azerbaijani authorities will render support to the business circles of the two countries on a reciprocal basis due to the negative consequences of the COVID-19 pandemic.

Additionally, the deputy minister stressed that the Russian export volume to Azerbaijan grew by 2.6 percent, while import volume from Azerbaijan by 7.4 percent.

During the meeting, the representative of RM Rail Alexei Savelyev also emphasized that the company is ready to expand the supply of rail cars to Azerbaijan. He stressed that RM Rail and Azerbaijan Railways have recently signed a corresponding contract for the supply of the company's goods.

Additionally, it was noted that the Security Code company, the leader in the information security field in Russia, is entering the Azerbaijani market.

"A joint regional trust cluster and a product line are planned to be created for the Azerbaijani market and the region as a whole," representative of the company Oleg Kravchuk said.

"We want to expand not only potential cooperation but also interaction with the IT companies. We even have a contract with one of the Azerbaijani companies," he added.

It should be noted that the trade turnover between Azerbaijan and Russia amounted to $2.6 billion in 2020, making Russia Azerbaijan’s third-largest partner. In addition, the trade turnover between the two countries amounted to $1.3 billion in the first half of 2021.