Georgia's withdrawal from CIS not to affect cooperation with Azerbaijan

"Despite the fact that today Georgia officially withdraws from the Commonwealth of Independent States, it will remain a participant to some 75 agreements within the organization," the Embassy said. "In addition, Azerbaijan has signed more than 100 papers on cooperation in economic spheres."

Georgia decided to quit the Commonwealth of Independent States after the war in South Ossetia in August 2008. According to the CIS charter, the formalities for withdrawal from the Commonwealth takes for 12 months, and from Aug. 18 Georgia will not be a member of the CIS. From this date it can continue participation in 75 treaties adopted within the Commonwealth, but cannot continue participation in remaining 400 .

The Georgian Embassy believes that at present there are no outstanding issues with Azerbaijan, and active cooperation will continue in various spheres of the economy.

Georgia and Azerbaijan have become key partners not only in trade and economic relations, but also by participation in such major projects such as the Baku-Tbilisi-Ceyhan pipeline, the Baku-Tbilisi-Erzurum gas pipeline and the construction of the Baku-Tbilisi-Kars railway. For works on the Georgian section of the railway, the State Oil Fund of Azerbaijan issued a $200 million in loan to Georgia for 25 years at an annual rate of one percent. Moreover, joint work in energy and transport sectors is a model of cooperation in any given region of the world.

In addition, the two countries have identified the areas of long-term economic cooperation until 2018. The countries have the potential to expand the range of trade goods, promote cooperation ties in small and medium-sized businesses sphere, to attract investors to implement mutually beneficial projects and to deepen direct links between economic bodies.

It is expected that a mechanism to export Azerbaijani products and Georgian agricultural products to foreign markets will be created. Furthermore, it is expected that joint ventures in agriculture and light industry shall be established. The establishment of a joint venture is planned for the production of juices, dairy products in the Dmanisi and Sagaredji regions of Georgia, wine in the Bolnisi region, and carpet weaving workshops in Marneuli, Gardabani and other regions of Georgia. At the same time, it is expected that a market to sell nitrogen fertilizers in Azerbaijan will be created.

In order to attract investment and establish direct contacts between business groups, business forums and investment fairs in the border regions and open trade houses in Azerbaijan and Georgia have been planned.

At present, Azerbaijani companies are already active in the territory of Tbilisi. The State Oil Company of Azerbaijan Republic (SOCAR) opened a representative office in Tbilisi and invested in the Kulevi oil terminal. Moreover, a subsidiary bank, the International Bank of Azerbaijan-Georgia, was founded and the Azerbaijan Embawood company has organized furniture production. A subsidiary of the Georgian TBC Bank operates in Azerbaijan.

To further expand the energy flow between the countries, it is expected that the Muhranis-Veli power line will be restored. The 500-kilovolt voltage power line runs between the Azerbaijani state region power station and the Gardabani 500 substation (Georgia). In the future, the system will be connected to the Turkish electricity transport system.

Its establishment will increase the electricity supply among the three countries and synchronizes the power system. Moreover, the system will increase the Azerbaijani electricity supply to Georgia under the existing agreement between the parties.

The construction of the transmission lines will help to synchronize the work of the three countries' electric power systems, and allow the delivery of the electricity supply to European electric power systems.

Azerbaijan also supplies natural gas to Georgian customers.

Georgia's external debt to Azerbaijan still remains to be settled. The debt is worth $16,189,573 and was made in 1992-1994 as a result of business transactions between the state enterprises. Under the intergovernmental agreement on adjusting Georgia's debt to Azerbaijan which came to effect in February 2007, repayment of the debt will be completed in 2025.

Georgia has also become the first country with which bilateral negotiations on Azerbaijan's accession to the WTO have been completed. The Embassy reported that the necessary work for signing the negotiation protocol is underway, the embassy said in a statement.

/Trend News/