Today.Az » Business » German engineering companies to visit Azerbaijan
03 October 2019 [14:17] - Today.Az
By Rasana Gasimova
German engineering and plant construction companies are planning to visit Azerbaijan, Thomas Bareiss, State Secretary at the Federal Ministry for Economic Affairs and Energy of Germany told Trend.
“Over the past few years, several German business delegations visited Azerbaijan. I paid several visits to Azerbaijan during this period. The last visit of the German Federal Ministry for Economic Affairs and Energy delegation to the country took place in September 2019. This delegation included representatives of companies specializing in the modernization of industry and infrastructure. Further visits are planned for the coming years, including those of German engineering and plant construction companies,” Bareiss said.
He noted that the German government supports the activities of German industry in Azerbaijan by deploying its foreign trade and investment instruments, which include export and investment guarantees available for German direct investment abroad.
“Since its establishment in 2011, the German-Azerbaijani intergovernmental group has also been actively promoting economic relations between the two countries and working to intensify our bilateral economic cooperation, expanding its scope and supporting specific projects. The German-Azerbaijani Chamber of Commerce (AHK) was established in Baku in 2012. More than 120 German and Azerbaijani companies are members of the organization, which is an important player in the efforts to develop our bilateral economic ties,” said the State Secretary.
Note that oil and oil products constitute main share of Azerbaijan's exports to Germany. In 2018, SOCAR supplied over 2.2 million tons of crude oil to Germany.
Germany is presently negotiating the supply of hazelnuts, pomegranates, juices, wine and canned products from Azerbaijan, and is also interested in the import of chemical products.
The turnover between the two countries increased by 27 percent in 2019. The two countries have signed over 70 agreements on cooperation, including those in fintech sphere. Fourteen twinning projects carried out in Azerbaijan are supported by Germany. Currently, 154 German companies are functioning in Azerbaijan. German companies have invested $570 million in Azerbaijan’s economy, most of which have been directed to the non-oil sector.
Some $615 million has been allocated for the implementation of industrial projects, 90 percent of them accounting for the oil sector and some 30 million euros has been allocated to implement nine projects related to industry and infrastructure.
Germany ranks second among Azerbaijan’s European trade partners in terms of trade turnover and ranks first in imports.
Germany fully supports Azerbaijan in strengthening trade and economic cooperation with the European Union, and is Azerbaijan’s major partner in this area.