By Azernews

By Leman Mammadova

Today, Azerbaijan accounts for about 50 percent of Russia's trade in the South Caucasus region. Russia is the leader in the import of Azerbaijan’s non-oil products. Measures are being taken to further strengthen the positive trade growth rates between Azerbaijan and Russia.

The two countries are planning to sign the Agro-Industrial Complex Cooperation Program for 2020-2022 by late 2019, said Shahin Mustafayev.

The document is expected to be signed as part of the meeting of Azerbaijani-Russian intergovernmental commission on economic cooperation to be held until the end of 2019.

Mustafayev stressed that agriculture occupies an important place in economic cooperation between the two countries.

In his words, Russia is the main buyer of agricultural and processing products of Azerbaijan. “Over 560,000 tons of products were exported to Russia in 2018. In recent years, about 900 units of agricultural machinery for various purposes and more than 650 tons of mineral fertilizers have been purchased from Russia.”

Referring to the role of interregional Azerbaijani-Russian cooperation, Mustafayev noted that Azerbaijan has established economic ties with more than 80 federal subjects of Russia.

He pointed out that agreements on trade, economic, scientific, technical and cultural cooperation have been signed with 20 of these entities.

“The traditional Russian-Azerbaijani interregional forum is an important platform for expanding cooperation with Russia and its entities. In December 2019, it is planned to hold the 10th forum in Moscow,” he said.

Azerbaijan exported 555,000 tons of fruits and vegetables to Russia in 2018. This year, the country is expected to double the export volumes.

Recently, Wine Manufacturers and Exporters Association of Azerbaijan inked a memorandum of cooperation with VINAZ LLC of the Sverdlovsk region. Another memorandum of understanding was signed between the Fruit and Vegetable Producers and Exporters Association of Azerbaijan and the TEN Group of companies in the Sverdlovsk region.

In addition, Azerbaijan and the Sverdlovsk region of Russia are currently negotiating a joint venture for the cranes production.  Moreover, negotiations for opening a logistics center of Azerbaijan near Yekaterinburg in Russia are currently underway. The center is being created for storing fruits and vegetables produced in Azerbaijan.

Mustafayev also added that Azerbaijani-Russian trade turnover will make up about $3 billion by late 2019.

“If, following the results of 2018, the volume of trade between Azerbaijan and Russia increased by 20 percent amounting to $2.5 billion, then by late 2019, the trade growth will be about 20 percent, and the volume will reach almost $3 billion,” he noted.

He emphasized that Azerbaijani products are sold in large Russian stores and are presented to a wider circle of consumers.

Mustafayev stressed that the priority is to double the export of agricultural products and processing industry to Russia. “Azerbaijan exported 560,000 tons of agricultural products and processing industry to Russia in 2018,” he said.

He pointed out that about 700 companies with Russian capital operate in Azerbaijan and invested $4.6 billion in the country’s economy. “We, in turn, invested $ 1.2 billion in the Russian economy.”

Mustafayev underlined that Azerbaijani investors are implementing projects in various regions of Russia, covering the financial and banking sectors, real estate, hotels, resort, the food industry, the production of building materials and other areas.

The trade turnover between Azerbaijan and Russia amounted to $2.55 billion in 2018, which is 19.1 percent more than in 2017, according to Azerbaijan’s State Statistics Committee. The share of trade operations with Russia in 2018 accounted for 8.25percent of the total foreign trade turnover of Azerbaijan.

Last year, Russia’s exports to Azerbaijan were mainly food products and agricultural raw materials ($422.1 million), machinery, equipment and vehicles ($381.6 million), metals and products from them ($315.9 million), wood and pulp-paper products ($238.1 million) as well as chemical products and rubber ($198 million).