The security and development indicators of every country are also characterized by the relations with its neighbors. Countries, which do not have political conflicts with neighbors, have warm relations and cooperation, obtain additional advantages. Such ties also have an impact on the fate of the region.
This principle is clearly reflected in Azerbaijan’s foreign policy – the strengthening and diversification of cooperation relations with the neighbors. Azerbaijan, that has proven itself as a reliable partner on a global scale, has the reputation of the region’s locomotive. Naturally, except aggressor Armenia, Baku has bilateral and multilateral cooperation ties with all the countries of the region on various platforms. It shows itself both in political relations, and in foreign trade turnover.
At the meeting dedicated to the outcomes of 2019, Azerbaijani President Ilham Aliyev drew special attention to this issue: “Azerbaijan is known as a very reliable partner in the world, and our international power grows year by year. Throughout the year, more than 40 heads of states and governments paid a visit to our country to participate in bilateral meetings and international events. At the same time, I had numerous meetings with the heads of states and governments of the neighboring countries, and these meetings are very important. Azerbaijan has relations based on strong and mutual interests with its neighbors. These relations further strengthened last year.”
The relations with the neighboring countries are important from the economic point of view along with having the strategic political importance. The neighboring countries have a significant share in Azerbaijan’s export. The 14% growth in the non-oil export is the reflection of that.
Russia’s closest partner in the South Caucasus
Russia has a special place in the export of non-oil products. 45% of Russia’s trade in the South Caucasus region falls on Azerbaijan. Good dynamics is observed in the field of mutual investments between the two countries. Azerbaijan has invested approximately 1.2 bln USD in the Russian economy, and Russia has invested 4.9 bln USD in the Azerbaijani economy. The fact that 950 Russian companies operate in Azerbaijan shows that it makes 10% of all the companies with foreign capital in our country. The trade turnover between Azerbaijan and Russia always rises. Thus, in 2018, it was 19%, but it reached 23% in the 10 months of 2019. According to the results of 2019, the trade turnover between the two countries increased by 25%.
Successful investment cooperation
The relations between Azerbaijan and Turkey are not only strategic political alliance, but also “one nation, two states”. Yes, besides, the economic-trade ties also connect these two countries to each other. Compared to 2017, in 2018, the trade turnover between Azerbaijan and Turkey rose by 28% and reached 3.4 bln USD. Compared to 2018, in the 7 months of 2019, this indicator grew by 33% and made 2.3 bln USD. According to the final statistics of 2019, the trade turnover between the two countries reached 4 bln USD last year.
Some 3, 040 companies with the Turkish capital operate in the fields of industry, construction, trade, service, transport, agriculture and others in Azerbaijan. Turkish companies participate as contractors in nearly 300 projects worth 15.5 bln USD implemented at the cost of the Azerbaijani state budget. They take leadership in this field.
The successful investment cooperation is carried out between our countries. Turkish companies have invested 12.2 bln USD in the Azerbaijani economy. The brotherly country is in the first place among those investing in Azerbaijan’s non-oil sector. Turkey is the country Azerbaijan makes the most investments in, and our country’s investments in the Turkish economy are 15.1 bln USD.
Moreover, the transport infrastructure and energy projects also connect the two countries to each other. Turkey is one of the first buyers of the Azerbaijani gas. The Southern Gas Corridor, TANAP, as well as Baku-Tbilisi-Kars transport infrastructure, are the important joint infrastructure projects of Azerbaijan and Turkey. It seems that in the period when the significance of the North-South, as well as East-West transport corridor, increases, the importance of the two countries as an international hub also rises. All this means security and economic revenues not only for these two countries, but also for all the partners.
30% growth
As known, determination, reliability, as well as the bridge function between various power centers, are clearly stated. It shows itself in the relations with our southern neighbor Iran. Even when there was sharp pressure from separate political powers in different periods, Azerbaijan said no to the usage of its territory against its southern neighbor.
In the last 5 years, Azerbaijan-Iran relations have further developed and entered a new phase. The cooperation between our countries is based on the strong contract-legal basis; more than 150 documents have been signed in different fields; in the last 5 years, approximately 50 documents have been signed.
This dynamics also continued in 2019. The 30% growth was observed in the trade turnover with Iran. Azerbaijan is working to develop the North-South transport corridor, and a serious growth in the bilateral relations and international cooperation is expected as a result of the execution of this line. This year, a new automobile bridge is planned to be constructed on Azerbaijan-Iran border. Experts consider that all this will promote the economic-trade ties significantly.
Our companies are the main taxpayers of Georgia.
An increase is observed in the economic-trade relations with Georgia as well. In 2019, the trade turnover between Azerbaijan and Georgia reached 580 mln USD. Over 700 Azerbaijani companies successfully operate in Georgia, and at the same time, more than 300 Georgian companies operate in Azerbaijan. So far, Azerbaijan has made the investments in the amount of 3.2 bln USD in Georgia, and Azerbaijani companies are the main taxpayers in the neighboring country.
The two countries actively cooperate in the development of the Trans-Caspian International Transport Route, the South-West and other international transit corridors. As a result of the beneficial cooperation, the volume of the transit cargo passing through the territories of Azerbaijan and Georgia increases. The international route corridors supported by Azerbaijan also play a significant role in this growth.
At the meeting dedicated to the outcomes of last year, President Ilham Aliyev highlighted the importance of cooperation with neighbors. He said Azerbaijan increases its significance in the international transport corridor as a transit country as a result of the high level cooperation with its neighbors: “The increase of the trade turnover with the neighboring countries is positive. The trade turnover with all the neighboring countries has grown. Last year, our trade turnover with Turkey reached 4 bln USD. This is a significant increase. Our trade turnover with Russia grew by 20-25% and with Iran by 30%.
The trade turnover with Georgia also rose. We successfully cooperate both in the bilateral, and in the multilateral format, as well as in the fields of energy and transport. I have numerously said that no country can become a transit country without cooperating with its neighbors. As a country that has no access to open seas, today, we have turned into one of the international transport centers. Why? It is due to our policy, close relations with the neighbors. Therefore, this year, both the bilateral, and the trilateral formats of cooperation should also be in focus; all the infrastructure projects must be executed.”
At the same time, the head of state noted that a big part of the road leading to the Russian border must be completed this year: “I am confident that the construction of the new automobile road from Astara city to Iran’s border will be fully completed this year, as well as the project on the enlargement of Ganja-Georgia border automobile road to 4 lanes. A big part of this project must be completed this year.”
The President emphasized that the new bridge, which was opened on Russia-Azerbaijan border at the end of last year, will strengthen the trade relations between Azerbaijan and Russia, and at the same time, it is a part of the North-South transport corridor: “Azerbaijan has expressed interest in the construction of Astara-Rasht railway; the relevant documents have been signed. I am confident that this year, our activity in this direction will have an impact. Overall, I can say that the international trade relations are very important for us in terms of the increase of the trade turnover and investments. We both receive investments from the neighboring states, and make investments ourselves. The investments we make bring us big revenues.”
Thus, the relations expand – the economic partners express the common position within the framework of various platforms and international organizations; they support one another. In turn, the bilateral cooperation stimulates the regional development, prosperity and security of the people and political closeness.
Vusal Mammadov
