Azerbaijan sees sixfold rise in exports to Belarus

The economic cooperation and prospects for deepening the trade ties between Azerbaijan and Belarus were discussed at the joint Business Forum in Baku on July 15.

The business forum, organized with the support of the Azerbaijani Economy Ministry and Azerbaijan Export & Investment Promotion Foundation (AZPROMO), was attended by nearly 100 entrepreneurs engaged in agriculture and food industry, chemistry, textile, machinebuilding, metallurgy, paper industry and other fields.

Speaking at the event, Leonid Lavrov, Adviser on trade-economic and investment issues of the Belarusian embassy in Azerbaijan said that export of Azerbaijani goods to Belarus increased by six times in the first half of 2016.

The export covers not only agricultural products, but also products of industry, oil and others, he added.

Lavrov further noted that direct contacts between Azerbaijani and Belarusian businessmen have intensified. “We are especially looking forward to establishing direct contacts between entrepreneurs and companies of the two countries, because it gives the real result. Belarus is closely monitoring the development of Azerbaijan and tries to be with our friends and colleagues in the areas that contribute to the development of business in Azerbaijan,” he said.

Director of the AZPROMO Rufat Mammadov, for his part, noted that over the past five years the countries held five joint business forums in Baku and Minsk each, and today's Business Forum is the sixth.

“This demonstrates the high level of interest of entrepreneurs of the two countries in the establishment and expansion of business relations. We already have very good examples of joint cooperation in various fields including agriculture, machinery, and other sectors important for Azerbaijan and Belarus,” Mammadov said.

He further highlighted the potential and the level of relations between the two countries that allow to work effectively. “The countries have established regulatory frameworks for the development of trade relations. At the political level, we have a great rapport and relationships, and it gives impetus to trade relations. Of course, the figures that we see in terms of turnover and in terms of investment, good, but, looking at them, we realize that the potential is not fully exhausted,” he added.

Azerbaijan has much to offer the Belarusian entrepreneurs, the director of the AZPROMO stressed, adding that for the past 15-20 years, the country has done a great job in terms of economic development and increased its economic capacity.

Mammadov pointed out that today, the country's economy is going through tough times, but at the same time it opens up new opportunities for entrepreneurs.

“The main strategic direction of Azerbaijan’s economic policy is diversification and development of non-oil sectors. This is also reflected in our foreign economic policy. We are very much interested in the development of mutual relations not only on energy issues, but also in other areas that do not apply to the energy sector, oil and gas,” he said, voicing belief that cooperation with partners such as Belarus, will allow to develop the non-oil production and exports, and attract investment in various areas of the Azerbaijani economy.

Within the forum, Mammadov and director general of the Minsk branch of the Belarus Chamber of Commerce-Industry (BelCCI) Tatiana Dubova have signed a Memorandum of Cooperation.

The Memorandum implies cooperation between AZPROMO and the Minsk branch of the BelCCI in the field of exchange of information and reciprocal participation in exhibitions and fairs.

The trade turnover between Azerbaijan and Belarus amounted to 28.81 million manats ($18.41 million) in January-May 2016 and 20.83 million manats ($13.31 million) fell on imports of Belarusian goods, according to the State Customs Committee.

Belarus mainly exports to Azerbaijan instruments, apparatus and models, designed for demonstrational purposes, sawn timber, spare parts for cars and tractors, tractors, plywood, lumber and engines.

Azerbaijan exports to Belarus oil products, acyclic hydrocarbons, clay, fruit and vegetable juices, polymers of ethylene.

One of the bright examples of fruitful cooperation is the joint project on the production of Belarusian tractors MTZ and machinery of the Minsk automobile plant MZKT at the Ganja Automobile Plant of Azerbaijan, which produced 6,000 "Belarus" tractors and about 3,000 cars and trailers from 2007 to 2015.

This May Ganja Automobile Plant and Minsk Tractor Works signed a memorandum on the delivery and assembly of 2,000 Belarusian tractors in Azerbaijan in 2016. The sides reached an agreement on the joint output of finished products on the markets of third countries, as well as localization of production in Azerbaijan.

Investments in Azerbaijan's economy in Belarus have amounted to $100 million since 2011.