Azerbaijani-Russian Investment ordered to grow

Signed on September 29 in Astrakhan intergovernmental agreement between Azerbaijan and Russia on the promotion and reciprocal protection of investments can not be called another attendant agreement, and should be seen as a platform for increasing the volume of mutual investments in the short term, experts say the agency Turan.

In recent years, the two sides noted the positive changes in investment cooperation. Under the Ministry of Economic Development data, in 2013, Russia joined the eight leading investors in Azerbaijan. During January-September 2013 in Russian investments totaled $ 110.2 million. Azerbaijan operates 500 companies with Russian capital, of which more than 200 companies absolutely Russian.

JSC VTB Bank (Azerbaijan) with a registered capital of approximately $ 25 million. Has been actively involved in lending Azerbaijani enterprises sectors of trade, construction, industry (including oil and gas), agriculture, transport and chemical industries. Among the major projects of the VTB Group in Azerbaijan can be distinguished participation in the syndicated loan to finance the investment program of "Azerbaijan Railways" in the amount of $ 20.0 million., Finance current operations of the company AZEL Azerbaijan Electronics in the amount of $ 3.7 million.

At the same time grow and investments of Azerbaijan in the Russian economy. Over the past three years, Azerbaijan Azersun Holding company invested $ 16.5 million. A tea-packing factory and a canning factory in Krasnodar, and the company Matanat-A (manufacturer of building materials) and the Administration of Krasnodar Region signed an agreement on construction of the complex (five plants) for the production of dry mixes and drywall in the territory. Estimated investments Azerbaijani side will amount to 30 million Euros.

State Oil Fund of Azerbaijan (SOFAR) in late 2012, was taken by 3 billion rubles in the form of short-term deposits in Gazprombank acquired shares of JSC VTB Bank in the amount of approximately $ 500 million, and real estate in Moscow at the address: Tverskaya, 16 was value of about $ 133 million.

Trade Representation of Russia in Azerbaijan calls following factors prospects for further development of bilateral trade and economic ties. First of all, is the implementation of government programs in Azerbaijan, regional development, modernization of road and transport infrastructure, modernization of fuel and energy and petrochemical complexes and other industries, the creation of industrial parks and free trade zones, which will be accompanied by the growth of this country needs to import the automotive and construction -dorozhnoy equipment, railway rolling stock, various machines and technological equipment, metals, metal, building materials and other products. All this creates an opportunity to increase the export of the list of products from Russia.

Implementation of the state program to ensure food security of Azerbaijan opens up additional possibilities for Russian suppliers of agricultural machinery, fertilizers, high-yielding seed and animal material.

Adopted by the Central Bank of the Republic of Azerbaijan, the decision on mandatory capitalization of national banks to 50 million manat to 1 January 2014 is a real opportunity for the active implementation of the financial and banking institutions in Russia on the market of the country, according to Russian experts.

In turn, Azerbaijan continues to increase fruit and vegetable exports to Russia, wine and brandy and other traditional export products, especially in terms of EU sanctions and the United States. Contribute to such dynamics will be the implementation of projects for the construction of customs and logistics centers and efforts to create new facilities for processing and storage of agricultural products in a number of Russian regions, involving Azerbaijani investments.

Investment prospects have agreement between SOCAR and JSC Oil Company Rosneft to jointly develop oil and gas fields and the sale of products that have been signed August 13, 2013 during the official visit of President Vladimir Putin to Azerbaijan.

During his visit to Baku in June of this year, Minister of Economic Development of the Russian Federation Alexei Ulyukayev said that discussed ways to use features of sovereign funds, in particular the State Oil Fund of Azerbaijan (SOFAZ) and the National Welfare Fund of Russia, Azerbaijan Investment Company and the Russian Direct Investment Fund, for joint investment in profitable projects, opening in Azerbaijan.

By the end of 2013 the trade turnover between Azerbaijan and Russia amounted to $ 2.583 billion., An increase of 30%. Azerbaijan has had a negative balance of - $ 428 million. Azerbaijan's exports amounted to $ 1.077 billion, or 4.5% of total exports of Azerbaijan. Russian exports amounted to $ 1.505 billion, or 14.05% of total imports of Azerbaijan. In 2012, bilateral trade amounted to $ 2.338 billion. Highest level of turnover was recorded in 2011, a little less than $ 3 billion.

Russia plans to increase the bar turnover in 2016 to $ 4 billion. This is quite plausible forecast. In the context of the fall of the Russian economy, which will last according to various estimates until 2017, Azerbaijan's investments and the domestic market will be involved as much as possible to support Russian manufacturers and its markets. This will be dictated by the mercantile interests and the urgency of the issue of internal security of Azerbaijan, on which lay the imprint of Russia's actions against Ukraine. The Azerbaijani President Ilham Aliyev has already called the agreement in Astrakhan a "breakthrough" in the bilateral relations. -0