BAKU, Azerbaijan, April 26. In recent years, Azerbaijan has been playing an increasingly active role in shaping the agenda of Central Asia. Thanks to its unique geographical position, extensive geopolitical potential, and robust economic growth, Azerbaijan and the nations within this region are becoming indispensable players in global discussions and initiatives.
Numerous high-level bilateral visits in recent years underscore the political commitment to enhancing this cooperation. For instance, the visit of Kyrgyzstan's President Sadyr Zhaparov to Azerbaijan marked a significant milestone in the deepening of relations between Baku and Bishkek.
As President Ilham Aliyev pointed out at the joint press conference with his Kyrgyz colleague, Azerbaijan and Central Asia are bound together by centuries-old ties of cooperation, friendship and interaction, and cooperation with Kyrgyzstan is of particular importance.
"Today, the region of Central Asia, the Caspian Sea and Azerbaijan, as part of the Caspian and the South Caucasus regions, are of great importance in terms of energy resources, transportation routes and trade. We are seeing great potential here. Most importantly, we are strengthening interaction with our traditional partners from brotherly countries," said President Ilham Aliyev.
Despite the long history of active political exchanges between Azerbaijan and Kyrgyzstan, their trade and economic ties have lagged behind. Azerbaijan's economic cooperation with Kyrgyzstan has been relatively sluggish. However, there's been a notable uptick lately. Trade is on the rise, joint projects are underway, and both countries are fostering mutual investments and engaging the private sector.
For example, in 2023 alone, trade between the two countries skyrocketed more than sixfold, reaching $65 million. And just in the first quarter of 2024, trade surpassed $23 million, with Kyrgyzstan ranking among the top three trading partners of Azerbaijan within the CIS countries.
In this regard, formed in 2022, the Azerbaijan-Kyrgyz Development Fund was set up to boost economic collaboration between the two nations, modernize industries, and foster efficient use and expansion of bilateral economic ties. After President Japarov's visit to Azerbaijan and the agreements inked during his stay, it was agreed to ramp up the fund's capital from $25 million to $100 million. In addition to boosting the capital of the joint development fund, both sides also agreed to eliminate double taxation on income.
"The main reason is that there are a lot of applications. We have been informed that more than 40 applications have been submitted to the Fund for realization of investment projects in Kyrgyzstan. Therefore, I think that 100 million dollars is not the limit either. And we gave a joint instruction to relevant government agencies in order to quickly launch the mechanism of implementation of projects within the framework of the joint investment fund," President Ilham Aliyev commented on the decision.
Overall, following the Kyrgyz president's visit to Azerbaijan, besides the successful 2nd session of the Joint Intergovernmental Council, the parties also signed a package of over 10 Azerbaijani-Kyrgyz documents spanning various sectors such as energy, education, healthcare, migration, and more.
President Zhaparov specifically highlighted the importance of adopting a joint declaration on the establishment of deep relations of strategic partnership between Azerbaijan and Kyrgyzstan. "The signing of this document formalizes the deep nature of bilateral strategic relations we have established between our countries," he said.
Certainly, Azerbaijan and Kyrgyzstan hold strategic significance for each other. Take, for instance, the development of transit routes. For Central Asia, Azerbaijan serves as a direct gateway to Europe. Conversely, for Azerbaijan, Kyrgyzstan and its neighbors offer a pathway to access the Chinese market. The proposed 454-kilometer railway, intended to link China's railways with Uzbekistan through Kyrgyzstan and onward through Turkmenistan, could serve as another pivotal link in the network of routes connecting the South Caucasus region with the East. Efficient logistics are essential for fostering trade and economic ties between Azerbaijan and Central Asia at large. Positioned adjacent to China, Kyrgyzstan could emerge as a key player in the Middle Corridor.
One can't overlook President Japarov's visit to the liberated territories of Azerbaijan. It truly showcases the complete support and mutual understanding between the two nations. As a gesture of solidarity and friendship, Kyrgyzstan is supporting the construction of a school in the liberated Aghdam, where yesterday the leaders of both countries laid the foundation.
Azerbaijan has strengthened its ties with Central Asia and is working closely with the partners to drive the region's development, benefiting all stakeholders involved. By forging bilateral cooperation, Baku and Bishkek also enhance communication within the Turkic world. This not only adds new dimensions but also brings practical value to it. In this context, the current joint initiatives and those upcoming between Azerbaijan and Kyrgyzstan are set to introduce new transportation projects, promote energy initiatives, and bolster overall infrastructure capabilities. This transformation will turn the region into a hub of mutual cooperation, benefiting all parties involved.