Azerbaijan, Baku / corr Trend A.Badalova / Trend 's interview with Michael Glos, Federal Minister for Economy and Technologies on the eve his visit to Azerbaijan
Question: Your visit to Baku is planned on October. Which areas of economy of Azerbaijan are the most interesting for businessmen of your country, and which perspectives of cooperation with Azerbaijan employers do you see?
Answer: German-Azerbaijan economic relations have developed in a very dynamic manner since 2005: the volume of our bilateral trade crossed the one billion Euro line for the first time in 2006, reaching nearly 1.1 billion Euros. This positive trend continued in 2007. And that is just the beginning. I still see considerable potential for expansion. The energy sector will naturally continue to be a focus of our collaboration. But such cooperation is not limited to the export of energy commodities from Azerbaijan to Germany. Rather, it also covers activities such as the modernization of electricity production, the modernization of the networks, energy conservation, the use of alternative energies, etc. Moreover, German companies are offering their help in increasing value-added in the oil and gas sectors by means of the development of a modern petrochemical industry. A further important area is the modernization of public infrastructures such as water and sewage, transport, the construction of fully equipped hospitals, etc. We think that Azerbaijan is pursuing the correct policy by using revenues from the export of energy sources to develop an internationally competitive manufacturing industry, also outside the energy sector. This is another area in which German companies can contribute in many ways since they - also by international comparison - display a particularly broad range of offerings. I need only name, for example, light industry, food processing, land technology, information and communication technologies, mechanical engineering, and many others.
Question: It is known that in future Germany plans to increase the import of gas. After several years the Caspian region may provide infill most of the gas pipelines, leading to the countries of European Union. Which expectancies in the question of diversification energy carriers supply in Germany do you pin on Caspian region, particularly on Azerbaijan?
Answer: Germany has a strong interest in diversifying its supply sources for energy and supply routes in order to reduce the risk of supply disturbances. Germany would therefore welcome greater involvement by German companies in Azerbaijan. The decisions on specific projects and their cost structures is a matter for the companies themselves to make. That also applies for the transport of energy commodities to Germany and the use of new pipeline routes.
Question: Which productive goods of non oil sector would Germany like to import from Azerbaijan?
Answer: The EU and German markets are among the most open in the world; for the export of Azerbaijan goods to Germany, there are no essential trade barriers. It is thus mainly a question of Azerbaijan exporters offering internationally competitive goods at internationally competitive conditions. Internationally recognized technical standards must, of course, be observed. An important means of promoting Azerbaijan exports is surely participation in trade fairs in Germany such as the Hanover Fair. I am happy to say that Azerbaijan exporters have already scored significant success in this regard: Azerbaijan exports, for example, rose by nearly 50 % in the first seven months of 2007 as compared with the level registered for the corresponding year-earlier period.
Question: How do you see the perspectives of enlargement of the cooperation between Azerbaijan and Germany in financial and bank spheres?
Answer: The financial sector plays a decisive role in terms of expanding bilateral economic relations. This has been clearly recognized by the Azerbaijan and German sides alike. The Commerzbank is opening a representative office in Baku to provide banking services in support of corporate and economic activities of both sides. I know that other German banks are considering greater involvement in Azerbaijan. I would welcome such steps.