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‘KAMAZ’ Makes Unacceptable Proposals for Azerbaijan: Russian Trade Envoy

Business Materials 6 February 2008 14:55 (UTC +04:00)
‘KAMAZ’ Makes Unacceptable Proposals for   Azerbaijan: Russian Trade Envoy

Azerbaijan, Baku, 6 February /corr. Trend A.Badalova / 'KAMAZ' JSC presented unacceptable terms to Azerbaijan for establishment of a car production factory in the Country, Yuri Shedrin, Head of Russia's Trade Representation in Azerbaijan, said to a press-conference on 6 February.

"The terms contrast with the principles of the business establishment in Azerbaijan," Shedrin said. 'KAMAZ' asks to provide tax and custom preferences.

According to him, the Azerbaijani side was dissatisfied with the profit distribution from the car production.

In its proposals, 'KAMAZ' asked for profit-sharing arrangement with KAMAZ getting 75% of the profit and the other 25% belonging to Azerbaijan. 'KAMAZ' asked for all possible privileges for tariffs and taxes.

"We [...] do not lose sight of this project, but I do not see its prospects," Shedrin said.

Annual demand of Azerbaijan transport means of the JSC is 600-700 cars, with 50 cars on average being brought to the Republic each month.

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