Azerbaijan, Russia to prepare investment protection agreement

Business Materials 19 January 2012 17:16 (UTC +04:00)

Azerbaijan, Baku, Jan.19 / Trend I.Khalilova /

The Azerbaijani and Russian governments almost agreed on an intergovernmental agreement, "On the encouragement and mutual protection of investment," Russian trade representative to Azerbaijan Yuri Shedrin told Trend on Thursday.

"Another round of negotiations at the expert level was held in December. Representatives of economic development ministries from Azerbaijan and Russia and other parties concerned attended the meeting in Baku. Serious work was done. Agreements on many issues were signed. However there are still 2-3 matters of principle that have not been endorsed," he said.

He expressed hope that the sides will find a compromise in 2012.

"A major matter of principle is term of extending the application of this agreement, on which we have disagreements. The agreement on diplomatic property to be signed in Moscow on Jan. 19 was to some point an obstacle that didn't give an opportunity to find a compromise agreement 'On the encouragement and mutual protection of investment,'" Shedrin said.

The agreement's is important as serious developments in terms of Azerbaijani investments in the Russian economy are underway.

Some 233 enterprises with the Russian capital were registered in Azerbaijan from 2004 to 2010. The Russian side has invested about $400 million in the Azerbaijani economy. Azerbaijan is interested in activation of investment activities of local companies in Russia, in particular in the North Caucasus.

A number of Azerbaijani enterprises operate in the North Caucasus. Thus, Azersun Holding built tea plant in Stavropol province. The holding also plans to open a canning factory. Products of this holding through the distribution network are sold in different cities of the North Caucasus, including Makhachkala, Derbent, Nalchik.

Karat Holding established Agroleader, purchased land and constructs grain reception point in Stavropol. ANT Inshaat is building a student college for the Derbent branch of the Azerbaijan State Economy University. Caspian Service Company through its subsidiary StroyServis constructs apartment houses in Yessentuki and Stavropol.