Azerbaijan masters new market

Business Materials 2 May 2012 09:40 (UTC +04:00)

Azerbaijan, Baku, May 1 / Trend /

Trend commentator Viktoriya Zhavoronkova

Less than two months passed when Azerbaijan and Kyrgyzstan started the practical implementation of agreements reached during Kyrgyz President Almazbek Atambayev's visit to Baku in March.

This can be seen on the results of the meeting of the joint intergovernmental commission on economic and humanitarian cooperation between Azerbaijan and Kyrgyzstan held for the first time within 20 years. The presidents' agreements during official visits often remain as intentions. However, the situation with Azerbaijan and Kyrgyzstan is different.

The results of the intergovernmental meeting, the achieved agreements testify to the fact that Bishkek and Baku have entered a new, practical stage of their cooperation.

Despite the fact that one of the most important topics of the talks between the two countries was the construction of SOCAR's refinery in Kyrgyzstan, other important questions for both countries were also discussed.

For example, Bishkek stood for attracting Azerbaijan's investments into the Republic to use them in Kyrgyzstan's most important industry - power engineering.

Bishkek's desire to import Azerbaijani investments stipulates that Azerbaijan's financial position is being strengthened. This is just another proof that the country turns from a country attracting foreign investments into an exporter of capital.

The planned construction of medium and small hydroelectric power stations using Azerbaijani capital will be able, at least partially, to solve such an important issue for Kyrgyzstan as a shortage of electricity in the country.

In addition to the development of investment cooperation, the parties agreed to establish joint ventures in the field of processing industry, discussed the possibility of imports from Azerbaijan to Kyrgyzstan of hydrocarbons, oil field equipment, components and spare parts for drilling rigs for oil and gas production.

For Baku it is, first of all, an opportunity to diversify outlets of its goods (machinery, equipment) as well as petroleum and petroleum products, and not only in Kyrgyzstan. The construction of a refinery in this Central Asian country involves the production of refined petroleum products not only for its domestic market but also their export further outside the country. This opens up for Baku new outlets of oil, undeveloped today because of geographical remoteness from Azerbaijan.

At a meeting of the intergovernmental commission the sides also addressed the question of exchange of experience in several areas, as well as the visit to Kyrgyzstan of Azerbaijani specialists for the construction of oil refinery in the field of oil and gas industry. This once again confirms that the Azerbaijani school of training in this area enjoys a great success and respect in the CIS countries.

An important fact of strengthening and development of bilateral cooperation is the opening of direct flights between the two countries which was actively discussed during the visit of Atambayev to Baku and during the meeting of the intergovernmental commission.

At present the only direct flight between Baku and Bishkek is operated by bmi, which flies the Bishkek-London route with a stopover in Baku, however, prices for flights remain quite high.

The opening of direct flight will facilitate flights both of entrepreneurs of both countries as well as, perhaps, will increase the number of tourists both from Kyrgyzstan to Azerbaijan and in the opposite direction.

It should be noted that all economic agreements between Azerbaijan and Kyrgyzstan were supported by the commitment of the parties to the expansion of humanitarian cooperation between the countries with common historical and cultural roots.

Such activation of cooperation between Baku and Bishkek, after 20 years of stagnation will benefit both Azerbaijan and Kyrgyzstan. Today we can say that the two countries acquired reliable allies and partners in the face of each other.

The main thing in relations between the two countries today is that the agreements reached by their leaders, find practical application, and do not remain on paper, as can be seen, for example, in the construction by SOCAR of an oil refinery, the implementation of which has already started.