Oil Revenues to Enable Azerbaijan to Act as Investor

Business Materials 26 January 2007 13:07 (UTC +04:00)

Yuriy Shedrin, the Head of the Trade Representation of Russia in Azerbaijan attributed Azerbaijan as an all-sufficient country, which develops not day by day but by hours. Increase in assets of the State Oil Fund of Azerbaijan and the Stabilization Fund enables Azerbaijan to act as investor, Trend quotes him

At the same time there are plans to expand work in the direction of Russian investments in the Azerbaijani economy. If talks between the Government of Azerbaijan and Russian aluminum company RusAlom are a success the investment in the construction of an aluminum plant in Azerbaijan alone will exceed $1bln.

The expedient work should be done to increase the efficiency of the representations of Russian companies in Azerbaijan, which currently number 400. If LUKoil, RusAl; Russia's Unified Electricity Systems and KAMaz are able to enter the Azerbaijani market independently, then the key task will be to assist small companies in their entrance to the Azerbaijani market, Mr. Shedrin emphasized.

Russia has a different type of collaboration in respect to another South Caucasus country вЂ" Armenia, where Russian expansion in the Armenian economy is observed. At present Russia purchases a third of the economic capacity of this country (energy, gas distribution networks, etc).

According to Vasiliy Istratov, the Extraordinary and Plenipotentiary Ambassador of Russia to Azerbaijan, at present Russian investments in Armenia comprise $800mln and there are plans to increase them to $1.5bln.