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Latvia hopes that Azerbaijani gas will be supplied to Europe via Nabucco (INTERVIEW)

Oil&Gas Materials 4 August 2009 10:43 (UTC +04:00)

Trend European desk's interview with President of Latvia Valdis Zatlers prior to his visit to Baku

How do you estimate the dynamics of Azerbaijani-Latvian relations and what are the priorities of cooperation between Latvia and Azerbaijan?

In my opinion, relations between Latvia and Azerbaijan are excellent. In addition, I consider that President Aliyev is my personal friend.

Latvia and Azerbaijan share common values that are manifested also by Azerbaijan's road to closer co-operation with the EU and NATO. The development of events over the past decade confirms Azerbaijan as one of the leading countries in the South Caucasus Region.

Even during the global financial downturn economic relations between Latvia and Azerbaijan are thriving. Latvia's export to Azerbaijan doubled and import from Azerbaijan increased by 30 % in 2008, year to year.  The difficult situation in global economy encourages entrepreneurs to look for new business ideas, partners and markets. The unused potential of economic cooperation between our countries invited Latvian entrepreneurs to discover new opportunities in Azerbaijan. Therefore there is significant interest in Latvia to further develop economic relations with Azerbaijan and a significant business delegation will be accompanying me on the forthcoming state visit to your country.

There is close cooperation between the officials of our countries at all levels. Our priorities are to strengthen the existing contacts and develop new spheres of cooperation. We are also very interested to increase cooperation with Azerbaijan in the context of the European Union. I am certain that my visit to Azerbaijan will serve as a further catalyst for ever closer cooperation of our officials, institutions, entrepreneurs and people.

What assistance in the process of integration of Azerbaijan into the European Union within the framework of Eastern Partnership can Latvia provide?

Eastern Partnership is an excellent tool to develop relations with the EU. It gives Azerbaijan more leverage in determining areas of interest for cooperation. Latvia can definitely provide some assistance that is of interest to Azerbaijan. There are already several very successful twinning projects and programs for exchange on our experience regarding harmonization with the EU regulations that are crucial for economic ties with the EU.

Is there any common ground in positions of our countries in regional policy, including the solution of Nagorno-Karabakh conflict?

Of course! Latvia supports the soonest resolution of the conflict according to the recognized principles of the international law and the United Nations. It is crucial to ensure peace and stability in the South Caucasus region. I hope that the continued efforts of the OSCE Minsk Group would give impetus towards resolution of the Nagorno-Karabakh conflict one the basis of the Basic Principles proposed in Madrid in November 2007.

Which fields of Azerbaijan's economy are considered to be of high priority for Latvia? To what extent do you feel possible implementing the joint projects?

The good news is that the trade shows positive trends also in 2009. Latvia's exports to Azerbaijan are mainly in the field of food industry, metalworking, chemical industries, as well as in the production of plastics and optical appliances. 

Potential areas of cooperation between Latvian and Azerbaijan entrepreneurs are food industry, IT, tourism, chemical and allied industries, logistics and finance. Latvia is interested in transportation of Azerbaijan power resources like gas, oil and oil products via our well developed transit infrastructure.

Direct flights between Baku and Riga are an essential component for the extension of business contacts.

During the visit I will be accompanied by a sizeable business delegation from Latvia. The great interest from entrepreneurs shows that there is significant room for improvement of our business contacts. I am sure that there are numerous business opportunities in a wide range of business areas ranging from banking sector to education and processed agricultural products.

What investment projects could be proposed to Azerbaijan?

If we look at figures, we see that in 2008, 23 enterprises with Azerbaijan shared capital operated in Latvia, and in 2009 the number of enterprises increased to 29. Projects in food industry, IT, tourism, logistics, and chemical industry still have a great investment potential.

At the moment, there are negotiations to open food products' "Trade house" in Azerbaijan. I hope this state visit will foster successful implementation of the project in the near future. I am also sure that the Business Forum that is organized at the highest level during the state visit will serve as a significant boost to develop other investment opportunities in both directions as well.

How do you estimate the energy cooperation between Azerbaijan and Latvia? What role does Azerbaijan play in providing energy security of Europe?

Nabucco is currently one the most important alternative gas supply project for the EU. The agreement on construction of Nabucco pipeline signed on 13 July by Turkey, Romania, Bulgaria, Hungary and Austria is a strong signal on positive development of the Nabucco project and diversification of gas supply to Europe in general.

Latvia as an EU Member State is interested in diversification of energy supply routes and sources. Therefore we view Azerbaijan as one of the key players in the supply of energy resources from the Caspian Region to Europe with a significant role in diversification of energy supply. While Latvia is not participating in Nabucco directly, we are most interested in its success and hope that in the future Azerbaijan's natural gas reserves will be delivered to Europe through Nabucco gas pipeline.

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