An Expert Says AIC Might Attract Foreign Investments to develop Chemical Production in Azerbaijan

An Expert Says AIC Might Attract Foreign Investments to develop Chemical Production in   Azerbaijan

Azerbaijan, Baku/ Trend / Ellada Khankishiyeva, Trend 's expert at the Analytical Centre, considers that the Azerbaijan Government reducing the excise rate on electricity and gas for the state company Azerkimya will lead to a growth in GDP due to the resumption of production of chemical enterprises working in the country and certainly on the employment of the local population.

From now and on, one liter of naphta delivered to Azerikimya for different chemical production will be subjected to an 8% tax, not a 19% one. The wholesale of one ton of oil delivered to Azerkimya by SOCAR will be AZN 210 (VAT and delivery included).

Notably, Azerbaijan's chemical enterprises receive naphta from the Baku-based oil refinery plant, Azerneftyag, which is a part of SOCAR (State Oil Company of Azerbaijan). Every year, Azerkimya's subjected enterprises need some 300,000 tons of naphta.

The state company Azerkimya has resumed production and the plant, EP-300 has resumed its operations. Other chemical enterprises subjected to the state company are expected to restart output of their production this week. It was the decision on reducing prices on electricity, gas and naphta for the country's largest industrial facilities, which was recently made by the Azerbaijani Government that triggered the resumption of the output of production at the enterprises subjected to Azerkimya.

Notably, the plant EP-300, Orgsintez, and the Surfactant Species Plant are the largest enterprises of Azerkimya. Over 10,000 people work on the enterprises of Azerbaijan's chemical industry.

"The Government maintaining Azerkimya's subjected companies is a necessary step. Azerkimya is a state-run company, and the state is the only guarantee that can help it," said Mrs. Khankishiyeva.

The Azerbaijani Government has elaborated the State Programme on Development the Industry for 2007-2012, which includes reforms to be made in the institutional structure and preparation for lax terms (taxes, duties, etc.) to develop the industry.

"The Azerbaijani chemical industry plays a role in the programme, particularly if you take into consideration that fact that Azerbaijan took the leading position in this field in the USSR during the Soviet period," she added.

Notably, in 1990, Azerbaijan's chemical industry produced 58 different types of chemical. Today, the country produces only 7-8. In 2006, 1.6 % of the total volume of the output of the country fell to this field of industry.

Chemical production provides some fields of industry with raw materials, including the defence industry, construction sector, agriculture and pharmaceutical production.

"However, the role of the Government in the chemical industry of the country should not be restricted to it only. For example, the Azerbaijani Investment Company (AIC) may be engaged in issues connected to the attraction of foreign and domestic investments for the development, technical re-equipment and modernization of chemical production in the country, as well as to improve the qualification and professional skills of the technical and managing staff," considers the Trend expert.

According to her, it is necessary to conduct market research and studies of external markets of chemical production to ensure the expansion of export potential on the basis of it, as well as to increase the production of chemical production, which are capable to compete in international markets and to export it.

Subscribe to Trend in Google News! Subscribe
Georgia’s trade turnover figures grow – TBC Capital
Georgia’s trade turnover figures grow – TBC Capital
Georgia publishes COVID-19 data for January 18
Georgia publishes COVID-19 data for January 18
Money transfers from Kazakhstan to Georgia triple
Money transfers from Kazakhstan to Georgia triple
Loading Bars
Latest
Kazakhstan to keep inflation in energy sector within set borders - ministry
President Ilham Aliyev unveils monument to philanthropist Haji Zeynalabdin Taghiyev in Baku
Iran’s NIOC interested in increasing gas exports
Azerbaijan discloses loans of banks being liquidated by Deposit Insurance Fund
Turkmenistan, Uzbekistan affirm commitment to Afghanistan
Azerbaijani Express-C company’s bonds included in listing of Baku Stock Exchange
Azerbaijan Airlines to present new “Azal Club” loyalty program
Kazakhstan to amend supply chain of petroleum products
2021 enters Azerbaijani history as year of social reforms - Analysis
Turkmenistan, Uzbekistan see significant increase in mutual trade
Georgia’s trade turnover figures grow – TBC Capital
2022 budget for Ighdir-Nakhchivan gas pipeline disclosed
Georgia publishes COVID-19 data for January 18
Azerbaijan, Turkey discuss co-op on restoration projects in Karabakh
Uzbekistan shares domestic COVID-19 data for January 17
New school built in Azerbaijan's Gazakh on Heydar Aliyev Foundation's initiative (PHOTO)
Iran's Energy Exchange announces products to be on sale on January 18
Kazakh Gas Processing Plant opens tender to buy spares for pumps
Azerbaijan shares data on prices of various food products for 12M2021
Money transfers from Kazakhstan to Georgia triple
Kazakhstan eyes to build fish factory in Mangystau region
Iran shares data on cooking oil imports
Iranian currency rates for Jan. 18
Water supply in several villages of Azerbaijan's Karabakh restored (PHOTO)
Brent climbs above 7-year high on Mideast tensions, tight supply
Turkmenistan discloses amount of products sold via local commodity exchange
Global problem of rising food prices - causes and solutions - ANALYSIS
Washington Post publishes article of Portugal-based traveler on Azerbaijan's Khinalig (PHOTO)
NATO looks forward to continued broad practical cooperation with Azerbaijan in coming period
Brent oil reaches $87 per barrel on ICE for first time since 2014
Turkey confirms 64,935 daily COVID-19 cases
Number of detained rioting, looting suspects in Almaty exceeds 2,700
5.0-magnitude quake jolts central Turkey
U.S. Senate panel to debate app store reform bill
United Airlines warns 5G plan would impact 1.25 mln passengers a year
Bayern striker Lewandowski awarded Best FIFA Men's Player of Year 2021
Yellen says U.S. economy "has never worked fairly for Black Americans"
North Korea confirms tactical guided missile test on Monday - media
4th Pfizer, Moderna shot less effective against Omicron: Israeli study
Kuwait's justice minister tests positive for COVID-19
Passenger traffic at Frankfurt airport picks up in 2021
Israel reduces COVID-19 quarantine to keep economy going
Number of COVID-2019 cases across globe exceeds 325 million - WHO
Kazakhstan discloses data on mutual trade with top CIS partners
Israel's unemployment rate drops to 6, lowest since plagued by COVID-19
Turkey supports Georgia's participation in 3+3 peace talks
Solar power excels in Turkey's rapid shift to green energy sources
Azerbaijan FM receives delegation led by Chairman of Parliament of Montenegro (PHOTO)
Thousands of flights canceled in eastern U.S. as winter storm heads north
Shavkat Mirziyoyev hosts Deputy PM of Turkmenistan Serdar Berdimuhamedov
Magnitude 5.6 quake hits western Afghanistan, killing more than 20
US Joint Chiefs chairman and Marine Corps chief have COVID-19
Six servicemen returned by Azerbaijan arrested in Armenia
Approval of U.S. pandemic response hits new low: poll
Georgia exports 107 mln bottles of wine in 2021, record high in 9 years
Turkey condemns drone attack targeting Abu Dhabi
Nearly 60% of voters support amendments to Serbia’s constitution — electoral commission
Azerbaijani Prime Minister talks bilateral agenda with Chairman of Montenegro's Parliament
Turkmenistan, Afghanistan agree to resume TAPI construction
Another offshore project to boost operations at Kazakhstan's Kashagan
Russia and China - potential investors in Iran's ports
Azerbaijan shares data on number of vaccinated citizens
Cooperation opportunities between Azerbaijan, Qatar's SMEs discussed in Baku (PHOTO)
Azerbaijan confirms 359 more COVID-19 cases, 263 recoveries
Price indexes of financial, industrial sectors at Uzbek stock exchange fall
Foreign visitors spending more money in Georgia
Russia’s Astrakhan, Baku discussing possibility of building ships for Azerbaijan
Cargo transportation via Iran’s Mehrabad International Airport up
Market capitalization of Baku Stock Exchange reaches highest level
Iran’s Bahar Azadi gold coin price falling
French agency to support sustainable development of livestock sector in Uzbekistan
Saudi index hits 15-year peak on higher oil prices
SOCAR, Axens ink agreement within modernization of Baku Oil Refinery (PHOTO)
Iran shares figures on date harvesting
Azerbaijan joins logistics project with Russia, Uzbekistan on rapid food supply
Bank of Israel optimistic that Omicron won't harm economic growth
Russia to introduce digital technologies in work with Azerbaijani partners - Russian ministry
Retail sales of computer equipment in Azerbaijan increases
Georgia sees increase in money transfers from Azerbaijan
Brazil keen to import urea and petrochemical products from Iran
Uzbek Commodity Exchange announces weekly quotes of commodities for export
Iran able to provide uninterrupted gas supply countrywide, minister says
Georgia stays on track with hazelnut exports as both value and volume grow
Russia, Azerbaijan have huge potential to further strengthen bilateral ties - ministry
NCOC talks Kazakhstan's Kashagan development plans for 2022
Kazakhstan to take measures for privatization of Samruk-Kazyna Fund's assets
Global unemployment will total 207 mln people in 2022, 21 mln more than in 2019 — UN
Kazakhstan names total amount of damage from riots in Almaty
Uzbek Kapitalbank opens tender for purchase of spare parts for NCR ATMs
Georgia sees increase in money inflow in 2021
Uzbekistan reduces amount of compensation paid for travel companies and air carriers
Kazakhstan unveils foreign trade structure with EAEU countries for 11M2021
Georgia’s records increase in exports, imports – Galt & Taggart
Iran seeks to continue its oil-related projects with China
Decree signed: Georgia's initiative to allow Turkey into its pharma market taking shape
Iran sending commercial delegation to Iraq
India's main cities record sharp fall in COVID-19 infections
Eurostat names Turkmenistan-Poland trade volume
Turkmenistan eyes to join Organization for Cooperation of Railways’ agreements
President Ilham Aliyev meets in video format with Speaker of Parliament of Montenegro Aleksa Bečić (PHOTO/VIDEO)
All news