Weekly economic review (10.01- 14.01.2011)

Analysis Materials 18 January 2011 12:03 (UTC +04:00)

President of Azerbaijan Ilham Aliyev and President of the European Commission Jose Manuel Barroso signed a Joint Declaration on Southern Gas Corridor.

At the meeting it was noted that cooperation between Azerbaijan and the EU is successfully developing in various fields. It was said that there is good potential for cooperation in the energy sector and confidence was expressed for further expansion of ties.

During the meeting the sides exchanged views on the current situation and prospects of relations between Azerbaijan and the EU.

Southern Energy Corridor in fact begins from Azerbaijan. Implemented by Azerbaijan, the Baku-Tbilisi-Ceyhan and Baku-Tbilisi-Erzurum pipelines heralded the beginning of the Southern Energy Corridor.

Commenting on the signed Joint Declaration, Aliyev said that the project meets the interests of Azerbaijan to diversify its energy supply routes to world markets. At the same time, Aliyev stressed that only the proven natural gas reserves in Azerbaijan are 2.2 trillion cubic meters and in the short term the country needs predictable and stable long-term, regulated market laws.

Barroso called the project the most significant. At the same time, he stressed that the EU had reached an agreement to support this project from Turkey as well.

Head of the Azerbaijan's permanent mission to the European Union Emin Eyyubov and Head of the European Union Delegation to Azerbaijan Roland Kobia have signed a memorandum of understanding on National Indicative Program for 2011-2013 between Azerbaijan and European Commission and a memorandum of understanding regarding a framework document on Comprehensive Institution Building Programme between Azerbaijan and European Commission.

The Southern Corridor is a priority EU energy project diversifying energy supply routes and sources and increasing EU energy security. The Southern Corridor includes: the Nabucco gas pipeline, Trans Adriatic Pipeline (TAP), White Stream, and ITGI (Turkey-Greece-Italy pipeline).