Weekly actual topics in Azerbaijan

Azerbaijan's non-oil products exports to grow

From 2012-2015, Azerbaijan's exports will increase. According to the socioeconomic development concept for 2012, the average annual export growth will hit 3.5 percent in 2012 and total $26.608.0 billion.

At the same time, black ink foreign will remain in trade turnover for three years.

In turn, import growth in Azerbaijan will hit 15 percent and reach $8.413.3 billion in 2012, and 53 percent and $12.871.1 billion in 2015.

Export growth is still forecasted at the expense of the oil sector. Production will increase from $24.0316 billion in 2011 to 25.802 billion in 2015.

Today, most of Azerbaijan's exports are oil and oil products (86.73 percent), and Azerbaijan plans to increase oil exports in 2012. Meanwhile, SOCAR Trading plans to increase oil sales to Asia.

By late 2011, SOCAR Trading expects increasing oil sales to Asian countries amounting to 7-9 million barrels per month compared to 5-6 million barrels the previous months.

However, given the Azerbaijani government's strategy to develop the non-oil sector and diversify the country's export potential, increasing non-oil exports is inevitable.

Azerbaijan has already increased chemical exports by 2.3 times.

The Azerkimya Production Unit has increased the export of the main types of products produced by the enterprise to Turkey -- polyethylene, propylene, isopropyl alcohol, propylene glycol, and others.

More than 50 percent of all export products is exported to the Turkish market.

At present, Azerbaijan's export growth is also observed on the following products: ferrous metals (an increase by almost two times - by 81.38 percent compared to 2010), fruits and vegetables - by 72.5 percent, tobacco and tobacco products - by 60.33 percent, aluminum and its products - by 88.37 percent, cotton - by 95.63 percent, vegetable and animal oils - 0.59 percent.

The largest volume of Azerbaijan's export in January-September 2011 accounted for far abroad countries - $17.3 billion, the CIS countries - 155.7 million manat.

Japanese business in Azerbaijan

The economic relations between Azerbaijan and Japan are in line with the close cooperation over 20 years.

The prospects for trade and economic cooperation between Azerbaijan and Japan will be discussed during the next meeting of the Azerbaijan-Japan Joint Economic Commission in Baku on November 22-23.

The relations between countries are dynamically developing. Much was done over these years. Japan one of the first supported Azerbaijan's far-seeing oil strategy. Today two major Japanese companies Itochu and Impex are involved in the Contract of the Century. Such leaders of Japanese business, as Mitsubishi, Mitsui, Marubeni, Sojits are involved in the energy and infrastructure projects in our country.

Taking into account Japan's rich experience in the areas of infrastructure and transport, the Azerbaijani government considers it appropriate for Japanese companies to participate in various projects on railway construction of high speed trains, suspension bridges, high-speed roads.

There are specific proposals from Japanese companies and investment institutions to develop, for example, rare minerals, construct a refinery on land and oil waste treatment, even to purchase and process sturgeon hides.

An artesian well in the village of Soganverdiler, Barda region of Azerbaijan abandoned for 20 years was restored within Japan's project "Improvements in irrigation systems in eight villages in Barda and Agjabadi" at the end of September 2011.

At present, Azerbaijan implemented 142 projects worth $10.6 million within the Japanese program "Grassroots and Human Security". The total amount of Japan's official assistance to Azerbaijan to improve economic infrastructure, agriculture, social and cultural sphere, human resources, etc. exceeded $1 billion.

Thus, Japan is among the leading countries on deposits in the country in the structure of foreign investments in Azerbaijan's economy. According to the Azerbaijani State Statistical Committee, Japan invested in Azerbaijani economy 160.6 million manat in January-September 2011.

Japanese investments in Azerbaijani economy

Azerbaijan is one of the active importers of Japanese technique, technologies and mainly cars. According to the Azerbaijani State Customs Committee, the trade turnover between Azerbaijan and Japan amounted to $125.6 million in January-September 2011 or 22.7 percent more compared to the same period of last year.

Europe to play major role in Trans-Caspian project

The Trans-Caspian system of pipelines is an important project indicative of Turkmenistan's readiness for mutually beneficial cooperation with all sides concerned, the Turkmen President stated in a recent address to the participants of conference entitled "Global Energy Markets Integration: Provision of Energy Security" arranged by the Turkmen side.

If concrete decisions on Trans-Caspian gas pipeline were taken they would excite the situation around Caspian gas export to European markets, like what happened after Turkey and Azerbaijan signed the transit agreement. However, only cautious declarations are expressed on this occasion with no one desiring to initiate the process. This concerns primarily Turkmenistan as it will receive the opportunity of getting huge earnings after having got access to reliable, rapidly growing European gas market. In such a situation and in the light of the latest events, Azerbaijan needs the gas pipeline to a much lesser extent than Turkmenistan.

The key barrier preventing Ashgabat's entering the European market is the Moscow's position, and all the declarations address EU leaders.

As a kind of international business, energy transportation by pipelines is in the zone of permanently growing demand, President Berdymukhamedov said. In turn, this increases global economy's demand in crude energy, particularly, oil and gas, which will become urgent for the entire global energy shortly. "Therefore, the desire of world's strong energy powers, including Turkmenistan to boost export potential, and establish multi-vector modern, efficiently operating energy transit and delivery capacities is quite substantiated," the address reads. All the said can be replaced by one phrase: "We would very much like to sell gas to you (EU)".

"Political stability in Eurasian countries should be ensured, and all favorable conditions for harmonic development of their respective economies should be created for the sake of equal-in-rights, mutually beneficial cooperation," the Turkmen leader said. In other words, "If you (the EU) want to buy our gas, guarantee conditions ruling out any political destabilization to us".
Telling often that gas may be sold to anyone but only at border, official Ashgabat also wants to demonstrate its political neutrality and prove that it acts proceeding from commercial reasons only.

Turkmenistan's international initiatives submitted to the UN for examination are also an effort to legally provide its political safety in the event of making concrete decisions on energy transit. Speaking at UN Assembly General's sessions, the Turkmen President repeatedly suggested establishing a group of experts to be involved in preparation of recommendations related to to-be international legal document on energy transit, with offers of all sides concerned in consideration.

It is wrong to reproach Ashgabat of indetermination as it simply is forced to take the possible aftermath of deterioration of its relations with the northern neighbor into account. For this reason, Europe, if it really needs Turkmen gas, should bear the function of key negotiator to agree with Moscow by itself.

The Trans-Caspian gas pipeline is part of project Nabucco, which is one of the Southern Gas Corridor's projects envisioning Caspian energy export to European markets. It envisages the laying of a 300-kilometer pipeline over the seabed from Turkmenistan to Azerbaijan. Turkmenistan is to bear the main energy burden of the project.