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Last week review (July 24-28)

Analysis Materials 31 July 2017 15:49 (UTC +04:00)

July 24

Kiev hosts EaP/CA Project Steering Committee Meeting

Kiev has hosted the EASA-organized Second Project Steering Committee Meeting on supporting the sustainable development of civil aviation of countries of the Eastern Partnership and Central Asia (EaP/CA project).

The meeting was attended by representatives of the State Civil Aviation Administration of Azerbaijan.

The Civil Aviation Administration said that the working group’s first meeting was held in Chisinau, Moldova in July 2016.

The EaP/CA project is financed by the European Union and is designed for four years. The main objective of the project is to assist the aviation authorities of the participating states in ensuring a sustainable civil aviation administration system, as well as harmonizing the rules with European safety and security standards.

The overall objective of the Kiev meeting was to celebrate together the achievements of the first phase of the project and to decide on the direction and priorities for the project’s second phase.

Azerpost LLC preparing to get license for loan issuance

Azerbaijan’s postal operator Azerpost LLC is preparing to get permission for issuing loans, a source on Azerbaijan’s financial market told Trend.

The WB suggested allocating a loan worth $20 million for a period of 20 years, and these funds should be spent exclusively on developing microcrediting services, according to the source. The state guarantee is needed for attracting the WB loan and therefore, this issue must be solved at the government level, the source added.

Azerpost had earlier prepared a pilot project to issue microcredits for development of business and agriculture.

Azerpost LLC started providing financial services in April 2012 in line with a license of the Central Bank of Azerbaijan.

Azerbaijan, Hungary outline promising co-op areas

Azerbaijan and Hungary outlined promising areas of cooperation during the talks between the two countries’ foreign ministers in Budapest, Azerbaijan’s Foreign Ministry said in a message.

Azerbaijani Foreign Minister Elmar Mammadyarov’s official visit to Hungary started July 24.

“Azerbaijan considers Hungary as a strategic partner and this cooperation level creates favorable conditions for development of cooperation in all spheres,” Azerbaijani FM told a meeting with his Hungarian counterpart Peter Szijjarto.

The sides expressed interest in developing cooperation in transportation, agriculture, industry, education, pharmaceutics and other spheres.

Noting the important role of Azerbaijan in ensuring energy security of Europe, Peter Szijjarto expressed interest of Hungary in imports of Azerbaijani gas.

Szijjarto also pointed out successful activities of Hungarian companies in Azerbaijan and said that Hungary’s partners from Western Europe compete for the Azerbaijani market.

Further during the meeting, the sides mulled preparation for high-level talks and the next meeting of the intergovernmental commission on trade and economic cooperation.

Azerpost LLC’s financial services to be developed on state level

A state program has been prepared for development of financial services of Azerbaijan’s postal operator – Azerpost LLC, a source in Azerbaijan’s financial services market said.

According to the source, it is expected that the program will be presented for consideration until the end of July.

According to recommendations of the Central Bank of Azerbaijan (CBA), the state program includes issues of popularization of non-cash and non-contact payments.

Meanwhile, financial issues are currently being resolved, with regard to allocating funds for repair, upgrading the technical base of the postal operator and others, said the source.

The state program also includes the work on updating the corporate information system, Colvir Postal System (CPS), which will allow optimizing the postal operator’s work on the financial services rendered to the population.

Azerpost LLC has an extensive network of postal services. The company started providing financial services in April 2012 in line with a license of the Central Bank of Azerbaijan.

Ilham Aliyev approves funding for Zire-Turkan highway’s construction

Azerbaijan’s President Ilham Aliyev has signed an order to provide funding for the construction of Zire-Turkan highway.

Under the presidential order, three million manats is allocated from the Presidential Contingency Fund for the construction of the highway, which connects two residential areas with the total population of 24,000 people.

July 25

Azerbaijan’s gold producer to start production at new field in 4Q17

Anglo Asian Mining PLC (AAM), a producer of gold, copper and silver in Azerbaijan, plans to start producing gold at the Ugur field in 4Q17, the AAM said in a message posted on its website.

“The first Ugur drill hole was completed in September 2016,” says the message. “Ugur is likely to provide the Company with an easily mineable, 50-metre-deep gold oxide ore body containing an in-house estimate of approximately 195,000 ounces of in-situ gold, which is highly amenable to agitation and heap leach processing.”

The Ugur field was defined in 2016. It is located three kilometers north-west from the company’s processing facilities at its Gedabek area.

The AAM produced 23,218 ounces of gold (decrease by 31.4 percent during the year), 1,322 tons of copper (decrease by 36.4 percent) and 85,087 ounces of silver (decreased by 6.3 percent) in 1H17.

The company plans to produce 64-72,000 ounces of gold in 2017.

Anglo Asian Mining PLC is a gold, copper and silver producer with a broad portfolio of production and exploration assets in Azerbaijan.

Based on the production sharing agreement signed with Azerbaijani government in August 1997, Anglo Asian Mining PLC has the right to develop six fields in south-west of Azerbaijan – Gadabay, Ordubad, Gosha Bulag, Gizil Bulag, Vejnali and Soyutlu.

The gold produced at the fields is sent to Switzerland for purification. The ingots are then delivered to Azerbaijan and stored in the government’s account.

Azerbaijan may create more industrial zones in districts

The government of Azerbaijan is studying the opportunity of creating industrial zones in the country’s Aghdam, Aghstafa and Gazakh districts, said Azerbaijani Economy Minister Shahin Mustafayev at the ministry’s expanded meeting dedicated to the results of 1H17.

Currently, work is underway on creating two industrial zones in Azerbaijan’s Masalli and Neftchala districts. The minister noted that three enterprises already operate in the Neftchala Industrial Zone and other six enterprises are planned to start operating in 2017.

The design work, he said, has already been completed in the Masalli Industrial Zone and the creation of infrastructure will begin soon. According to him, there is very high interest in this industrial zone, and as of now, 33 projects worth over 33 million manats, which can be implemented in the industrial zone, have been presented to the Economy Ministry.

Mustafayev said that along with industrial zones, five industrial parks have been created in Azerbaijan: Sumgait Chemical Industrial Park, Balakhani, Garadagh, Mingachevir and Pirallahi Industrial Parks. The Sumgait Chemical Industrial Park is the biggest among them. The park has 10 residents, which invested more than $1.2 billion in it.

According to the minister, it is expected that five enterprises to start operating in the Sumgait Chemical Industrial Park in 2017 and other three enterprises – in 2018.

Azerbaijan, Bulgaria consider launching direct flights: ambassador

Azerbaijan and Bulgaria are considering the possibility of launching direct flights, Azerbaijani ambassador to Bulgaria Nargiz Gurbanova said in an interview with Trend.

“The Azerbaijani and Bulgarian governments are considering the possibility of launching a direct flight between the two countries,” the ambassador said. “This issue was raised during a meeting of the intergovernmental commission on trade and economic cooperation in Baku in September 2016.”

“According to the Azerbaijani State Statistics Committee, around 16,000 Azerbaijani tourists visited Bulgaria in 2016,” the diplomat said.

“Moreover, we are also interested in arousing Bulgarian tourists’ interest in visiting Azerbaijan,” the ambassador said. “Historically, Bulgarians are well-informed about Azerbaijan. Each Bulgarian has impressions about Azerbaijan. Some Bulgarians studied or visited Azerbaijan. These relations have been preserved and people want to once again come to Azerbaijan, get acquainted with the modern country. A direct flight will help increase the flow of tourists from both countries.”

“Both Azerbaijan and Bulgaria are willing to launch a direct flight, but the decision should be taken by air carriers of the two countries,” she added. “I think there can be such an opportunity when new low-cost carrier Buta Airways launches its activity.”

Buta Airways is the first low-cost airline in Azerbaijan, a structural unit of the CJSC Azerbaijan Airlines (AZAL). It was founded in December 2016. The airline’s fleet consists of modern Embraer aircraft. The airline is based in Baku, at the Heydar Aliyev International Airport.

Buta Airways will launch its first Baku-Tbilisi flight on September 1.

Azerbaijani president approves funding for Hajigabul Industrial Complex

Azerbaijani President Ilham Aliyev has signed an order to provide funding for the creation of Hajigabul Industrial Complex.

Under the presidential order, 4 million manats is allocated from the Presidential Contingency Fund for the establishment of the complex, which aims to encourage small and medium-sized entrepreneurship.

July 26

Tatneft managers visit Baku Higher Oil School

Delegations from Tatneft company, Altemyevsk State Petroleum Institute, Tatneft corporate university and PrciewaterhouseCoopers company (PwC) visited Baku Higher Oil School (BHOS).

The visit was arranged upon the delegations’ initiative with the purpose to learn about BHOS academic programs, infrastructure and conditions at the Higher School new campus, BHOS cooperation with Heriot-Watt University (Great Britain) and other universities and transnational companies, achievements attained by the Higher School in developing academic teaching staff potential, conducting research work, attracting talented youth to study at BHOS and providing job opportunities to the graduates.

The Tatneft delegation included Deputy Director General on Human Resources (HR) and Social Development Rustam Mykhamadeyev, Deputy Director General on Oil Field Development and Exploration Rustam Khalimov, Head of HR department Rifdar Khamadyariv, Deputy Head of Strategic Planning Department Rinat Shayakhmetov, Head of Corporate University of Tatneft Andrey Glazkov and Head of HR department of the University Oksana Fedina. Acting Rector of Almetyevsk State Oil Institute Robert Nurgaliyev, Director of PwC company in Moscow Vladimir Bulat, Senior Manager of the company Vasily Sadovsky and Consulting Partner of PwC-Azerbaijan Emin Shikhgaibov also participated in the meeting.

Opening the meeting, BHOS Rector Elmar Gasimov warmly welcomed the guests. He told about history and development of the Higher School, achievements attained in five years after its opening, academic and internship programs aimed at training of highly qualified engineers. The rector also informed the guests about students’ on-the-job training at SOCAR, national and transnational oil and gas companies as well as about first graduation ceremony recently held at the Higher School. Then a presentation about BHOS activities was delivered.

General Director Deputy on Human Resources (HR) and Social Development of Tatneft company Rustam Mykhamadeyev said that members of the delegation from Tatarstan were very pleased to visit BHOS, which is the leading higher educational institution in Azerbaijan. Speaking about long-term partnership relations between Azerbaijan and Tatarstan, he emphasized the importance of further developing cooperation between two republics in the field of science and education. “Achievements attained by the Higher School and its rapid and dynamic development allowed BHOS to become the most prestigious higher educational institution in the country. This experience is very important for us,” he said.

Acting Rector of Almetyevsk State Oil Institute Robert Nurgaliyev also expressed his satisfaction with his visit to Azerbaijan and BHOS. He informed that Almetyevsk State Oil Institute is a leading higher educational institution for training of specialists for oil industry of Tatarstan. He said, “Currently, our team works with Tatneft managers and consultants from PwC company on the development strategy of the institute, as the republic leadership set an ambitious goal to establish a leading oil university in Russia based at our institute.”

The meeting participants discussed prospects of developing cooperation of the Higher School with Tatneft company and Almetyevsk State Oil Institute. The guests also visited BHOS new campus where they were shown its infrastructure, conditions created for the students, and facilities including classrooms, accommodation, sports, recreation and leisure facilities.

July 27

ITC ready to support Azerbaijan’s accession to WTO

The International Trade Center (ITC) has expressed support to speed up Azerbaijan’s accession to the World Trade Organization (WTO), ITC Executive Director Arancha Gonzalez tweeted.

“Discussed WTO accession with Azerbaijan’s Deputy Foreign Minister Mahmud Mammad-Guliyev and expressed ITC support to speed up process,” Gonzalez tweeted.

Azerbaijan, Pakistan to establish joint ventures

Azerbaijan and Pakistan will establish joint ventures in various sectors of the economy, the Azerbaijani Economy Ministry said.

According to the message, Azerbaijani Deputy Minister of Economy Sahil Babayev and Pakistan’s Commerce Secretary Mohammad Younus Dagha have discussed this issue at the first meeting of a trade cooperation working group today.

The memorandum of mutual understanding on cooperation between the Azerbaijan Export and Investment Promotion Foundation (AZPROMO) and the Trade Development Authority of Pakistan, signed during the meeting, also covered the issue of establishing joint ventures.

Moreover, the memorandum envisages expansion of cooperation between entrepreneurs of the two countries, exchange of information on market research and investment projects, as well as participation in exhibitions and business events.

The meeting participants also discussed the promotion of the Made in Azerbaijan brand in Pakistan, as well as the expansion of cooperation in investment-making, industry, tourism, transport, agriculture, food production, etc.

Following the meeting, a decision was made to hold the next meeting of the working group in Pakistan.

According to the Azerbaijani State Customs Committee, trade turnover between Azerbaijan and Pakistan amounted to $17.5 million in January-June 2017, with more than $16 million of that amount accounting for the import of Pakistani products.

Azerbaijan, Peru mull promising spheres of co-op

Azerbaijan and Peru named promising spheres of cooperation, among which there are energy, agriculture, mutual investments, tourism and humanitarian fields.

Azerbaijan’s Foreign Minister Elmar Mammadyarov and Peru’s Chargé d'affaires in Azerbaijan Luis Chang Boldrini have discussed the issues of cooperation in these spheres.

During the meeting, the two sides noted the importance of expanding the contractual and legal base, holding political consultations at the level of foreign ministries of the two countries.

Mammadyarov congratulated the Peruvian diplomat on his appointment, and noted that his activities will contribute to the development of bilateral cooperation.

The Peruvian embassy in Azerbaijan started its activity in June 2017.

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