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Last week review (Dec. 25-29)

Analysis Materials 5 January 2018 16:35 (UTC +04:00)

Dec. 25

Ilham Aliyev says additional measures important to further expand economic co-op with Russia

President of Azerbaijan Ilham Aliyev has received a delegation led by Minister of Economic Development of the Russian Federation Maxim Oreshkin.

Oreshkin conveyed the best wishes and greetings of Russian President Vladimir Putin to President Ilham Aliyev.

Congratulating the head of state on his birthday, the Russian minister wished him success in his activities for the well-being of the Azerbaijani people.

He said that the development processes ongoing in Baku made a very good impression on members of the Russian delegation.

Asking to convey greetings and best wishes to Russian President Vladimir Putin, President Aliyev recalled with satisfaction the phone conversation he recently had with the Russian president.

The president emphasized that bilateral relations between Azerbaijan and Russia are successfully developing in all spheres, and noted the importance of taking additional measures to further expand economic cooperation, increase trade turnover, and expressed satisfaction with the growth of Azerbaijani exports to Russia.

The head of state said that the visit of Maxim Oreshkin to Azerbaijan creates a good opportunity to consider the issue of expanding the two countries’ import and export opportunities.

The Russian minister noted with satisfaction the growth of agricultural products from Azerbaijan by 60 percent.

Saying that even in the Soviet period, Russian consumers received quality agricultural products from Azerbaijan, Maxim Oreshkin noted that this growth was perceived by Russians as good news.

He added that the Russian side made a decision on the entry of agricultural products of 14 more Azerbaijani companies to Russian markets.

During the meeting, the importance of the International North-South Transport Corridor for both countries was emphasized.

Meanwhile, the dynamic growth in trade relations between the two countries was noted, and the opportunities of cooperation in the areas of mutual investments, tourism and transit transport were discussed.

Azerbaijani, Russian companies ink MoUs

A number of memorandums of understanding (MoU) were signed between Azerbaijani and Russian companies in Baku.

Azerbaijan’s Economy Minister Shahin Mustafayev and Russia’s Minister of Economic Development Maxim Oreshkin took part in the signing ceremony.

Particularly, the MoUs were signed between the Azerbaijan Export and Investment Promotion Foundation (AZPROMO) and JSC Russian Export Center, Azerbaijan’s Gravity Inc. and Russia’s OJSC Lato, Azerbaijan’s Hovers Lighting System Solution and Russia’s Realed, Azerbaijan’s AzProtein Foods Group and Russia’s Gurman, as well as between Silk Way Airlines of Azerbaijan, JSC Russian Export Center and Ilyushin Finance Co. of Russia.

According to Azerbaijan’s State Customs Committee, trade turnover with Russia amounted to $1.89 billion in 11 months of 2017, of which $528.97 million accounted for the export of Azerbaijani products to Russia.

Azerbaijan to increase excise rates on import of gasoline

Excise rates on import of certain types of gasoline will be increased in Azerbaijan starting from Jan. 22, 2018, according to a decision by the country’s Cabinet of Ministers.

Thus, excise rates on import of gasoline with an octane number less than 95 will be increased from 1 to 200 manats.

Earlier this year, the excise rate was lowered from 200 manats to one manat due to suspension of manufacture of oil products at the Heydar Aliyev Baku Oil Refinery, which was stopped at planned maintenance.

Therefore, it was decided to exempt import of AI-92 gasoline from taxes, and the excise rate on the import of this type of gasoline was reduced from 200 to 1 manats, so that the prices for gasoline remain unaffected by the shutdown of the refinery.

Since production at the Heydar Aliyev Baku Oil Refinery is now resumed, there is no need to import this type of gasoline.

Excise rates on other types of gasoline remained unchanged.

Azerbaijan aims to apply new mechanisms to develop trade relations with Russia

Azerbaijan aims at applying new mechanisms to develop trade relations with Russia, Azerbaijani Economy Minister Shahin Mustafayev said in Baku at an expanded meeting of the Azerbaijani-Russian and Russian-Azerbaijani business councils.

Presently, Russia is one of the main trade partners of Azerbaijan, he said, adding that Russia ranks third in the overall commodity turnover as well as in terms of imports, and first in Azerbaijan’s non-oil export, he said.

“This is a good indicator, but it is necessary to use new mechanisms for the future development of trade between our countries,” he noted. “We are already applying various mechanisms, including the opening of the Azerbaijani business center in Astrakhan city and the establishment of the Astrakhan business center in Azerbaijan, as well as today’s opening of the Russian Export Center’s office in Baku.”

Shahin Mustafayev also noted the high volume of mutual investments between the two countries, stressing that the volume of Azerbaijani investments in Russia exceeded $1 billion. In addition, more than 700 companies with Russian capital operate in Azerbaijan, he said.

Azerbaijan’s trade with Russia for eleven months of 2017 amounted to $1.89 billion, $528.97 million of which accounted for the export of Azerbaijani products to Russia, according to the State Customs Committee of Azerbaijan.

Excises on alcohol, tobacco products to be increased in Azerbaijan

Excise rates on the import of tobacco and alcohol will be increased in Azerbaijan from January 22, 2018.

The relevant decision has been published on the website of the country’s Cabinet of Ministers.

Thus, the excise rate on import of malt beer will be 1.7 Azerbaijani manats per liter, on import of grape wines, grape natural wines, including fortified ones – 3.5 manats per liter, on import of champagne wines – 5 manats per liter, on import of whiskey, vodka, liqueur, rum – 10 manats per liter from the next year.

Currently, the excise rate on imported malt beer is one manat per liter; the excise rate on imported natural grape wines, including fortified wines; grape must – two manats per liter; the excise rate on imported champagne wines – 2.5 manats per liter; the excise rate on imported whiskey, vodka, liquor, rum, other alcoholic drinks – six manats per liter.

Excise rates on the import of tobacco products will be 20 manats per 1,000 pieces of cigars, 12 manats per 1,000 pieces of cigarettes from the next year. Currently, the excise rates on those products amount to 10 and four manats respectively.

Azerbaijan commissions backup television tower in Baku

A backup television tower has been commissioned in Baku, a source involved in the project told Trend.

The tower will ensure uninterrupted broadcast of state-owned TV channels in case of possible problems. Additional TV transmitters have been installed there for this purpose. FM-radio transmitters will be installed until the end of the week.

The backup tower will be used in case of necessity, for example during maintenance work.

According to the source, initially all TV channels included in the social package as well as Public Radio will be broadcast via the backup television tower.

"The number of radio channels can increase in the future as far as the radio companies show interest in that," the source said.

The backup television tower is based in Baku’s Narimanov District and will be connected with the Baku television tower. The height of the backup television tower is 140 meters.

New adviser appointed to Azerbaijani minister of taxes

Staff changes were made in the Azerbaijani Taxes Ministry.

Jamal Gasimov has been appointed adviser to the Azerbaijani minister of taxes, a source in the country’s government told Trend.

According to the source, personnel may be reshuffled again in the ministry soon.

New Deputy Energy Minister of Azerbaijan appointed

Personnel reshuffles took place in the Ministry of Energy of Azerbaijan, the ministry told Trend.

Samir Veliyev became the new deputy minister of energy of the country.

Previously Veliyev served as the head of the Ministry of Economy of Azerbaijan.

Deputy ministers of energy are also Natig Abbasov and Gulmamed Javadov.

Dec. 26

Support for family business in Azerbaijan expanding

The number of sales points of the Center for Simplified Support for Family Business (ABAD) in Baku and the regions of Azerbaijan is expanding, Chairman of the State Agency for Public Service and Social Innovations under the President of Azerbaijan Inam Kerimov said at an event, in Baku dedicated to the formation of cooperation between small entrepreneurs and ABAD.

“ABAD” (ASAN Support to Family Business) centers are established to carry out socially oriented projects aimed at ensuring the active participation of the citizens in the social-economic life of Azerbaijan, developing small and medium entrepreneurship, raising the employment rate of the population and supporting the establishment of competitive family businesses in the country.

“ABAD” centers implement assistance projects for family businesses engaged in the areas of arts and crafts, and agriculture. “ABAD” centers also provide business planning, marketing, branding and design, financial accounting and legal assistance services to family households.

According to Kerimov, currently regional offices of ABAD operate in the Masalli, Balakan and Guba districts.

"Including sales centers for the final products in Baku and regions, ABAD sales centers are located in Icheri Sheher, the airport, the Baku railway station. In the near future such centers will appear in the city of Gabala and five-star hotels in Baku," Kerimov said.

His pointed out that the income received from sales of products in such centers is redirected to the bank accounts of entrepreneurs cooperating with ABAD.

"ABAD is expanding its activities in 2018. There are plans to build a ceramics center in the city of Sheki and the Baku settlement of Nardaran," Kerimov said.

Also, the implementation of large-scale events in the Guba-Khachmaz economic region is envisaged.

Kerimov reminded that ABAD also began cooperation with the European Union. He said the EU will allocate $1 million to expand the activities of ABAD in the Sheki-Zagatala economic region.

Ilham Aliyev attends CIS informal meeting in Moscow

Azerbaijan's President Ilham Aliyev has arrived in Russia for a working visit.

President Aliyev arrived at the Novo-Ogaryovo state residence in order to take part in the informal meeting of the CIS heads of state in Moscow.

Russian President Vladimir Putin welcomed President Ilham Aliyev.

The CIS heads of state posed together for photographs. Then the informal meeting of the CIS heads of state was held.

Dec. 27

Azerbaijan eyes to expand pomegranate export

Pomegranate producers in Azerbaijan intend to export their products to Europe, the US and Canada, the Azerbaijan Pomegranate Producers and Exporters Association told Trend.

The Azerbaijan Pomegranate Producers and Exporters Association is trying to get certificates for entering the European market.

"Obtaining such a certificate is not so simple, but we plan to export our products to the markets of Europe, Canada and the US once we get it," the association added.

Most of pomegranates grown in Azerbaijan are exported to the CIS and the countries of Eastern Europe.

“Today, there is a very high demand for Azerbaijani pomegranates,” the association said.

"An increase in the export of pomegranates and pomegranate products to foreign markets has been recently observed,” the association said. “An export mission has been recently sent to Arab countries. A number of contracts have been concluded. The pomegranate products are exported throughout the year. The pomegranates are exported from October until late February-early March. Pomegranates are exported through AZPROMO’s support.”

“Azerbaijan also uses pomegranate peel,” the association said.

"A company, which is a member of our association, will build a production site next year where it will produce products from pomegranate peel,” the association said. “It is used in pharmacology and cosmetology. Not only the peel, but also pomegranate oil, produced from the pomegranate seeds are used, that is, this is virtually non-waste production.”

Director of Export Department of Az-Qranata company, Boyukaga Mustafayev said that the company accepts products from entrepreneurs despite it has its own 400-hectare pomegranate garden in the country’s Agsu district.

"We buy pomegranates from the population and farmers, mainly from the Ujar and Kurdamir districts," Mustafayev said.

Mustafayev added that different kinds of pomegranate are grown in the world.

"Pomegranate is the strongest antioxidant, it contains a lot of vitamins,” he said.

Azerbaijan expands responsibilities of State Customs Committee

The Azerbaijani State Customs Committee will now be obliged to transfer documents about legalization of criminally-obtained currency and other property to the relevant criminal prosecution body, according to President Ilham Aliyev’s decree changing the "Regulations on the State Customs Committee", signed on Dec. 27.

According to the decree, in case of revealing the legalization of criminally-obtained foreign currency and other property, taken out of or brought into Azerbaijan, as well as financing of terrorism, the State Customs Committee must take measures and transfer the obtained documents to the criminal prosecution body.

Moreover, the State Customs Committee is obliged to report about the revealed facts to the financial monitoring body.

Dec. 28

Azerbaijan aims to improve population’s supply with honey

Azerbaijan aims at improving the supply of population with honey, Galib Abdulaliyev, head of the animal breeding department of Azerbaijan’s Agriculture Ministry, told reporters in Baku.

“Every year, 10 kilograms of honey are collected from each bee family in Azerbaijan,” he noted. “This is a very low indicator, since in other countries, the average annual yield of each bee family is 20.5 kilograms of honey. As a result, only 280 grams of honey accounts for one person in Azerbaijan. We intend to bring this figure to one kilogram.”

Presently, about 6,000 people are engaged in beekeeping in Azerbaijan, he added.

“This is a low figure, considering the available potential,” he said. “We intend to increase this indicator and raise the beekeeping sphere from amateur to professional level. In addition to raising the annual yield of bee families, it is also necessary to increase their number. There are about 300,000 bee families in Azerbaijan, but we plan to bring their number to 600,000.”

FAO to continue supporting development of beekeeping in Azerbaijan

The Food and Agriculture Organization (FAO) of the United Nations will continue supporting development of beekeeping in Azerbaijan, Melek Cakmak, head of the FAO Partnership and Liaison Office, told reporters in Baku.

She said that the FAO intends to launch another project in this sphere in 2018.

“This project is the continuation of the first one,” Cakmak said. “We have already supported improvement of the gene pool of honey bees. The new project will be aimed at increasing the export potential of Azerbaijani honey, which is the best in the world, according to many experts.”

She noted that it is planned to resolve issues related to packaging and international certification of Azerbaijani honey within the framework of the project, the initial cost of which is estimated at $800,000.

Azerbaijan improving honey bee gene pool

Baku has hosted a final seminar of the project “Improving living standards of rural population through increasing productivity in beekeeping” implemented by Azerbaijan’s Agriculture Ministry with the support of the Food and Agriculture Organization (FAO) of the United Nations.

The project aims to increase productivity of local Caucasian honey bee breeds, as well as to enhance skills of beekeepers in order to increase volumes of honey production from one honeycomb. These steps, in turn, are aimed at increasing the income and living conditions of the Azerbaijani beekeepers.

Gene pool honey bee nurseries were established in the Beekeeping Center under Azerbaijan’s Research Institute of Animal Breeding, as well as in the Gakh district of the country within the project. The bee nurseries, which were provided with the necessary equipment, were established with the support of the FAO.

At the same time, in order to find pure genetic lineage of bees of gray mountain Caucasian breed, samples of insects from various districts of Azerbaijan were collected and sent to Turkey’s Ankara, where biological and genetic analyses were carried out.

“Samples of bees were selected from a total of 56 beekeepers from 28 villages of Azerbaijan for examination,” the project coordinator Asef Omarov said. “For selection purposes, 125 bees were sent to back to Azerbaijan. They were delivered to both nurseries. Presently, these bees are used as pure genetic material.”

The project “Improving living standards of rural population through increasing productivity in beekeeping” implemented together with the FAO was launched in 2015. The total cost of the project was $200,000.

Dec. 29

Azerbaijan to increase socially oriented expenditures in 2018

Azerbaijan's budget is traditionally socially oriented, said Samir Sharifov, the country’s Finance Minister in an interview with state TV channel AzTV.

"Azerbaijan is a developing state and has achieved many tasks over the past 10-15 years. If we analyze our investment costs, we will see that they were quite high. In this case, as a rule, the most part is the expenditure of social orientation. The head of state pays much attention to this", he said.

According to Sharifov, the volume of social spending in the budget for 2018 is 7.7 billion manat. "And this is more than about 650 million manat compared to the current year, which is an indicator that additional funds will be allocated to social spending next year. Social spending is primarily wages, social security issues, pensions, and their share in the budget is traditionally high enough, only the expenses of the wage fund are 4.2 billion", the minister said.

Finance Minister noted that the country's spending on education is very weighty. "Next year they will amount to 2 billion manat, which is 211 million more compared to the current year", he added.

Samir Sharifov also said that in the state budget for 2018, funds are provided for the construction of social apartments. "It is planned to allocate 250 million manat in this direction next year," he said.

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