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Analysis Materials 19 February 2018 17:05 (UTC +04:00)

Azerbaijani Economy Ministry talks on amount of investments in regions

In 2004-2017, 67.5 billion manats was allocated for the development of the Azerbaijani regions, Azerbaijani Minister of Economy Shahin Mustafayev said.

Mustafayev made the remarks at the expanded meeting of the board dedicated to the fulfillment of the instructions of the country's President Ilham Aliyev made at the conference dedicated to the fourth year of implementation of the state program on socio-economic development of regions of Azerbaijan in 2014-2018, the Azerbaijani Ministry of Economy said Feb. 12.

The minister said that 4.5 billion manats was allocated for development of the country's regions in 2017.

Mustafayev also added that a number of measures aimed at further development of the country's regions are being taken.

"In particular, the work is underway to increase the number of production facilities at Azerhalcha OJSC," he added. "The carpet factories have been constructed in 10 Azerbaijani regions. Ten more factories, five spinning and dyeing facilities, a spinning and dyeing factory are being built."

"The enterprises operating in various spheres of production were put into operation in 2017," he said. "A number of enterprises are being built. The foundation of new enterprises was laid."

"The factory for the production of tobacco products will be commissioned in 2018 which will allow to greatly reduce the import dependence in this sphere," he said. "The foundation of that factory was laid in 2017. Moreover, the work is underway to establish the facilities for receiving and drying of tobacco and strengthening the capacities of existing cigarette factories."

The minister also added that in accordance with the president's instruction, the country's Ministry of Economy will analyze the possibilities for setting up the production of detergents and cleaning products.

Azerbaijan to keep implementing reforms for stronger economy

Azerbaijan will continue implementing reforms to create very strong economy based on knowledge, technologies, good governance and human capital, President Ilham Aliyev said Feb. 13 at a meeting with a delegation led by Wolfgang Buchele, chairman of Germany's Committee on Eastern European Economic Relations.

The head of state underlined deep commitment to the implementation of these reforms.

President Aliyev noted that the reforms carried out in the economic sphere, in particular in the institutional, structural, fiscal and other spheres, have already yielded successful results and these reforms will be continued.

The main task is to ensure sustainable development based on the non-oil sector, the Azerbaijani president said, adding that from this point of view, Azerbaijan intends to ensure observance of the transparency and accountability principles.

Great attention is paid to the investment environment in Azerbaijan, he noted. Over the past 15 years, investments worth more than $230 billion have been attracted, he added.

Despite that these investments were mainly directed to the oil sector, attraction of big investments to the non-oil sector at the same time made it possible to ensure diversification of economy and regional development, Ilham Aliyev said.

He noted that the energy projects will bring additional income for a long period and added that the macroeconomic situation in Azerbaijan is very positive, the volume of international foreign exchange reserves is equal to GDP, and the country's external debt is at a very low level - about 20 percent (of GDP).

In the first month of this year inflation was 5.5 percent, Ilham Aliyev said, adding that the population's income grew by more than 11 percent.

All this creates fundamental basis for development, the Azerbaijani president said. Investments in infrastructure and agriculture are yielding results, he added.

President Ilham Aliyev noted that the oil and gas sector will simply make it possible to increase the reserves and incomes of the State Oil Fund.

Schedule of Baku-Tbilisi-Baku passenger train to change

Schedule of the Baku-Tbilisi-Baku passenger train will change starting from Feb. 15, the Azerbaijan Railways CJSC told Trend Feb. 12.

Changes in the schedule are related to the increase in train speed on the Baku-Boyuk Kasik railway line, according to the message.

"Thus, departing from Baku at 21:50 (GMT +4), the train will arrive in Tbilisi at 10:30 (instead of 10:50)," the message said. "The train will depart from Tbilisi at 20:35 (instead of 19:45) and arrive in Baku at 09:00."

Implementation of the project to overhaul the 600-km Baku-Boyuk Kasik railway started in October 2015.

To date, 450 kilometers of the railway have been overhauled.

Foreign companies can only win from investing in construction sector in Azerbaijan

Foreign companies can only win from investing in construction sector in Azerbaijan, President Ilham Aliyev said Feb. 13 at a meeting with a delegation led by Wolfgang Buchele, chairman of Germany's Committee on Eastern European Economic Relations.

Speaking about the construction materials sector, the Azerbaijani president stressed that a big cement plant was built in the country, and over the past eight years, Azerbaijan has turned from a cement importing country into a cement exporter. Big investments are made in this sphere, President Aliyev added.

He noted that the demand for cement will be high given Azerbaijan's growing economic potential, implementation of the approved regional development programs, important infrastructure and construction projects to be reflected in the next five-year program and financed by the state, expansion of housing construction, construction of new plants, and increase of the population.

From this point of view, foreign companies can only win from investing in the construction sector, Ilham Aliyev said, stressing that one of the upcoming tasks is to fully meet the country's need in construction materials.

It should be taken into account that Azerbaijan has enough resources and local production of construction materials has grown significantly over the past 10 years, he added.

Azerbaijan hopes for significant share of transit traffic from China to Europe

Azerbaijan expects that 10-15 percent of goods sent from China to Europe will pass through its territory, Economy Minister Shahin Mustafayev said at a press conference on the Azerbaijani-Chinese economic relations on Feb. 13.

"There is a good economic cooperation between Azerbaijan and China, and we intend to expand it," Mustafayev said. "Azerbaijan has supported China's One Belt One Road Initiative, and the Trans-Caspian international transport corridor project fully corresponds to this concept. Last year, the trade turnover between the countries grew 43 percent and reached $1.2 billion."

The minister noted that one of the main tasks is to increase the flow of Chinese goods going to Europe through the territory of Azerbaijan.

In 2017, more than 100 million tons of cargo were transported from China to Europe, he said.

He added that the Baku-Tbilisi-Kars (BTK) railway is of great importance for China.

"The BTK provides an easier way for Chinese goods to enter European markets," Mustafayev said. "We will work in this direction."

The minister also added that China will participate in the annual conference of the International Association of Ports and Harbors (IAPH) to be held in Baku in May.

Transparency to be ensured in Azerbaijan's tax system – minister

Transparency will be ensured in the tax system of Azerbaijan, Minister of Taxes Mikayil Jabbarov said addressing the "Taxes. Transparency. Development" conference on Feb. 13.

Extensive work is ongoing in this direction, he added.

"We started reorganization of structure and management principles of tax authorities," the minister said. "The process of establishment of a new, dynamic tax administration, based on modern management principles and satisfying all the demands, has begun."

Jabbarov noted that improving the principles of working with taxpayers and holding tax supervision by using information technologies will become the main goal of the ministry.

"The work is underway to address the issues of concern for entrepreneurs, especially problems when conducting tax inspections," the minister said. "We understand that in order to increase budget revenues, the fiscal burden on entrepreneurs has increased in recent years, there have been cases of exerting pressure on businessmen."

Jabbarov noted that the fiscal burden of taxpayers should be distributed evenly. Fiscal obligations should be formed based on real growth indicators and in accordance with the revenues received, he added.

Jabbarov also noted the need to eradicate corruption in the tax authorities.

"We have already begun to clean up our own ranks, and this process will continue," he said. "At the same time, we will re-define the powers and responsibility of the tax authorities. All disputable issues will be explained with the participation of a taxpayer to prevent unreasonable financial sanctions."

Azerbaijani Taxes Ministry eyes to pursue stimulating tax policy

The Azerbaijani Ministry of Taxes intends to pursue a stimulating tax policy, Azerbaijani Minister of Taxes Mikayil Jabbarov said.

Jabbarov made the remarks at the conference "Taxes: Transparency: Development" in Baku Feb. 13.

"This action will contribute to the acceleration of the economic growth," he said. "The reforms being implemented in the field of taxes will serve to the creation of a transparent tax system and an attractive tax sphere."

Touching upon an increase in the amount of tax revenues, he added that an expansion of the taxable base will be one of the main goals of the ministry.

"It is necessary to distinguish conscientious taxpayers from those who do not pay taxes," Jabbarov said. "The conscientious taxpayer has the right to make mistakes. The task of the tax authorities is not to wait for this mistake but to prevent it in every possible way."

"This approach requires a revision and expansion of the concept - "services rendered to taxpayers"," he said. "The Ministry of Taxes is able to distinguish correct tax planning from tax evasion. We perceive correct tax planning positively, but see tax evasion as a crime. We will do our best to make punishment unavoidable [for this crime]."

Jabbarov added that presently, the Ministry of Taxes proposes taxpayers to pay taxes voluntarily.

"This shows the existence of healthy relations between tax authorities and taxpayers and will serve to enhance the role and authority of entrepreneurs in the society," he said.

"The Ministry of Taxes will restore tax accounting and conduct explanatory work," Jabbarov said. "We will also train a new generation of tax officers who will see taxpayers as tax partners, having rights besides obligations, rather than victims."

First VP Mehriban Aliyeva receives UK PM's Trade Envoy

First Vice-President of Azerbaijan, President of the Heydar Aliyev Foundation Mehriban Aliyeva has met UK Prime Minister's Trade Envoy Baroness Emma Nicholson.

The UK Prime Minister's Trade Envoy Baroness Emma Nicholson presented a keepsake to Azerbaijan's First Vice-President Mehriban Aliyeva.

Mehriban Aliyeva hailed Baroness Emma Nicholson' visit to Azerbaijan. Emphasizing that the UK PM's Trade Envoy will take part in the 4th Ministerial Meeting of the Southern Gas Corridor (SGC) Advisory Council in Baku on February 15, the First Vice-President expressed her confidence that the meeting will be fruitful. Recalling her meeting with Baroness Emma Nicholson in November 2016, Azerbaijan's First Vice-President Mehriban Aliyeva hailed her extensive activity and said that it deserves great respect.

First Vice-President Mehriban Aliyeva stressed the role of Baroness Emma Nicholson in expanding and strengthening cooperation between the two countries.

Mehriban Aliyeva underlined that long-term business relations between Azerbaijan and the UK cover many areas, and hailed the cooperation in the energy sector. She praised the successful activities of a number of British companies, including BP.

Stressing the importance of the Southern Gas Corridor, worth $42 billion, to Azerbaijan, Mehriban Aliyeva said the project is successfully underway. She said BP is one of the key partners of the project, which will see delivery of the first gas to Turkey in July this year and to Europe in 2020.

Azerbaijan's First Vice-President underlined that the two countries enjoy wide cooperation opportunities in other spheres, noting there is a great potential in transport, high technologies, health and agricultural areas.

Highlighting the charitable activity of Baroness Emma Nicholson, Mehriban Aliyeva hailed the successful cooperation between the AMAR International Charity Foundation and the Heydar Aliyev Foundation.

Saying it is her second meeting with First Vice-President Mehriban Aliyeva, the UK PM's Trade Envoy Baroness Emma Nicholson said she is glad to be in Azerbaijan and highly appreciated the discussions she had with the First Vice-President.

Baroness Emma Nicholson said that as a result of the discussions, successful work was carried out in the areas of mutual interest.

Azerbaijan, UK mull prospects of co-op in civil aviation

A delegation led by UK Prime Minister's Trade Envoy Baroness Emma Nicholson has held negotiations at the Azerbaijan Airlines CJSC (AZAL), AZAL said in a message Feb. 14.

During the meeting, the sides expressed satisfaction with cooperation of the two countries in the political and economic spheres. Azerbaijan's civil aviation, based on solid foundations created by national leader Heydar Aliyev, continues to develop today thanks to President Ilham Aliyev's care and attention. Cooperation with UK companies was launched in 1999 when upon national leader Heydar Aliyev's instructions Azerbaijan obtained Boeing 757 aircraft equipped with Rolls-Royce engines.

Presently, a part of the fleet of AZAL and Silk Way Airlines is equipped with engines of UK company Rolls-Royce, which is one of the leaders of the world industry. Such large-scale projects have turned Azerbaijan's civil aviation into one of the biggest industries in which UK companies are involved.

During the meeting, it was reported that London was one of the first international destinations of Azerbaijan Airlines. Currently, flights in this direction are operated using the most modern aircraft, Boeing 787 Dreamliner.

Baroness Nicholson stressed that Azerbaijan's civil aviation has great potential and is very attractive for the activity of UK producers and investors.

Following the meeting, the sides expressed hope for further successful cooperation with UK companies in this field.

President Aliyev receives UK special trade envoy

President of Azerbaijan Ilham Aliyev has today received British Prime Ministerial Trade Envoy Baroness Emma Nicholson.

The head of state thanked Baroness Emma Nicholson for participating in the 4th Ministerial Meeting of the Southern Gas Corridor (SGC) Advisory Council to be held in Baku.

They noted the development of bilateral relations between Azerbaijan and the UK in political, economic, energy and other areas. They hailed fruitful long-term cooperation between BP and Azerbaijan.

Azerbaijan's contributions to ensuring energy security of Europe was praised at the meeting.

They stressed the importance of the Southern Gas Corridor project and the 4th Ministerial Meeting of the Advisory Council to be held in Baku.

BTK railway to be very important element of new Silk Road project

The Baku-Tbilisi-Kars (BTK) railway will be a very important element of the new Silk Road project, said Azerbaijani President Ilham Aliyev.

President Aliyev made the remarks as he was addressing the Fourth Ministerial Meeting of the Southern Gas Corridor Advisory Council in Baku Feb. 15.

"In late October last year, we launched in Baku a new project - Baku-Tbilisi-Kars, which is a new railway link not only between three countries, but also between Asia and Europe," said President Aliyev.

He added that the BTK is already the shortest route from Asia to Europe - it cuts the time needed to deliver cargos by more than two times and it is already rendering services to companies.

"Today the increase in cargoes shows that Baku-Tbilisi-Kars will be a very important element of the new Silk Road project. Of course, if there was no strong regional cooperation between Georgia, Turkey and Azerbaijan in the Caucasus, and if there were no oil and gas projects, the Baku-Tbilisi-Kars would probably be a project for history, not for reality. This is a real result that we have achieved," President Aliyev said.

President Aliyev meets with European Commission VP

Azerbaijan's President Ilham Aliyev has met with European Commission Vice-President for Energy Union, co-chair of the Southern Gas Corridor (SGC) Advisory Council Maros Sefcovic.

President Aliyev thanked Sefcovic for attending the 4th Ministerial Meeting of the SGC Advisory Council and for his warm words at the event.

The head of state described the meeting as a new stage in the development of the Southern Gas Corridor project.

President Aliyev thanked Sefcovic for supporting the implementation of the Southern Gas Corridor, as well as for the European Investment Bank's financial support for the project.

Sefcovic, in turn, said he is pleased to participate both in this meeting and the previous Ministerial Meetings of the SGC Advisory Council. He praised the significant progress in the implementation of the project.

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