Rufat Mamedov: “Azerbaijan invests in agriculture, industry and construction of the NCFD”

Interview by Orkhan Yolchiyev, exclusively for Vestnik Kavkaza

Rufat Mamedov, President of the Foundation of Export and Investment Encouragement in Azerbaijan (AZPROMO), told Vestnik Kavkaza about regional Russian-Azerbaijani cooperation.

-       Recently the head of Ingushetia, Yunus-Bek Yevkurov, stated that Azerbaijan is a leader of the CIS countries in development of all economic spheres. And this influences its international rating. What regions of the North Caucasus actively cooperate with Azerbaijan?

-       Azerbaijan pays close attention to development of relations with Russia in general and with its separate regions. Azerbaijan cooperates with more than 70 regions of the Russian Federation. Of course, relations with the NCFD constituents gain priority importance. We have good business relations with all regions of the NCFD, especially with Dagestan and Stavropol Territory. As for such regions as Ingushetia, Kabardino-Balkaria, North Ossetia, Chechnya, Karachay-Cherkessia, we have room to work there. At the moment trade turnover is low, and financing should create a necessary platform for businessmen of either Azerbaijan or the NCFD.

The Azerbaijani side is interested in investment projects of the NCFD. At the moment we are building relations with Ingushetia, last year we conducted a business meeting between our companies and the Ingushetian authorities in Baku. After that, representatives of our companies went to Ingushetia to build commercial relations and demonstrate our interest in the constructing sphere.

-       What investment projects is Azerbaijan implementing in the NCFD?

-       There are no major projects, but separate companies are working there. For example, our companies are actively working in the construction sphere in Dagestan. They export construction materials. Ingushetia expressed interest in the program of kindergarten construction. We supply them with concrete, as our material is light and reliable.

Our companies are interested in projects for growing and processing agricultural products.

We also work on the logistics direction to provide continuous supplies.

We consider projects on establishing of logistical centers, and our private companies are actively working in this direction in Stavropol Territory.

Stavropol Territory remains one of the main grain exporters to Azerbaijan. Our companies are building the necessary conditions for continuous supplies of grain and making investments.

There are other projects – a cannery, a tea factory in Krasnodar. Even though Krasnodar is not a part of the NCFD, it is situated nearby, and products made in Krasnodar are delivered to the NCFD.

-       What is the potential for an increase in mutual trade between the two countries?

-       It is huge! We are considering opportunities for building trade relations on products on which we haven’t cooperated yet. We expect a good dynamic. One of the main factors is diversification – we sell various products for various uses, including agricultural products, food industry products, construction materials, equipment, engineering products, and so on.

In the last four years, in order to extend the investment market of Azerbaijan, we have held more than 26 business events for entrepreneurs of both countries. This year we have conducted seven such events in the spheres of agriculture, industry, construction.

-       What steps are taken to extend trade and investment contacts?

-       There are more than 570 companies with Russian assets in Azerbaijan. Russian investments amount to more than $600 million. Azerbaijani companies also invest in the Russian economy. The volume of investment in 2012-2013 was about $1 billion. We hold various events with the participation of state structures and private business. There are various kinds of meetings – with state officials who deal with promotion of investments and encouragement of trade and individuals.

I took part in an investment forum in Azerbaijan on June 23-24. At the forum we agreed to invest in Russia, we signed a cooperation memorandum. We will exchange information on investment projects and legislation, which we will spread among interested circles of private businessmen, as the state creates a platform, while the private sector uses the platform. Moreover, an agreement on cooperation was signed at the forum between the Ministry of Regional Development of Russia and the Ministry of Economy and Industry Development of Azerbaijan. Both the memorandum and the agreement are aimed at developing economic cooperation between the two countries.

-       Please comment on the results of the Interregional Russian-Azerbaijani Forum.

-       It gathered more than 400 attendees from both sides. State and regional structures, as well as representatives of private business were represented there. 25 regions of Russia participated in it. And this is a good result. Round-table discussions on culture, tourism, transport, investment relations and development of relations between business circles were held. 11 agreements between various business actors were signed at the forum. This shows the effectiveness of the forum.

150 businessmen represented Azerbaijan at the forum. Many major, medium-sized, and small companies from Russia took part in it. They conducted certain meetings on building commercial relations. We plan to continue the dialogue and improve the results achieved at the forum to be held in Russia next year.