Russia remains the major trading partner of Azerbaijan. Bilateral trade is now recovering from the crisis of 2009.
Russia imports only a few products from Azerbaijan, mostly energy resources. The energy partnership between the two countries has strengthened and evolved considerably in recent years.
Up to 2007 Azerbaijan imported gas for its industrial needs from Russia. After ‘Gazprom’ revised its gas and oil prices Azerbaijan had to stop this purchasing and launch gas production projects of its own, among which was the development of the Shakh Deniz gas field . These measures led to a paradoxical result: ‘Gazprom’ signed an agreement on purchasing 0.5 billion cubic meters of Azerbaijani gas in 2009. This year the volume of gas purchased was doubled and in 2011 Azerbaijan will export 2 billion cubic meters – this figure is stipulated by the treaty signed during the recent visit of Dmitry Medvedev to Baku.
The Baku authorities still retain Russian export priorities (oil pumping through the Russian Black Sea port of Novorossiysk), although it possesses two West-oriented pipelines. According to SOCAR’s (State Oil Company of Azerbaijan) statistical service 214,274 tons of crude oil were exported through Novorossiysk’s terminal in August 2010, while 216,078 went through in July. The total amount of oil transported via the ‘North Route’ in 2010 (January-August) is 2,579,971 tons as against compared to 1,196,547 in 2008.
Another vital sphere of Russian-Azerbaijani co-operation is electric power exchange. The electricity supply systems of the two countries are now operating in close connection to each other. Some 90% of Russian exports to Azerbaijan consists of highly-processed products . The main items Russia offers to Azerbaijan are grain (although after the official ban on grain exports from Russia this merchandise has been temporary eliminated from this list), cigarettes, sunflower oil, chocolate, flour and confectionery, vehicles, engine oil, refrigerators, medicines, timber, paper, cardboard, cement, fertilizers, glass, pipes, metals, equipment.
The most important and most rapidly developing trade sphere is that of treating metals and objects made of them (transport, machines). The turnover in the metal trade in January-June 2010 increased by 54% compared to the same period of 2009, reaching $103 billion, and that of transport and equipment reached $102 billion.
Azerbaijani exports to Russia consist mostly of provisions and crude agricultural products – these items constitute 47% of the total turnover. Fat, sugar, nuts, tea, fruit and vegetables and wine are the main export products.
Evgeniy Krishtalev, exclusively to VK
