During the "Russia-Azerbaijan: Results of 2019" roundtable, held recently in Moscow, experts discussed state and prospects of bilateral relations between two countries. They agreed that economic cooperation is currently building up, and sides aim to increase trade volume and counter investments, develop transport potential and create joint ventures.
Head of the analytical group of the Center for Central Asian and Caucasian Studies of the Institute of Oriental Studies of the Russian Academy of Sciences, Stanislav Pritchin, considers Russian-Azerbaijani relations unique for the post-Soviet space: "On the one hand, Azerbaijan is not a part, aside from the CIS, of any organizations that Russia promoted. On the other, the nature of our relations shows that Azerbaijan is basically one of the most consistent supporters of Russia and its partner in many affairs - from security to infrastructure, including economy, as well as political issues."
According to expert, geographically, Azerbaijan doesn't have many opportunities to become part of some kind of large system that would contribute to development of the economy, going beyond its geographical reality. "In such situation, Azerbaijan pragmatically relied on the development of targeted areas of cooperation in which it objectively has advantages. That's why it has a very clear picture of energy cooperation with the EU. Despite the fact that the EU is interested in alternative energy resources, Azerbaijan is the main sponsor and initiator of all projects related to this topic. Yes, there's political support for the Southern Gas Corridor, but if you look at the composition of shareholders who built it, for the most part they are SOCAR and Turkish companies. BP is traditionally Azerbaijan's partner, but Baku still was the initiator of everything," Stanislav Pritchin said.
He emphasized that the West would like to contrast two energy flows: Russian supply lines, the Turkish Stream and the Trans-Anatolian Pipeline (TANAP), which recently solemnly launched. There is a temptation to show that Azerbaijan and Russia are competing for the same markets. This is in the interests of our ill-wishers. But from a technical point of view, there are opportunities for cooperation, for synergy. Recently, Vladimir Putin indicated that there are problems with the Balkan Stream. That is, the Turkish Stream will be completed in January, it will be opened, Russia will have the technical opportunity to supply gas to Turkey, but further deliveries through Bulgaria are difficult. In such conditions, we do not have many options for this gas, including TANAP and TAP, which are at a high stage of construction. Accordingly, there is an opportunity for cooperation. "
The position of Azerbaijan, according to the expert, has always been this: "We are ready to enter the southern markets of Europe, but without creating undue competition with Gazprom, because it is not in the interests of pragmatic Azerbaijan. When there is competition, when two suppliers appear, any there’s an opportunity for the buyer to play to lower gas prices, no one is interested in this, therefore the southern direction for export for Gazprom and SOCAR is very important and promising, including for joint work in these markets, coordination and arrangement an expression of excessive competition. "
A researcher at the Institute of Economics of the Russian Academy of Sciences, Alexander Karavaev, called the agricultural sector and agricultural engineering one of the main potential directions for the growth of economic cooperation: “These projects are discussed, Azerbaijan regularly purchases equipment for harvesting and sowing cotton and grain crops. Russian producers already have plans to deploy assembly plants in Azerbaijan on the existing base of automobile assembly. " Another direction for the development of cooperation, the expert called the development of a common pharmaceutical market.
"Azerbaijan is gradually being drawn into the space formed by the Eurasian Union, with new technical regulations, with new trade parameters. The more finished products will be produced in Azerbaijan, taking into account the parameters laid down in the EAEU, the more they will be sold in Kazakhstan, in Russia, in Belarus, the more successfully Azerbaijan will move in this direction. Moreover, it is not about joining the EAEU, but about expanding cooperation with the core of Eurasian integration, "Alexander Karavaev believes.
