By Vestnik Kavkaza
The trade turnover between Azerbaijan and Russia is regulated by the intergovernmental treaty on free trade (30.09.1992), the agreement on staged cancellation of exclusions from the free trade regime (06.02.2004), the agreement on basic principles and directions of economic cooperation (21.02.2002), and the agreement on principles of indirect taxing in mutual trade (29.11.2000). The joint intergovernmental commission on economic cooperation is acting. Unlike many other trade partners of Azerbaijan, export from Russia to Azerbaijan greatly surpasses import.
Along with traditional participation in the oil and gas sector of Azerbaijan, various Russian companies have improved their position in the non-oil sector. VTB bank and Baltika Company are working at the Azerbaijani market.
Azerbaijan is also actively participating in projects regarding the construction of the transport corridor “North-South” which is very important for Russia. The main delays in construction of the joint railway for the corridor are connected with Iran. Azerbaijan is finishing its part of the joint highway to the border of Russia, while Russia hasn’t completed the work on its territory.
Improvement of export structure is important both for Azerbaijan and for Russia, including the increase of industrial share and other goods in export.
Priority directions of Azerbaijani-Russian bilateral cooperation are using potential of corridors TRASEKA and “North-South” in international and regional projects, establishing joint ventures in the sphere of agriculture, machinery, oil equipment production, textile, medicine, the participation of Russian companies in construction of international roads in Azerbaijan, and the development of tourism.
According to the gas contract signed in 2003, Russia had to export 4.5-5.5 billion cubic meters of gas to Azerbaijan until December 31st, 2008.
In November 2006 SOCAR and the Russian company Rosneft signed the contract for 26 years in Baku – on the exploration and development of oil fields of Zykh and Govsan which were situated on the Apsheron peninsula (25%-75%).
LUKoil continues its activity on exploitation of the major gas field Shakh Deniz and development of the promising sea block D-222 (Yalama) on the Azerbaijani-Russian border.
On June 29th, 2009, during the official visit of President Dmitry Medvedev to Azerbaijan the main buy and sell conditions of Azerbaijani natural gas between SOCAR and Gazprom were signed.
Two countries provide mutual exchange of electric power. Azerbaijan and Russia develop cooperation in the sphere of transport. The number of passengers, the volume of export, import, and transit cargos transported through railway increased.
April 6-7, 2004, and February 22-25, 2006, the first and the second Azerbaijani-Russian economic forums were conducted in Baku.
February 21-24, 2006, Baku hosted the Russian National Exhibition called “Russia-Azerbaijan: strategic partnership.” About 170 Russian businessmen took part in the exhibition.
October 6, 2006, the minister of economic development and trade of the Russian Federation, Herman Gref, visited Baku, discussed the situation and prospects of bilateral economic cooperation and signed the Cooperation Protocol with the Ministry of Economic Development of Azerbaijan.
May 8, 2007, the Azerbaijani co-chairman of the Intergovernmental Joint Commission on Economic Cooperation between the Azerbaijani Republic and the Russian Federation, the first deputy of the prime minister Ya. Aeyubov visited Moscow, met the head of the governmental apparatus of the RF, the deputy chairman of the government Sergey Naryshkin.
June 28, 2007, Baku hosted the first international conference “Trade-economic and scientific cooperation between Russia and Azerbaijan: the situation and prospects.”
August 30-September 1, 2007, Sergey Naryshkin visited Azerbaijan. During the visit he was accompanied by the secretary of the Foreign Ministry of Russia, the deputy of the minister G. Karasin.
In January-August 2009 SOCAR exported 1,715,308 tons of oil through the pipeline Baku-Novosibirsk – it was by 1.9 times more than in 2008.
March 18, 2011, Moscow held the 13th session of the Intergovernmental Commission on Economic Cooperation between the RF and Azerbaijan. The Russian side was headed by the vice-premier, the presidential envoy in the NCFD, Alexander Khloponin; the Azerbaijani side was presented by the forst deputy premier, Ya. Aeyubov.
June 17-18, 2011, the minister of transport of Russia Igor Levitin visited Baku, took part in the 10th international exhibition “Transport, transit, and logistics” and spoke at the first Caspian international transport conference “Development of the Transport Structure of Azerbaijan and the role of the country as a transit ring on the crossroad of strategic transport corridors.”
September 5-6, 2011, the deputy minister of energy of Russia A.Yanovsky visited Baku. He conducted consultation with the Ministry of Industry and Energy of Azerbaijan N.Aliyev on cooperation between the two countries in the sphere of energy.
November 1-2, 2011, the chairman of the Audit Chamber of Russia Sergey Stepashin visited Baku. He was welcomed by Ilham Aliyev, met the minister of interior affairs of Azerbaijan R.Usubov, took part in arrangements devoted to the 10th anniversary of the Audit Chamber of Azerbaijan.
April 1-2, 2012, the minister of transport of RF Igor Levitin visited Baku. He was welcomed by Ilham Aliyev, met the minister of transport of Azerbaijan Z.Mamedov. They discussed the bridge on the Russian-Azerbaijani border across the Samur River.
April 18-20, 2012, the deputy minister of agriculture of Russia I.Shestakov visited Baku. He took part in the 37th European Agricultural Commission and the 28th Regional Conference on Agriculture and Food of Europe and Central Asia.
Cooperation in the military sphere
February 27, 2003, the intergovernmental agreement on military cooperation was signed in Baku.
May 2006, Baku hosted the first session of the Azerbaijani-Russian Intergovernmental Commission on Military Cooperation.
May 18, 2001, and February 26-27, 2003, the defense minister of Russia Sergey Ivanov visited Baku.
October 29-30, 2002, the defense minister of Azerbaijan Safar Abiyev visited Russia. The Agreement on Cooperation and Training Staff was signed during the visit.
January 25, 2002, the Agreement on the Status and Principles of Using Qabala Radio Location Station was achieved; on November, 28th, 2002, the Intergovernmental protocol on opening and using accusatives for payment of expenses of the information-analytical center, required for 1997-2001, was signed.
January 23-25, 2006, the delegation headed by the deputy chairman of the Russian government, the defense minister Sergey Ivanov was welcomed by Ilham Aliyev in Azerbaijan, met with the prime minister A.Rasi-zade, the defense minister Safar Abiyev and visited the Qabala radio location station.
June 20, 2007, the defense minister of Azerbaijan Safar Abiyev took part in the session of the Council of Defense Ministers of the CIS countries in Moscow under chairmanship of the defense minister of Russia Anatoly Serdyukov.
November 28-29, 2007, the defense minister of Russia Anatoly Serdyukob officially visited Azerbaijan, met the prime minister of Azerbaijan Rasi-zade, the defense minister Safar Abiyev, visited the Qabala RLS. The ministries of the countries signed the plan of bilateral military cooperation for 2008.
December 27-28, 2008, the defense minister of Russia Serdyukov visited Baku, met the defense minister of Azerbaijan Abiyev. The ministers discussed prospects of bilateral military cooperation, the situation in the South Caucasus; the defense ministries of Azerbaijan and Russia signed the plan of cooperation for 2009.
September 21-24, 2009, the defense minister of Azerbaijan Abiyev visited Moscow. He discussed military cooperation and regional problems with his colleague; the plan of cooperation for 2010 was signed.
May 11, 2010, the defense minister of Russia Serdyukov visited Azerbaijan, was welcomed by Ilham Aliyev. It was stressed that bilateral cooperation developed successfully in various spheres, including defense.
July 25-26, 2011, the Russian defense minister Serdyukov visited Baku. He met Ilham Aliyev and Safar Abiyev. The situation and prospects of bilateral military cooperation and further using of the Qabala RLS were discussed.
October 11-13, 2011, the fifth session of the Russian-Azerbaijani commission on military cooperation took place in Baku.
December 10, 2012, Russia stopped exploitation of the Qabala RLS, as the sides failed to achieve agreement on a rent price of the station.
