Economic cooperation between Azerbaijan and Russia covers a range of areas – from energy to agriculture, industry, and high technology. Russia is one of Azerbaijan’s main trading partners and ranks third in terms of mutual trade turnover.
In an interview with Report, Azerbaijan’s trade representative in Russia, Ruslan Aliyev, discussed how this cooperation is developing and what new opportunities are opening up for business.
– What work is the Trade Representation of Azerbaijan in Russia doing to develop economic ties between the two countries?
– The Trade Representation continues to work on expanding economic and trade relations between the two countries, promoting and increasing exports of Azerbaijani products, and attracting investments from Russia to Azerbaijan. As part of exhibitions and business forums held in Russia related to investment promotion, information is regularly provided about the favorable business environment and investment opportunities in Azerbaijan, including our country’s industrial zones. Current investment directions are discussed, and investors’ questions are answered.
Starting this year, as part of the Trade Representation’s Made in Azerbaijan project, events are being organized in Russian regions to present and taste Azerbaijani products. Within this project, relevant events were held on April 27 in Nizhny Novgorod and on June 29 in Tver. They are also planned in other regions of Russia.
Additionally, meetings are held with Azerbaijani companies intending to export products to the Russian market and with Russian companies and retail chains that may be interested in our country’s export potential. Coordination work is carried out between relevant companies of the two countries in case of demand for Azerbaijani products. Also, as part of the Gifts of Azerbaijan project, with the support of the Trade Representation of Azerbaijan in Russia, six corners have been created in major retail chains in Moscow and other cities, where Azerbaijani products are presented. Our companies sign export contracts with leading Russian retail companies, and representatives of Azerbaijan regularly participate in exhibitions such as Worldfood, Prodexpo, MosBuild, Heimtextil Russia, Russia Halal Expo, and INNOPROM.
– Russia is an important market for Azerbaijan’s non-oil exports. Currently, tomatoes and some fruits and vegetables are mainly exported to Russia. Along with this, what other Azerbaijani products are in demand in the Russian market?
– In addition to fruits and vegetables, industrial products such as polyethylene, propylene, and polypropylene are exported to the Russian market. In recent years, there has also been an increased demand for processed agricultural products, alcoholic and non-alcoholic beverages. As a result of negotiations with major Russian retail chains, exports of processed and canned products of Azerbaijani origin are being carried out.
– Which sectors are Azerbaijani investors interested in within Russia, and what is the current volume of mutual investments?
– From 1995 to 2023, the volume of direct investments from Russia to Azerbaijan amounted to $9.1 billion, while investments from Azerbaijan to Russia totaled $1.2 billion. Azerbaijani companies are implementing investment projects in various regions of Russia in tourism, agriculture, construction, and other areas. In recent years, our private companies have shown particular interest in Russia’s tourism sector. In December 2021, a five-star sanatorium opened in the city of Zheleznovodsk, and recently, the Istochnik sanatorium opened in Kislovodsk. Additionally, the Istochnik sanatorium and tourist center, built with Azerbaijani investments, is operating in Yessentuki.
– How many bids have Russian companies submitted regarding activities in the liberated territories of Azerbaijan?
– To date, Russian companies have applied for 24 projects covering the areas of construction, trade, agriculture, industry, and services.
In addition, in the Industrial Park Araz Valley Economic Zone, the Russian-Azerbaijani joint venture, Auto Leasing Azerbaijan LLC, has established a technical service center that will service vehicles used in the liberated territories, as well as transit vehicles transporting cargo and other equipment.
– In which other industrial zones of Azerbaijan do joint ventures of the two countries operate?
– In the Hajigabul Industrial Park, a $10.8 million insulation materials plant Penoplex Prikavkazye, built by a Russian investor, was commissioned in 2023. The products manufactured are exported to Georgia and Russia along with the domestic market. Another resident of this industrial park, Azermash Park LLC, jointly with the Russian enterprise GAZ, produces passenger cars, buses, and trucks.
