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Economic Development in Azerbaijan

EU committed to extending SGC to Central Asia

The European Union will continue to seek extension of the Southern Gas Corridor, designed to bring Caspian gas to Europe, to Central Asia.

The European Council on the EU Strategy for Central Asia announced that cooperation between the EU and Central Asia in the energy, infrastructure and transport sectors should prioritize the integration of the Central Asian countries with each other and into international markets and transport corridors.

“The EU will continue to seek to extend the Southern Gas Corridor to Central Asia, and to further promote the EU's multilateral and bilateral energy cooperation,” reads the document, published on the website of the Council on June 19.

The Southern Gas Corridor is one of the priority energy projects for the EU. The project which is set to change the energy map of an entire region will bring Caspian gas to the European markets through Georgia and Turkey.

At the initial stage, the gas to be produced as part of the Stage 2 of development of Azerbaijan's Shah Deniz field is considered as the main source for the Southern Gas Corridor projects. Other sources can also connect to this project at a later stage.

The Shah Deniz gas will be exported to Turkey and European markets by expanding the South Caucasus Pipeline and the construction of Trans Anatolian Natural Gas Pipeline and Trans Adriatic Pipeline.

The European Council further stressed that the EU will also continue to promote renewable energy and energy efficiency in Central Asia by offering its expertise in the development of sound regulatory frameworks and by supporting investment cooperation with European financial institutions.

The Council noted that the countries of Central Asia have become significant partners of the EU. “Ten years after the adoption of the Central Asia strategy, and more than 25 years after the five countries became independent, the Council welcomes the progress achieved in developing the EU's relations with Kazakhstan, the Kyrgyz Republic, Tajikistan, Turkmenistan and Uzbekistan as well as with the Central Asian region as a whole,” the document said.

The Council reaffirmed the EU's commitment to develop stronger relations and highlighted the need to strengthen dialogue and cooperation on human rights, education, sustainability as well as on tackling emerging security challenges faced by the Central Asian countries.

The EU-Central Asia relations are being developed under the EU strategy for Central Asia, signed in 2007 and reviewed in 2015.

The ambitious SGC project, one of the European Union's priority energy projects, is assessed as a strategically important initiative that will allow Europe to secure its energy security.

Among the Central Asian countries, Turkmenistan has showed a greatest interest in supplying gas to Europe via connecting to the Southern Gas Corridor.

Turkmenistan is a landlocked country and thus it is dependent on pipelines to export its gas on world markets. Moreover, the country lost Russia as a customer one year ago, and has since provided gas only to China and Iran. Therefore, Turkmenistan began to look for alternative consumers in the European and Asian markets and expressed interest in joining SGC project.

https://www.azernews.az/oil_and_gas/114971.html

Bulgartransgaz in talks with SOCAR on Balkan gas hub

Bulgaria’s Bulgartransgaz company is beginning talks with Azerbaijan’s state oil company SOCAR on the volume of gas supplies to Balkan hub, Bulgaria’s Deputy Energy Minister Zhecho Stankov said.

“The Bulgarian company is in talks on using the part of the free volumes of gas from Azerbaijan’s Shah Deniz 2. This is about 3 billion cubic meters from the second phase of development of the field,” he said, adding that the talks are at an early stage, investor.bg reported reports.

As much as 16 billion cubic meters of gas will be produced under the Shah Deniz 2 project. Six billion cubic meters of this volume will be delivered to Turkey, while the remaining 10 billion cubic meters will be supplied to Europe through the Trans Adriatic Pipeline (TAP).

Bulgaria will receive gas from the Caspian Sea region through the Interconnector Greece-Bulgaria (IGB).

“The project is on track. All land acquisition procedures in the country have been completed and the permit for the pipeline’s construction in Bulgaria is expected to be issued in the third quarter of 2017,” said Teodora Georgieva, executive officer at ICGB AD joint venture company.

The construction permit in Greece is expected to be issued in the fourth quarter of 2017.

“The project’s cost is estimated at around 240 million euros. As much as 45 million euros have been secured by the EU. Bulgaria can receive around 35 million euros before completing the procedure of using additional funds under the "Competitiveness and Innovation" program,” Georgieva added.

https://www.azernews.az/oil_and_gas/114831.html

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Azerbaijan moves forward with ‘5-star’ free-trade hub

Azerbaijan intends to build a major trading hub close to its capital as a tax-free zone, with the expectation that other countries in the region will replicate the example and give a boost to the entire Eurasian region.

The new Baku International Sea Trade Port in Alyat is located 65 kilometres south of the capital, with an annual capacity of 25 million tonnes.

In a wide-ranging 2106 interview with EURACTIV.com, Ziyadov described his country’s ambitions to build not only a port, but “a 5-star hub”, including a cargo airport, a free trade zone, urban development and transport infrastructures.

Speaking to reporters in Baku, Ziyadov reminded the journalists that in 2016, an agreement was signed with Dubai Port World (DP World) company, which has completed its work, and said that he had presented the first draft of the law to the Azerbaijani government.

“An important factor in the successful operation of the free trade zone is the legal regime. A draft law was prepared, and Azerbaijan’s President Ilham Aliyev signed a decree on the creation of a working group headed by Vice-Speaker Valeh Alasgarov in order to coordinate it and conduct the state expertise. The process of coordination and examination will continue within three months, and I hope that by the end of this year this draft law will be submitted to the Azerbaijani parliament,” added Ziyadov.

Ziyadov also said that the figures for the transhipment of trucks through the Baku International Sea Trade Port were growing.

“In 2016, 100% growth was demonstrated in the number of trucks as compared to 2015, and about 23,000 trucks were sent from Turkey to Central Asia and vice versa. During the four months of this year, we have already sent more than 10,000 trucks in both directions. This is a very positive trend, and we hope that it will continue,” added the director general.

Last March Aliyev signed a decree on measures to create a free trade zone-type special economic area covering the territory of the Baku International Sea Trade Port in the Alat township of Baku’s Garadagh District.

https://www.euractiv.com/section/transport/news/azerbaijan-moves-forward-with-5-star-free-trade-hub/

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For the first time in the region, Baku Port will use SMRT Autonomous transportation pod

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Silk Way Helicopters has expressed its interest in Ka-62 and Ansat helicopters, most likely going for joint production of both helicopters for domestic and export market. Silkway Helicopters has around 20 helicopters in service, and more than 20 cargo aircraft in service, with 20 more aircraft on order. Silkway is also setting up regional maintenance center for Russian helicopters, and already acts as regional maintenance center for Boeing 747s and Eurocopters.

Ka-62

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Ansat

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Silkway Helicopters

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With Azerbaijan offering e-visa to Pakistani citizens i maybe tempted to go visit there during my university holidays Azerbaijan looks like an interesting place .
 
With Azerbaijan offering e-visa to Pakistani citizens i maybe tempted to go visit there during my university holidays Azerbaijan looks like an interesting place .
Its a amazing country.
 
Azerbaijan, EU eye signing common aviation area deal

Brussels hosted the second round of negotiations on signing of an EU-Azerbaijan Common Aviation Area Agreement on July 4-5.

From the Azerbaijani side, a delegation led by Director of the country’s State Civil Aviation Administration Arif Mammadov took part in the negotiations, the Azerbaijani State Civil Aviation Administration reported.

The delegation included employees of the State Civil Aviation Administration and the Embassy of Azerbaijan in Belgium, as well as representatives of the Azerbaijani Foreign Ministry and Justice Ministry.

During the constructive talks, both sides expressed readiness to sign the relevant agreements.

The remarks and proposals of the Azerbaijani side were discussed, and a number of issues were clarified. The sides signed a protocol following the meeting.

The sides agreed to hold the third round of negotiations on the signing of an EU-Azerbaijan Common Aviation Area Agreement in Baku. Until then, the EU and its member countries will receive prompt feedback from other ministries and committees of Azerbaijan.

The final version of the agreement is expected to be prepared at the meeting in Baku.

The beginning of negotiations on the draft Common Aviation Area Agreement is also important from the perspective of signing new EU-Azerbaijan Partnership and Cooperation Agreement, Mammadov said at the meeting.

He noted that the meeting will make a special contribution to the dialogue between Azerbaijan and Europe.

Mammadov also stressed that Azerbaijan has positive experience in cooperation in the field of civil aviation.

Currently, the bilateral relations between the EU and Azerbaijan are regulated on the basis of an agreement on partnership and cooperation that was signed in 1996 and entered into force in 1999.

The new agreement should replace the 1996 partnership and cooperation agreement and should better take account of the shared objectives and challenges the EU and Azerbaijan face today.

The EU is Azerbaijan’s major trade partner. This 28 member states union with a total population of more than 500 million people is Azerbaijan´s biggest economic partner providing country’s 38 percent of foreign trade share.

https://www.azernews.az/business/115758.html

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First Smaller Platform has been installed, as part of Shah Deniz 2 Project

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SOCAR discloses revenues from activity in foreign countries

Revenues of Azerbaijan’s state oil company SOCAR in 2016 from activity in Switzerland amounted to 40.44 million manats compared to 23.85 million manats in 2015, according to the consolidated report on SOCAR financial activities in 2016 audited by the Ernst & Young UK company and published on its website.

In late June 2012, the US Exxon Mobil multinational oil and gas corporation handed over the assets of its Esso Switzerland company to SOCAR management. The total value of assets acquired by SOCAR in Switzerland amounted to $330 million.

With the acquisition of Esso Switzerland, the SOCAR company received a retail network, the company’s division engaged in fuel marketing for industry and wholesale clients (division sells household fuel and gas cylinders to independent distributors throughout Switzerland).

SOCAR also got Wangen-Olten gas filling plant, gas filling stations and joint enterprises engaged in refueling of aircraft at airports of Geneva and Zurich, as well as the Swiss company on ensuring and distribution, which controls joint ventures managing terminals and pipelines.

SOCAR revenues from the activity in Turkey in 2016 amounted to 3.48 billion manats compared to 2.57 billion manats in 2015, from the activity in the United Arab Emirates – 1.16 billion manats compared to 948 million manats in 2015, from the activity in Georgia – 1.05 billion manats compared to 748 million manats in 2015, according to the report.

SOCAR revenues from activity in other countries amounted to 615 million manats in 2016 compared to 360 million manats in 2015.

In total, SOCAR revenues in 2016 amounted to 5.17 billion manats compared to 4.63 billion manats in 2015.

Revenues of SOCAR obtained in 2016 in Azerbaijan amounted to 51.905 billion manats compared to 33.1 billion manats in 2015.

SOCAR includes production unions "Azneft" (enterprises on oil and gas extraction on land and sea), "Azerikimya" (enterprises of chemical industry) and "Azerigaz" (gas distribution).

The State Oil Company is the only producer of oil products in the country, and also has petroleum stations in Azerbaijan, Georgia, Ukraine, Romania and Switzerland.

SOCAR is the co-owner of the biggest Turkish petrochemical complex "Petkim".

https://en.trend.az/business/energy/2774637.html

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Pretty embarrassing if you ask me. Didn't know it was that bad.

Azerbaijan is a very young country compared to others.

If you compare the development in the exact life time between Azerbaijan and other countries, any Turk will feel the proud from the result in the comparison, and the citizens of other countries in comparison will feel the embrassment, like you feel right now.
 
That's the resource curse. Happens to many countries with huge reserves. Leads to a economy based on those reserves and authoritarian rule too in most cases.

https://en.wikipedia.org/wiki/Resource_curse

But as far as I'm aware they are working on the diversification of their economy.
It's not a curse that's bs. Everyone says that but they are saying it now after like 100 years of using and selling those resources just because oil prices dropped and people are diversifying energy resources. Nobody can tell me if we had so much oil and gas we would be poorer than today, just like nobody can tell me if saudi didn't have that much oil they would have this wealth. I can assure you they would be alot alot poorer than now.
 

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