Interdepartmental Commission Discusses Promotion of Cooperation between Bulgaria and Azerbaijan

Baku/Sofia, September 29 (BTA) - The possibility for increasing the commodity exchange and promotion of bilateral economic cooperation between Bulgaria and Azerbaijan topped the agenda of the fourth meeting of the Bulgarian-Azerbaijani Intergovernmental Commission in Baku. The forum was presided over by Economy Minister Bozhidar Loukarski and his deputy Zhecho Stankov on the Bulgarian side and Transport Minister Ziya Mammadov on the side of Azerbaijan, the press service of the Economy Ministry said.

"Azerbaijan is an important traditional economic partner of Bulgaria, with which we wish to promote long-term and mutually beneficial cooperation in all spheres," said Minister Loukarski. Although a long period has elapsed since the third meeting of the Intergovernmental Commission, the two countries have been maintaining intensive relations at high level through the years. "We aspire towards an increase and diversification of two-way trade and attraction of more investments from Azerbaijan, he added.

On his part, Mammadov said that Azerbaijan attaches high importance to the trade relations with Bulgaria and noted tat the commodity exchange and the structure of mutual supplies are relatively limited and do not represent the actual production and export potential. He explained that Azerbaijan is the most dynamically developing country in the region with seven oil and gas pipelines. New projects are being developed and there is a growth in agriculture, tourism and transport, he explained.

Loukarski voiced readiness that the Economy Ministry would provide the necessary assistance through participation in trade exhibitions, business forums and presentations of the export potential. He also outlined possible areas of cooperation: technological lines for the processing of fruit and vegetables, electric accumulators, medical and cosmetic products, etc.

The Azerbaijani side proposed the export of oil and chemical products, farm products, including wines, vegetable oils, tobacco, fruit, vegetables, juices, products from processed fruit and vegetables and other goods.

Bulgaria and Azerbaijan undertook to exchange experience and practices in attracting foreign investments through industrial zones and technological parks. Natsionalna Kompania Industrialni Zoni [Industrial Zones National Company] has voiced readiness to establish direct contacts with production and logistic facilities in Bulgaria.

There is significant potential for developing bilateral cooperation in many other sectors, such as energy, construction, tourism and agriculture.

Taking into account the strategic partnership between the two countries in the energy sector, Bulgaria views Azerbaijan as one of the main sources of natural gas for the Balkan gas hub, the Economy Ministry quoted Deputy Minister Zheko Stankov as saying during the meeting. A protocol was signed as part of the session, under which the possibilities will be reviewed for joint supply of Azeri natural gas for third countries through Bulgaria, when the Balkan gas hub project is implemented. The document, signed as part of the intergovernmental meeting, also provides for intensifying cooperation on the project for building the South Gas Corridor, including a review of the possibilities for supplying Azeri natural gas. The two sides expressed their categorical support for having annual natural gas supply of one billion cubic metres from the Shah Deniz 2 gas field starting in 2020.

The document provides for examining the possibilities for electricity exchange between Bulgaria and Azerbaijan after the completion of the electricity corridor between Azerbaijan, Georgia, Turkey and Europe.

Prior to the meeting, Minister Loukarski and Azerbaijan's Deputy Economy Minister Sahil Babayev opened a bilateral business forum, organized by the Bulgarian Small and Medium Enterprises Promotion Agency (BSMEPA) and the Azerbaijan Export and Investment Promotion Foundation (AZPROMO).

Memorandums of understanding were signed during the meeting between AZPROMO and BSMEPA, AZPROMO and the Bulgaria-Azerbaijan Chamber of Commerce, the Azerbaijan Chamber of Commerce and Sofia Chamber of Commerce and Industry, the Azerbaijan Chamber of Commerce and BSMEPA.

Some 50 representatives of 37 Bulgarian companies participated in the forum.

According to Azerbaijan's statistical data, exports from Azerbaijan to Bulgaria in 2015 stood at USD 0.5 million, imports were USD 12.7 million, and bilateral trade was USD 13.2 million. Exports from Azerbaijan to Bulgaria between January and March, 2016, stood at USD 0.1 million, imports were USD 2.9 million, and bilateral trade was USD 3 million.

According to Bulgarian statistics for 2015, exports from Bulgaria to Azerbaijan were USD 24.0 million, while imports stood at USD 0.09 million. Exports from Bulgaria to Azerbaijan between January and March, 2016, stood at USD 5.1 million, imports were USD 0.3 million, resulting in bilateral trade in the amount of USD 5.4 million.