Azerbaijan expands non-oil exports to Italy - INTERVIEW - VIDEO

On February 20 this year, an Azerbaijani delegation led by President Ilham Aliyev paid a state visit to Italy, as part of which agreements were concluded, and the Azerbaijan-Italy business forum was held.

The signed documents include contracts inked by the Azerbaijan Export and Investment Promotion Foundation (AZPROMO) under the country's Economy Ministry. The purpose of the deals is to promote the development of bilateral Azerbaijani-Italian relations in the non-oil sector.

Acting Head of AZPROMO Yusif Abdullayev told Report about the implementation of documents and decisions made at the meetings.

Abdullayev noted that the state visit by President Ilham Aliyev to Italy was a historical event.

"This visit was different from the others in terms of duration, program, meetings covering various areas of bilateral cooperation, and signed agreements," AZPROMO acting head added. "The new phase in bilateral political, trade and economic relations was marked by the warm welcome given to Azerbaijan by Italy, one of the most important EU countries, the events and meetings held during this visit."

Azerbaijan leading among energy suppliers in Italy

Abdullayev noted that trade between Azerbaijan and Italy last year exceeded $6 billion.

"A surplus was recorded in the trade between Azerbaijan and Italy," the AZPROMO acting head said. "As is known, Azerbaijan exports mainly oil products to Italy. In 2019, Azerbaijan exported goods to Italy with a total value of more than $5.6 billion. This is while products worth $370 million were imported from Italy to Azerbaijan. The country is the leader among energy suppliers in Italy and accounts for a 17% share in imports of oil products to Italy. The figure is quite high."

The official representative of AZPROMO added that over 100 Italian companies are registered in Azerbaijan.

"These companies successfully operate in our country in areas such as industry, construction, food industry, and others," he said. "The value of Italian investments in the Azerbaijani economy amounted to more than $770 million. Of this amount, $600 million account for the oil industry, $170 million - for the non-oil sector. Meanwhile, Azerbaijan invested $1.5 billion in Italy, thus leaving it behind in this regard."

"Bilateral cooperation has a fairly wide scope," Abdullayev noted. "Trade relations are at a high level. Export diversification is one of the priority areas of cooperation with Italy, and this is the main task facing AZPROMO. One of the instructions given during speeches at the business forum and other events held in Italy with the participation of President Ilham Aliyev was to increase non-oil exports and diversify supplies. Azerbaijan's share in the export of oil products to Italy is quite high, and it is not very easy to replace them with other products in the shortest possible time. However, it will be possible in the future, and the work in this direction is already underway."

Abdullayev also mentioned the successful holding of the Azerbaijan-Italy business forum.

"The basis for this success was a thorough speech by Azerbaijani President Ilham Aliyev at the business forum," AZPROMO acting head said. "The head of state spoke about the reforms conducted in our country. In addition, at the panel sessions held as part of the business forum, detailed information was provided on reforms covering such areas as ecology, logistics, agriculture, infrastructure, energy in Azerbaijan. The business forum brought together the representatives of more than 200 companies, including 55 local and 170 Italian. I believe the meetings held within the business forum will make a significant contribution to success."

Abdullayev noted that Azerbaijan is one of the leading suppliers of nuts in Italy.

"Azerbaijan ranks third in the world in terms of hazelnuts exports," he said. "Germany and Italy are the main importers of Azerbaijani nuts to the EU. The issue of diversification in other directions will be also considered. In accordance with the instructions, work will be carried out in the coming years to ensure the diversification of supplies. In order to achieve this goal, AZPROMO signed a number of agreements in Italy. They include the Memorandum of Understanding with the Italian Trade Agency, the Partnership Agreement with the Italian Export Credit Agency (SIMEST), the Memorandum of Understanding with K-Bek SPORT SRL. The Memorandum of Understanding between AZPROMO and the Italian Trade Agency envisages raising direct investments from Italy, the exchange of experience and knowledge, and the export of our services to Italy. The mechanisms for the implementation of this memorandum have been identified, and the implementation has begun."

The Italian company intends to enter the regional and Central Asian markets

Abdullayev added that the partnership agreement between AZPROMO and the Italian Export Credit Agency is of exceptional importance.

"Another signed document was the Memorandum of Understanding with the well-known Italian manufacturer of technical clothing K-Bek SPORT S.R.L.," said the AZPROMO acting head. "The company will enter the Azerbaijani market in May this year and will be engaged in the sale of products, setting up production in the country. The main goal is the sale of manufactured products in Azerbaijan, and subsequently in the region, in the Central Asian direction. It is important for us that each signed document covers areas of practical application."

Will Azerbaijan open a trading house in Italy?

Abdullayev also commented on the likelihood of opening Azerbaijan's trading house in Italy.

"This issue will be considered if necessary," he said. "Owners should come forward with the proposal to open the trading house. If there is a big demand for Azerbaijani products in Italy, and if entrepreneurs see the need to open the trading house, we may take appropriate steps in this direction."

"As for the export of Azerbaijani products to Italy, these may be agricultural or processed products," Abdullayev added. "We may consider the supply of our services to Italy. We will evaluate the potential of exported products and compile the list of services. It means that we will make plans in this direction. Both parties will determine the list of potential products that could be exported and imported. Regular work will be carried out in this direction."

Azerbaijan expands non-oil exports to Italy - INTERVIEW - VIDEO