(MENAFN- Trend News Agency)
BAKU, Azerbaijan, May 3. The growth of non-oil
and gas exports will lead to an increase in the sovereign ratings
of Azerbaijan and its transition to the investment category of
issuers, Deputy Head of the market Analysis Department of the
Russian Gazprombank Gulnara Khaidarshina told Trend .
According to her, in context of disruption of Eurasian supply
chains and global rise in food prices, the moment has come to
increase non-oil and gas exports.
'Share of Azerbaijan's non-oil and gas exports in its total
exports remains low (12 percent in 2021). Low diversification of
exports is noted by leading rating agencies as a factor that
hinders the prospects for raising Azerbaijan's sovereign ratings,'
she said.
'Aggravation of geopolitical risks created the prerequisites for
strengthening the upward trend in world prices on food, which have
already been driven up by the COVID-19 pandemic,' Khaidarshina
noted.
'According to the UN, food price increases accelerated to 33.6
percent year-on-year in March, a new all-time high,' Khaidarshina
added.
'We believe that Azerbaijan can benefit from high world food
prices. Fruit and vegetable products were the largest component of
Azerbaijan's non-oil and gas exports with a share of 23.2 percent
in 2021,' Khaidarshina said.
Importing countries may consider alternative suppliers with
closer locations, in face of food shortages, including those with
access to seaports, like Azerbaijan,' Khaidarshina noted.
According to representative of Gazprombank, Azerbaijan creates
prospects for increasing the production and export of fertilizers,
in context of disruption of supply chains and the search for
alternative suppliers by European countries, prices for which are
also growing and have reached 29-year high for certain items.
'Development of new export markets is already underway. Urea
plant of State Oil Company of Azerbaijan - SOCAR Carbamide Plant
began exporting nitrogen fertilizers to India, which is one of the
largest consumers, in early April,' Khaidarshina added.
Given the continued need of Russia, largest Commonwealth of
Independent States (CIS) market and Azerbaijan's leading trading
partner, for high-tech imports, there is potential for opening new
production facilities in Azerbaijan, bank representative said.
'For example, earlier the Azerbaijani government announced plans
to build new technoparks in country's Karabakh region, which will
produce high-tech products. This forms the potential for increasing
its share in Azerbaijan's exports,' Khaidarshina emphasized.
Tags:
- Azerbaijan
- non-oil sector
- Gazprombank
- economy
- Exports
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