(MENAFN- Trend News Agency) BAKU, Azerbaijan, January 31. Turbo-charging
bilateral trade and investment and creating the best environment
for international business is one of my strategic priorities in
cooperation with Azerbaijan, Fergus Auld, UK Ambassador to
Azerbaijan, told trend in an exclusive interview.
Assessing cooperation priorities
The annual UK-Azerbaijan Joint Intergovernmental Commission on
trade and economic dialogue is 100 percent focused on supporting
Azerbaijan's economic diversification.
In 2022, the following priority areas were identified:
healthcare, ICT, and agriculture.
The UK will focus on cooperation in life sciences, clinical
research, genomics, medicine development, and medical education and
training within the field of primary healthcare. We are also
exploring ways of delivering double-degree diplomas and
partnerships with UK universities and nursing schools.
As for ICT sector, the UK is looking into cooperation in
e-commerce, cyber security, smart cities, and smart villages, as
well as to build on a fintech project between TheCityUK and the
Central Bank of Azerbaijan delivered last year.
In agriculture, we aim to support the ongoing modernization of
the sector, including agritech and the application of bio and
nanotechnologies.
Development of infrastructure, creative industries, and digital
construction is another area where there are potential cooperation
opportunities that we need to explore widely. Over the past year,
we've seen a number of new successful collaborations including a
state-of-the-art British designed hoverbarge being built in Baku,
UK master planners supporting the reconstruction process in
Karabakh, and UK experts advising Azerbaijan to better improve
waste management in hospitals.
Supporting bilateral trade and mutual
investments
It is good to see that trade turnover between the UK and
Azerbaijan has increased in the first half of 2022 compared to the
first half of 2021. The main export commodities from the UK to
Azerbaijan were capital and intermediate goods, such as power
generators and industrial machinery, cars and jewellery. The main
import commodities from Azerbaijan to the UK were crude oil and
intermediate goods, such as mechanical power generators and
specialized machinery.
The UK has established economic and customs working groups to
create opportunities to discuss how Azerbaijan can improve its
business environment. When UK companies' feedback is listened to
and acted upon, it helps drive investor confidence. Regular public
and private consultation and clear communication with businesses
are important to improve the investment climate.
The UK has been the largest foreign investor in Azerbaijan for
the last three decades, with over 400 UK companies on the ground.
UK companies contribute to Azerbaijan's economy through job
creation, investments in learning and development of local talent,
education and community development. A significant number of
Azerbaijani professionals hold competitive positions in UK
companies and the skills of the highly-trained workforce are
utilized to service international clients, which demonstrates the
quality of learning and development and the competitiveness gained
by Azerbaijani professionals.
Continuing progress made in legal and judicial reforms through
their effective implementation is also critical for attracting
foreign direct investment. We see that improving state-owned
enterprises (SOEs) efficiency and performance is a key government
priority. The establishment of Azerbaijan Investment Holding (AIH)
provides an opportunity to accelerate reforms. Reform of SOEs can
support private sector-led growth, enable the private sector to
effectively compete in sectors dominated by SOEs, and open up new
investment opportunities in Azerbaijan.
The UK will work closely with the Government of Azerbaijan, the
British Chamber of Commerce and British companies to create
opportunities to improve trade with Azerbaijan, as well as better
business environment.
Bright prospects for energy
cooperation
Azerbaijan is already making a significant contribution to
Europe's energy security through its supply of natural gas via the
Southern Gas Corridor. Exporting green energy will further
strengthen Azerbaijan's role in Europe's energy market and offer an
opportunity for the country to enter the European electricity
market.
The UK welcomes all the actions taken by Azerbaijan in this
direction, including the agreement signed with Georgia, Hungary and
Romania to build an underwater cable under the Black Sea. In this
regard, the UK's role as a net maritime security provider in the
Black Sea should help provide an enabling environment for this.
The UK is actively sharing the experience to help Azerbaijan
develop a thriving clean energy sector, which will support
Azerbaijan's plans to export green energy to Europe through the
government-to-government energy transition working group and MoU on
clean energy transition.
For example, last month an energy transition conference was
hosted, with presence of leading UK companies with strong clean
energy capabilities to exchange views with Azerbaijani side on the
development of the country's clean energy sector.
We have also organized a series of experience-sharing webinars
for the Ministry of Energy and other energy partners on offshore
wind, hydrogen, contracts for difference, integrating renewables
into grids and energy innovation zones. Ofgem, the UK's energy
market regulator, has shared best practice with Azerbaijan's Energy
Regulatory Agency on network regulation, energy reforms, unbundling
and green tariffs.
Azerbaijan has enormous potential for renewable energy, with 27
GW of wind and solar power onshore and 157 GW of wind power in the
Azerbaijani sector of the Caspian Sea. As a country with the second
after China largest installed capacities of offshore wind in the
world and the largest pipeline of projects in Europe, the UK stands
ready to share our experience of developing the industry to help
Azerbaijan tap that huge potential. The UK has already helped with
funding fund Azerbaijan's offshore wind roadmap, which was launched
jointly by the World Bank and IFC last year.
We also organized a visit for Energy Minister Shabazov to the
world's largest grid-connected floating offshore wind farm in
Kinradine, in the North Sea. I am pleased to see bp expanding into
renewable energy in Azerbaijan and look forward to the finalization
of the agreement on a 240 MW solar power plant in Jabrayil.
The UK is committed to achieving net zero emissions domestically
by 2050. As part of this effort, we have enhanced our capabilities
across a wide range of renewable energy technologies, I hope that
the Government of Azerbaijan will make the best use of the
decarbonization masterplan which bp helped develop for support of
the green growth reform agenda.
Support for demining activities in the liberated
territories
The UK for many years has been supporting IDP communities across
Azerbaijan. Now, we want to be part of helping IDPs finally to
return home. Demining is essential to enable this. The UK
government was pleased to be one of the first international
partners for the Azerbaijan National Agency for Mine Action (ANAMA)
in their tireless demining efforts and continue to do so.
Currently, through UNDP, UK Government is financing the
implementation of three different projects with ANAMA.
The primary objective of one of these interventions is to assist
ANAMA's Explosive Ordnance Risk Education (EORE) department to
prepare for and support the national plan for 'The Great Return'.
Given the huge scale of the demining challenge, which is going to
take over a decade, we are also helping to support ANAMA and other
parts of state structures to work effectively and efficiently
together. And we want to see Azerbaijan's unique experience shape a
productive role as an international champion on landmine
action.
In regards to supporting the ANAMA on its demining efforts, UK
Government also has a new project with UNICEF.
The cooperation aims to provide evidence-based, high impact and
life-saving emergency support for conflict-affected families,
children and construction workers. The Action will focus on EORE
aiming to reduce fatalities and injuries caused by Explosive
Remnants of War.