Azerbaijan, Romania Forge New Paths In Regional Trade

(MENAFN- AzerNews)

Ulviyya Shahin Read more

Today marks the commencement of the "Black and Caspian Sea Ports & Logistics 2024" exhibition and conference in Constanta, Romania. This significant event, organized by the port of Constanta, the International Association of the Trans-Caspian International Transport Route (TITR), and the Business Association of the Port of Constanta, brings together over 300 high-level officials, scientists, and industry experts from around the globe. Running until July 4, the conference aims to address pressing global and regional trade and investment challenges.

A key focus of the conference lies in exploring the economic potentials of the Caspian and Black Sea ports, particularly through the lens of the Middle Corridor. This corridor, which includes Azerbaijan as a pivotal player, offers new logistical solutions for regional and international trade. Discussions at the event will delve into the strategic implications of enhancing these ports' capabilities, potentially transforming them into vital hubs for global commerce.

Central to the discussions will be the Trans-Caspian International Transport Route (TITR), a vital artery connecting China, Kazakhstan, the Caspian Sea region (including Azerbaijan), Georgia, Turkey, and further extending into Europe. This route not only facilitates smoother trade flows but also underscores the importance of collaborative efforts among regional stakeholders.

The construction of a fertilizer terminal at the Baku International Sea Trade Port highlights Azerbaijan's proactive stance in infrastructure development, aiming to bolster its role in regional trade dynamics. Such initiatives not only boost logistical efficiency but also contribute to sustainable development goals, a critical agenda in today's global economic landscape.

For Azerbaijan and Romania, events like the "Black and Caspian Sea Ports & Logistics 2024" serve as catalysts for strengthening bilateral economic relations. As both nations explore avenues for deeper cooperation in trade, energy, and infrastructure, these initiatives are poised to unlock new growth opportunities. Romania's strategic location on the Black Sea and its connectivity to European markets complement Azerbaijan's ambitions to diversify and expand its economic footprint.

The ongoing conference in Constanta underscores the evolving economic dynamics in the Caspian and Black Sea regions. With a focus on sustainable development and enhanced logistical capabilities, Azerbaijan and Romania stand to benefit mutually from intensified economic collaboration. As the conference unfolds, it is expected to pave the way for strategic partnerships and innovative solutions that will shape the future of regional trade and economic integration.

The "Black and Caspian Sea Ports & Logistics 2024" conference not only highlights Azerbaijan's proactive role in regional economic affairs but also sets the stage for deeper engagement between Azerbaijan and Romania, fostering a climate of mutual prosperity and shared growth.

Romania occupies a significant position among Azerbaijan's Balkan partners, with recent business ties evolving into strategic cooperation. The past years have been particularly fruitful for both nations, fostering a sustainable business environment conducive to long-term initiatives.

Azerbaijani President Ilham Aliyev underscored the strategic partnership between Azerbaijan and Romania, emphasizing expanding cooperation across all sectors during his meeting with the Romanian energy minister. The president highlighted the importance of reciprocal visits between heads of state and other officials to strengthen bilateral ties.

Regarding the 8th meeting of the Joint Commission on economic-trade relations and scientific-technical cooperation held in Baku, President Ilham Aliyev praised its role in defining the future prospects of bilateral relations, especially noting the inclusion of energy and other relevant issues on the agenda.

Discussions between the two sides acknowledged significant advancements in the energy sector, focusing on topics such as natural gas exports from Azerbaijan and the export of green energy to Romania via the Black Sea. Ongoing dialogues encompass LNG, green energy, and gas supply projects, with Azerbaijan aiming for strategic entry into the Romanian energy market.

The foundation of Azerbaijan-Romania trade and economic relations is rooted in energy and transport, with recent emphasis on promising initiatives in electricity transit. Cooperation in agriculture, healthcare, and education has also seen considerable expansion over the past decade.

Trade between Azerbaijan and Romania has increased 2.5 times over the past decade, with a nearly 30% rise in trade turnover to $670 million in 2023 alone. Investments between the two countries have intensified, exemplified by Azerbaijani investments in Romania exceeding $90 million, predominantly in the energy sector through SOCAR's operations, which include 70 retail filling stations and three fuel depots.

Azerbaijani exports to Romania, particularly gas, reached 184.29 million cubic meters valued at $171.25 million in 2023. With the completion of interconnector construction in the Balkan region, Azerbaijan plans to increase gas supplies to Romania to one billion cubic meters.

The strategic partnership agreement for the Black Sea Energy project, signed by Azerbaijan, Georgia, Romania, and Hungary in December 2022, with Bulgaria joining in early 2023, aims to develop an energy line spanning 1,195 km and a capacity of 1,000 MW by 2029. The project, with an initial budget of $2.3 billion, aims to supply renewable energy-generated electricity from Azerbaijan to Europe via a high-voltage submarine cable, potentially supported by the European Commission.

Beyond energy, Azerbaijan and Romania are poised to expand cooperation in transport, tourism, and investment, recovering from the COVID-19 pandemic's impact through enhanced collaboration in the tourism sector. Notably, the number of Romanian tourists visiting Azerbaijan increased by 29% in the early months of this year, signaling positive trends in bilateral relations.

Azerbaijan and Romania are deepening their economic partnership across multiple fronts, driven by shared interests in energy, infrastructure, and strategic initiatives. As both nations navigate post-pandemic recovery and pursue ambitious projects like the Black Sea Energy endeavor, their collaboration promises to yield mutual benefits and contribute to regional stability and prosperity.

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