(MENAFN- AzerNews)
Nazrin Abdul
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Azerbaijan's foreign policy successes have positioned it as a
pivotal player in international alliances, with Israel emerging as
a key partner within these frameworks. The bilateral relationship
between Azerbaijan and Israel is anchored not only in economic and
strategic benefits but also in deep-rooted historical and cultural
ties, symbolizing a model of coexistence amidst historical
challenges.
Since Israel's recognition of Azerbaijan's independence in
December 1991, bilateral relations have steadily progressed. In
recent years, these ties have witnessed a notable surge
characterized by strengthened cooperation, increased reciprocal
visits, expanded trade volumes, heightened investment flows, and
the exploration of new industrial sectors for mutual
engagement.
A significant milestone in bilateral diplomacy occurred on June
28-29, 2009, when Israeli President Shimon Peres undertook an
official visit to Azerbaijan accompanied by three ministers and a
delegation of 50 business leaders. During this visit, agreements
were signed focusing on cooperation in communications, as well as
in education, science, and technology-a testament to the broadening
scope of collaboration between the two nations.
Israel and Azerbaijan have forged significant collaborations in
the defense industry sector, solidifying Israel's position as
Azerbaijan's leading supplier of military equipment. According to
Israeli military authorities in 2012, Azerbaijan procured defense
systems totaling $1.6 billion from Israel. The latest generation
drones, believed to be acquired from Israel, were notably deployed
during skirmishes in April. Azerbaijan aims to further enhance its
defense capabilities through technological advancements facilitated
by Israel.
During Prime Minister Benjamin Netanyahu's visit, President
Ilham Aliyev publicly disclosed the extensive scale of military
cooperation between the two nations for the first time. President
Aliyev emphasized that Azerbaijan has benefitted from approximately
$4.85 billion in military technology from Israel, underscoring
Israel's pivotal role as Azerbaijan's primary supplier of advanced
weaponry and high-tech solutions. The total value of signed
contracts between the two countries amounts to $5 billion.
Of particular note is the contract encompassing the supply of
"suicide drones," a cutting-edge technology developed in Israel.
These drones utilize radio waves for precise detection and
elimination of enemy positions, marking a significant advancement
in Azerbaijan's military capabilities. Prior to this collaboration,
Azerbaijan had not integrated such sophisticated technology into
its armed forces.
Throughout the Second Garabagh War and the subsequent period of
reclaiming and restoring territories, Azerbaijan has acknowledged
Israel's steadfast support. This strategic partnership underscores
mutual trust and the strategic alignment of interests between the
two nations in regional security affairs.
Furthermore, Israel has articulated its inaugural interest in
exporting natural gas to Europe through Azerbaijan using the
pipeline infrastructure jointly owned by Azerbaijan and Turkiye.
Prime Minister Netanyahu underscored Israel's intention to leverage
the Trans-Anatolian Natural Gas Pipeline (TANAP) project for this
purpose. Israel's participation in TANAP is poised to significantly
enhance energy cooperation between the two nations, marking a
milestone in their bilateral relations.
The collaboration between Azerbaijan and Israel in the oil and
gas sector, encompassing exploration, production, and hydrocarbon
transportation, holds significant strategic importance, leveraging
SOCAR's established expertise in the field. Recent discussions
between Azerbaijan's Energy Minister Parviz Shahbazov and a
delegation led by Israel's Regional Cooperation Minister David
Amsalem underscored the ongoing positive trajectory of bilateral
relations. Both parties expressed satisfaction with their
cooperation in the energy sector, particularly in hydrocarbons.
Moreover, discussions highlighted joint efforts in oil supply,
trading of petroleum products, and infrastructure development, with
a focus on future prospects. Azerbaijan's initiatives to augment
its share of renewable energy within its energy mix and projects
aimed at integrating these energy sources through regional green
energy corridors were also deliberated. The potential for advancing
cooperation in green energy and other promising sectors was
examined, underscoring the pivotal role of government-private
sector collaboration in these endeavors.
It is worth noting Azerbaijan's successful implementation of its
economic modernization agenda. Here, Israel's contribution is
pivotal, particularly in knowledge exchange across advanced
technologies such as green energy, smart city initiatives, and
smart village concepts. Opportunities for Israeli firms to
establish operations and initiate new projects within Azerbaijan's
Alat Free Economic Zone were highlighted. Additionally, exploring
avenues for SOCAR's engagement in hydrogen resource exploitation in
Israel remains a crucial consideration for bilateral economic
ties.
Concurrently, Azerbaijan stands to benefit significantly from
studying Israel's expertise in water resource management, seawater
desalination, desertification mitigation, and agricultural
practices suited for arid and semi-arid conditions.
Drawing on these insights, collaborative efforts with Israeli
enterprises are ongoing. Notably, an Israeli company has recently
established a dairy farm in Agali village, Zangilan region.
Discussions also encompass projects focused on water resource
management, renewable energy utilization, and rural
development.
The burgeoning economic ties between Azerbaijan and Israel,
underscored by robust indicators of mutual economic engagement, are
noteworthy. Israel ranks among the largest purchasers of
Azerbaijani oil, reflecting deep cooperation in energy, trade,
infrastructure, and high technology sectors. Conversely, Azerbaijan
serves as a primary oil supplier to Israel, with its share of
Israeli oil imports increasing from approximately 30% two years ago
to about 40% last year. Additionally, Azerbaijan exports
significant volumes of oil products to Israel.
The scope of bilateral cooperation extends beyond these sectors
to encompass tourism, energy, agriculture, healthcare,
cybersecurity, and others. Notably, the tourism sector is
experiencing growth, evident in rising numbers of Israeli tourists
visiting Azerbaijan. Israeli Foreign Minister Eli Cohen highlighted
this trend during discussions with the Azerbaijani President,
emphasizing opportunities for further bilateral trade
enhancement.
Since 1993, Azerbaijan Airlines (AZAL) has operated regular
flights connecting Baku and Tel Aviv, facilitating increased
connectivity between the two nations. In Azerbaijan's mobile
telecommunications sector, the initial investment from Israeli
company Bakcell marked a pivotal milestone, establishing the first
mobile phone operator in the Azerbaijani market. The bilateral
economic framework was formally established with the signing of the
Agreement on the Protection and Promotion of Investments in
February 2007.
Significantly, forums such as the Azerbaijan-Israel Construction
Forum in July 2009 and the Azerbaijan-Israel Business Forum in June
2009 have fostered direct engagement between Israeli and
Azerbaijani companies, further enhancing bilateral economic
cooperation. Israeli firms, including "Binui" and "Shikun," have
actively participated in infrastructure projects such as the
Muganli-Yevlakh highway reconstruction, spanning 156 km.
Currently, multiple Israeli companies are operational in
Azerbaijan, contributing to the steady growth of bilateral trade,
which reached $4 billion in 2009. Recent data indicates a notable
increase in trade turnover, surpassing half a billion US dollars
during January-April 2023, marking a 33.5% rise from the previous
year. Moreover, significant strides in investments were observed,
exemplified by the Azerbaijan Investment Company's agreement with
"OurCrowd," Israel's prominent global crowdfunding platform, in
July 2022.
In February of this year, Azerbaijan's Ministry of Economy
announced a $1 million investment in LARGIX, an Israeli startup
specializing in industrial product development, highlighting
ongoing collaborative initiatives in innovative sectors.
The multifaceted approach adopted by the Presidents of Israel
and Azerbaijan to expand cooperation across emerging fields
underscores the limitless potential inherent in their bilateral
relations. Notably, both nations are exploring opportunities in
renewable energy sources, reflecting Azerbaijan's proactive
integration of renewable energy in liberated territories and
Israel's commitment to sharing its expertise in this pivotal
area.
In conclusion, the evolving partnership between Azerbaijan and
Israel exemplifies a robust alliance built on strategic economic
cooperation, mutual respect, and shared ambitions across multiple
sectors. From defense industry collaboration and energy projects
like TANAP to advancements in agriculture, tourism, and high
technology, both nations continue to expand their bilateral
relations.
The substantial growth in trade turnover and investments
underscores the mutual benefits derived from these collaborations,
promising a future marked by innovative solutions and sustainable
development initiatives. As Azerbaijan modernizes its economy and
Israel shares its technological expertise, the partnership between
these two nations appears poised to further flourish, driven by a
shared commitment to progress and prosperity.
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