(MENAFN- Trend News Agency)
BAKU, Azerbaijan, August 22. In recent years,
the relationship between Azerbaijan and the Central Asian countries
has moved beyond friendly neighborly ties to become genuinely
strategic. Global shifts have driven Azerbaijan and its neighbors
over the Caspian to collaborate more extensively across various
sectors. This is not just a strategic partnership in name - it is
backed by tangible economic projects of continental importance.
Uzbekistan here is one of the best examples. Baku and Tashkent
already enjoy a robust strategic partnership, with each aspect of
their bilateral cooperation holding significant importance within
the broader framework of their relationship. The consistent and
frequent high-level interactions between the two countries
underscore the strength and depth of their ties.
Today, the Uzbek-Azerbaijani business forum kicks off in
Tashkent. This event will provide a platform for discussing ways to
boost trade, share expertise, and forge new partnerships among
business leaders.
Let's dive into the key aspects of the strong economic
cooperation between Azerbaijan and Uzbekistan.
In 2023, Uzbekistan and Azerbaijan signed a bilateral agreement
to establish a $500 million investment fund. During President
Mirziyoyev's latest visit to Baku, both sides agreed to increase
the fund's capital.
Industrial cooperation between Uzbekistan and Azerbaijan is
steadily expanding. Currently, 236 enterprises with Azerbaijani
capital operate in Uzbekistan, including 62 JVs and 174 fully
foreign-owned businesses. Additionally, 70 Uzbek companies are
active in Azerbaijan. The Joint Uzbek-Azerbaijani Investment Fund
plays a crucial role in driving this growth. Promising industries
for collaboration include silk production, the creation of a
textile cluster, the construction of an international school, and
food production projects.
Uzbekistan's Minister of Investment, Industry, and Trade, Laziz
Kudratov, announced this year that the two countries plan to
establish a joint online commercial platform. This platform will
enable businesses from both nations to easily connect, facilitating
trade transactions and the initiation of joint investment projects.
By launching this online platform, Azerbaijan and Uzbekistan aim to
provide entrepreneurs with a valuable tool to find the right
partners and generate new trade and economic cooperation
opportunities.
Moreover, in July, Azerbaijan and Uzbekistan signed a final
protocol to strengthen their partnership during the 13th session of
the Azerbaijan-Uzbekistan Intergovernmental Commission.
In general, trade turnover between Azerbaijan and Uzbekistan
reached over $118.2 million from January to July 2024. In 2023,
trade increased by 26.5 percent, totaling $231.6 million. Efforts
are now underway to boost trade to $1 billion.
The "Contract on the Establishment of the Supreme Interstate
Council between the Republic of Azerbaijan and the Republic of
Uzbekistan" was signed during President Mirziyoyev's visit to Baku
in August 2023. A total of 20 documents were signed during this
visit. Currently, over 180 agreements form the foundation of this
productive cooperation.
The leading energy corporations of both countries, SOCAR and
Uzbekneftegaz, have been actively working to elevate their
collaboration to new heights. In 2023, they successfully
established a JV focused on gas trading. In May 2024, Minister
Laziz Kudratov announced ongoing negotiations with SOCAR for its
involvement in Uzbekistan's oil and gas production projects.
Similarly, talks are in the final stages regarding Uzbekneftegaz's
participation in gas production projects in Azerbaijan.
Of course, cooperation between the two countries goes beyond
traditional energy resources. Recognizing the importance of the
energy transition, both Baku and Tashkent are actively working to
integrate green technologies into their energy systems. One of the
most significant recent achievements is a trilateral agreement
between Azerbaijan, Uzbekistan, and Kazakhstan on the transmission
of green energy.
A recent agreement between Azerbaijan, Kazakhstan, and
Uzbekistan was reached during the inaugural meeting of Central
Asian energy ministers in Kazakhstan. The deal focuses on creating
a JV based in Baku to export green energy from Central Asia to
Europe. This builds on a December 2022, agreement among Azerbaijan,
Georgia, Romania, and Hungary to establish an energy corridor from
the Caucasus to Europe. As part of this initiative, a
1,195-kilometer underwater cable will be built to transmit green
electricity from Azerbaijan, through Georgia and the Black Sea, to
Romania, and then on to Hungary and other European countries. The
project aims to deliver up to 4 GW of green energy.
In August, following a trilateral meeting in Astana on linking
energy networks, Azerbaijan, Kazakhstan, and Uzbekistan signed a
protocol. They agreed on the draft Strategic Partnership Agreement
for developing and transferring green energy among the three
countries, approved the Terms of Reference for the initial
feasibility study, and selected the Italian company CESI to conduct
it. The agreement envisions exploring options for connecting energy
systems, including laying a high-voltage cable along the Caspian
Sea bed and in other regions, to optimize the trade of green energy
from Azerbaijan, Kazakhstan, and Uzbekistan.
Moreover, Azerbaijan and Uzbekistan, both positioned on key
transportation routes, are actively working together in this area.
Thanks to President Ilham Aliyev's forward-thinking policies,
Azerbaijan has developed crucial transport and logistics
infrastructure and is now integrated into international transport
networks. This will significantly boost cargo traffic from Central
Asian countries, including Uzbekistan, through Azerbaijan. A key
development in this regard is the 'Agreement on International Road
Transport Relations between the Governments of Azerbaijan and
Uzbekistan,' signed during President Ilham Aliyev's state visit to
Uzbekistan.
Building strong ties with Central Asian countries is a key focus
of President Ilham Aliyev's visionary foreign policy. At the same
time, by enhancing cooperation with Europe, Azerbaijan effectively
serves as a bridge for connecting Central Asia with the West.
In this context, both current and upcoming joint initiatives
between Azerbaijan and its close partner Uzbekistan are set to
introduce new transportation projects, advance energy projects, and
improve overall infrastructure. These efforts aim to transform the
region into a hub of mutual cooperation, benefiting all involved
parties. Additionally, these projects will open new opportunities
for strengthening interregional connections and creating promising
prospects.
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