Azerbaijan, Italy Deepen Ties With New Opportunities Ahead

(MENAFN- AzerNews) Nazrin Abdul Read more

Azerbaijan, with its increasingly prominent global stature, has forged robust partnerships on the international stage. The Republic consistently promotes effective and mutually beneficial cooperation through both bilateral relations and international organizations. It is not surprising that Azerbaijan is widely esteemed for its proactive role in international affairs, its pragmatic foreign policy, and its commitment to advancing relationships across diverse sectors.

The mutually beneficial relationship with the Republic of Italy holds a significant place in Azerbaijan's foreign policy. The two countries share strong traditions of friendship and cooperation, with their partnership grounded in mutual respect for each other's interests.

Visits by the leaders of both nations play a crucial role in strengthening their strategic partnership. Azerbaijani President Ilham Aliyev recently visited Italy on September 4, at the invitation of Italian President Sergio Mattarella. President Aliyev and First Lady Mehriban Aliyeva were warmly received by Italian officials at Leonardo da Vinci Rome Fiumicino Airport, where an honor guard was present.

The partnership between Azerbaijan and Italy is characterized by longstanding cooperation, particularly in the economic sector. President Aliyev's visit underscores the advancement of both economic and political relations.

Trade is a central component of the economic relationship between Azerbaijan and Italy. With bilateral trade surpassing $6 billion, Italy is a key trade partner for Azerbaijan. The energy sector, particularly commercial relations, has reached an apex, with Italy investing over $770 million in Azerbaijan's economy since its independence, while Azerbaijan has invested $1.7 billion in Italy. This underscores a successful investment partnership. The energy trade is predominantly focused on traditional sectors, with Italy emerging as the largest importer of Azerbaijani crude oil and oil products.

The Southern Gas Corridor (SGC) and the Trans-Adriatic Pipeline (TAP), a key component of the SGC, play a vital role in enhancing bilateral energy cooperation and Italy's energy security. Through this project, Azerbaijan-an important partner of the European Union in the South Caucasus-plays a decisive role in transporting Caspian Sea gas to the European market. The TAP delivers Azerbaijani gas to Brindisi, Italy, marking a significant milestone as it transports gas to Italy for the first time. The Southern Gas Corridor is recognized as a major infrastructure project that addresses the European Union's gas needs and contributes to its energy security. The collaboration with Italy on this large-scale project is highly valued.

In discussing energy relations, it's noteworthy to highlight recent comments by Manuela Traldi, President of the Italian-Azerbaijani Chamber of Commerce. Traldi underscored the pivotal role of the Trans-Adriatic Pipeline (TAP) in strengthening the bond between Azerbaijan and Italy.

"We established the Italy-Azerbaijani Chamber of Commerce in 2012 with the TAP project as a cornerstone of our collaboration," said Traldi. "I was confident that TAP would eventually come to fruition and bring our countries closer together."

She also mentioned that Azerbaijan and Italy are poised to create joint ventures across various sectors. "We've had productive meetings with our Azerbaijani counterparts and representatives from the private sector. We are planning a high-level round table with Italy's Minister of Entrepreneurship and Azerbaijan's Minister of Economy," she added.

Traldi emphasized the Chamber's role in attracting investments to Azerbaijan. "We actively promote Azerbaijan in Italy and leverage all available resources to attract investments from Italian companies," she explained.

While traditional energy remains a major focus, recent years have seen significant cooperation in non-oil sectors. Currently, 114 Italian companies operate in Azerbaijan across industries such as construction, trade, agriculture, and services. Additionally, Italian firms are involved in 277 projects worth $9.9 billion in Azerbaijan's oil and gas sector, and 37 projects worth $708 million in the non-oil sector. These figures highlight the strong economic ties between the two nations.

Italy continues to be a major trade partner for Azerbaijan. In the past year, bilateral trade reached $15.685 billion, with Azerbaijan exporting goods valued at $15.208 billion to Italy. In 2023, Azerbaijan exported $40 million in non-oil products to Italy and imported goods worth $477.903 million. Trade between the two countries has remained strong in 2024, with mutual transactions totaling $4.41 billion from January to May, accounting for 23.91% of Azerbaijan's total trade turnover.

During this period, Azerbaijan's exports to Italy amounted to $4.23 billion, representing 37.97% of Azerbaijan's total exports. Imports from Italy totaled $180.689 million, a 1.3% increase from the previous year. Azerbaijan is Italy's primary trade partner in the South Caucasus, constituting 85% of Italy's regional trade. In 2023, Italy accounted for 30.65% of Azerbaijan's foreign trade turnover, including 2.76% of imports (7th place) and 44.86% of exports (1st place). From January to July 2024, trade turnover between the two nations reached $6.2 billion, with $5.9 billion in exports and $0.3 billion in imports.

Looking ahead, Manuela Traldi, President of the Italian-Azerbaijani Chamber of Commerce, is optimistic about future developments. "We anticipate significant opportunities, including joint ventures that will introduce advanced Italian technologies to Azerbaijan, enhancing economic development and diversification," she added.

Traldi emphasized that priority will be given to sectors such as petrochemicals, metallurgy, and agriculture. "We have several projects aimed at advancing agriculture, healthcare, and other innovative sectors, including the food industry, leather processing, and textiles," she added.

The robust and evolving relationship between Azerbaijan and Italy dates back to January 1, 1992, when Italy recognized Azerbaijan's independence and established diplomatic relations, marking the beginning of a new phase in their mutual relations.

The evolving partnership between Azerbaijan and Italy, marked by significant trade and strategic collaborations, is set to advance further. With a strong foundation in energy and increasing investments in diverse sectors, both nations are exploring new opportunities for growth. The focus on joint ventures and the introduction of advanced Italian technologies into Azerbaijan's economy highlight promising prospects. As they continue to enhance their economic and diplomatic relations, Azerbaijan and Italy are poised to unlock new potentials in areas such as agriculture, healthcare, and industrial innovation, reinforcing their longstanding and multifaceted relationship.

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