Baku, Azerbaijan, August 8
By Ilaha Mammadli - Trend:
Azerbaijan, as an agro-industrial state is a potential market for Russia on the background of responding measures taken against the sanctions of the U.S. and the EU, a source in the government told Trend, commenting on Russia's decision to ban the import of agricultural products from the U.S. and the EU countries.
Russia imposed a ban on the import of agricultural products, raw materials and food that originate in the U.S, EU, Canada, Australia, and Kingdom of Norway for a period of one year.
The Azerbaijani government believes that in order to avoid an imbalance in foreign trade, Russia will have to find other markets for their products, along with gaining new markets for imports of agricultural products.
"Of course, in this background, Russia will ask friendly states to increase trade. In particular, it will look for a way out of the situation in the Commonwealth of Independent States," the source said.
Herewith, it is not necessary to expect a special request, appropriate government bodies have already [after the Russian president's decree on imposing ban] received instruction regarding conducting work with government agencies of neighboring countries to increase purchases of agricultural products in order to cover the deficit.
In general, looking at the dynamics of the expansion of economic relations between Azerbaijan and Russia last year, increased interest of the Russian regions in Azerbaijan can be noted.
However, the country`s government considers it wrong to relate this fact with the confrontation between Russia and the West.
"This is a natural process and occurs on the background of preservation of stable economic situation in Azerbaijan, despite some instability in neighboring countries, the increased contradictions even in our region. A steady growth is being observed in Azerbaijan, including in agriculture as good yield was harvested this year whereas a sharp fall was felt in many states. On the other hand, Azerbaijan has become both economically and financially strong country, and stands firm enough on its feet, " the government said.
All the neighboring countries, especially in the current situation, when the neighboring countries of Russia have the shakes, eye other countries that are economically and financially stable, to obtain food and other material goods. Naturally, interest in Azerbaijan is growing not only in constituents of Russia, but Belarus, Moldova [on stage of EU integration], Georgia, Central Asian countries are also interested in cooperation.
With regard to this background [eliminating the deficit] the simplification of customs procedures with Russia, the Azerbaijani government finds it very difficult process.
"On the one hand, Russia is itself associated with the Eurasian Economic Community (EAEC), and, on the other hand, a third country, opposing Russia, and at the same time try to take advantage of a rather unstable situation within the community, tend to confuse the map. Under these conditions if Russia softens the trade policy then all get destroyed [EAEC]. A tightening of customs procedures will create more problems, so what measures Russia will take in the future is still unknown, "- said the source.
In this regard, the Eurasian community tries to expand its borders, whereas the signing on its establishment was not so long ago. At present, Russia, Belarus, Kazakhstan, Kyrgyzstan and Tajikistan are the members of EAEC.
In any case, Russia has not cancelled the free trade agreement with Azerbaijan, which has been in force since 1992, despite the fact that some items of this agreement are unacceptable today and Azerbaijan has requested its updating.
"However, there are also double standards, Russia sometimes referring to the EAEC, acts from its own interests. Moreover, in accordance with the agreement indicative lists should be drawn up annually, but it is not executed. Accordingly, Azerbaijan and Russia act within their legislation," the source said.
The list of goods, the import of which is prohibited on the territory of Russia, included meat and dairy, fish products, food products (vegetable oil based milk-products), finished products including cheese and curd based on vegetable oil, sausages and similar products of meat, meat by-product or blood, fruits and nuts, vegetables, edible roots and tubers.
As President of the Export and Investment Promotion Fund in Azerbaijan (AZPROMO) Rufat Mammadov told "Vestnik Kavkaza", Azerbaijan is ready to fill those product niches that are formed in the markets of Russia regarding the ban on food imports from the European Union.
"Last year Azerbaijan produced about 250,000 tons of apples, of which only 37,000 tons were delivered to the Russian market. The same can be said about pears: 40,000 tons was produced - and only 168 tons has been sold to Russia, and peaches (27,000 tons produced, 8,000 tons exported to Russia), and tangerines (30, 000 tons and only 1,000 tons- respectively)," he said.
Azerbaijan produces about one million tons of potatoes annually, herewith about 54,000 tons of it was delivered to Russia last year, according to Mammadov. About 467,000 tons of tomatoes were produced in 2013 and about 46,000 tons were exported to Russia.
Minister of Economy and Industry of Azerbaijan Shahin Mustafayev also noted Azerbaijan`s interest in expanding the supply of agricultural products and the processed products to the Russian market during the meeting with Russian Ambassador to Azerbaijan Vladimir Dorokhin held on August 8.
In 2013, the imports of foodstuffs and agricultural products to Russia increased up to $43 billion, and the share of imports accounted for about 40 percent of household spending on food, according to Russian statistics. The EU is the main supplier in this regard.
U.S. and the EU do not recognize the annexation of Crimea to Russia and accused Moscow of intervening in Ukraine`s internal affairs. Russia denies it and calls similar allegations unacceptable. Since March, the Western countries have repeatedly imposed sanctions against a number of Russian politicians, businessmen and companies and threatened to extend the restrictive measures.
Edited by CN
