OREANDA-NEWS. July 13, 2011. The relations between Belarus and Azerbaijan have been steadily and dynamically developing, President of Azerbaijan Ilham Aliyev told Prime Minister of Belarus Mikhail Myasnikovich.

The President has stressed that the two countries are developing every area than has been earlier outlined. “Everything that we have agreed upon is being implemented,” he emphasized. Ilham Aliyev expressed confidence that the current official visit of the Belarusian governmental delegation to Azerbaijan would help the two countries identify new cooperation areas for expanding bilateral cooperation.

Belarusian PM Mikhail Myasnikovich, for his part, confirmed that all the agreements the two countries have concluded, first of all, at the presidential level are being implemented. The Belarusian Premier thanked the President of Azerbaijan for his personal attention to joint Belarusian-Azerbaijani projects. “Thank you for your support, systemic and constructive work,” he said.

Mikhail Myasnikovich added that one of the examples of successful bilateral cooperation in the production sector is joint projects implemented by Ganja Automobile Plant of Azerbaijan and Belarusian producers. A new line to assemble utilities vehicles has been launched in Azerbaijan during the current visit of the Belarusian governmental delegation. According to Mikhail Myasnikovich, it might become a solid ground for setting up a transnational corporation in the future.

Trade and economic cooperation with Azerbaijan has been recently boosted due to the implementation of several large contracts including the delivery of Azerbaijani high-quality oil to Belarus. In January-April 2011 the trade between Belarus and Azerbaijan totaled USD 448.2 million, up 7.7 times as compared to the same months last year. Belarusian export reached USD 88.8 million.

Over the last five years the export of Belarusian products to Azerbaijan rose 4 times to USD 140 million. The share of Belarusian goods on the Azerbaijan market increased from 1.96% in 2009 to 2.33% in 2010. Last year the bilateral trade made up USD 146.2 million.

Belarus’ main exports to Azerbaijan include tractors and trucks, dairy and confectionary, woodwork and timber, products for the building sector (glassware, ceramics), medications, household appliances (refrigerators, washing machines), petrochemical products (tyres, polymeric materials).

Belarus imports Azerbaijani oil, agricultural products (juices, nuts, tobacco), synthetical staple fiber, bentonite, aluminum oxide. In 2011 Azerbaijan made first oil deliveries to Belarus.

Cooperation between Belarus and Azerbaijan is not mere trade and economic partnership, Prime Minister of Belarus Mikhail Myasnikovich made the statement as he met with Prime Minister of Azerbaijan Artur Rasizade on 8 July. The two countries are moving toward investment and innovation cooperation. As a successful example of such cooperation, Mikhail Myasnikovich cited the project to create a LED equipment facility which the parties have agreed on. The future is in such projects, Mikhail Myasnikovich said. At the same time, Mikhail Myasnikovich considers it promising to develop transnational corporations on the basis of such innovative projects.

Speaking about the economic situation in Belarus, Mikhail Myasnikovich said that the economy was operating steadily, the number of jobs was on the rise. “Yes, there are certain hardships as far as the currency market is concerned, but I think all these issues will be dealt with,” he said.

“There are no issues in our manufacturing and social spheres. As far as importers and conversion are concerned, I think in the near future we will manage to achieve a balanced exchange rate of the Belarusian ruble across the currency market,” Mikhail Myasnikovich stressed.

The Prime Minister of Belarus said that most problems should be resolved this summer in order to secure a balanced currency market before the cold season.

Azerbaijani companies are welcome to participate in privatization programs in Belarus, Mikhail Myasnikovich said.

“We invite your government agencies and business to take part in the privatization program in our country. To have assets in the geographical center of Europe, to diversify its capital is a good thing. We will create favorable conditions so that the capital from your country should be well protected and have a chance for harmonious development,” said Mikhail Myasnikovich.

The Premier noted a potential the two countries have in developing cooperation in town planning and production and repair of railcars. “We have agreed to assemble truck vans in Ganja and passenger railcars in Baku,” he said.

According to the Premier, Belarus and Azerbaijan also have a great potential to cooperate in education and personnel training. In particular, Belarus is ready to organize training for Azerbaijani workers via its system of colleges and vocational schools. “We will create all necessary conditions for giving your citizens the most decent education” he added.

The Premier emphasized the friendly relations between the presidents of Belarus and Azerbaijan that contribute to the development of multi-pronged cooperation between the two countries. “They control and assist the implementation of the project we are agreeing on,” Mikhail Myasnikovich said.

Belarus’ Prime Minister offered Azerbaijan to create a group of so-called long-term development to identify the projects that will be in demand in 5 to 10 years.

Mikhail Myasnikovich has invited his Azerbaijan counterpart Artur Rasizade to visit Minsk for discussing joint projects.

In turn, Azerbaijani Premier Artur Rasizade said that Azerbaijan is interested in developing all-round cooperation with Belarus.

“We are open for cooperation in every area,” the Azerbaijani head of government said. The Premier noted that Azerbaijan places a high value on the relations with Belarus, both economic and political. Bilateral cooperation has been steadily developing in the economic, humanitarian and cultural sectors. “Our representative, for instance, is taking part in the Slavonic Bazaar in Vitebsk,” said Artur Rasizade.

In his words, Belarus is a friendly and brotherly country for Azerbaijan.

The Azerbaijani Premier expressed confidence that cooperation between the two countries would continue developing. “We should move forward, take an adequate response to new challenges and think about new projects,” he said. The Azerbaijani Premier named the engineering industry, agriculture among the top priority areas for partnership development. The current visit of the Belarusian governmental delegation to Azerbaijan will help define new cooperation areas. “I am convinced that your visit and those negotiations that have already taken place would become a new stimulus for mutually beneficial cooperation,” the Prime Minister said.

Belarus’ Prime Minister Mikhail Myasnikovich and Azerbaijani Prime Minister Artur Rasizade discussed a wide range of issues concerning bilateral cooperation.

The Industry and Energy Minister of Azerbaijan Natig Aliyev told reporters that Azerbaijan is ready to build up oil supplies to Belarus.

“We are willing to increase oil supplies to Belarus, personally I am optimistic about it,” the minister said. Natig Aliyev underlined that Azerbaijan can pump 3-5 million tonnes of oil per year to Belarus. In the future oil supplies can be increased even more.

The cooperation in the oil industry will depend on the outcome of negotiations. “This topic should be discussed by Belarusian oil refiners and Azerbaijani suppliers,” he said. Everything will hinge on economic interests of the two countries. The parties will analyze whether such operations make economic sense in the current conditions; everything should be based on solid economic foundation and mutual interests. “Today our interests coincide,” the minister added. In his words, the parties have already laid the foundation for expanding cooperation in the oil industry; in the future, this cooperation will depend on the efficiency of Azeri oil supplies to Belarus and the demand for it.

According to Natig Aliyev, Azerbaijan and Belarus should switch from oil supplies to joint ventures. “When parties unite and their revenues and profits are shared, they are interested in the efficiency of supplies and distribution,” he said.

Belarus received the first batch of crude from Azerbaijan. “This was a pilot project, our first contracts; we have tested complicated systems of transport infrastructure which connects Azerbaijan and Belarus,” the minister said. He added that Azerbaijan is primarily interested in the transport corridor of the Odessa-Brody pipeline. “The goal is to deliver, first of all, crude oil to the European market,” he emphasized.

Natig Aliyev noted that Azerbaijan now supplies oil to Ukraine where a network of Azerbaijani gas stations is created. “We pump oil to Ukraine, process it and sell it. I think Belarus and Azerbaijan should do the same. First of all, we should secure smooth oil transportation,” the Minister concluded.

The Minister said that Belarus and Azerbaijan were negotiating the cooperation in oil deliveries. The effectiveness of these deliveries was being assessed as well as the possibility of joint transportation, processing and sale of oil. “We are ready to resume supplies. We have large amounts of oil. The access to Belarus and the Baltic States is of huge importance for us. Once these matters are resoled, supplies will be resumed. They will be more reliable and effective,” said the Minister.

In turn, the Transport and Communications Minister of Belarus Ivan Shcherbo told reporters that Belarus would like to raise Azerbaijani investments to develop transport and logistic centers.

“We would like to raise Azerbaijani capital into the development of transport and logistic centers. Azerbaijani investors have already signaled their readiness to take part in such projects,” the minister said. According to him, Belarus is successfully developing the China-Kazakhstan-Russia route with the access to the Baltic Sea. “Our next route will lie through Azerbaijan and Iran to India,” Ivan Shcherbo said.

In his words, Belarus would like to take part in the expansion of the railway system in Azerbaijan.

“Belarus will take part in the relevant tender. Railway teleautomatics and electronics industries are quite well developed in Belarus,” he stressed.

In addition, the two sides discussed a car overhaul project involving Gomel Repair Plant. Of 370 passenger cars of the Azerbaijani railways 300 need major repairs.

According to Ivan Shcherbo, transit is the most attractive cooperation area for the transport industries of the two countries. “We are discussing partnership in this area. We have great opportunities to ramp up cooperation in this area,” stressed the minister.

The Architecture and Construction Minister of Belarus Anatoly Nichkasov told media that belarusian designers and city planners are ready to take part in the city development concept of Baku.

According to the official, Azerbaijan has signed all necessary documents with the World Bank on financing the participation of international institutions in Baku’s city development concept. “A preliminary agreement has been reached upon the participation of Belarusian city planners and designers in the project,” he said.

Besides, the Belarusian side received a request from the resettlement foundation to design a settlement for the victims from natural calamities in Azerbaijan. “The project includes 45 houses, a first-aid post and a school,” the minister said.

According to Anatoly Nichkasov, the Ministry of Architecture and Construction of Belarus and the State Committee for Urban Development of Azerbaijan signed a memorandum of cooperation. This document provides for exchange of regulatory and technical documents and for direct cooperation in planning projects. “We have been working on joint projects for two years. They include our proposals for land planning in the historic downtown near the Baku bay, and general outlay plan,” he said.

Belarus and Azerbaijan will start manufacturing LED products together, Sergei Rakhmanov, Deputy Chairman of the Presidium of the National Academy of Sciences of Belarus, told media.

The facility will be located at premises of the Aviation Academy of Azerbaijan in Baku. The agreement to set up the enterprise has been signed already. The first contract required to launch the project has been signed.

The new facility will manufacture LED lamps, indicator products, displays and solar cells.

The enterprise will be created in several steps. Initially it will master the production of LED lamps – street lamps, office lamps, lamps for municipal services. Once the pilot project is commissioned in September 2011, consequent steps, larger-scale ones will be planned, said Sergei Rakhmanov.

There are plans to create a technological cluster at premises of the Aviation Academy of Azerbaijan. “I think our joint enterprise will be a large part of the technological cluster,” said the Deputy Chairman of the Presidium of the National Academy of Sciences of Belarus.

Some of the components required to make LED products will be supplied by Belarus. The new products will be marketed under a common brand name. “In the future we plan to set up a joint venture, too,” added Sergei RAkhmanov. In his words, about USD 10 million is required for the initial part of the project.

During the official visit of Prime Minister of Belarus Mikhail Myasnikovich to Azerbaijan on 7-8 July signed new documents on partnership, including intergovernmental agreements on mutual recognition of education certificates, mutual provision of land plots for diplomatic missions, as well as plan for consultations between the foreign ministries of both countries in 2011.

Belarus and Azerbaijan also have signed contracts to deliver 300 MTZ tractor kits and 300 MAZ kits to Azerbaijan and also a contract to sell the first batch of accessories for the pilot project to assemble LED-based fixtures. MZKT and Ganja Automobile Plant concluded a memorandum to establish an assembly plant at Ganja Automobile Plant. The sides also signed a letter of intent to construct a residential village for 45 families. MAZ, Ganja Automobile Plant and the German company Haller signed a memorandum for 2011-2012 on setting up a municipal vehicle production facility in Azerbaijan.

Following the signing ceremony Prime Minister of Belarus Mikhail Myasnikovich noted that the implementation of the documents will help boost the bilateral cooperation. “We will have new technical solutions. Here (at the plant) tractors and vehicles are assembled; we open a new line to manufacture municipal machinery. All the agreements signed today are aimed to expand the existing productions and commercialize new machines and devices,” Mikhail Myasnikovich said.

Chairman of the Supervisory Board of Ganja Auto Plant Hanlar Fatiyev informed that the memorandum of cooperation will allow increasing the number of employees of the plant up to 1,000. The cooperation with Belarusian partners will expand. “The friendly relations between our presidents will contribute to that. This will give an impetus for deepening economic cooperation between our countries,” he added.

Azerbaijan is interested in expanding the presence of Belarusian machinery on its market, Khanlar Fatiyev said.  According to him, the plant has been successfully cooperating with Belarusian MTZ and MAZ. “We increase the output of jointly-produced goods every year. If you look at the figures of 2009 and compare them with the figures of 2010, you will see that the increase is about 38-39%. The jointly-manufactured goods have a good reputation in the Azerbaijani market. Today we are considering export to other countries, particularly Turkey. Six tractors are now undergoing tests in Turkey. We expect to get a certificate to sell our products there by the year's end,” Khanlar Fatiyev said.

For his part, Deputy Director General for Foreign Economic Relations of MAZ Vladimir Lyusikov noted that MAZ and Ganja Automobile Plant established cooperation four years ago. “In 2009, we launched a large program of assembly production, including that of large-capacity garbage trucks. In the future we are planning to start assembling crane installations and other special-purpose equipment,” Vladimir Lyusikov said. These products will be supplied not only to the market of Azerbaijan, but and to other countries, including Georgia and Turkey.

The Belarusian delegation attended a launch ceremony for the municipal vehicle assembly shop at Ganja Automobile Plant (Ganja) on 7 July. The project has been implemented in cooperation with the German company Haller.

At the opening ceremony Prime Minister of Belarus Mikhail Myasnikovich said that it was symbolical that three countries – Belarus, Azerbaijan, and Germany – had taken part in the project. “Just assembling things should not be the limit. It is necessary to get Western companies involved in order to reach new ideas and technologies,” said Mikhail Myasnikovich. It will advance both Belarusians and their Azerbaijani colleagues. Mikhail Myasnikovich said that German specialists would have something to learn from manufacturers of Belarus and Azerbaijan.

The Belarusian head of government believes that the foundation of the new manufacturing facility is a step towards forming a transnational alliance. “We are creating a transnational corporation based on manufacturing. We have good prospects and a good future in this regard,” he said.

The Prime Minister added that Belarus would assist with increasing the localization coefficient of the machines made by Ganja Automobile Plant in association with Belarusian manufacturers. “The Azerbaijani share will increase. It will bring strategic benefits: we will improve our relations and will make products that will be able to compete on global markets,” he said.

Belarus would like to deepen investment and innovative cooperation with Azerbaijan, Prime Minister of Belarus said.

“Top on the agenda will be investment and innovative cooperation. The bilateral cooperation should go beyond merely trade and economic relations and make a big step forward,” Mikhail Myasnikovich said.

According to the Belarusian head of government, besides joint projects in machine building, the two countries need to step up cooperation in banking. “Azerbaijan could buy one of Belarusian banks or part of it. This means diversification of capital and presence on the Belarusian financial market,” the Prime Minister said.

According to Mikhail Myasnikovich, the parties will also discuss the bilateral cooperation from the perspective of Belarus’ membership in the Customs Union. “We have removed borders with Russia and Kazakhstan, this means cooperation with the Eurasian Economic Community,” he underlined.

The Prime Minister noted that during the visit the parties will consider collaboration in the development of dual-use technology and other fields. “I believe that our trade relations and sci-tech cooperation will be multifaceted and will benefit the two peoples,” Prime Minister of Belarus concluded.