Azerbaijan and Turkey Forge Stronger Links
02 August 2011
Although the two countries already have close cultural and ethnic links, recently they have been concentrating on forging new links based on economic and political cooperation which will be mutually beneficial.
The economy in Azerbaijan has been doing very well in recent years which is mainly due to the profits from Caspian energy resources, and this has resulted in import and export levels between the two countries becoming virtually the same.
The trade volume between Turkey and Azerbaijan is expected to reach $3 billion by the end of 2011, up from $2.5 billion in 2010. Turkish exports to Azerbaijan were worth $731 million, and Azerbaijani exports to Turkey were worth around $667 million during the first five months of this year. Although these figures may seem pretty good, the medium term target for trade volume is $10 billion.
At the moment there are about 1,300 Turkish companies operating in Azerbaijan, which has invested around $6 billion. There are about 1,000 Azerbaijani companies operating in Turkey who have invested around $4 billion in the country. This figure looks set to increase substantially, as during a recent meeting between the countries to prime ministers it was announced that Azerbaijani companies could invest up to $6 billion more in the Turkish petrochemical industries.
This is because the State Oil Company of Azerbaijan Republic is to make a $5 billion investment in its Turkish subsidiary, Petkim. The plan is to construct a refinery in Aliaga in the Izmir province which would be capable of processing 10,000,000 t of raw materials. Construction is due to begin this autumn with completion scheduled for 2015.