BAKU: Yuri Shedrin: "Azerbaijan Is, Undoubtedly, Russia’s Main

YURI SHEDRIN: "AZERBAIJAN IS, UNDOUBTEDLY, RUSSIA’S MAIN PARTNER IN THE REGION"

Today.Az
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Aug 28 2008
Azerbaijan

Day.Az interview with Yuri Shedrin, head of Russia’s trade
representation in Azerbaijan.

– Do you think the situation, established in Georgian-Russian
relations, will influence Russia’s economic presence in the South
Caucasus? Will the Russian side focus on the trade and economic
cooperation with Azerbaijan and Armenia? If yes, in which spheres
will it concentrate this cooperation?

– The trade representation can not analyze the political situation in
the world. As regards Russia’s presence in the South Caucasus region,
Azerbaijan is, undoubtedly, its main partner with its trade turnover
exceeding this trade indicator with Georgia and Armenia by 1.4 times
altogether. I consider it unfounded to worsen our bilateral trade and
economic relations for the further perspective. Moreover, I hope for
significant progress in mutually profitable investment cooperation.

– How did the July visit of Russian President Vladimir Putin to
Azerbaijan influence the development of economic relations between
Russia and Azerbaijan? Have you noticed any progress as regards the
unsettled issues?

– First I all, I would like to note that Azerbaijan was one of
the first foreign countries, which President of Russia Medvedev
visited. This proves the external political priorities of our country.

The process and results of the visit were covered by the mass media
in details. Therefore, without boring you with details, I would
like to state with confidence that the talks on the high level,
conducted in friendly and constructive environment, signing of a
joint declaration on friendship and strategic partnership, as well
as a number of other bilateral documents will be a new stimulus for
the Russian-Azerbaijani cooperation, including in trade and economic
sector. It is not by accident that the official Russian delegation
included the minister of energy, heads of federal departments of the
economic bloc and such big companies, as Lukoil, Gazprom, Transneft,
Russian railroads, Vneshtorgbank, heads of frontier subjects of Russia.

I suppose that in the near future we will witness implementation
of joint and regional projects in the sphere of energy, industry,
transport and others. This, as well as indicators of the trade turnover
between our countries in the first half of this year ($1,042 bln),
allow to propose the execution of the task, set by Medvedev for
hitting the 2 bln limit in mutual trade by the end of the year.

– What can you say about the coordination of the document on mutual
protection and encouragement of investments and can it be possibly
signed during the next session of the intergovernmental commission
on economic cooperation between Russia and Azerbaijan? Russian mass
media have spread information that the reason of the failure to agree
was Russia’s demand of more privileged conditions of support of its
investments. Is it true?

– Unfortunately, there have been no significant progress at the talks
on the draft intergovernmental agreement on encouragement and mutual
protection of investments. The main cause is again the differences
between the parties on the order and terms of effectiveness of the
said document. I consider the thoughts about any other demands of the
Russian side on this issue to be false. Naturally, we would like this
agreement to be signed by the end of this year, which would allow
bringing our investment cooperation to quite a new level.

– Have the terms and site for conduction of the next session of the
commission been defined yet?

– I hope that the next 12th session of the intergovernmental commission
will be held in Q3 of this year in Baku, as fixed in the protocol
of the next session of the commission. The final decision on this
issue will be passed by the commission co-chairs, including Russian
Energy Minister Shmatko and first deputy Premier of Azerbaijan Eyubov,
who are maintaining a constructive dialogue.

– What do you think are the most urgent aspects of bilateral relations,
to be discussed at the session?

– As a rule, during the sessions the commission discusses a wide
range of issues of our cooperation in the economic, scientific and
technical and humanitarian spheres. The recent 11th session of the
commission, which considered about 30 different issues, was not an
exception. Their implementation is under constant control of the
national secretariats of the commission and, certainly, the trade
representation, in the framework of its powers. I suppose that in
the conceptual plan, the next session will primarily consider issues
of implementation of well-known agreements, attained during the July
visit of Russian President to Baku.

It is planning to ratify the corrected measures to the program of a
long-term economic cooperation for period until 2010, hear reports
of the heads of the joint work group, created for assessment of
the technical state of a bridge via the Samur river. Certainly, the
sides will also discuss execution of agreements in different economic
spheres, in the sphere of regional and frontier cooperation, as well
as humanitarian sector. I hope that serious attention will be paid
to the further development of the contract basis of the bilateral
cooperation and other measures, aimed to create favorable conditions
for the interaction of the business circles of the two countries.

– Which steps are taken to intensify the operation of control
checkpoints at the Russian-Azerbaijani border?

– The question is urgent enough, as a car checkpoint on the
Russian-Azerbaijani border is too narrow for conducting of the growing
volumes of mutual cargo and passenger transportations. The motor bridge
via the Samur river is in a disastrous state. In line with the decision
of the commission, a joint commission was created in February of this
year to examine its technical state and develop due decisions. The
members of the commission, led by deputy Foreign Ministries of Russia
and Azerbaijan, visited the spot in May of this year and they will
soon present their recommendations. It is important that during the
visit of Russian President Medvedev to Baku the customs services
of Russia and Azerbaijan signed an agreement on cooperation in the
sphere of combat with customs crimes. I hope that while fulfilling
the resolutions of the 11th session of the commission, the frontier
and customs services will take all measures for improvement of the
operation of border checkpoints with participation of the Transport
Ministers of both countries.

– Are Russian officials or business circle representatives expected
to visit Azerbaijan?

– A delegation of Astrakhan, led by chairman of the government
Markelov, intends to visit Azerbaijan soon. In turn, the organizers
of the Azerbaijan-Turkmen conference on problems of economy, energy
and ecology, to be held in Baku in early September of this year,
have invited the concerned Russian business circles, including those,
representing the Caspian littoral subjects of Russia, to attend the
conference. The number of mutual contacts in the framework of business
partnership is endless.

– Are there any preliminary agreements regarding spheres of cooperation
between Azerbaijan and Astrakhan? Do you know which Russian companies
will attend the conference, organized by Azerbaijan and Turkmenistan?

– First of all, during the visit it is planning to discuss the
implementation of an intergovernmental agreement on trade and
economic, scientific and technical and cultural cooperation, signed
in 2004. The development of bilateral partner relations in the sphere
of shipbuilding, marine and air transportations, trade, restoration
of biological resources of the Caspian Sea, education, science and
culture is an urgent question. Representatives of 11 leading Russian
companies, engaged in exploration, production and transportation of
Caspian hydrocarbons, have been invited to attend the the conference,
organized by Azerbaijan and Turkmenistan.

– How is the problem of deficit of stable communication between
Azerbaijan and Russia’s regions (for example, absence of a ferry and
direct air communication between Astrakhan and Baku) settled?

– There is no special deficit of transport communication between
Russian regions and Azerbaijan. They are connected with numerous
railway, motor and aviation routes. For example, the Nalchik-Baku
air transportations will start operating soon. I suppose that during
Markelov’s visit to Azerbaijan, the sides will reach an agreement
on opening of a direct air flight between Astrakhan and Baku and
organization of ferry transportations between the ports of Baku and
Olya (Astrakhan).

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