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Azerbaijan
Diversification in progress
Azerbaijani economy accounts for
nearly 80% of the overall GDP of
the three countries of the South
Caucasus. Azerbaijan considers inte-
grative efforts to world economy as
an inevitable process, however,
cementing opportunities to enhance
its national competitiveness. Addres-
sing development challenges in the
context of globalization Azerbaijan
dynamically develops its non-energy
sector in order to diversify econo-
mic production and enhance its
competitiveness in international
trade and investment. However,
alongside with favorable investment
climate, the Government has set a
goal to maximize national assets for-
mation, so as to improve general
socio-economic living conditions of
people.
As the country emerged rich in oil
and gas, a unique history of deve-
lopment of petroleum industry was
quickly and strongly kept in memo-
ries and books. It is a well-known
fact that oil has been produced by
industrial methods in Azerbaijan for
about 150 years. By 1901, more
than 50 percent of the worlds oil
had been produced in Azerbaijan.
At those times, a critical factor that
accelerated the dynamic develop-
ment of the petroleum industry was
an active involvement of local and
foreign manufactures and investors
in phases of exploration, recovery,
transportation, refinery and marke-
ting of oil and oil products - the seg-
ments of oil market so desperately
promoting competition nowadays.
During World War II, Azerbaijan
single-handedly contributed more
than 70 percent of total oil supplies
to the former USSR. Today, there
are nearly 100 countries who extract
oil. Azerbaijan was one of the major
pioneers in this field.
It is worth recollecting the names of
oil producers and oil companies that
operated in Azerbaijan, such as the
Nobel Brothers and their famous
"The Nobel Brother's Company",
Shell Transport which became Royal
Dutch Shell, the Rothschilds' Bank
House and several others. It comes
as no surprise as why at those times,
the oil-rich Azerbaijan attracted
such tycoons who brought their
industrial and banking know-how
to Azerbaijan in pursuit of ensuring
an access to Caspian oil reserves.
The remarkable contributions of
local oil-producers such as Tagiyev,
Assadullayev, Nagiyev, Mukhtarov
and a few others boosted the deve-
lopment of the petroleum industry
in Azerbaijan, prompted competi-
tion for additional acreages, addi-
tional explorations and even some
marketing instruments, which set
the tone for the world petroleum
market later on.
Today, Azerbaijan produces 1 mil-
lion barrels of oil per day and 30
million cubic metres of gas per year.
Proven gas reserve is estimated at
nearly 3 trillion cubic meters of gas
and condensates. Due to its visio-
nary and efficient energy strategy,
Azerbaijan has become one of the
world players in the energy sector
and reliable strategic partners of
Europe.
A proactive strategy
producing successful results
Azerbaijani economic potential is
diversified and offers promising
opportunities for investors in oil and
gas production; oil refining; engi-
neering; metallurgy; chemical;
petrochemical; machine building;
renewable energy; light and food
industries; agriculture (cotton, tea,
tobacco, silk worms, grapes, vegeta-
LE MOCI - N 1960 - 3 april 2014 - Edition Azerbaijan 2014 3
Azerbaijan
Diversification in progress
Today, Azerbaijan is on the rise, exemplifying one of the most successful stories
among the newly independent states in terms of political and economic stability,
and having become one of the rapidly developing economies in Eastern Europe.
Azerbaijan is particularly well-known in the world for its rich oil and gas
resources, but has also very diversified economy with huge potential in the non-
energy sector. This successful diversification is extremely promising for French
companies.
C O M M U N I C A T I O N
D
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The French
President, Mr.
Franois Hollande
welcomes the
President of
Azerbaijan, Mr.
Ilham Aliyev, at the
lyse on 18
September 2012
CECA), that offer high potential for
expansion of regional cooperation
towards reaching the goals of sus-
tainable development. A number of
initiatives have been undertaken in
this direction, with the EU-sponso-
red TRACECA program being one
of them.
Building on the rich heritage going
back to the old days of the Great
Silk Road, today Azerbaijan can
once again boast of its instrumen-
tal role in spreading the networks of
trade in the whole Eurasia, thus
bringing the entire regional and
inter-regional transportation net-
works development to serve the
goal of sustainable and equitable
development of nations.
Due to its rich natural resources,
its strategic location between
Europe and Asia, its driving force
role for regional undertakings as
Great Silk Route, TRACECA,
Baku-Tbilisi-Ceyhan oil export
pipeline, Baku-Tbilisi-Erzurum gas
export pipeline, Baku-Tbilisi-
Akhalkalaki-Kars railway line (also
known as the Iron Silk Road),
etc., large intellectual potential and
skilled labor force, international
observers assess Azerbaijan as one
of most attractive countries of the
whole region for investors and par-
ticularly, in the non-energy sector.
Macroeconomic and political sta-
bility in Azerbaijan and Bakus
reputation as being only metropo-
litan capital on the Caspian Sea
make it more attractive.
Excellent bilateral
cooperation
France was, in 1992, the second
country recognized the indepen-
dence of the Republic of Azerbaijan
after Turkey with the opening at
the same time French Embassy in
Azerbaijan. And former President
of Azerbaijan Mr. Heydar Aliyev
has paid his first foreign visit to
France in 1993 followed by several
other official visits in 1997 and
2001; as actual President of Azer-
baijan Mr. Ilham Aliyev has also
realized his first visit abroad to
France when he was elected in
2003. On October 2011 President
of France Mr. Nicolas Sarkozy has
visited Azerbaijan and signed
important agreement on establish-
ment of French Lycee in this coun-
try which will serve as biggest
French Lycee in the whole Cauca-
sus region. Following to President
Nicolas Sarkozys visit to Azerbai-
jan, President Ilham Aliyev paid a
visit to Paris in September 2012
and attended with President of
France Mr. Franois Hollande the
inauguration ceremony of the
Department of Islamic Arts of the
Museum of Louvre. At the same
time, the Cultural Service of the
Embassy of the Republic of Azer-
baijan in France was inaugurated.
Minister of Foreign Affairs Mr.
Elmar Mammadyarov met with his
French counterpart Mr. Laurent
Fabius twice in Paris in 2012 and
2013.
Excellent political relations have
followed by the growth of mutual
economic interests between Azer-
baijan and France. And today Azer-
baijan is biggest economic and tra-
ding partner of France in the whole
region of Caucasus. And France is
among Azerbaijan's leading trading
partners. French companies as
TOTAL and GDF SUEZ are active
in energy sector of Azerbaijan, and
French Banks as Societe General,
BNP Paribas and companies as
Arianespace, Systra, Bouygues,
Vinci, Astrium, Alsthom, etc. are
very active participants of various
important projects in the non-
energy sector of economy.
And actually there are growing inte-
rest of French companies and
mainly SMEs to invest to Azerbai-
jani economy and particularly, into
the non-energy sector as services,
including tourism, agriculture,
agro-industry, ICT, insurance, etc.
Presidents, Ministers and other
high-level officials of two countries
signed more than 40 documents on
various cooperation issues. The
Governments of Azerbaijan and
France have signed bilateral treaty
on mutual protection and encoura-
gement of investment and bilateral
treaty on avoidance of double taxa-
tion. These two documents are key
legal basis for bilateral economic
cooperation. Existence of direct
flight between Paris and Baku is
another comparative advantage for
business circles of two countries.
Decentralised economic and cultu-
ral cooperation between various
regions and cities of both countries
is also dynamically developing. The
Heydar Aliyev
F o u n d a t i o n
jointly with the
Embassy of the
Republic of
Azerbaijan in
France is reali-
zing new big
project in the regions of France
known as The cultural values of
Azerbaijan, the Pearl of the Cauca-
sus, aimed to promote Azerbaijans
culture.
bles, fruits), including, food proces-
sing and wine-production; in fast
growing services sector as, informa-
tion and communication technolo-
gies (ICT); transport and transit ser-
vices; construction; tourism,
banking, insurance, etc.
According to IMFs World Econo-
mic Outlook 2005 survey, Azerbai-
jan saw its real GDP growth among
the highest in 2005 when it rose to
26.4 percent and the highest ever in
the history of its development, and
even the highest in the world in
2006 when it rose to 34.5 percent.
The GDP has more than tripled
during the last years and internatio-
nal organizations assess Azerbaijani
economy as one of rapidly growing
and stable economies in the world,
and observe that high level growth
in the non-energy sector is one of
the important indicators of its suc-
cessful economic performance and
unprecedented growth.
In 2013, GDP rose by 6% and rea-
ched 57 billion and GDP per
capita rose by 4.4% and constitu-
ted 6,132 ; the non-energy sector
increased by 10% and agriculture
by approximately 5%.
According to the World Banks
Doing Business report 2009-
2010, Azerbaijan has made a big
jump from 97th place to 33rd out
of 181 economies. Azerbaijan
improved in seven from 10 indica-
tors, catapulting 64 places in the
rankings, the biggest jump ever
recorded by the World Bank.
Reforms affected such areas as star-
ting a business, employing workers,
registering property, getting credit,
paying taxes, protecting investors,
etc. A key component for securing
the top ranking was Azerbaijans
application of one-stop shop also
called single window system
decreased the costs, time and paper-
work associated with opening up
new business in the country. Since
2009 Azerbaijani Government com-
menced to apply single window
system in customs as well.
The Global Competitiveness Report
of the World Economic (Davos)
Forum (WEF) 2012-2013 said that
out of 148 states Azerbaijan ranked
the 39th position. In the same
report again out of 148 states Azer-
baijan ranked 13th on macroeco-
nomic stability index and WEF
recognized Azerbaijan the best
among the newly independent
states.
Azerbaijan is located on the very
south-eastern border of the Euro-
pean continent and serves as the
natural bridge between Europe and
Central Asia as well as it is the most
convenient route from the north-
east of Europe to the Middle East.
The country is the logistics hub for
the Caspian region. Excellent infra-
structure of the capital city of Baku
(including largest regional sea and
air terminal) is the best choice for
any business entering the markets
of the Caspian Sea region.
Creating an auspicious outlet for
Europe towards Asian markets and
vice versa, geo-strategic location of
Azerbaijan has also predetermined
its role as a reliable transit country
between Europe and Asia. In this
regard, Azerbaijan attaches also great
significance to the development of
cross-regional transport networks,
such as Europe-Caucasus-Asia inter-
national transport corridor (TRA-
4 LE MOCI - N 1960 - 3 april 2014 - Edition Azerbaijan 2014
LE MOCI COMMUNICATION
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KEY FIGURES
Population: 9.4 million (2013)
Life expectancy at birth: 75 years
Surface area: 86 600 km
Borders: Turkey (15 km), Russia (390 km), Georgia (480 km), Iran
(765 km), and Armenia (1007 km)
Distance: Paris-Baku 3,818 km
Gross Domestic Product (GDP): 57 billion euros (2013)
Actual growth in GDP: + 2.2 % (2012), + 6 % (2013)
Actual growth in GDP in the non-energy sector: + 9.7 % (2012),
+ 10 % (2013)
GDP per capita: 6,132 euros (2013)
Level of poverty: 5,3 % (2013)
Sources: National statistics, IMF, World Bank
Map of the
Republic of
Azerbaijan
Walls of the
fortress of the Old
City (ri hr)
in Baku
ment has followed since 1993
consolidated the countrys econo-
mic and political foundations and
developed national economy, where
we have seen considerable accelera-
tion in the GDP growth, which
achieved a global record of 34.6%
in 2006. These years were also mar-
ked by the completion or commen-
cement of large-scale regional and
intra-regional projects initiated by
Azerbaijan and linked to energy and
communication, such as: Baku-Tbi-
lisi-Ceyhan oil export pipeline,
Baku-Tbilisi-Erzurum gas export
pipeline and Baku-Tbilisi-Kars rail-
way line, unanimously considered
to be one of the biggest civil engi-
neering projects of the last decades
to be realized in this part of the
world.
Which three major
achievements of your
country you can list during
last two-three years?
First of all, I would like to highlight
that Azerbaijan is becoming one of
the worlds leading gas producers.
Our proven gas potential is estima-
ted at nearly three trillion cubic
meters of gas and condensates.
During the last two years following
to its oil and gas strategy, Azerbai-
jan has initiated two important pro-
jects, namely, Trans Anatolian Natu-
ral Gas Pipeline (TANAP) and
Trans Adriatic Pipeline (TAP) pro-
jects which are soon will become a
reality.
I am particularly pleased that suc-
cessful energy collaboration between
State Oil Company of Azerbaijan
(SOCAR) and leading companies
of oil and gas industry of France,
TOTAL and GDF-SUEZ success-
fully continues nowadays in the
Azerbaijani sector of the Caspian
Sea, and, inter alia, will contribute
to strengthened energy security of
Azerbaijan but also of the whole
European continent.
As a second achievement I can men-
tioned the fact that last year Azer-
baijan has joined the so-called
"space club", when on 7 February
2013 first Azerbaijani telecommu-
nications satellite Azerspace-1 was
launched and realized by the Azer-
baijani space agency Azercosmos in
cooperation with the French Aria-
nespace from the put into orbit
from the Kourou Space Centre in
French Guyana. I do believe that
this important event has ushered in
a new era in the development of
science and technology in Azerbai-
jan and has also opened a new chap-
ter in the history of bilateral inter-
action between Azerbaijan and
France having revealed an impres-
sive potential in this new field for
the years to come.
As a third success, I should mention
the first-ever election of Azerbaijan
in 2011 as a non-permanent mem-
ber of the UN Security Council.
This brilliant diplomatic victory is a
logical outcome of the painstaking
and goal-oriented work by Azerbai-
jan since the restoration of its inde-
pendence, testifying about the gro-
wing importance and influence of
our country at the international
arena.
What is the economic
situation in Azerbaijan
today?
Azerbaijan is well-known in the
world for its hydrocarbon natural
resources. It is a fact of life that our
country was the driving force
behind the industrial exploitation
of oil and gas and its offshore extrac-
tion in the Caspian Sea.
Today, as I mentioned above,
besides using its natural wealth to
strengthen its economy and conso-
lidate its independence, Azerbaijan
has become one the reliable strategic
partners of Europe in an effort to
strengthen the continent's energy
security through ensuring an alter-
native source of natural gas and oil
to a number of member-states of the
European Union.
In an effort to diversify its dynami-
cally developing economy, the state
is investing a lot into the develop-
ment of the non-energy sector of its
economy, having become one of the
rapidly developing states in Eastern
Europe.
Azerbaijan has developed uninter-
ruptedly over the last ten years. The
information below shows this expli-
citly. GDP has been multiplied by
3.4 times; non-energy GDP by 2.7
times; GDP per capita by 8.4 times;
external trade by 6.4 times; and the
state budget by 19 times.
Nearly 130 billion euros have been
invested in the national economy
over the last twenty years. In 2013,
GDP rose by 6% and reached 57
billion ; GDP per capita by 4.4%
(6,132 ); the non-energy sector by
9.8%; agriculture by approximately
5%. Inflation has been kept down
to 2.4%. Investments in the natio-
nal economy have reached 21 bil-
lion , including 13 billion through
domestic investments. For several
years, the domestic investments have
Azerbaijan has become
better-known in France in
recent years, especially in
the business world. How
would you describe your
country for our readers?
Situated in the South Caucasus, on
the ancient Silk Road, the Republic
of Azerbaijan, with its 86,600
square kilometres and 9.4 million
inhabitants is a strategic crossroads
between the East and the West.
Since time immemorial it has been
one of the cradles of human civili-
zation, as can be seen from the
many prehistoric sites, over 400,000
years old. The first nation states
emerged here during the third mil-
lennium BC.
Azerbaijans roots go far deeper than
its underground hydrocarbon
wealth, and its cultural heritage is
infinitely richer and more varied
than its oil and gas reserves.
We are proud of the fact that the
theatre, opera and ballet were inven-
ted for the first time in the whole
East in Azerbaijan. We are also
proud that secular and democratic
state, Democratic Republic of Azer-
baijan, was also created in our coun-
try back on 28 May 1918 for the
first time in the East. The break-up
of the USSR in 1991 gave Azerbai-
jan a unique opportunity to restore
its independence. Since then, our
country has covered an impressive
road of transformation towards
strengthening its statehood and
sovereignty.
Can you tell us briefly about
the main economic
challenges and also other
difficulties that your
country has faced during
the last 23 years since your
independence was restored
in 1991?
The period that has passed since the
restoration of independence can be
divided into two separate parts: the
first few years and the twenty years
that followed.
Sadly, the first few years of inde-
pendence were particularly difficult
for the new government of the
Republic of Azerbaijan. The country
was heading toward a precipice,
mainly as a result of the unprece-
dented economic crisis but also due
to persistent political instability,
which was accompanied by the
occupation by the armed forces of
neighbouring Armenia of almost
one-fifth of the internationally reco-
gnized territory of Azerbaijan, inclu-
ding the Nagorno-Karabakh and 7
surrounding regions.
Despite the efforts of the interna-
tional community, unanimous
adoption by the United Nations
Security Council 4 resolutions,
demanding the immediate and
unconditional evacuation by Arme-
nia of the occupied Nagorno-Kara-
bakh and surrounding 7 regions of
Azerbaijan, several resolutions of the
United Nations General Assembly
and other relevant international
organizations, as well as efforts of
the OSCE Minsk Group, co-chai-
red jointly by France, the United
States and Russia, mandated to
contribute to find peaceful resolu-
tion of the conflict between Arme-
nia and Azerbaijan, Armenia has
continued for more than twenty
years to illegally occupy the terri-
tory of Azerbaijan having commit-
ted ethnic cleansing in those areas
as a result of which all Azerbaijanis
had been ousted from their native
lands.
Another consequence of this occu-
pation is that every ninth citizen of
Azerbaijan has become either a refu-
gee or an internally displaced per-
son (IDP) in its own country. Today
this group made up of almost one
million of IDPs and refugees are
scattered throughout Azerbaijan
with one dream to be able to return
to their native homes.
I speak about this Armenian occu-
pation of Azerbaijani territories in
your economic review to attract
attention to its damaging effect to
the Azerbaijani economy and to the
regional economic cooperation.
As for the second part of your ques-
tion, I believe that the main chal-
lenges for Azerbaijan during the
period you mentioned were diffi-
culties to achieve socio-economic
stability and economic indepen-
dence. And due to visionary and
efficient development strategy, today
Azerbaijan became an island of sta-
bility with independent, diversified
and most developed economy in the
whole region, and pursuing its sove-
reign foreign policy in line with its
national interests.
The development strategy and
policy that the Azerbaijani govern-
Azerbaijan and France have constructive
political dialogue at the highest level
H.E. Mr. Elchin Amirbayov, Ambassador Extraordinary and Plenipotentiary
of the Republic of Azerbaijan in France
D
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D
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President Mr.
Franois Hollande,
President Mr.
Ilham Aliyev and
Madame Mehriban
Aliyeva, the First
Lady of the
Republic of
Azerbaijan at the
inauguration of the
Department of
Islamic Arts of the
Museum of Louvre
on 18 September
2012
themselves there by way of decep-
tion or provocation by the Arme-
nian side, which tries by every pos-
sible means to consolidate the
consequences of its military aggres-
sion against Azerbaijan but, as the
facts on the ground testify, have not
reached much in their illegal and
inefficient policies so far. So, I call
upon all French citizens to be vigi-
lant and not to let themselves be
deceived, since all the visits to those
occupied territories without the
consent the Azerbaijani authorities
are considered as gross violation the
Azerbaijani Law and are in blatant
violation of principles and norms of
the international law, in particular
of the territorial integrity and sove-
reignty of the Republic of Azerbai-
jan.
In conclusion, I would like to return
to bilateral cooperation between
Azerbaijan and France. I am plea-
sed to invite French entrepreneurs,
investors and tourists to travel to
Azerbaijan and follow the tourist
route known as Alexandre Dumas
in the Caucasus, which will take
them to our beautiful lands situa-
ted on the ancient Silk Road, at the
crossroads of the East and the West,
where representatives of various eth-
nic groups and religions have always
lived together in an exemplary spirit
of tolerance and harmony. Azerbai-
jan has given birth of the first
Democratic Republic in the whole
Orient and also completely unique
musical genre, the Mugham, with
its contemporary versions, such as
Jazz-Mugham and Symphonic
Mugham. You will certainly fall in
love with the Land of Fire, with
its very rich cultural, culinarian and
musical traditions. And finally, Azer-
baijan is also land of sport and is
preparing to host the First European
Games in June of 2015. We expect
to welcome nearly 15,000 athletes
from 49 European countries during
those games.
Which advices would you
give to French companies
and particularly to small
and medium companies
(SMEs) to do business in
Azerbaijan?
I would like to underline that most
of French companies express their
interests to take part in realization
of infrastructural projects and to
export their products to Azerbaijan.
In this line, I would advise them
also consider seriously long-term
and sustainable business activities in
non-energy sector as done by other
European companies. All French
companies could make this long-
term business alone, jointly with
local partners, or through the Azer-
baijani Investment Company (AIC)
which financially supports big
investment projects.
Each year, we organize a number of
trade fairs and international exhibi-
tions in most sectors of the eco-
nomy, and French companies par-
ticipation in such events could open
new business opportunities for
them in Azerbaijan and contribute
to further development of our bila-
teral economic cooperation. For ins-
tance, since 2011, several French
companies have taken part in the
international exhibition on infor-
mation and communication tech-
nologies (ICT) Bakutel, which is
the biggest ICT exhibition of the
regions of Caucasus and Central
Asia. And participation and coope-
ration in this sector is already begin-
ning to bring important results.
We organize also each year the inter-
national vine and wine festivals in
Ganja and France participated with
important delegations with the
guest of honour status during the
festivals in 2012 an 2013. And
using this opportunity, I would like
to invite other French companies to
discover this exciting event.
I equally encourage French compa-
nies to join to the France-Azerbai-
jan Chamber of Commerce
(CCFAz) in Paris, which works to
promote cooperation between com-
panies of our countries, especially
SMEs in the non-energy sector. The
CCFAz is going through the period
of transformation with the goal to
focus on helping companies of both
countries in doing business in both
Azerbaijan and in France, and infor-
ming members about economic
opportunities, projects and events
in Azerbaijan.
Finally, I wish to highlight that the
business climate created by our
government in Azerbaijan is parti-
cularly attractive to foreign busi-
nessmen. And Azerbaijani entrepre-
neurs have sufficient capitals
allowing them to work with their
foreign counterparts and big invest-
ment projects are supported by the
Government through AIC. So, with
their know-how and new technolo-
gies, French companies can take part
in investment and development pro-
jects in Azerbaijan without necessa-
rily using huge financial resources.
exceeded foreign investment which
a welcome trend for Azerbaijani eco-
nomy.
The foreign currency reserves of
Azerbaijan constitute today more
than 36 billion , which is equiva-
lent to 70% of the GDP and 12
times the countrys external debt.
Last year, the unemployment rate
fell by 5 %, while the level of
poverty fell by 5.3 %. Our external
debt represents 8% of the GDP,
which is one of the best ratios on a
global scale. All this has obviously
had a positive impact on creation of
jobs in Azerbaijan (110,000 new
jobs in the last several years, 80,000
of which are permanent contracts).
This successful socio-economic
policy has had a positive effect in
reducing the level of poverty, which
has fallen from 49% in 2000 to
5.3% in 2013. At the same time,
the continuing increase in salaries
and pensions has led to citizens
incomes being multiplied by the fac-
tor of 6. This performance has been
unanimously appreciated by the
relevant international institutions.
The GNP per capita index has allo-
wed the World Bank to rank Azer-
baijan in the category of upper-
middle income countries. Finally,
the United Nations, in one of its
reports on the Development Pro-
gramme, included Azerbaijan in the
group of states with superior
human development.
What can you tell us about
economic relations between
Azerbaijan and France?
Are there any problems?
We have constructive political dia-
logue between two countries at the
highest level. At their last two mee-
tings in 2012 and 2013, the two
Presidents, Ilham Aliyev and Fran-
ois Hollande, agreed on the neces-
sity to further develop existing excel-
lent bilateral cooperation. The
economic teams of our two coun-
tries Embassies are working in close
coordination to increase trade and
mutually advantageous economic
cooperation. On 26 November
2013 seventh session of the Bilateral
Azerbaijani-French Economic Com-
mission was held in Baku, co-chai-
red by Mr Samir Sharifov, Minister
of Finance of Azerbaijan and Mrs.
Nicole Bricq, Minister for Foreign
Trade of France.
Today, Azerbaijani economy
accounts for nearly 80% of the ove-
rall GDP of the three countries of
the South Caucasus and Azerbaijan
is leading economic and trading
partner of France in the whole
region. And France is among Azer-
baijan's leading trading partners.
There exists an important potential
in the development of decentralised
bilateral economic cooperation,
involving various regions of two
countries. I believe that there are
sectors of the Azerbaijani economy
that are extremely promising for
French entrepreneurs and investors,
where new opportunities can be
created. In this regard, industrial
sector; mechanical construction;
production of vehicles and locomo-
tives, underground trains or their
components; the setting-up of agro-
industry installations; the develop-
ment of the wine industry; the
application of renewable energy
solutions; the development of the
tourist infrastructure, the informa-
gies sectors, and many other promi-
sing fields could be particularly
mentioned.
I am pleased to say that there are no
major problems in our bilateral eco-
nomic and trading cooperation.
The reason to that, in my view, lies
in the fact that mutual respect and
mutual interests form the strong
foundation of these relations. Both
sides believe that existing opportu-
nities, favourable climate for invest-
ments, unfulfilled potential for
mutual economic interaction create
a "win-win" situation for both Azer-
baijan and France and the ever-
increasing figures of trade exchange
are another proof for the above-
mentioned.
Having said this, I would voice out
a strong recommendation for those
French entrepreneurs who want to
do business in Azerbaijan to refrain
from any imprudent actions that
may lead to major difficulties for
their plans to work in our country.
By this I mean first and foremost to
refrain from any illegal visits or acti-
vities in the territories of Azerbaijan
that are currently out of control of
central Azerbaijani authorities and
illegally occupied by neighbouring
Armenia. In most of the cases,
foreign businessmen and tourists
who end up in those territories find
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Bilateral meeting of
Mr. Ilham Aliyev,
President of the
Republic of
Azerbaijan and Mr.
Franois Hollande,
President of France
at the lyse Palace
on 18 September
2012
Mr. Ilham Aliyev,
President of the
Republic of
Azerbaijan has
participated at the
working breakfast
with French
companies
organized by
MEDEF on 19
September 2012 in
Paris
How do you assess the
current state of bilateral
economic cooperation
between Azerbaijan and
France?
First of all, I would say that this
cooperation is dynamic. Azerbaijan
is our first biggest trading partner
in the region of South Caucasus
(trade turnover constituted 1.9 bil-
lion in 2012). The authorities of
Azerbaijan have commenced to rea-
lize ambitious infrastructure moder-
nization projects in its capital and
other cities where French compa-
nies are seeking to be presented.
And I am convinced that our eco-
nomic cooperation could be further
reinforced, diversified and partially
re-balanced. With my services
(General Directory of the Treasury,
Ubifrance), the French regions and
the Chambers of Commerce and
Industries (CCIs), I wish to support
French companies in these endea-
vours.
Which sectors are
promising for French
companies, and especially
for SMEs?
France is already presented in a
number of sectors in Azerbaijan;
and I wish to consolidate our posi-
tion and also to get presented in
other sectors.
In hydrocarbons sector, our compa-
nies Total and GDF Suez play an
important role in the context of
their joint activities with SOCAR.
In aerospace sector, Arianespace has
launched the first telecommunica-
tions satellite project of Azerbaijan
and French industry is keen to
accompany this country in its pro-
grams for development of high
information and communication
technologies. And finally, in the
environmental sector, CNIM has
installed a waste management plant
in Baku aimed also to produce elec-
tricity. These projects were realized
in the framework of our industrial
partnership.
Concerning our SMEs, they are still
very weak presented in Azerbaijan.
In this regard, several visits will be
organized jointly with Ubifrance
and economic service of our
Embassy in Azerbaijan.
Which initiatives are you
consider to reinforce
business relations between
the two countries and to
promote flow of French
companies to Azerbaijan?
First of all, the Joint Azerbaijani-
French Economic Cooperation
Commission is essential instrument.
It permits us to address actual issues
of our development agenda and dis-
cuss new fields of cooperation. The
7th meeting of this Commission
was organized at the end of last year
in Baku.
Regarding new cooperation fields I
wish to concentrate on two sectors.
First of all, I would like to make
accent to the family products and
services project the better life in the
city. Modernization of cities, the
development of ecologically clean
transport systems (metro in Baku,
and tramways in Baku and in
Ganja), realization of waste mana-
gement projects (case of CNIM pro-
ject), and development of quality of
water and air is one of major priori-
ties of Azerbaijan. And in these sec-
tors, commencing from architecture
and industrial production to engi-
neering services, France is the world
leader. And I wish officially to
launch VIVAPOLIS project aimed
to collect all these services in one
basket for presenting them at the
international vitrines. This brand
brings together all French actors of
the sustainable city and allows com-
panies to present their services in
the group form at the international
markets and trade fairs, aimed to
ensure their successful export deve-
lopment.
The second sector is big sportive
events. In this regard, I wish to
continue efforts of the economic
service of our Embassy in Azerbaijan
organized last year on 25 Septem-
ber relevant Seminar in Baku.
France has been recognized as a
country with richest experience on
organization of big international
sportive events (French companies
have significantly contributed to the
last Olympic Games in London),
which could also be shared with
Azerbaijan for the organization of
the First European Games in Baku
in 2015. We have also organized a
major event (International meeting
of major sportive events) in Paris on
8 November of the last year where
Azerbaijan was invited.
Bilateral relations could further be
reinforced
Nicole Bricq, Minister of Foreign Trade
Co-Chairman of the Joint Azerbaijani-French Economic Cooperation Commission
How do you assess the
current state of bilateral
economic relations between
Azerbaijan and France currently
enjoy a high level of cooperation in
the political, economic, and huma-
nitarian fields. The working visit to
France by Azerbaijans President Mr.
Ilham Aliyev in September last year
and the meeting with his French
counterpart, President Franois Hol-
lande, have created additional condi-
tions to further enhance and stream-
line the existing degree of
cooperation between the two coun-
tries. The development of economic
cooperation between our countries
is currently taking place at an unpre-
cedented pace.
In recent years, the volume of trade
between the two countries has risen
to nearly 2 billion euros. Building on
that dynamism in bilateral economic
partnership, the Azerbaijani-French
Joint Economic Cooperation Com-
mission sought to make a significant
contribution towards reinforcing this
mutually beneficial cooperation. The
Commissions 7th meeting, held last
November in Baku, led to drawing
up of a new set of targets for the
future strategy.
Economic cooperation between the
two countries is constantly develo-
ping and the momentumthat is built
up every year is taking this coopera-
tion into new sectors. This can be
seen in the fact that the Government
of the Republic of Azerbaijan, along
with certain state organizations, has
recently signed contracts with French
companies such as Eurocopter, Air-
bus SAS, Camiva, Systra, Arianes-
pace, and many others. Those
contracts value creation for our bila-
teral dialogue is now worth a total of
1.2 billion dollars.
The French oil company TOTAL has
always been closely involved in Azer-
baijans major oil and gas projects.
On 7 February 2013, Azerbaijans
first telecommunications satellite,
known as Azerspace-1, was launched
and put into orbit by Arianespace
from the Kourou Space Centre in the
French Guyana. The French banks,
BNP Paribas and Socit Gnrale,
have traditionally played an active
role in financing major infrastructure
projects in Azerbaijan. I point out all
this in order to showcase an existing
high and stable degree of macro-poli-
tical, macro-economic, and business
climate particularly favourable to a
wide range of trade and investment
opportunities. Undoubtedly, this cli-
mate has also been created for the
French companies in Azerbaijan.
This trajectory of partnership will be
maintained in the future.
What is your assessment of the
7th meeting of the bilateral
economic cooperation
commission organized last
November in Azerbaijan?
The 7th meeting of the Azerbaijani-
French Joint Economic Cooperation
Commission, organized in Baku on
26 November 2013, was a good
opportunity to discuss the current
state of play in the cooperation
agenda, as well as to further explore
the prospects for boosting the level
of cooperation between the two
countries. We talked to our French
colleagues about the issues linked to
reinforcing our mutually beneficial
bilateral cooperation, including the
future development of commercial
relations, infrastructure projects,
opportunities in civil aviation and air
traffic routes, railway infrastructure,
urban and road transport, space and
telecommunications technology, and
financial cooperation. We also talked
about organizing conferences, semi-
nars, business forums, exhibitions
and shows linked to trade and invest-
ment opportunities. Out last mee-
ting also discussed ways of extending
our cooperation further into other
sectors.
What would you like to see
regarding the development
of bilateral economic and
commercial relations and
what is your key message to
French companies?
I think that the business circles from
both countries need to cooperate
stronger and make every effort to
boost trade turnover between Azer-
baijan and France by an annual
increase of 10-15%. My key message
to the French companies is to say
that the Republic of Azerbaijan is a
reliable, stable partner and that
through our cooperation every
French company should look for-
ward to achieving its commercial
objectives in our country.
The Republic of Azerbaijan is a reliable,
stable partner
Samir Sharifov, Minister of Finance for the Republic of Azerbaijan,
Co-Chairman of the Joint Azerbaijani-French Economic Cooperation
Commission
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Press-conference
after the 7th
meeting of the
Joint Azerbaijani-
French Economic
Cooperation
Commission
organized in Baku
on 26 November
2013
Madame Nicole
Bricq studies the
Baku White city
project, on 25
November 2013
Azerbaijan is a strategic country for Systra
Did you sign any contract in
Azerbaijan?
Our interest for Azerbaijan started many
years ago as it is a country with high expan-
sion rate and which is concerned about the
development of its transport infrastructure
for the well-being of its citizens. The excel-
lent relations with economic stakeholders
in the transport sector gave us the oppor-
tunity to offer Systras expertise and it was
welcomed. Our official involvement takes
place at the Administration level of Baku
Metropolitan, after we were awarded an
international tender to study the network.
It was followed by other contracts for
various services such as:
- The Master Plan for the development of
the network (three new lines - Purple, Blue
and Yellow - and extensions of the two exis-
ting lines - Red and Green). The President
of the Republic of Azerbaijan has appro-
ved these choices in November 2010 and
requested the implementation of this plan
within the broader framework of a large-
scale urban development program in the
capital city;
- Detailed design of the Purple line;
- Detailed design of the Blue line;
-The supervision of the construction
works of the 1st section of the Purple line,
the reshaping of the 28 May Station.
How do you foresee the future of
your relationship with this
country? What are your plans?
Azerbaijan is a strategic country for Sys-
tra, which opened a branch in Baku in
2011 and has hired a team of local engi-
neers.
Several other projects are studied by the
Azerbaijani authorities, in which SYSTRA
wishes to promote its expertise and its
large number of references:
- Railways moderniza-
tion;
- The challenges rela-
ted to the moderniza-
tion of urban trans-
port in Baku within
the broader framework
of the Absheron
peninsula;
- The development of urban transport in
other major cities of Azerbaijan - especially
in Ganja, where SYSTRA realized for the
local authorities the preliminary studies
for the re-introduction of the tramway.
We already suggested other infrastructure
development projects to the authorities.
Thanks to the confidence of the local
authorities, partners and clients, we hope
to remain for a long time the reference in
this country which is a great friend of
France.
Andr Ohnheiser, Senior Executive Vice-President for the Region of Southern Europe &Mediterranean
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badjan), in order to answer and to
match as well as possible the huge
demand for lessons of French lan-
guage that exists in Azerbaijan.
Among other innovations, we have
set up specialized French courses for
interested companies. Interest for
France, its culture, its education and
model of society is high in Azerbaijan
and represents an strong asset for the
development of our bilateral rela-
tions, that is why promoting it, not
only in Baku but also - and proba-
bly even more so in the regions -, is
currently one of our main goals.
What are the priorities of
your Embassy, and mainly in
economic sector?
As I mentioned, promoting and sup-
porting investment projects of
French companies in Azerbaijan is
one of my top priorities. France has a
lot to offer in terms of expertise in
many interesting fields for Azerbai-
jan. My job consists both in identi-
fying those fields where France can
make valuable proposals and in faci-
litating the contacts between French
companies and Azerbaijani actors. In
this regard, French Embassy has
organized in 2013 two business
forums in the areas of civil defence
and management of sports events. It
is premature to track the record of
the results but both of them were
very much appreciated by partici-
pants and I am confident that this
kind of initiative will is instrumen-
tal in the development of new co-
operations. We plan to organize in
the near future business forums dedi-
cated to the living sustainably in the
city, a motto which encompasses all
fields of improvement in the quality
of life in a sustainable way. Azeri-
French-Turkish co-operation on the
Azerbaijani market and a third one
dedicated to maritime safety and
security.
In order to assist the French small
and medium-sized enterprises in
their approach to the Azerbaijani
market, we will open in Baku an
office of the Franco-Azerbaijani
Chamber of Commerce. I hope this
organization will become fully ope-
rational in the coming months.
And I invite French and Azerbai-
jani companies, which want to suc-
cessfully address toge-
ther the fast growing
Azerbaijani market to
join this Chamber.
In my opinion, the
development of inten-
sified and diversified
trade relationships
cannot be separated
from a long-term co-operation in
the field of education. Capacity of
France in promoting its education
model, notably by developing twin-
ning between universities and scho-
larships will have a direct impact on
our economic ambitions in Azer-
baijan. Business is made by men,
and men are a product of education.
That is why we have to work simul-
taneously in both areas and that is
the challenge I have to take up. The
success of the first Franco-Azerbai-
jani Universities Forum organized
in Baku on the 14th of June is a real
encouragement to strengthen our
efforts in this field. The opening on
the 24th of September of a Campus
France space within the French Ins-
titute of Azerbaijan is a concrete
example of our commitment.
How could you assess the
role of Azerbaijan in the
Caucasus?
Azerbaijan plays an important role
in the Caucasus for various reasons.
First, Azerbaijan is the only Muslim,
but secular country of this region,
and as such, acts as an essential
bridge and mediator between Chris-
tian Eastern Europe and Muslim
Central Asia or Iran. This is a geo-
political situation Azerbaijani govern-
ment is promoting and I think this is
indeed an aspect that Western coun-
tries should keep in mind when it
comes to relations with this country.
Second, Azerbaijan represents nearly
80% of the whole Caucasian GDP
and should, in the near future, turn
itself into the driving force of the
regional economic growth. Right
now, Nagorno-Karabakh conflict
remains the main obstacle to this
development and
that is why resol-
ving it is now so
crucial: Azerbai-
jani people and
many people in
the region, first
of all Armenia
and Georgia,
have essential
gains to win in a peaceful resolution
of this conflict which has caused so
many human and material damages
for 20 years now. And last, Azerbai-
jan has become one of the main
energy suppliers in the region: it is
important for European energy sup-
ply stability, it is important for the
geostrategic balance of this part of
the world.
What is the state of play on
bilateral relations between
As you may know, France was, in
1992, the second country to reco-
gnize the independence of Azerbai-
jan after Turkey did. Heydar Aliyev
paid his first visit abroad to France, as
President Aliyev did when he was
elected in 2003: this sign of mutual
trust and friendship prevailing bet-
ween our two countries is now being
prolonged by an important, growing
and diversifying cooperation. In the
economic field, French company
TOTAL is one of the stakeholders of
Shah Deniz II
gas field with
10% participa-
tion and was
chosen as opera-
tor of Absheron
gas condensate
field, which is a
significant achie-
vement for the
participation of France in the oil and
gas sector development of this coun-
try. In the non-oil sector, French
companies are competing to promote
their expertise in sectors that are at
the core of the diversification policy
led by Azerbaijani Authorities: last
February, the first Azerbaijani tele-
communications satellite has been
launched from the French space
launching site in Kourou (French
overseas Department of Guyana).
This event is a major achievement
for Azerbaijan and has paved the way
for a long-term cooperation between
French companies, Azercosmos and
the Azerbaijani government in the
field of space technologies. Other sec-
tors, such as transportation, envi-
ronment or agriculture, also offer
promising fields of investment for
French companies. As far as agricul-
ture is concerned, the meetings held
by M. Dominique Garot, French
Minister in charge of food, who paid
a visit to Azerbaijan at the end of
January have clearly pointed out the
huge potential of cooperation in this
field.
Political relations have followed the
growth of mutual economic interest
between our two countries. Follo-
wing President Sarkozy visit to Azer-
baijan in October 2011, President
Aliyev paid a visit to Paris in Sep-
tember 2012 and Minister of Foreign
Affairs Elmar Mammadyarov met his
French counterpart Laurent Fabius
twice in Paris in 2012 and 2013. On
top of that, in its capacity of Minsk
Group co-chair, France organized
several meetings in Paris based on
new initiatives for the resolution of
Nagorno-Karabakh conflict.
In the sphere of education, a far rea-
ching step was made by the recent
opening of the French Lyce in Baku,
whose project had been agreed
during President Aliyevs visit to
France in December 2009. In Sep-
tember 2013, we have opened several
teaching levels for children aged from
3 to 13, in temporary premises until
our own building is completed. This
opening is important, both for the
promotion of French language and
model of education and for develop-
ment of our economic relations. In
this same area, we have reviewed and
modernized our French Institute of
Azerbaijan (Institut franais dAzer-
Support of projects of French companies
in Azerbaijan is one of my
top priorities
H.E. Mr. Pascal Meunier, Extraordinairy and Plenipotentiairy Ambassador
of France in the Republic of Azerbaijan
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State Philarmonic
Hall of Azerbaijan,
Baku
Metro station in
Baku after the
name of
Azerbaijani great
poet and
philosopher of XII
century, Nizami
GANJAVI
How do you assess
Azerbaijans economic and
social development over the
last twenty years?
Since restoration of its indepen-
dence, Azerbaijan continued to
develop and positioned itself as a
strategic crossroad.
During last 20 years, we indeed
observed that this country has
demonstrated its ability efficiently
to use its economic and political
assets to promote its national inte-
rests and strengthen its position at
the global and regional levels, as well
as openness for Europe and the rest
of the world to tackle various coope-
ration opportunities. Azerbaijan has
also made strong efforts to grow the
living standards of its population.
Today, we observe that this Cauca-
sian state address a number of eco-
nomic, institutional, educational,
social and cultural challenges, and
we can only encourage continuation
of these efforts and good dynamism.
In addition to diversification and
modernization of its economy, it has
also to continue social and demo-
cratic reforms to ensure social cohe-
sion to address actual and future
sustainable development and envi-
ronmental challenges.
Why do you think that
French companies should
invest to this country?
Azerbaijan has significant and unde-
niable advantages. Apart from its
economic growth and continuously
improving living standards, it conti-
nues to do efforts for further ope-
ning of its economy, invests in the
information and communication
technologies, develops broadband
internet infrastructures, and com-
panies that are implanted in this
country benefit by favorable legal
environment.
Azerbaijan is also a rapidly develo-
ping its transport infrastructure sys-
tems, including rail, road, air and
maritime infrastructures, etc. And
there are real opportunities for
foreign, and particularly for French
companies to take part in a number
of large-scale projects. Moreover,
great opportunities will exist in rea-
lization of infrastructure projects in
the agro-industry, environment and
tourism sectors for the years to
come.
Finally, France is a major economic
partner of Azerbaijan, and compa-
nies as Alcatel Lucent, Total, Thales
and a number of SMEs are already
well installed there. Azerbaijan has
also realized that French companies
have strong know-how and expe-
rience. Thus I am strongly convin-
ced that Azerbaijan will further wel-
come our companies and will offer
them best possible economic and
social conditions.
Azerbaijan is a strategic country with rapidly
growing economy
Jean-Marie Bockel, Senator Upper-Rhin province of the region of Alsace,
President of the Agglomeration of Mulhouse, former Minister
Could you present what is
SOCAR and what are the
activities of the company?
What are the main
investment projects of
SOCAR in Azerbaijan and
in the abroad?
SOCAR is the largest vertically
integrated company in Azerbaijan
with 66 thousand employees which
forms major part of countrys GDP.
SOCAR is one of the largest 100%
state owned oil and gas companies
in the world. SOCAR is involved
in all aspects of oil and gas produc-
tion from onshore and offshore
exploration and development in
Azerbaijan and abroad to transpor-
tation, oil and gas processing, petro-
leum chemistry and retail in Azer-
baijan and in the region of the
Caspian Sea, Europe and Asia.
Today forecasted reserves of hydro-
carbons in Azerbaijan are estimated
at the level of 10 billion tons, with
proven oil reserves of more than
two billion tons. To date, the
volume of investment in the Part-
nership Sharing Agreement (PSA)
type contracts in Azerbaijan
amounted to 50 billion of US dol-
lars. Reserves of only "Azeri-Chi-
rag-Guneshli" (ACG) field are esti-
mated at 1 billion 200 million tons
of oil and 350 billion cubic meters
of gas.
SOCAR participates and represent
the state in more than 17 ongoing
PSAs with foreign companies, 36
joint ventures and 5 alliances with
major service companies. Of course,
it includes Total and GDF Suez
which participate in the develop-
ment of certain fields (Shah Deniz
and Absheron).
GDF Suez also concluded a major
contract on purchase of Azerbaijani
gas from Shah Deniz field trans-
ported through the TAP gas pipe-
line. French companies Nexans,
Technip and Schulmberger partici-
pated in the major energy projects
in Azerbaijan. Besides, SOCAR
cooperating with French banks such
as Societe Generale and BNP Pari-
bas.
What are the data of last 3-
4 years of export of Azerbai-
jani oil and gas to French
market? Do you think these
flows could increase?
France is considered as an impor-
tant export market for SOCARs
energy resources. It is one of the
main consumers of Azerbaijani oil.
Currently 8-10% of crude oil
volumes provided to the world mar-
kets by SOCAR is exported to
France. Thus, French market is in
the second place after Italy in terms
of consumption of the volume pro-
vided by SOCAR in Europe.
13 million tons of crude oil has
been exported by SOCAR to
France since 2010 up to date. In its
turn, SOCARs share of crude oil
export in the total volume of crude
oil consumption in France is
approximately 3.7%.
SOCAR traditionally widely coope-
rates with French companies in the
sphere of crude oil and oil products
trade. This cooperation has wide-
ned and diversified following
SOCARs incorporation of its tra-
ding arm SOCAR Trading SA in
Geneva, Switzerland.
SOCAR has supplied more than 12
million tons of crude oil to Total
since 2010 up to date. This quan-
tity does not include only crude oil
of Azerbaijan origin, but also crude
oils of other origins obtained by
SOCAR in the world market. Total
also displays interest to oil products
exported by SOCAR. In 2010
SOCAR supplied Total 320 thou-
sand tons of diesel fuel.
It should be noted that cooperation
between SOCAR and Total in the
sphere of crude oil supply and trade
is mutual. SOCAR itself from time
to time purchases oil batches from
Total if necessary. Thus, since 2010
till now SOCAR Trading SA has
purchased about 1 million tons of
crude oil from Total.
SOCAR has invested a lot
to neighboring countries as
Turkey, Georgia and
Ukraine, as well as to
Romania, Switzerland,
Austria, Germany, Greece,
etc. As you know, France is
one of major economies of
Europe and could you also
consider investment by
SOCAR in the French
economy in the coming
years?
Yes, we are the biggest investor in
Turkey and Georgia and do a lot in
Romania and Ukraine and in other
countries. Certainly, we are interes-
ted to invest to French economy
and carefully studying opportuni-
ties for entering your market. There
is nothing for now to declare as a
ready transaction, however I hope
that such opportunity will appear.
We are certainly interested to invest to
French economy
Rovnag Abdullayev, President of State Oil Company of Azerbaijan (SOCAR)
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Baku city centre
Pipeline geopolitics
strategic talks on gas and
oil pipelines routes is a
difficult subject. What do
you think are the assets of
TAP and Azerbaijani
hydrocarbons generally
speaking to the French and
European end-consumers?
Indeed, to export the gas from the
huge gas field of Shah Deniz (860
square kilometres, 1,200 billion
cubic meters of gas), Azerbaijan
chose the Trans-Adriatic pipeline
(TAP) over Nabucco West (TAP
will be held jointly by several oil
companies: 50 per cent jointly by
Axpo (Switzerland), Statoil (Nor-
way), E.ON Ruhrgas (Germany);
20 per cent each by SOCAR (Azer-
baijan) and BP (UK), and 10 per
cent by Total (France)). The Shah
Deniz II Consortium which ope-
rates the gas deposit has just
announced the signing of supply
agreements with nine European
companies, including GDF Suez.
TAP being 440 kilometres shorter
than Nabucco West (which was
supported by the European Com-
mission), this should benefit the
end consumer. The pipeline will
transport natural gas from the Tur-
kish-Greer border and cross Greece
and Albania before coming ashore
in Italy.
What is at stake exactly?
Some explain this selection as a set-
back for the Commission, and more
generally for Europe. Let us put this
into perspective. The strategic
concern of the European Union is
first of all to limit its dependence
on Russia, which did not hesitate to
turn off the taps in 2009. Among
the alternative sources of supply, gas
from Azerbaijan and Turkmenistan
routed through the Southern Cor-
ridor and bypassing Russia two
proposed routes for many years
were the preferred options. In that
respect, the EUs main objective,
which is the diversification of
sources of gas supply, has been rea-
ched. Both projects offered similar
capacities within similar deadlines.
Moreover, Jos Manuel Barroso wel-
comed and supported the choice of
TAP in a somewhat opportunistic
press release which recalled his mee-
ting with President Aliyev in
January 2011.
What were the weaknesses
of the Nabucco project?
Nabucco has suffered two core
weaknesses from day one:
On the one hand, in order to bypass
the Russian company Gazprom,
Nabuccos plan was to import Cas-
pian gas (Azerbaijan) and gas from
Central Asia (Turkmenistan), and
even Iraqi Kurdistan or Iran. The
problem is that the flow would have
been insufficient without Tehran.
On the other hand, the project was
not endorsed by any of the leading
European gas companies, nor by a
producing country only by consu-
mers, and the plan was also to serve
the whole of Central Europe. These
conditions made it hard to secure
the gas volumes to be delivered.
After repeated rejections, Nabucco
Gas Pipeline International revised
its ambitions downwards, shorte-
ning its route from 3,300 to 1,300
kiometres. Nabucco West was sup-
posed to link the Turkish-Bulgarian
border and Austria through the Bal-
kans. This was a questionable pro-
ject which no one will regret.
In practical terms, how will
TAP and the Azerbaijans
commitment to European
economy?
TAP is a valuable help to the wea-
kest link in Europe: Greece, which
should benefit from 1 to 2 billion
euros of direct investment during
the construction of the pipeline,
which will take place from 2014 to
2018: 2,000 to 3,000 new jobs will
be created and 67 per cent of the
Greek energy transport network
DEFSA will be bought by the State
Western European countries should benefit
the doubling of TAPs capacities on the
long run
Christophe-Andre Frassa, Senator of UMP representing the French living
abroad, Secretary of the Inter-parliamentary France-Caucasus friendship group
and a member of the group of study on energy in the French Senate
What is the contribution of
Azerbaijan to the energy
security of Europe?
Azerbaijan has guaranteed its own
long-term energy security and plays
an important role in ensuring the
energy security of the region and
Europe. Important element of this
is development of the Southern Gas
Corridor. As it was stated in the
Joint Declaration of President of
the Republic of Azerbaijan, Ilham
Aliyev and President of the Euro-
pean Commission, Jos Manuel
Duro Barroso on Southern Gas
Corridor signed on January 13,
2011 that opening of the Southern
Gas Corridor and creating the gas
transportation route from the Cas-
pian Sea to the Europe corresponds
to the shared strategic objective of
the European Union and the Repu-
blic of Azerbaijan.
Azerbaijan is recognized as subs-
tantial contributor and enabler of
the Southern Gas Corridor which
plays an exceptional role in opening
the alternative gas pipeline route to
and ensuring long-term energy
security of the European countries.
Recently, on June 28, 2013 Shah
Deniz (SD) Consortium after
intensive evaluation process made
a decision in favor of Trans Adriatic
Pipeline (TAP) project versus
Nabucco West to carry SD-2 gas
volumes to Europe through Greece,
Albania to Italy. Another important
milestone, SD European Gas Sales
Agreements were signed with 9 lea-
ding European energy companies
on September 19, 2013 which will
be a significant contribution to the
energy security of European coun-
tries. We expect to start gas delive-
ries to Europe at the end of 2018,
beginning of 2019.
What are the prospects of
gas exports of Azerbaijan to
Europe?
Shah Deniz filed with total reserves
of 1.2 cubic meters of gas and
more than 240 million tons of
condensate will be an initial pri-
mary source for export. Recent
di scover y of Absheron f i el d
whi ch i s operated j oi ntl y by
Total, GDF Suez and SOCAR
wi th prel i mi nar y esti mate of
300 bln. cubic meters of gas as
well as Umid field operated
solely by SOCAR with 300 bln.
cubic meters of gas reserves and
other perspecti ve f i el ds wi l l
significantly strengthen future
export capacity of Azerbaijan.
As i s known, one of the key
selection criteria set by Azerbai-
jani side was scalability of the
pipeline. If at the initial stage,
when SD-2 is online we plan to
del i ver around 10 bcm to
Europe vi a SCP, TANAP and
TAP pipelines, recent discove-
ries will allow us to gradually
increase supply volumes. As a
key strategi c l i ne taken by
SOCAR we will also diversify
the customers and wi l l try to
cover more countries located in
the geographical vicinity of the
countries crossed by TAP as well
as new markets.
The Southern Gas Corridor is ensuring
long-term energy security of the European
countries
Elshad Nasirov, Vice-President of State Oil Company of Azerbaijan (SOCAR)
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Night in Baku
Azerbaijan known in France
as the pearl of the Caucasus
with its dynamically
developing economy. How
do you assess the current
state of economic
development of Azerbaijan?
Azerbaijan is rapidly developing eco-
nomy due to its rich hydrocarbon
resources. During our visits to Azer-
baijan we observed that its leaders
tackle not only short-term but also
long-term development challenges.
Azerbaijan has also huge develop-
ment potential in such sectors as
agriculture, science, technologies,
industry, tourism, etc. Oil revenues
efficiently used to address develop-
ment needs of sustainable resources
of this country.
Another important feature of Azer-
baijan is its strong commitment to
modernize and maintain its cultu-
ral and social values. Azerbaijan is
religiously very tolerant country
with deep traditional roots. Leaders
of Azerbaijan are indeed doing
efforts not to harm its secular har-
mony as a result of rapid economic
growth. Different religious harmo-
niously and peacefully co-exist in
Azerbaijan which is one of best
examples of tolerance in the whole
world. Today Azerbaijan is interna-
tional center on inter-cultural dia-
logue. Since 2010, each year Azer-
baijan hosts important international
humanitarian and inter-cultural
forums where the worlds humani-
tarian and science elites come toge-
ther to discuss and address
relevant global challenges.
And finally, from geo-strate-
gic point of view, Azerbaijan
is key country in this very
important region. Based in
the Eastern Europe it is stra-
tegically located at the cross-
roads of Europe and Asia.
Azerbaijan is very stable
island favorably located close
to big important internatio-
nal markets.
Could you briefly
precise the current
state of economic coopera-
tion between Azerbaijan and
the province of Yonne? Are
you realizing concrete pro-
jects? What is your assess-
ment of importance of these
projects for Yonne and
France?
Actually we are working with our
companies on specific projects, and
particularly in the agro-industry sec-
tor, where province of Yonne has
strong comparative advantages. Far-
mers of our province have associa-
ted to win very promising market
of Azerbaijan and they are already
successfully exported 1200 cows of
origin Charolais to this country.
And definitely, it will have very posi-
tive impact for development of lives-
tock potential of Azerbaijan. This is
an excellent example of our long-
term concrete cooperation requiring
number of political and technical
meetings to better understand
expectations of each side. We are
We are working with our companies on
concrete projects, and particularly in the
agro-industry sector
Andr Villiers, President of the General Council of the province of Yonne of
the region of Burgundy
Oil Company of Azerbaijan
(DEFSA is the Greek national
natural gas transport network ope-
rator and SOCAR is the State Oil
Company of Azerbaijan Republic).
The Samaras government strug-
gled so hard to attract investors
that they can really welcome this
new partner as an unexpected
breath of fresh air, as Greece no
longer has to worry about one of
the public companies it was about
to privatise.
Apart from Greece, which
countries will benefit from
that project and which will
lose out?
Italys and the Berlusconi
governments hopes of becoming
the energy hub of Europe were
dashed. Berlusconi always had a
privileged relationship with Presi-
dent Putin and supported both
the Bluestream and Southstream
projects that the European Com-
mission criticized so much. As a
result, Italy might only be a coun-
try of transit. This is why Prime
Minister Letta travelled to Baku
recently: he wanted to show how
much Italy is interested in the
TAP project and discuss the pos-
sibility of an extension to the
north of Europe in order to deliver
gas from Azerbaijan up to Swit-
zerland, Belgium, Germany, the
Netherlands and the United King-
dom.
The countries of Central Europe
are the most dependent on Rus-
sian gas (with a proportion of up
to 80 to 90 per cent for countries
like Poland, the Czech Republic,
Romania and Bulgaria) and had
high hopes of the Nabucco route.
Today they are the victims both of
the selfishness of the countries of
Western Europe and of the choice
of TAP. In this respect, the North-
stream project, which will provide
Russian gas to Germany via the
Baltic Sea, is the perfect example
of the inconsistency and inade-
quacy of the EU in terms of
energy policy. By contrast, Wes-
tern European countries should
benefit the doubling of TAPs
capacities on the long run (10 bil-
lion cubic meters now, 20 billion
cubic meters expected). Russia
countered this by promoting its
own gas pipeline project, South
Stream, which would cross the
Black Sea to come ashore in Bul-
garia and serve Romania, Hungary
and Austria.
As a conclusion, what do
you think is the future of
the European Union on
these energy issues and in
terms of neighbourhood
policy in South Caucasus?
Unfortunately, Europe has the face
of the European Disunion, every
country playing its own card on
this issue, as on others. The res-
huffling of the deck is a new
opportunity offered to Europe and
the Commission, with the objec-
tive of laying the foundation of a
common energy policy. Just as
Armenia announced its entry into
the Customs Union established by
Moscow, the pivotal role played
by Azerbaijan in supplying gas to
the European Union forces us to
assess European policies in the
Caucasus more realistically.
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Chalet of wines of
Ganja at the Reims
International
Market in
November 2013
Azerbaijani gas to Europe without passing by the Russia square: the Southern gas corridor
The Southern Corridor will be made of 3 sections: SCP (South Caucasus Pipeline, active), TANAP (Trans-Anatolian pipeline), TAP (Trans-Adriatic pipeline)
Competing projects: South Stream (Russian project, construction of which has just started), Nabucco West (European project) Area of tension
Azerbaijani red
wine "Madrasa",
Ganja
What is your analysis of the
French economic presence
in Azerbaijan?
The French presence in Azerbaijan
is more visible in the petroleum and
gas industry with Total which is the
partner in Shah Deniz 2 gas field
and the operator of Absheron gas
field. GDF Suez is the first buyer of
gas on the future development of
Shah Deniz 2. Entrepose, Nexans
and Technip have widely developed
their activities as well.
Economic diversification of the
country is one of the governments
priorities: the non-oil sector offers
numerous opportunities. Our com-
panies participate in rail and urban
transportations sector (with Alstom,
Geismar, Systra and Thales) as well
as air transport (Airbus, Eurocop-
ter). The French expertise in the
field of communication technolo-
gies, including space, is sought
out/in demand; as a matter of fact,
the first satellite of telecommunica-
tion of Azercosmos was launched by
the rocket Ariane from Kourou, last
February.
The food-processing industry is
rapidly growing: Lactalis, Danone
and several companies in the wine-
producing sector are present. Consi-
dering the political will to register
the countrys economic growth in a
perspective of sustainable develop-
ment, the environment and the new
energies are promising sectors, as
demonstrated by the recent success
of the CNIM in Baku (waste treat-
ment and electricity generation).
The modernization of the capital,
which will accelerate for the prepa-
ration of organization of the first
European games in 2015, offers pro-
mising opportunities. The French
fashion designers boutiques flou-
rish in the city. Moreover, a high
potential exists in the sector of tou-
rism which could raise the interest
of several French companies, parti-
cularly for the winter sports.
What is the local support
scheme for the French
companies and how does it
work?
The local support scheme is assured
by the economic mission of the
Embassy.
The Economic Mission assures the
support to major contracts, the
macroeconomic follow-up, in parti-
cular foreign trade and investments,
and the relation with the national
authorities and the international
organizations. The Economic Mis-
sion can as well initiate some opera-
tions as the recent organization of a
seminar for the presentation of the
French sports sectors offers: this
seminar has allowed the presentation
of a board range of 25 French com-
panies to the Organizing Commit-
tee of the first European games
which will take place in Baku in
2015.
The Economic Mission supports as
well the activity of UbiFrance office
in Istanbul. The latter ensures the
approach and support of the French
SMEs on the Azerbaijanis market.
In this framework, the economic
mission contributes to finding, iden-
tification and contacting the poten-
tial partners.
Today an informal business club
gathers the main French companies
settled in Azerbaijan; however this
organization cannot satisfy effectively
the increasing requests of the French
companies wishing to work on this
market. The future French-Azerbai-
jani chamber of commerce, the crea-
tion of which is under consideration,
should allow a better coordination
with UbiFrance to support the
French SMEs interested in Azerbai-
jan.
The promotionof the
attractiveness of the French
territory andthe encouragement
of Azerbaijani investments in
France are alsoa part of your
mission?
According to our ministerial instruc-
tions the economic mission is natu-
rally mobilizedfor the promotion of
the attractiveness of the French terri-
tory. The interest of Azerbaijani inves-
tors is increasing. A major investment
(135 M ) has been confirmed on
December 2012, with the purchase
of a real estate complex at "8 Place
Vendme" in Paris by SOFAZ, the
oil sovereign fund of Azerbaijan.
The potential sectors for Azerbaijani
investments in France are multiple,
as attested by the recent capital invest-
ment of FC Bakus president in RC
Lens football club. In coordination
with AFII (French Agency for the
International Investments) and the
French regions, the Economic Mis-
sion can facilitate
the visit of Azer-
baijani investors
in France, as it
was, in particu-
lar the case in
Lorraine and
Rhne - Al pe s
this year.
also on the track to commence two
other concrete and ambitious pro-
jects dedicated to wine growing and
tourism, and industrial bakery sec-
tors in the ancient city of Azerbai-
jan, the city of Ganja. It is also
worth recollecting that this very
beautiful and second administrative
city of Azerbaijan, the city of Ganja,
as a result of particularly difficult
competition was selected as a Euro-
pean Youth Capital in 2016. And
using this opportunity, I wish to
congratulate our friends from Azer-
baijan by this brilliant victory.
What is your assessment the
current state of awareness
about Azerbaijan in the
regions of France?
If you had asked this question three
years ago, I would certainly assess it
negatively, but today the situation
has changed considerably and very
rapidly, and actually my response is
much more positive. The level of
awareness about Azerbaijan in the
regions of France is rapidly develo-
ping on a daily basis and conse-
quently the interest is growing to
this beautiful country.
In this line, I have to express my
gratitude to the First Lady of the
Republic of Azerbaijan Madame
Mehriban Aliyeva, who leads the
Heydar Aliyev Foundation doing
strong efforts for realization of
concrete cultural projects in France
and in its regions aimed to promote
rich cultural heritage of Azerbaijan
among our citizens.
In this regard, I must also highlight
efficient work of the Embassy of
the Republic of Azerbaijan in
France, and namely, dynamism,
creativity and significant efforts of
Mr. Elchin Amirbayov, Ambassa-
dor of Azerbaijan in France, and
Mr. Elmar Mammadov, Counse-
lor on economic affairs and coope-
ration with regions of the Embassy
of Azerbaijan in France. During
the past three years, they have
considerably developed economic
and decentralized cooperation bet-
ween Azerbaijan and France, and
their different regions, and of
course with our province. I ima-
gine challenges they faced on this
way, but today many French tou-
rists are very keen to visit this
beautiful country of Azerbaijan.
What are the principal
advices that you would give
to French enterprises and
companies of your
province, and particularly,
SMEs?
Azerbaijan is changing very fast.
Its leaders are young and profes-
sional. They are strongly commit-
ted to modernize their country.
But as in all the other former
Soviet Union countries, there are
sometimes bureaucratic challenges
inherited from the communist
period. With the assistance of the
Embassy of Azerbaijan in France
we had chance to meet with Mr.
Ilham Aliyev, the President of the
Republic of Azerbaijan, who is
young, and strong personality with
a very dynamic and modern
approaches supporting the deve-
lopment of his countrys compre-
hensive cooperation with France.
With his support, we had access to
high-level officials who also contri-
buted development of our econo-
mic cooperation. We have several
times visited with our SMEs Azer-
baijan. We have jointly designed
several ambitious projects suppor-
ting Azerbaijans tremendous eco-
nomic development, which will
definitely further reinforce existing
excellent cooperation between
Azerbaijan and France.
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The economic service of the Embassy
contributes to finding the potential partners
Herv Sarnelli, Economic Counselor of the Embassy of France in the Republic
of Azerbaijan
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Ganja international
vine and wine
festival
Ganja international
vine and wine
festival
Azerbaijani white
wine "Sadilli",
Ganja
Wines of Qabala
What are your economic
priorities?
Our major objective is to develop
the non-energy sector of our eco-
nomy due to existing substantial
potential in this sector that has not
yet been fully exploited. We are
determined to further develop our
regions and cities outside of the
capital city Baku through series of
tangible and important projects in
areas of agriculture, tourism, infor-
mation and communication tech-
nologies (ICT), renewable energy,
non-petroleum industrial growth,
infrastructure enhancement, etc.
Building on the initiative of the Pre-
sident of the Republic of Azerbai-
jan Mr. Ilham Aliyev, two impor-
tant state programmes on
socio-economic development of
regions were realized during 2004-
2008 and 2009-2013. That helped
to ensure a breakthrough in achie-
ving some of the targets. In the fra-
mework of those programmes,
public investments, aimed to
address infrastructural development
projects combined with domestic
and foreign private investments,
have created over 1.2 million new
jobs in the region of Azerbaijan,
thus significantly improving the
living standards amongst the local
population.
Our government has introduced a
tradition of proclaiming every year
to be the year of sectoral develop-
ment. That helps to consequently
keep the focus on dynamic deve-
lopment of that particular sector.
For instance, 2010 was the year of
protection of ecology and environ-
ment; 2011 was the year of tourism
development; 2012 was the year of
sports promotion; 2013 was the year
of information and communication
technologies. This year of 2014 is
dedicated to mobilising the efforts
for the potential of industrial
growth.
Our Government has adopted the
development strategy titled Azer-
baijan in 2020: looking into the
future. This document has become
sort of a road map for long-term
objectives of the national develop-
ment agenda. Our challenges for
2020 are to give a new impetus and
create further growth in the non-
energy sector of our economy, and
development of science, innovation
and the new technologies; to raise
GDP per capita to 10,000, to
ensure a rapid growth in the volume
of exports of products of the non-
energy sector, as well as to raise an
annual growth rate in GDP per
capita to a higher level of more than
7%. The forecast of population
growth is an annual increase of
1.1% between now and 2020. By
2020, Azerbaijan will have approxi-
mately 10.2 million inhabitants.
Also among our priorities for the
current year is the development of
the traditional spheres of the non-
energy sector such as petrochemical
and chemical industry, metallurgy,
mechanical industry, electro-tech-
nics, electronics, light industry and
agro-industry, as well as the creation
and development of other new com-
petitive industrial sectors.
The creation of companies based on
the use of innovative technologies
in the special industrial zones will
be further encouraged by our
Government. Taking into account
each regions economic potential,
Azerbaijan also supports the crea-
tion of special economic zones to
accommodate the industrial sites of
the future, like those in Sumqayit
for the processing of petrochemical
products, in Balakhany for waste
management and recycle treatment,
and in Ganja for metals and mining
sector (particularly aluminium).
Actually, we are promoting the rea-
lization of several large-scale indus-
trial projects, such as the shipyard
in Baku, the urea factory in Sum-
qayit and other industrial complexes
(steel, petrochemicals, oil-gas, etc.)
with active involvement of the pri-
vate sector.
Also, with regard to the develop-
ment of non-energy sector, our
Government will pay a particular
attention to the development of
agribusiness sector potential in the
light of an increasing number of
measures and regulations linked to
food security.
We are keen deepen our
knowledge about your
country and we are
interested to know about
Azerbaijani second biggest
city of Ganja, annually
hosted the international
vine and wine festivals
where France participates as
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Our main economic objective is to
promote Azerbaijans non-energy exports
Elmar Mammadov, Counselor on economic affairs and cooperation with regions,
Embassy of the Republic of Azerbaijan in France
the honoured guest with its
SMEs. Can you tell us more
about this city and its
festival?
Azerbaijan is well known for its
wine growing and wine-making tra-
ditions since ancient times, and of
course, due to favourable climate
and agricultural conditions, as well
as existing relevantly big potential,
we wish to maintain and develop
activity in this sector and that is why
recently we have adopted state pro-
gramme for development of wine
growing in our country for 2012-
2020.
Our second biggest city Ganja hos-
ted the international vine and wine
festivals over the last two years. We
have established this very good tra-
dition jointly with our friends from
France. On 1-2 November 2013,
the city of Ganja hosted the second
international vine and wine festival
where over 40 local and foreign
companies presented. Over 1,200
participants of that festival featured
both producers and consumers. The
Director General of the Internatio-
nal Organisation of Vine and Wine
(OIV) has also participated at this
event, and presented global state of
play in vine and wine sectors at the
relevant conference organized in this
regard. The festival helped to esta-
blish contacts between local produ-
cers and their foreign counterparts.
At the same time, the festival hel-
ped to promote tourism potential
of the city of Ganja, which is one
of the ancient cities of our country
and the whole East.
While speaking about Ganja, I can
not to highlight that our this histo-
rical city has given to the world lite-
rature such famous Azerbaijani
genius poets, writers and philoso-
phers as Nizami Ganjavi (1141-
1209) and Mahsati Ganjavi (1089-
1159). Due to its location at the
ancient Silk Road, Ganja was in the
past the real economic, political and
cultural centre of Azerbaijan and in
the whole Caucasus. Ganja became
the first capital of the Democratic
Republic of Azerbaijan, was created
in our country back on 28 May
1918 for the first time in the whole
East.
I would also like to mention that
the city of Ganja and its universi-
ties are very actively developing a
successful cooperation with a num-
ber of French cities, regions and uni-
versities. In so doing, we, with the
support of Ganja, are advancing a
successful bilateral cooperation bet-
ween our two countries.
I wish to conclude my response to
your question about this beautiful
city with good news for your rea-
ders. On 21 November 2013, fol-
lowing particularly difficult compe-
tition held in Thessaloniki (Greece),
Ganja has won the title of the Euro-
pean Youth Capital (EYC) in 2016.
Thus, the city of Ganja will become
the first EYC in this part of the
world. In general, the first EYC was
Rotterdam (the Netherlands) in
2009, followed by Torino (Italy) in
2010, Antwerp (Belgium) in 2011,
Braga (Portugal) in 2012, Maribor
(Slovenia) in 2013, Thessaloniki
(Greece) in 2014 and Cluj Napoca
(Romania) in 2015.
What are the economic
specializations of other
Azerbaijani cities?
Several Azerbaijani cities are equally
beautiful, touristic
and attractive.
While our city of
Nakhchivan is reco-
gnized by its rapid
industrial and agri-
cultural growth, it is
also well-known for
developing popular art activities
such pottery, ironwork, tapestry-
making, textiles, gold work, etc.
Another Azerbaijani city, Minga-
chevir, is well-known for its major
contribution to the countrys elec-
tricity production, also for its spor-
tive rowing complexes and rich tra-
ditions in this field.
The city of Sumqayit located on the
Caspian Sea coast, is one of the
countrys leading industrial hubs.
Situated in the north of Azerbaijan,
the city of Qusar is known by its
winter tourism. Its modern ski
resort is one of the biggest facilities
in the whole region and able to
accommodate thousands of tourists
every year. Neighbouring city of
Quba is famous by its high-quality
apples and organizer each year
annual apple festival. The city of
Qabala is another touristic center,
and it recently inaugurated a new
ski resort. Qabala also hosts several
factories in the sector of food indus-
try, as well as production of pianos.
It is also worldwide known by orga-
nization of annual classical music
festivals. The city of Goychay is
well-known for its delicious pome-
granates, for which there is also an
annual festivals.
Neighbouring the city of Ganja and
situated close to legendary beauti-
ful blue lake, the city of Gygl
(translated as blue lake) is famous
for its wines. Another town, Tovuz,
specializes mainly in wine growing
and produces spirits (brandy) made
from grapes.
Currently occupied
by neighbouring
Armenia, one of
Azerbaijani ancient
cities, Khankendi is
located in the
Nagorno-Karabakh
region of Azerbai-
jan. This town has always been
known for developed industry and
agriculture, and also for breeding
outstanding horses of Karabakh (in
translation from Azerbaijani means
black garden).
Another Azerbaijani oldest town,
also located in our Nagorno-Kara-
bakh region, is the
city of Shusha. It is
well known in the
world as the Eastern
Conservatoire due
to locations of Azer-
baijani schools of
our traditional
music (mugham).
Shusha is the birth-
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View to Flame
Towers from the
old city of Baku
(Icheri Sheher)
Advertisement on
trams of the events
dedicated to 900th
anniversary of
creativity of great
Azerbaijani poetess
of XII century
Mahsati GANJAVI
in the framework
of the project of
the Heydar Aliyev
Foundation
Ski resort in Qusar
region of
Azerbaijan
Wines cave in the
city of Gygl
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cular for Baku metro), civil
aviation (helicopters, control
equipment), water and waste
management and treatment.
The luxury and art sectors are
already well established in
Azerbaijan, but they certainly
deserve being further deve-
lopped.
In summer 2015, Baku will be hos-
ting the First European Olympic
Games. Once again, the French offer
in the area of sports is exceptionnal
and will undoubtedly find a way to
express itself on this occasion. We want
to develop an effective dialogue bet-
ween Azerbaijani and French autho-
rities and companies in order to iden-
tify the best cooperation priorities and
help deliver tailored proposals.
The Chamber is being reorganized in
a way which will enable it to respond
effectively to these needs: the forth-
coming launch of a new site and the
publication for our members of an
economic outlook providing infor-
mation on economic opportunities
and on concrete projects. In addition,
the CCFAz will be matched with the
Azerbaijan - France Commerce and
Industry Chamber (CCIAF) in Baku,
which is being established.
We are ready to help Azer-
baijani and French compa-
nies to acquire more infor-
mation about economic
opportunities in order to fos-
ter broader business relations
in Azerbaijan and in France.
In this respect, we wish to inform
your readers that President Hollande
will visit Azerbaijan on 11th and
12th of May 2014. On this occasion
he will participate at the unagura-
tion of the CCIAF in Baku. This
visit, the first one since the begin-
ning of his mandate, will certainly
strengthen the links between our
two countries and will undoubtedly
play a decisive role in boosting
mutual investment. I would like to
remind you that Azerbaijan is a
country with an extremely rich cul-
tural heritage, which I encourage
your readers to discover whilst doing
business there.
Any company can become a mem-
ber of our Chamber and get in
touch with Ms Mirvari Fataliyeva
who is in charge of external relations
of the CCFAz via the following
e-mail address: contact@ccfaz.com.
LE MOCI - N 1960 - 3 april 2014 - Edition Azerbaijan 2014 25 24 LE MOCI - N 1960 - 3 april 2014 - Edition Azerbaijan 2014
place of mughamand prepares highly
trained musicians, some of whom
even adopted the pseudonym of their
home town Shusha.
The famous French writer, Alexan-
dre Dumas (father), travelled to Azer-
baijan in the mid-19th century. Fol-
lowing his journey, he wrote
Journey to the Caucasus, in which
he tells about his meeting with the
famous Azerbaijani poetess, Khour-
chidbanou Natavan, the daughter of
the Khan of Karabakh and gives a
long description of the silk-produ-
cing town of Shaki located at the
beautiful mountains.
Shaki also features in contemporary
history as the birthplace of a hero of
our two countries, Azerbaijan and
France: Akmdia Mikhalogly Dja-
bralov, known in France as Armed
Michel, who supported the Resis-
tance Movement.
I could continue listing our beautiful
cities and regions, but I think it
would be better to visit Azerbaijan
to have an idea of the prosperous
development of Baku and other
region of our beautiful country.
Azerbaijan is still not very well
known in the French regions. That
is why we have launched the cultural
project of the Heydar Aliyev Foun-
dation, known as The cultural
values of Azerbaijan, the Pearl of the
Caucasus, which aimed
to promote a wider
knowledge of our coun-
trys richest culture, cui-
sine and traditions in
French provinces. We
organized a series of cul-
tural events, including a
concerts and exhibitions,
in 20 French cities. And I
have to say that this pro-
ject was very well received and suc-
cessful in those cities. As a result of
this success, we are obviously looking
to continue this positive experience
in other cities of your country.
Which economic objectives
do you have in France?
We are looking to develop bilateral
economic relations based on the
principles of reciprocal interests and
equal rights. We are doing all efforts
to spread objective infor-
mation about Azerbaijan,
its economic and tourism
potential, existing export
opportunities in our non-
energy sector, ways of faci-
litation of tourists flows,
and investment and know-
how to Azerbaijan with the
best possible reception
conditions, ways of accele-
ration of our bilateral cooperation in
the food industrial sector, informa-
gies (ICT), renewable energy and the
aerospace sectors, etc.
We are already well on the way to
achieving these objectives. For exam-
ple, in 2012, following to famous
vine and wine festival in Ganja, an
Azerbaijani company based in Tovuz
and its French counterpart in Poi-
tou-Charentes region reached an
agreement to set up a joint enterprise
and produce Azerbaijani
pomegranate juices in
France. This was a suc-
cessful case with regard
to the development of
our bilateral cooperation,
based on reciprocal inte-
rests, bearing in mind
that experts believe that
Azerbaijani organic
pomegranate juice has
significantly higher quality than iden-
tical products existing already in the
European markets. The aimis expor-
tation of Azerbaijani pomegranate
juices to France, and finalization of
these products here with Bio certifi-
cate of the European Union, and
consequently, selling these pomegra-
nate juices in the markets of France
and the European Union.
Another example that comes to mind
is exportation of Azerbaijani wines to
France, and further from there across
the EU market. Following the two
vines and wine festivals in Ganja, the
French delegation consisted from
wine-making specialists greatly appre-
ciated the quality of our wines and
suggested to work strongly on such
issues as marketing, advertisement
and facilitation of entrance to Euro-
pean market, and underlined that
these wines could be very popular
during the short time in Europe.
We are delighted that our expecta-
tions were realised last year, when we
ensured participation of our wines
in the Christmas markets of Paris
and several French regions. By the
way, our wines competed with wines
from other European countries and
were very well received by French
and European consumers.
I must also to add that our Embassy
in France regularly receives inqui-
ries about investment opportunities
from Azerbaijan in to the French
economy. And we examine all these
proposals with great interest. We
channel those inquiries through our
extensive networks in private sec-
tor.
Finally, using this opportunity I
invite French tourists and business-
men to our country and say to
them Welcome to Azerbaijan!
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Can you outline the
objectives and the missions of
CCFAz?
The France Azerbaijan Chamber of
Commerce was created just after the
restoration of the independence of the
Republic of Azerbaijan in the early
90s. It had the honor to be inaugura-
ted in 1994 by the President of the
Republic of Azerbaijan Heydar Aliyev
who was deeply attached to the esta-
blishment of sustainable links
with France. The aim of the
CCFAz, as expressed in its
Statutes is the development
of France - Azerbaijan eco-
nomic relations and the dee-
pening of the friendship ties
between the two countries.
Our direct purpose is to develop busi-
ness relations between them and to
respond to the broad interest that we
acknowledge fromboth sides.
We, the French, are lucky to
benefit from a positive repu-
tation in Azerbaijan which we
can rely on to develop sustai-
nable cooperation based on
trust. The mission of the
CCFAz is to contribute to
the development of trade relations bet-
ween France and Azerbaijan and to
mutual investments.
Which initiatives do you
intend to undertake in order
to reinforce the business
relations between Azerbaijan
and France?
The business relationship between our
two countries are currently domina-
ted by the oil and gas sectors, which is
fully understandable given Azerbai-
jans hydrocarbon wealth and its type
of economy. The two main French
companies specialized in exploration
and production activities, TOTAL
(operator) and GDF SUEZ, are pre-
sent in Azerbaijan and are partners
with SOCAR in the very promising
Apsheron gas field. With the opera-
tional start-up of the Shah Denis gas
field, Azerbaijan is getting ready to
become one of Europes major natural
gas suppliers.
Moreover, we wish to support the
development of the cooperation bet-
ween France and Azerbaijan in key
areas such as tourism, agricultural
(especially wine industry) and food
sectors, as well as health. We also wish
to highlight and foster the French
know-how, expertise and high quality
proposals in the area of industrial and
civil engineering, transport (in parti-
Our missionis to contribute to the development
of trade relations betweenFrance and
Azerbaijanandto mutual investments
M. Jean Perrin, Honorary President of the France Azerbaijan Chamber of
Commerce (CCFAz), First Ambassador of France to the Republic of Azerbaijan
Catherine Mantel, President of the France Azerbaijan Chamber of Com-
merce (CCFAz)
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Fortress of Shusha
in the Nagorno-
Karabakh region of
Azerbaijan
Garden of Khan in
the city of Ganja
Ilandagh Mountain
in Julfa in the
Nakhchivan region
of Azerbaijan
Business Center in
Baku
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Example of the
national cuisine,
Dolma from
stuffed grape leaves
(In Azerbaijani
Dolma means
stuffed)
Azerbaijani red
wine"Seven
Beauties",Ganja
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lution and environmentally friendly
system.
That is for its performance in inser-
tion but also thanks to the econo-
mical investment cost of the system
(mainly due to the lighter infra-
structure and to the service life of
30 years), Translohr is presented
worldwide.
references of the Translohr
system?
6 cities with really different topo-
graphic situation have already star-
ted operating of their tramway net-
works with Translohr:
- Clermont-Ferrand (France, in
operation since November 2006,
more than 7 years of the success-
ful operation),
- Padua (Italy, in operation since
March 2007),
- Tianjin (China, in operation
since May 2007),
- Shanghai (China, first tram line
inaugurated on December 31,
2009),
- Venice-Mestre (Italiy, partially in
operations since December 2010
and final connection with the
continent will be terminated in the
middle of 2014),
- Saint Denis - Sarcelles in the
North of Paris (Translohr is the
solution adopted by the Paris
public transport operation com-
pany RATP to equip its first line
of the tramway on tires, in opera-
tion since July 2013).
2 lines are currently under way:
- Chtillon - Viroflay, 14 km line
situated in the North of Paris,
inder construction now by RATP
(commissioning planned for sum-
mer 2014),
- Medellin (Colombia, commis-
sioning planned for the beginning
of 2015).
And also several projects in
Europe, Latin America and Asia
are currently in the study and
negotiations.
What are your
motivations and your
perspectives for the public
transport projects in
Azerbaijan?
For us, Azerbaijan is the country
with the fastest growth in the
region of Caucasus. The country
attracts international business and
adapts its urban environment to
this development. Baku is, of
course, the main economic hub,
but also Ganja, the second admi-
nistrative city with the very high
potential in terms of the develop-
ment and economic and structu-
ral modernization. The city of
Ganja as a result of the difficult
competition has won the title of
European Youth Capital for 2016
and it became first city of Cauca-
sus gained such important status.
And definitely this factor will
accelerate further development of
this beautiful city.
We have met with the assistance
of the Embassy of the Republic of
Azerbaijan in Paris, the Mayor of
Ganja and his team to establish
the first exchange on the project
of the first tram line to serve the
heart of the city and its periphery.
The city of Ganja wishes to deve-
lop ecologically clean and inno-
vative transport system as tram-
way on tires Translohr, which is
an electric transportation, non-
aggressive and non-polluting for
cities, and cycling (bike routes
could be perfectly scheduled in
parallel to the tramway line). Our
cooperation with the city of
Ganja in 2013 was very success-
ful since the initial Protocol of
Agreement has been signed in last
november between the city admi-
nistration and the future partners
of this project. From our side, we
are preparing to do our all efforts
to ensure that this very ancient
and historical city of Azerbaijan
and native city of Nizami Gan-
javi, great Azerbaijani poet and
philosopher of XII century of the
period of the Renaissance Orien-
tale, the city of Ganja which will
be European Youth Capital in
2016, can accommodate all Euro-
pean youths with an innovative
new mobile tram system as Trans-
lohr and with very modern bikes
routes system.
Could you present the tram-
way on tires Translohr, the
leading product of NewTL?
The Translohr is the innovation
technology, 100% made in France,
developed and assembled by
NewTL (previously by Lohr Indus-
trie) in the Strasbourg region (230
employees now, 330 in 2014), hol-
ded shares by ALSTOM (51%) and
the FSI (Public Investment fund
depending on the French Ministry
of Finance, 41%).
Translohr is the new generation of
electric guided transport system.
Real vector of deep and sustainable
transformation of the city, Translohr
offers unrivalled insertion ability
thanks to its human scale gauge and
its maneuverability and a significant
reduction of implementation costs.
So, the city which wishes to have
the public transport system adapted
to the urban environment, modern
one, available and non-polluting
will be impressed by the advantages
proposed by the tramway system on
tires:
- No noise and vibration transmit-
ted from tram line to roads and
buildings along the line. Translohr
tramway system is not noisy and
could pass close to the residential as
well as to the historical buildings
without any discomfort to the
population or danger for the
constructions. Translohr guiding
system guarantees no friction of steel
to steel so there is no rail wear.
- Quick infrastructure installation.
The Translohr trackway doesnt need
long and specific preparation works
and long inconveniences in the
organization of the city traffic
during the road works. Translohr
line could be realized in the shor-
test delay according to the requests
of the modern developing city.
- Minimum turning radius, optimi-
zed vehicle overhang and gauge, abi-
lity to climb steep slopes: thanks to
its permanent and integral guiding
system Translohr needs less than
5.20m for double line and less than
2.50m for simple one. Translohr
could be easily integrated in the nar-
row streets and leaves more space
for other transport modes (pedes-
trian, cars, bicycles) in wide avenues.
- 100 % low floor tramway, Trans-
lohr ensures an easy access to all
groups of passengers including peo-
ples on wheelchair, mothers with
baby carriage and senior peoples,
- 100 % electrical traction, no pol-
The city of Ganja wishes to develop
ecologically clean and innovative
transport system as the tramway
on tires Translohr
Olivier Bachelet, General Director of NewTL (tramway on tires Translohr)
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The city of Ganja
The city of Ganja,
European Youth
Capital in 2016
Monument of the
great Azerbaijani
poet and
philosopher of XII
century Nizami
GANJAVI in Baku
baijani Exploration and Production
activities and to extend the part-
nership with the national company
SOCAR. It is important not to
underestimate the technical chal-
lenges posed by oil and gas projects
in the Azerbaijani section of the
Caspian Sea, not least when it
comes to drilling (the presence of
mud volcanoes and unstable areas
of seabed being particularly pro-
blematic), but Total has all the
technology and know-how needed
to deal with this type of environ-
ment. Project costs are high and
project economy is often difficult
given the areas considerable dis-
tance from the markets. But I am
always keen to stress the stable,
long term conditions offered to
foreign investors in Azerbaijan and
the reliability of Azerbaijani part-
ners. One of Azerbaijans strengths
is the respect of the agreements
signed. The country has a rich
industrial history and its oil sector
dates back to the mid-19th century,
when Azerbaijan was the worlds
leading oil producer. This allows
talks between companies to be par-
ticularly constructive.
Could you tell us about the
Total groups business
activities in Azerbaijan?
The Total group has been present
in Azerbaijan since the early 1990s,
soon after the country restored its
independence. Total holds a 10 %
stake in the Shah Deniz joint pro-
duction agreement operated by BP,
which owns a 25.5 % stake in the
project. The other partners are Sta-
toil (25.5 %), Nico (Iran, 10 %),
Lukoil (10 %), TPAO (Turkey, 9
%) and the Azerbaijani national oil
and gas company SOCAR (10 %).
The agreement covers an offshore
gas field that began to produce gas
and condensates commercially in
December 2006 within the scope of
Phase 1. In 2012 Shah Deniz Phase
1 produced 7.8 billion cubic metres
of gas and 16.1 million barrels of
condensates. The Final Investment
Decision (FID) to launch Phase 2
is expected to be made at the end
of the year. The aim will be to pro-
duce an additional 16 billion cubic
metres of gas per year as of mid-
2018.
Total is the Operator of the Abshe-
ron gas field since February 2009.
A technically challenging explora-
tion well was successfully comple-
ted in August 2012. This discove-
red gas field is located in the
Caspian Sea, 100 km from Baku
and in approximately 500 m of
water. The partners involved are
Total (40 %), SOCAR (40 %) and
GDF-Suez (20 %). In September
2011 Total announced that a signi-
ficant amount of gas had been dis-
covered at the site and we are cur-
rently drawing up the Development
Plan. We are targeting production
after 2020.
In addition, Total owns 10% and
5% stakes in the South Caucasus
Pipeline (SCP) and the Baku-Tbi-
lisi-Ceyhan (BTC) oil pipeline res-
pectively, ensuring that it is able to
export its output from the Shah
Deniz field.
The Total Group also has a presence
in Azerbaijan through its crude oil
trading subsidiary and its subsidia-
ries and distributors in the oil lubri-
cants market.
Finally, Total is involved in Azer-
baijans social and cultural sector. In
particular, we have developed a trai-
ning programme for Azerbaijani stu-
dents through study grants geared
primarily towards the oil and gas
sector, which are awarded in part-
nership with SOCAR.
What are your key
investment projects?
Our main priority is to prepare for
the development of Absheron. In
conjunction with SOCAR, we are
currently working on a development
plan for the gas field. To ensure that
this development is successful and
to address the lack of drilling rigs in
the land-locked Caspian Sea, we are
currently in talks with SOCAR and
its drilling subsidiary Caspian Dril-
ling Company (CDC) for the
construction of a new semi-sub-
mersible drilling rig at the Baku shi-
pyard. This could represent an
investment of hundreds of millions
of dollars.
Buoyed by the impressive results at
Absheron, which demonstrated
Totals expertise in this type of chal-
lenging environment, we are now
keen to increase our stake in Azer-
One of Azerbaijans strengths is the respect
of the agreements signed
Michael Borrell, Senior Vice President Continental Europe and Central Asia,
Exploration & Production, Total S.A
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The city of Shaki
The city of Qabala
Region of Gakh of
Azerbaijan, known
as Switzerland of
Caucasus
Blue Lake (Gygl)
near cities of Ganja
and Gygl
How would you assess the
legal conditions for foreign
investment in Azerbaijan?
Azerbaijan has adopted most of the
legal framework necessary to attract
foreign investors and, today, any trans-
action can be carried out on the basis
of Azerbaijani law. The establishment
of a stable legal basis for foreign invest-
ment is obviously an indispensible pre-
condition to winning the confidence
of foreign investors wishing to profit
from the enormous natural wealth of
the country.
The activity of foreign investors is
governed principally by the Law on
the Protection of Foreign Investment,
dated 15 January 1992, which offers a
large number of protections and gua-
rantees. Among the specific protec-
tions that can be cited are national
treatment, the repatriation of profits,
protection against nationalisation and
expropriation, a 10-year guarantee of
the stability of legislation, as well as
recourse to internatio-
nal arbitration. Also
important are the
Treaty between France
and Azerbaijan on the
Encouragement and
Mutual Protection of
Investments (dated 1 September 1998)
and the Convention between France
and Azerbaijan on the Avoidance of
Double Income Taxation and the Pre-
vention of Tax Fraud (dated 20
December 2001 and in force from 1
October 2005).
Additional benefits may be accorded
to foreign investors and to enterprises
that invest in certain priority sectors
of the Azerbaijan economy, including
in Special Economic Zones. Current
projects, such as the new Sumgait
Chemical Industrial Park and the
future Oil and Gas Processing and
Petrochemical Complex (OGPC) in
Garadagh (USD17 Billion) will pro-
vide very significant bene-
fits to qualified investors.
An investor may choose to
have limited activity on
the territory of Azerbaijan
through representative
offices or branches or esta-
blish a more permanent
presence by creating a subsidiary
(including a 100%subsidiary), in any
of various legal forms. In this regard
Azerbaijan has greatly facilitated the
registration process. Since 2008 legal
entities, as well as representative offices
and branches, have been registered by
the Ministry of Taxes, which also
handles the additional registrations
with the State Statistics Committee,
the tax authorities and the State Social
Protection Fund through a one stop
shop, or one window registration
system. Today, the entire process for
registration can take as little as 3-5 days
(as opposed to 4-8 weeks before 2008).
The impressive progress of Azerbaijan
during the past several
years has been reco-
gnised by the World
Bank and the IFC in
their annual indepen-
dent survey Doing
Business and by the
World Economic Forumin its Global
Competitiveness Report 2013-2014,
which evaluate the conditions for
investment and entrepreneurship.
recommendations in the legal
field that you would give to
French enterprises interested
in this country?
It must be recognised that the legal sys-
tem in Azerbaijan is very formalistic,
and due to legal provisions that are
often vague our lacking in clarity,
contradictory and sometimes non-
transparent interpretations of laws and
regulations are among the main chal-
lenges in Azerbaijan. State officials,
while muchmore experien-
ced and competent than in
the past, can still be quite
aggressive in the exercise of
their functions. Administra-
tive procedures change from
time to time and, in this
environment, it is impera-
tive that investors stay well-informed
about the laws and regulations that
concerntheir activities, including chan-
ginginterpretations, whichare common.
As in any other country in the world,
foreign investors should be prudent in
their approach to Azerbaijan. The via-
bility of a project shouldalways be asses-
sed carefully, with great attention to its
technical and commercial feasibility,
given that it is more than likely that the
legislationwill change during the course
of the project. The conditions togovern
a transaction should be negotiated in
strict conformity with the current legis-
lation, taking into account any restric-
tions envisaged by the law concerning,
for example, sovereign guarantees and
tax benefits. Special benefits that are not
in accordance with current laws are at
risk of being invalidated or cancelled.
Finally, investors should protect them-
selves as much as possible from unfa-
vourable changes due to force majeure
andfromthe potential assertionof sove-
reign immunity. In this context, it is
recommendedtocarefullyprovide requi-
red contractual provisions including, in
particular, inrespect of international arbi-
tration, external financing and com-
mercial guarantees and to consider see-
king political riskinsurance. Above all, it
is important to use common sense and
to carry out a careful due diligence on
any potential partner or on any enter-
prise considered for acquisition.
Although there are numerous potential
traps intowhichunwaryforeigninvestors
may fall, the current context inAzerbai-
janoffers investors extraordinary oppor-
tunities for success.
The Law on the Protection of Foreign
Investments offers a large number
of protections and guarantees
James Hogan, Managing Partner, Baku Office
Being a well-known
businessman, howwould you
assess business environment in
your country?
Very positive. I have been running
a business for more than 20 years. I
must note that after collapse of the
Soviet Union, Azerbaijan like many
other countries had to go through
hard times. The economy of the
country was shattered, businessmen
were scattered all over. This is in
addition to aggression of Armenia
on our country, occupation of lands,
complication of the war. Returning
of Heydar Aliyev to the power saved
Azerbaijan. Continuously develo-
ping, shining country that
you see today is his master-
piece. Our late president
made lots of efforts to rebuild
and to develop the destroyed
economy, to achieve prospe-
rity of the country. The suc-
cess achieved both in inter-
nal and external policy made
Azerbaijan recognized all over
the world. The pleasant fact is that
Ilham Aliyev who came to power in
2003 continued this policy along
increasing line and with success.
Many businessmen were provided
with necessary conditions. Today not
only local businessmen, but also
foreign investors come to Azerbai-
jan and make investments without
any hesitation. They are provided
with all conditions required for
convenient and productive activity.
I visit different countries in connec-
tion with personal matters and my
business. I assure you that even
number of developed countries do
not have such productive conditions
as we do. Businessmen continuously
feel the state care and the state sup-
ports them in every way.
Today every businessman, as well as
the citizens of the country feel proud
of Azerbaijan and are fully satisfied
with conditions created in all sec-
tors. Naturally, our country has shor-
tages in various areas as in all other
countries and the state continuously
mobilizes the business opportunities
to eliminate these shortages.
As we know, you are a
president of Baku football
club as from 2004. Our
readers would be interested
to know about your interest
in football, the development
path of Baku football club
and future development
perspectives of the club.
As I noted before, we achieved suc-
cess in many fields after the eco-
nomy of the country started to deve-
lop. This includes the sport.
Azerbaijan was recognized and noted
as a sport country. I want to note
that the president of Azerbaijan is at
the same time a president of the
National Olympic Committee.
Thanks to his attention and care,
our country hosted number of the
world and European championships,
international competitions. If you
pay attention, you can see that the
achievements of Azerbaijani athletes
in Olympic games have been increa-
sing as from 2000. We believe that
this growth ration will continue in
future years.
This sport spree brought us to foot-
ball. I always liked sport, especially
football. However, I missed a lot due
to busy work for the last
7 years. The flow of the businessmen
to football started in 2004. First we
took patronage over the Dynamo
club. The name, image, targets of
the team has been changed. As the
club represented our capital, we gave
it the beautiful name of Baku. Mai-
den Tower preserved since 9th cen-
tury and decorating our Baku was
used as our attribute. It was even
reflected in our logo. Baku has
found a place among the contenders
from the first season and won the
Azerbaijan Cup. We won Azerbai-
jan championship twice and coun-
try cup 3 times for the last 9 years.
You becoming co-chairman of
RC Lens football club
stirred a big interest in
France. What solutions would
you offer for
development of the club and
its return to the 1st League?
In general, how can the Baku-
Lens partnership contribute
the further
development of Azerbaijan
football?
We always had a special sympathy for
France and its football. Number of
famous star football players of this
country had become an idol for Azer-
baijan football fans in different times.
Personally, I visit your country for my
vacations, especially in summer and
enjoy my vacations. I met former and
now actual president of RC Lens Jer-
vair Martel during one of these vaca-
tions. I was very interested in deve-
lopment of this club. We signed the
historical purchase contract in Paris.
My first objective is return of RC
Lens club to the 1st division. I wish
return the glory of RC Lens.
Azerbaijan offers excellent business
environment for foreign investors
Hafiz Mammadov, President of the Group of Baghlan
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Region of Balakan
of Azerbaijan
Region of Gakh of
Azerbaijan
Region of Qazakh
of Azerbaijan
Region of Lerik of
Azerbaijan
Why the name ByaNat?
In Greek mythology, Bia is the god-
dess representing force and vitality.
The inspiration for our brand offe-
ring top-quality, completely natural
products sourced directly from cer-
tified organic producers. Nat
Nature, of course 100% organic
and ECOCERT certified pure
pomegranate juice is the product
spearheading our brands new range.
Your pomegranate comes
from Azerbaijan, the Pearl
of the Caucasus, a country
where 9 of the worlds 11
climate zones are present.
How did you come across
this pomegranate?
A chance encounter! Diakom, a
company working to foster relations
between companies in France and
Russia, has known our Azerbaijan
partner since 2004. Together, they
have built a trusting and loyal rela-
tionship during their search for pro-
ducts destined for use in wine pro-
duction in very beautiful
Ganja-Tovuz region of
Azerbaijan with a
strong farming tradi-
tion. We regularly par-
ticipated in the inter-
national grape and
wine festival of Ganja.
This is where we got
the idea of importing
pure 100% organic
pomegranate juice to France
from Lesser Caucasus where they
have been growing and harvesting
the best pomegranates in the world
for centuries.
Tell us about the variety
known as Royale grown
in the areas orchards bathed
in plentiful sunshine.
Indeed, 2326 hours of sunshine per
year. Moreover, the temperatures
there are over 10C for 2905 hours
a year, compared with only 2600
hours in California! We were sur-
prised by the deep ruby-red colour,
the excellence of the seeds known as
arils and the fruits very pronoun-
ced taste.
When did you actually start
work on creating ByaNat
pomegranate juice?
In August 2012 during a trip sear-
ching for new business opportuni-
ties in Azerbaijan when we visited
the pomegranate orchards and were
able to taste and appreciate the
fruits flavour. The far-
mers production site,
competence and reliability
also convinced us to make
this decision. We realised
all the staff members were
agrifood specialists in the
field of drink manufactu-
ring. We also immediately
understood that we nee-
ded to get Organic certi-
fication. Which we did in collabo-
ration with ECOCERT, which is
the reference for Organic Farming
products. This is a lengthy and
demanding process but we are
proud to have accomplished it. For
us, it was a guarantee of credibility
ensuring that our pure-fruit pome-
granate juice without any additives
entered the French and European
markets successfully. The ECO-
CERT certification covers the whole
process from production to distri-
bution.
How was the product we see
today developed?
We would like to point out that
each fruit is carefully selected. They
are then sent to the Tovuz plant.
The juice is extracted, filtered and
taken by refrigerated transport to be
conditioned in France in a plant
with ECOCERT organic certifica-
tion. Our pomegranate juice is avai-
lable all year round in 1-litre and 33
cl bottles. The market innovation is
our 3-litre fountain, which is ideal
for a 3-week course of treatment. It
is also practical for the whole family
to use and easy to recycle. Its life-
time is 24 months before opening
and 4 weeks afterwards if kept in
the fridge. When it was exhibited at
the Natexpo trade fair from 20th to
22nd last October at Paris Nord Vil-
lepinte, it proved very popular.
Remind us of the
pomegranates benefits
The pomegranate, a top superfruit,
is one of the best antioxidants avai-
lable. It is well known for its excel-
lent vitamin and oligoelement levels
and its antioxidant properties, in
particular with respect to polyphe-
nols and anthocyanins, which acti-
vely help to neutralize free radicals,
a source of toxicity in the organism
and of body-cell aging. It enhances
the immune system and is a real
boost to remaining healthy.
Natures energy drink
So whats the current
status of your project?
Our online sales site offering home
delivery via the Colissimo service is
working very well. We
also have several out-
lets in Paris and the
provinces. But our
new company is in a
phase of development
and is looking for
partners in the specia-
lised distribution net-
works.
Pomegranate of the Pearl of Caucasus,
Azerbaijan, is the best in the world
Laurent Denoel, President of the company of Byanat
When CIFAL has opened
its Office in Azerbaijan and
what are its activities?
CIFAL is the oldest and largest
French international trade and
industrial services firm dedicated to
Eurasia. From its headquarters in
Paris, CIFALs operational strength
is implemented through a unique
network of representative offices
and subsidiaries all over the Cas-
pian and Central Asian regions.
First French company to settle in
Azerbaijan in 1993, CIFAL has
strengthened its positioning over
the years, developing a wide range
of services to answer the growing
needs of its partners in the Oil and
Gaz, Infrastructure, Security,
Defense.
In which form are you
accompanying French
enterprises in Azerbaijan?
Based on its extensive experience
on various industrial sectors, of its
long term presence in Azerbaijan,
and with the support of a broad
portfolio of business associates,
CIFAL has defined an integrated
offer answering some of the requi-
rements in the different market seg-
ments.
A commercial, technical and indus-
trial turnkey developer, with varied
and successful references in Azer-
baijan, as well as a long experience
of Azerbaijan-France relations,
CIFAL is committed to handle
complex projects with our Azerbai-
jani and French partners:
- Building together the most appro-
priate integrated offer
- Selecting reliable western and local
industrial partners
- Implementing ambitious, state-of-
the-art and sustainable projects
From its Paris headquarters and
Baku office, CIFAL dedicate all its
expertise to the Logistics and Ope-
rational support: meetings and pre-
sentations, technical translations,
commercial assistance, outsourced
management of human resources.
How do you assess business
possibilities for French
enterprises, and
particularly, in
infrastructural sector?
The Government of Azerbaijan
has prepared a strategy, Azerbai-
jan 2020: Outlook for the
Future, which will set the stage
for the country's development
and the infrastructure develop-
ment, which is a government
priority focuses on transport,
urban services etc. The develop-
ment of local and international
transport will be improved and
the integration of the countrys
transport into the international
system expanded. Accordingly, a
new unified strategic approach
will applied to automobile, rail-
way, water, air and underground
transport. The construction and
reconstruction of national high-
ways, the Underground subway
of Baku, the new airports, and
infrastructure of other big cities
as Ganja, Sumgait, etc. willing be
opportunities for the French
company. Now we have
Bouygues TP, Systra in Azerbai-
jan and I think the expertise of
companies such as Vinci
Construction, Egis etc. have also
place in the Azerbaijani market.
The geostrategic position of
Azerbaijan and favorable business
conditions presented more and
more opportunities for the
foreign company.
We handle complex projects
with our Azerbaijani and
French partners
Kamala Muradova, Director of Office of CIFAL Group in Azerbaijan
D
.R
.
D
.R
.
D
.R
.
D
.R
.
National Holiday
of Azerbaijan in
Baku
The city of Tovuz
of Azerbaijan
Embassy of the Republic of
Azerbaijan in France
78, Avenue dIena, 75116, Paris,
France
Tel. + 33 1 44 18 60 20
E-mail: secreta-
riat@azambassade.fr
Website : www.azambassade.fr
Mr. Elmar MAMMADOV,
Counselor on economic affairs
and cooperation with regions,
Embassy of the Republic of
Azerbaijan in France
E-mail: elmar.mammadov@
azambassade.fr
Embassy of France in the
Republic of Azerbaijan
7, Rue Rasul Rza, AZ 100, Baku,
Azerbaijan
Tel. + 99412 490 81 00
Website: www.ambfrance-az.org
Mr. Herv SARNELLI, Economic
Counselor of the Embassy of France
in the Republic of Azerbaijan
e-mail:
herve.sarnelli@dgtresor.gouv.fr
Azerbaijan Export and
Investment Promotion
Foundation (AZPROMO)
Mr. Rufat MAMMADOV,
President of AZPROMO
Tel.: +99412 598 01 47/8
E-mail: rmammadov@azpromo.az
Website: www.azpromo.az
Chamber of Commerce
France-Azerbaijan (CCFAz)
Mrs. Mirvari FATALIYEVA
e-mail: contact@ccfaz.com
You can get all information
about expositions organized
regularly in Azerbaijan from
the following website:
www.iteca.az
You can get all information
about organization of
touristic visits to Azerbaijan
from the following website:
www.azerbaijan.travel
Department of Tourism of
the Ministry of Culture and
Tourism of the Republic of
Azerbaijan
Tel. + 99412 492 87 13
E-mail: mct@mct.gov.az
Useful contacts
LE MOCI - N 1960 - 3 april 2014 - Edition Azerbaidjan 2014 35

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