Czech Trade Agency: "Azerbaijan may be one of main suppliers of the Czech Republic"

Interview of Levan Bokeria, Director of the Azerbaijani Office of the Trade Agency of the Czech Republic, with Report.

-How do you value the trade relations between our countries? In which areas should Azerbaijan and the Czech Republic expand cooperation?

- The Czech Trade Promotion Agency is a governmental agency; we are under the Ministry of Industry and Trade of the Czech Republic. Our agency is located in more the 50 countries worldwide. Our main goal is to promote Czech companies and help them with the export issues, find new connections, and find partners in foreign countries.

- Azerbaijan has great potential for Czech companies. In particular, we see that Azerbaijan has great potential to find partners for Czech companies. As you mentioned, the main area of trade between Azerbaijan and the Czech Republic is the energy sector. I think economic relations between Azerbaijan and the Czech Republic are quite good; overall, over the last two years, the interaction was slow due to the pandemic. So, there are many sectors that we can co-operate better and we see great potential.

-How many Czech companies are operating in Azerbaijan?

-We don’t have the exact number of Czech companies operating in Azerbaijan. Some of the Czech companies have a direct connection with the Azerbaijan partners. In general, Czech exports to Azerbaijan are diverse.

-We can find Czech companies which bring food to Azerbaijan. At the same time, we have companies that provide equipment for the energy sector for oil and gas production. For example, one of the Czech companies has a water purification plant for Baku. Water is cleaned by Czech equipment for Baku.

-Azerbaijan's export to the Czech Republic is mainly based on oil and gas, Azerbaijan is the second-biggest supplier of oil and gas to the Czech Republic. Soon, it will be the first, because of the current situation with Russia, the EU imposed sanctions on Russia, which creates big chances for the other countries, as well as, Azerbaijan. Azerbaijan can be a bigger supplier of products to the Czech Republic.

-Which products can Azerbaijan send to the Czech Republic, and which products does the Czech Republic need?

-So far, we are analyzing the situation related to Russia, because the situation is quite new for us. I think it can be materials, steel, and agricultural products. I think agricultural products can be interesting for us. This kind of raw materials can also be interesting for us. We bought raw materials from Russia. Now we are analyzing the market of the country; at the moment, it is difficult to give an exact answer about the products that the Czech Republic needs. I think that the volume of trade between the Czech Republic and the South Caucasus region may increase in the future.

-When will a joint commission meeting between Azerbaijan and the Czech Republic be held?

-It was planned to hold a meeting of the joint commission between Azerbaijan and the Czech Republic later in February or early March. Unfortunately, it was postponed due to the pandemic situation. I think that the meeting will soon be held.

-In June, Azerbaijan will host an energy forum. Are Czech companies interested in this event?

-In June, Czech companies will come to Azerbaijan. They will be not only from oil and gas but also from renewable, innovative high-tech Czech companies. They are not only suppliers in the oil and gas sector, but also innovators in the field of "green" energy, which is an energy sector based on high technology, and innovative methods, which is of interest to Azerbaijan. Czech companies are unique in this regard.

I would like to add that Czech companies recently participated in the Baku Build exhibition in Baku.

-What are the difficulties of Czech companies operating in Azerbaijan?

-It is a bit difficult and a little bit challenging to be successful in Azerbaijan without local partners. I think the main obstacle or challenge is that they need to find local partners. For this reason, we always advise Czech companies to find local partners, knowledge, and experience of local customs are essential. Also, it is important to be presented in the local market. We did our work in Europe mainly through online meetings and via the Internet. However, it is important for Czech companies to come to Azerbaijan to find a local distributor to guide them.

- Many foreign companies have already announced their intention to implement projects to accelerate socio-economic development in Karabakh and create new infrastructure, and several of them have already signed contracts and started operating. Are there any Czech companies on this list?

-It can be a great opportunity for Czech companies. I would like to see more Czech companies involved in smart cities; Czech companies are the kind of companies that will bring something new. Czech companies can offer new technologies for smart villages and cities. We do not have exact information about the activities of Czech companies in Karabakh and the agreements they have signed.

-Are there any companies that want to enter the markets of neighboring countries through Azerbaijan? For example, Georgia.

-Usually, Czech companies are interested in both countries. They approach us and they see here as one region. If they are successful in Azerbaijan, they expect to be successful in Georgia or vice versa. In Georgia, it is a bit easier, because there is Free Trade Agreement and no customs fees between Georgia and EU countries. So far, for Czech companies, it is a little bit easier to export. For example, the latest success of Czech companies is that last month Czech cosmetic brand Dermacol opened a store in Azerbaijan and they would like to export their product to Georgia, as well.

-What should be done to develop tourism between Azerbaijan and the Czech Republic?

-We co-operate with companies interested in the Azerbaijan tourism sector. Georgia is much more prepared for tourism than Azerbaijan. The infrastructure for tourism is more developed than here. It is a little sad. Because Azerbaijan has amazing nature. So, I think Azerbaijan can be a very interesting touristic place. Definitely, for EU citizens Azerbaijan can provide amazing food, good weather, mountains, sea, very smart, and hospitable people. The number of tourists should be bigger. There are Czech companies that want to bring Czech people to Azerbaijan. I consider that it needs more promotion of tourism Azerbaijan in EU countries. I think that there is a need to promote Azerbaijani tourism in the European Union.