Shahin Mustafayev: "We’ll promote production of goods that Russian market needs most" - Interview

Shahin Mustafayev: "We’ll promote production of goods that Russian market needs most" - Interview Minister of Economy of Azerbaijan Shahin Mustafayev’s interview to Report:
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June 21, 2019 11:54
Shahin Mustafayev: We’ll promote production of goods that Russian market needs most - Interview

Minister of Economy of Azerbaijan Shahin Mustafayev’s interview to Report:

- To what extent is it possible to provide new privileges to local companies to expand the access of Azerbaijani goods to the foreign market and what works are being done for this purpose?

- The state has created favorable conditions for export of Azerbaijani products, a lot of works have been done for promotion of the export. Our exporters widely use the mechanisms on promotion of export which were approved by President’s decrees and applied in the international practice. Companies participate in export missions, international exhibitions, funds are paid for promotion of export of the non-oil products. During past three years, more than AZN 13 million was paid to Azerbaijani companies.

Along with this, market researches are being conducted with the order of companies. That’s, if any company is interested in export of any products, it submits an order to AZPROMO and AZPROMO conducts research, studies the market demand, demands for quality, standards and informs the company.

At the same time, exportable products are not involved in tax and is exempted from customs duties.

Moreover, export procedures have been simplified, the ‘green corridor’ system is applied and exporters are able to export their products to foreign markets using this system.

Azerbaijani government seriously works with companies which form the market for our products. We want our manufacturers to have information about demand of those markets.

- What products are mainly exported from Azerbaijan to Russia?

- As you know, Russia is one of main trade partners of Azerbaijan and emphasis is placed on the expansion of trade links between our countries. First trade representative office of Azerbaijan in foreign countries was opened in Russia. We have wide range of goods to trade. In 2018, 3,405 ranges of goods were traded. Export of non-oil products to Russia amounted to $619.2 million, which made up 37% of Azerbaijan’s total non-oil export. Russian market is a traditional market for Azerbaijan’s agricultural products. In 2018, the export of agricultural products amounted to $540 million or 87% of total export. Main exported products include fruits, vegetables, cotton, wine and other alcoholic drinks, juices, tea and etc.

Moreover, we also export industrial products to Russia, including chemical products, aluminum, pump and compressor pipes, polyethylene packing products and etc.

I would like to note that regular discussions are held with Russia’s relevant bodies to increase the export. We aim to determine what products will be needed in the Russian market in the years ahead.

- Azerbaijan’s trade houses are a new mechanism for introduction and promotion of our products…

- It’s completely true. The trade houses are a component of promotion of the export. Trade and Wine Houses play a great role in the expansion of the export. We already have Trade Houses in Latvia, Belarus, Ukraine, Poland, Russia, China and UAE.

To note that before establishing the Trade Houses, we conduct analysis, study the market. For the present, we are working on opening of trade and wine houses in some cities of Russia, as well as in UAE, China and Kazakhstan.

Moreover, a project is underway to establish a network of stores in Russia. Within the project, the first store was launched in Moscow in March.

One of the Azerbaijani products, which is interesting in foreign countries, is wine. Our wines are successfully sold in Russia. We want to have access to new markets too. From this standpoint, the Chinese market is attractive for us and some Wine Houses have already been opened in China. Great interests is shown in Azerbaijani wines in China and I believe that we’ll sell more wines in China.

It’s known that the structure of the export is also being diversified. We need to extend export to European market too. Along with the Russian market, we are also interested in Chinese and European markets in terms of wine.

Igbal Rustamov

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