Azerbaijan, Slovakia eye new economic agreements to strengthen bilateral ties

Official Baku and Bratislava are considering new agreements that will soon be formalized, according to Anar Akhundov, Azerbaijan's Deputy Minister of Economy.

"We are currently reviewing 13 additional agreements that are expected to be signed, further strengthening our ties," Akhundov said on September 25 at the Azerbaijan-Slovakia Business Forum, as reported by Caliber.Az.

The deputy minister noted that 14 documents have already been signed between the parties, including the "Agreement on Economic Cooperation between the Government of Azerbaijan and the Government of Slovakia," which covers industry, construction, transportation, logistics, investment promotion, energy, mining, tourism, small and medium enterprises, and agriculture.

"This agreement has laid a solid foundation for our economic partnership," Akhundov emphasized.

Akhundov also mentioned that trade between the two countries amounted to 31 million USD over the first eight months of 2024. "Although most of the trade consists of our imports from Slovakia, we recognize the significant potential to increase our exports by expanding energy cooperation with Slovakia," he added.

According to the Deputy Minister, Azerbaijan, with its vast oil and gas reserves, plays a crucial role in ensuring Europe's energy security, highlighting that Azerbaijan aims to export 20 billion cubic meters of gas to the EU annually by 2027.

"Slovakia's participation in the 'Solidarity Ring' gas corridor (STRING) project is critical for developing our bilateral relations in the energy sector. Our cooperation within this project reached a new stage after the signing of a Memorandum of Understanding in Sofia in 2023 between SOCAR and distribution system operators from Bulgaria, Romania, Hungary, and Slovakia. We are currently discussing practical aspects of gas supply and transportation using the relevant systems," Akhundov stressed.

He also noted that after the first meeting of the Joint Working Group on Economic Cooperation between Azerbaijan and Slovakia, held on Wednesday, the parties agreed to intensify efforts in various areas to elevate bilateral economic cooperation to a new level, as all the necessary conditions for this are in place.

"Naturally, cooperation in the energy sector was widely discussed, and while it continues to develop actively, our relations will diversify beyond this field," Akhundov said.

Separately, the deputy minister highlighted Azerbaijan's favourable business climate and attractive investment conditions, inviting Slovak companies to invest in the economy.

Specifically, Akhundov pointed out that large-scale infrastructure and transport projects are being implemented in Azerbaijan, particularly in the Karabakh and East Zangezur economic regions, creating new opportunities and prospects for business. Residents of the Aghdam Industrial Park and the "Araz Valley Economic Zone" are exempt from profit, property, and land taxes for 10 years from the date of registration, and the government provides all necessary infrastructure.

"I am pleased to note that Slovak companies, along with other foreign firms, are also participating in the reconstruction of the Karabakh and East Zangezur economic regions. The 'Smart Village' project, successfully implemented by Slovak companies in the village of Garvand in the Aghdam district, demonstrates that cooperation between our two countries can continue to expand," Akhundov emphasized.

In conclusion, the Deputy Minister invited Slovak companies to participate in the upcoming COP29, stressing that Azerbaijan considers cooperation with Slovak partners extremely important.