AzerNews,
15-21, September 2007
By AzerNEWS Stuff

Presidents Ilham Aliyev and Emomali Rakhmon agreed during talks in Baku on Monday thai Azerbaijan will lake part in a number of investment: projects in Tajikistan. "We agreed that a group of our oil industry specialists will visit Tajikistan shortly to explore avenues to carry out oil and gas operations," Aliyev told a news conference cm the results of discussions.

Geological exploration carried out during the Soviet times showed that the Centra! Asian state possesses hydrocarbon resources. Dushanbe is now seeking the assistance of highly-skilled Azerbaijani geologists.

The president said opportunities for Azerbaijan's participation in other investment projects in Taj ikistan would be discussed within the inter-governmental commission that the two leaders agreed to set up during the talks. The body will exercise control over economic projects implemented in the two countries and provide suitable conditions for the operation of businesses.

Aliyev said Azerbaijan was actively cooperating with international financial institutions. The country's rating has been improving, which indicates that it is able to channel considerable funds into the implementation of investment projects.

Bilateral relations, regional security, prospects for settling the Armenia-Azerbaijan conflict over Upper (Nagorno) Garabagh, and joint efforts in combating international terrorism awl drug trafficking were discussed drug trafficking both private and broad meetings with Tajikistan's representatives.

"Our positions overlap on all issues," the Azerbaijani leader said. "The stage of effective economic cooperation between the two" countries has begun. Both countries have great potential to realize joint projects."

President Aliyev noted that Azerbaijan-' and ^Tajikistan' arc" also cooperating withiri intcrrtational organizations. He said the Azerbaijani embassy will open in Dushanbe soon. Rakhmon praised the outcomes of his visit to Baku. He said the two countries planned to bring the annual commodities turnover to $500 million within the next five years. The figure * made up only $131 million in 2006.

The Tajik leader cited vast potential to expand cooperation in the field of non-ferrous metallurgy. The Ganja plant currently supplies about 300,000 tons of alumina to Tajikistan. The two countries agreed on the supplies of other resources from Azerbaijan for non-ferrous metallurgy and the delivery of raw materials from Tajikistan for the Azerbaijani aluminum industry.

Rakhmon invited his Azerbaijani counterpart to visit the Tajik capital in October to attend die next summit of CIS leaders.

In conclusion of the talks, the two countries signed agreements on cooperation in free trade, science and technology, on lifting double taxation, education, communications, statistics, metallurgy, and one between the two justice ministries, as well as a joint declaration between Presidents Aliyev and Rakhmon.

Central Asian states are growing increasingly interested in Azerbaijan due to several key factors.

First of all, the South Caucasus republic could be used as a lucrative corridor. All of the Central Asian republics' communication lines currently pass directly through Russia. The lack of other options is causing problems, in particular, for the resource-rich Turkmenistan and Kazakhstan. The two countries are losing a great deal from transporting their hydrocarbon resources via Russian territory, as they have to sell their oil and gas for prices below those in world markets. The Baku-Tbilisi-Ceyhan (BTC), pipeline could solve the problems, with Turkmen and Kazakh exports. Kazakhstan earlier did not take interest in the West-backed route, looking back at Russia At an energy summit in Poland several months ago, Kazakh President Nursultan Nazarbayev pledged while hosting his counterpart Vladimir Putin that this country's oil would be transported only through Russia, However, during the visit by President Ilham Aliyev to Astana earlier this month, Nazarbayev agreed that part of the oil .would be exported through Azerbaijan.

Another reason for Central Asian states' growing interest is Azerbaijan's vast investment opportunities, which are increasing with the rooming oil revenues. The country now plans to implement large-scale energy projects in Turkey and Georgia. Its income from oil in the coming years will amount to hundreds of billions of dollars. Azerbaijan has allotted to Georgia a $200 million advantageous loan for the construction of the $600 million Baku-Tbilisi-Akhalkalaki-Gars railway, which will link Azerbaijan, Georgia and Turkey and create the shortest route to transport cargo between Europe and Asia. All these advantages increase the interest of countries like Tajikistan in Azerbaijan.

Whereas Azerbaijan could serve as a gateway to Europe for Central Asian states, the latter could provide the country with access to Asia, which is substantial grounds for mutually beneficial cooperation.