Economist: trade turnover btw Azerbaijan, Georgia could hit record this year

The relationship between Azerbaijan and Georgia has historical roots and these two countries are united by many factors including economic ones. These two countries are not only neighbors and friends but also important strategic partners, and are well-integrated with each other.

Thus, Georgia plays an important transit role in the delivery of Azerbaijan’s energy resources to the European markets. Simultaneously, Azerbaijan is one of the major investors in Georgia, and Azerbaijan's SOCAR is the biggest taxpayer in Georgia. Therefore, relations with Georgia are of particular importance in Azerbaijan's policy regarding neighboring countries.

Reciprocal visits of the heads of countries positively affect these relations and help to develop the relations further. The visit of Azerbaijani President Ilham Aliyev to Tbilisi on October 8 is one of them. During the visit, several issues relating to the economy were discussed and it is believed that this business visit will contribute to the further development of high-level relations between the two countries and to the strengthening of cooperation in areas of mutual interest.

Speaking to Azernews on the issue, economist Eldaniz Amirov noted that the relations between Azerbaijan and Georgia are generally at a high level. However, the trade turnover between the two countries is not high in comparison with other countries. He thinks that the potential between these countries is big, and to realize it, the two countries need to review their existing potential.

“The relations between Azerbaijan and Georgia are generally at a high level, but in order for the economic relations to be manifested, especially in the trade turnover, I think that a number of things need to be done. At the same time, it is necessary to rediscover the existing potential. It is true that the joint generation of electricity produced from alternative energy sources and export to Europe through the bottom of the Black Sea will contribute to the trade turnover between the two countries,” the expert emphasized.

He added that the trade turnover between the two countries increased year-on-year and this year it could hit record. The economist also shared the figures on mutual investment in both countries.

“During the first 8 months of this year, the trade turnover between Azerbaijan and Georgia exceeded $612.87m, and this trend suggests that the turnover will exceed $900m by the end of the year. Besides, Georgia has invested $279 for 815 total investment activities in Azerbaijan, and in turn, Azerbaijan has invested $3.4bn. This means that Azerbaijan invested 12 times more in Georgia,” Amirov noted.

He also touched upon the possibility of Armenia joining this process by concluding a peace treaty with Azerbaijan and expressed that Armenia will get a huge benefit.

“As for Armenia, I think that Armenia will join this process by signing a peace treaty with Azerbaijan because it has no alternative. There is a great need for Armenia to act in the 3+3 (Azerbaijan, Georgia, Armenia + Turkiye, Iran, Russia) format, and if not, there is a great need for the development of trilateral relations between Azerbaijan, Georgia, and Armenia. Because Armenia shares big border areas with these countries. I believe that joint participation in international projects will bring great dividends for Armenia. I hope that Armenia will appreciate this fact” Eldaniz Amirov concluded.