Azernews.Az

By Nigar Orujova

Spanish companies are planning to develop a long-term cooperation with Azerbaijan, Azerbaijan's Ambassador to Spain Altay Afandiyev told Trend.

"The economic relations between Azerbaijan and Spain can be estimated as developing dynamically with good prospects," he said.

The trade-economic relations between the two countries have been changed both quantitatively and qualitatively over the past 3-4 years, Afandiyev added. "We should promote the active participation of Spanish companies, including small and medium-sized ones, in the implementation of various projects. It is observed particularly in the development of urban, transport and social infrastructure, construction and equipping the administrative buildings and complexes, creating and supplying equipment for the sports facilities and related infrastructure created for the first European Games, as well as other areas of alternative energy, ecology, agriculture and so on," he said.

At the same time, the Spanish companies have expressed their interest in expanding cooperation in new areas of strategic importance for bilateral, regional and international ties, he said.

"In this regard, we should mention an international consortium led by Spain's Tеcnicas Reunidas company which implements one of the largest projects of Azerbaijan's state oil company SOCAR in Turkey - the construction of a petrochemical complex in Aliaga city," the ambassador said.

"This company is interested in further strengthening and expansion of cooperation. It is holding negotiations with SOCAR on a very large project for modernization of the country's petrochemical complex," he added.

Another major company, Gas Natural Fenosa has signed a long-term agreement with SOCAR (Shah Deniz consortium) on purchasing and distributing natural gas in Europe, Afandiyev said.

Also Spain's Enagas has recently acquired a 16-percent share in important regional project like TANAP.

All this shows that Spain and Spanish companies are seriously looking for ways to develop long-term cooperation with Azerbaijan, Afandiyev said.

"At the moment, relations between the two sides are developing outside the system of promotion and development of trade and economic relations, which must be created at an intergovernmental level," the diplomat said.

He went on to add that a targeted work is being conducted in this direction. "I believe that we will be able to see new dynamics and content in our relations in near future."

"All of the above-mentioned items confirm the Spanish government's intention to create a more committed and coherent policy," he noted.

He said the deep economic crisis in Spain and Madrid's new strategy to cope with it have pushed the country towards new prospective markets. "In this context, Azerbaijan is one of the most attractive countries," Afandiyev stressed.

The diplomat noted that the growing number of Spanish companies in Azerbaijan - large, small and medium- is impressive.

"Meanwhile, we see there are still a lack of data, insufficient development of the legal and contractual framework, institutional support and incentive mechanisms," he said.

Moreover, the lack of direct flights between the two countries has its own impact, he said.

At present, both public and private structures representing interests of the business circles in Spain are working on a number of measures to level the above mentioned issues and promoting the entry of Spanish companies into the Azerbaijani market, the ambassador said.

"The interest of Spanish companies is widening," he said. "It covers a whole range including construction, architecture, design and decoration of the interior, alternative energy, industry and energy, information and communication technology, environmental protection, transport infrastructure, agriculture and food, design and engineering services, tourism and tourism infrastructure."

Spain as a whole is interested in attracting foreign investments, and Azerbaijan is not an exception in this regard, the diplomat said.

"For example, investments by the oil-producing countries in the Middle East have increased in recent years," Afandiyev said. "In addition to the favorable situation, the investment climate has been greatly simplified in the country. Meanwhile a list of priority projects for which Spain intends to attract capital has been prepared. The parties need to conduct more targeted works in this direction."

Spain recognized Azerbaijan's independence in December 1991, and the diplomatic relations between the states were established in February 1992.

Trade turnover between the two countries amounted to $140 million in 2013.

Azerbaijan's embassy in Spain has initiated the establishment of a joint chamber of commerce with aims to increase the trade turnover between the two countries, to attract Spanish companies to Azerbaijan, take Azerbaijani goods to the Spanish market, to organize mutual business forums, trade and investment missions, and to organize other events to promote bilateral cooperation.