Foreign trade communications between Stavropol region and Azerbaijan

Economic relations between Russia and Azerbaijan have the long traditions. The spirit of strategic partnership is characteristic of all range the Russian-Azerbaijani relations. High level of political mutual understanding provides a possibility of forward development of bilateral trade and economic, scientific and technical and humanitarian cooperation.

Foreign trade of the Russian Federation with the Azerbaijan Republic is regulated by the mode set by the bilateral agreement between the Government of the Russian Federation and the Government of the Azerbaijan Republic about free trade of September 30, 1992 and the Protocol on stage-by-stage cancellation of withdrawals from a free trade of February 6, 2004 to this Agreement, the Agreement between the Government of the Russian Federation and the

Government of the Azerbaijan Republic on the basic principles and the directions of economic cooperation of January 21, 2002 and also the Agreement between the Government of the Russian Federation and the Government of the Azerbaijan Republic on the principles of collection of indirect taxes in mutual trade of November 29, 2000.

In recent years in Azerbaijan considerable strengthening of economy and living conditions of the population is observed, in particular even in the period of a global economic crisis rather stable growth of economic indicators is recorded.

According to statements of the ministry of economic development of relationship in the field of trade and economic cooperation between regions of Russia and Azerbaijan are estimated as very perspective and dynamic. Following the results of 2013, despite not the best situation in the world markets and a weak environment the Russian-Azerbaijani commodity turnover has reached a historical maximum in 3,6 billion dollars (growth by 2012 for 5,0%), including the Russian export has grown to 2,9 billion dollars.

The main goods of the Russian export to Azerbaijan are natural gas, the electric power, production of machine-building branch (including bulk carriers and barges, automobile and trucks, machines and the equipment), hire of ferrous metals, timber, cement and products from him, production of chemical industry, foodstuff.

In the structure of export of Russia to Azerbaijan in 2013 deliveries of foodstuff (22,2%), cars and the equipment (28,5%), metals and a product from them (15,7%), wood and pulp and paper products (14,2%), production of chemical industry (9,3%) prevailed.

In import of Russia foodstuff (60,9%) – fats and vegetable oils and their fractions, white sugar and pure sucrose, hazelnuts, the tea black fermented have made food mixes of animal and vegetable oils, juice of Azerbaijan a considerable share fruit and vegetable, fresh fruit and vegetables, wine and cognac production;

mineral products (13,8%), including fuel and energy goods (12,3%), and also textiles and products from him (9,2%).

Azerbaijan takes also leading positions in structure of foreign trade of many regions of Russia and it is considered the major strategic partner that is confirmed by commodity turnover figures. Azerbaijan is a large trade partner of Stavropol Krai, taking in his foreign trade turnover the second place after China, and the first place among the CIS countries.

According to the federal body of the state statistics Stavropol Krai exports 22,3% of all goods.

Thus, the attention to Azerbaijan as traditionally to one of the leading importers of the Stavropol production of certain types, including food and agricultural goods has been seriously increased.

In non-oil sector of economy Azerbaijan and Stavropol Krai have reached the highest level of integration. It is possible to tell with confidence that today in the region of South Caucasus the state which is the most effectively integrated from the economic point of view in the field of trade and economic influence of the region is Azerbaijan. Now the share of Azerbaijan of foreign trade of Stavropol Krai makes about 9,6%. In 2013 the volume of a foreign trade turnover of Stavropol Krai with Azerbaijan has increased by 49% in comparison with an indicator of 2009 or 60 mln. dollars of the USA. Export to Azerbaijan has grown by 69% (to 71,5 mln. dollars of the USA), and import, on the contrary, has decreased by 50% (to 4,9 mln. dollars of the USA). The positive balance in trade with Azerbaijan makes 173,6 mln. dollars of the USA.

With 1996 a basis of the Stavropol export to Azerbaijan, as well as in previous years, cereals, fertilizers mineral and chemical make, acids acyclic (5%). About 50% of import of Azerbaijan are the share of cereals. On the second position there are mineral fertilizers which supply in 2013 has made nearly 8,3 mln. dollars. The third commodity group on value – cars, the equipment and vehicles.

Azerbaijan also buys in Stavropol Krai alcoholic and soft drinks, vinegar, ready-made products, flour, flour confectionery, forages for animals, products from a stone, plaster, cement, asbestos, etc.

The analysis of economies of Azerbaijan and Stavropol Krai shows that there is a trade complementarity between two regions. Thus, the structure of export of Azerbaijan and import of Stavropol Krai correspond each other and vice versa. For example, fresh fruit and vegetables have comparative advantages in export from Azerbaijan, especially in the Stavropol market. There are a lot of reasons for that.

First of all, the Stavropol market is closer to Azerbaijan that leads to decrease in transport expenses. Secondly, the favorable climate and the soil give the chance to use seasonal advantages. Thirdly, in Russia there is a distribution network created by natives of Azerbaijan. At last, in the territory of Azerbaijan a large number of gardens of melon cultures since the Soviet period is created. Their capital expenses have been written off long ago, and the harvest makes profit.

However growth of a trade turnover – is uneven. So Russia and its regions have lost position of the largest importer of goods to Azerbaijan as on a share in import in 2012 it was outstripped by Turkey. Import from the USA, Germany and China also showed an obvious tendency to growth, and the share of goods in republican import for the studied period has grown from the USA exactly twice.

At preservation of the current dynamics of a turn of foreign trade, in the next 3-5 years there can be a final reorientation of economy of Azerbaijan to foreign countries. Here it makes sense to remind of an example of Georgia where formation of westernized orientation of the country has happened against growth of a share of the EU and Turkey in the Georgian import.

Certainly, Azerbaijan is less dependent on foreign partners as it has independent sources of currency and much less Georgia depends on import of consumer goods, including food, than. However change of a trade environment can create conditions for activation in the region of "nonconventional" geopolitical players, including India and China. It is unlikely it will be led to instant inclusion of Azerbaijan in their zone of influence, however by logic of modern policy such is that behind goods investments, and come for those – the foreign state structures seeking to protect interests of the business.

The Azerbaijani and Russian producers with assistance of government, bank, customs and other structures actively cooperate in many field of economy, including the field of agriculture. Import of early fruit and vegetables to Russia and its regions and counter deliveries of the Russian foodstuff to Azerbaijan are one of the main directions of mutually beneficial cooperation. Recently vigorous steps are taken for improvement of the scheme of delivery of the early vegetables from Azerbaijan to the Russian market.

«Экономика и социум» №12(31) 2016