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Hungarian ambassador: The Eastern Partnership will not only bring economic profit to Azerbaijan, but will also help start dialogue with the neighbors, this is the major aspect for the solution of any conflict - INTERVIEW

03 February 2011 13:53 (UTC +04:00)

-How do you assess the level of Azerbaijan-Hungary relations?

-I want to point out with pleasure that there is no problem, or discrepancy in the political relations, they are developing in the spirit of mutual respect and understanding basing on the general principles proclaimed in the UN Charter, Universal Declaration of Human Rights and in a number of documents signed by the European Union, which Hungary was admitted to in 2004, and Azerbaijan. Visits of senior officials prove the development of our bilateral relations. President Ilham Aliyev visited Budapest several times. Hungarian politicians, officials often visit Azerbaijan. Foreign Affairs State Secretary Zsolt NÃ©meth and Foreign Minister JÃ¡nos Martonyi will visit Azerbaijan in February.

-Could you give information about the volume and prospects of trade turnover between our countries?

-The trade turnover between Hungary and Azerbaijan rose from $10.5 million to $85.7 million in 2004-2008. Fortunately, the level of the trade turnover almost did not change during the world economic crisis in 2009. But some decrease was observed in 2010. Export from Hungary to Azerbaijan made up $85.6 million in 2009, export from Azerbaijan to Hungary $900. Export from Hungary within ten months of 2010 made up $62 million, export from Azerbaijan to Hungary reached $318,000, this indicates positive development. The major part of the export was energy resources. 49% of the export from Hungary to Azerbaijan is mechanical equipment, 31.8% derived products and 4% food products and drinks.

The level of economic cooperation is unsatisfactory, both sides admit that there is large potential for economic cooperation. We should restore our relations, as a basis there exist agreements on investment protection signed in 2007 and avoidance of double taxation signed in 2008. In 2008 our governments signed an agreement on economic cooperation. In 2009 Hungarian embassy was opened in Baku.

Agriculture is one of the potential spheres for the development of economic cooperation. Hungaryâ€™s agriculture has developed much. We can offer our traditional products â€“ canned vegetables, fruits, sausages etc.

We also offer the technologies and machine equipments used in the agriculture, we are ready to construct warehouses, refrigerating chambers, hothouses and to offer technological equipments not only for great establishments, but also small and little establishments. We see the perspectives of joint establishment which produce Azerbaijanâ€™s agricultural goods in CIS space.
The other potential spheres are ecology and restored energy resources. For example - water purification, solid waste disposal, utilization, cleaning of contaminated areas and etc. the Hungaryâ€™s experience in producing of biogas will be used in hothouses and agricultural farms.

- How do you assess Nabuccoâ€™s future?

- Azerbaijan is rich with energy resources, but Hungary is not. The 80% of gas used in Hungary is purchased from Russia. Hungary is interested in diversification of exporting the energy transporters. Now we buy a few energy transporters from Azerbaijan. We wait for Azerbaijani gas in two routes â€“ Nabucco and AGRI. Our interest is based on that the Hungaryâ€™s MOL oil and gas company is the Nabucco shareholder and has 16.67% in the consortium. We hope that 2011 will be an important year. We are expecting for the crucial decisions on Shah Deniz 2 field, for investment decisions by Nabucco shareholders and decision on the technical-economic basis related to AGRI project. The complexity of these decisions is their mutuality and connectivity. We also hope that expected changes to Nabucco project will be made in 2011.

- Is the Azerbaijan-Hungary business forum planned?

- We expect that this forum will be held in parallel with the second meeting of the intergovernmental commission. This meeting will be held in Baku this year.

- How do you assess Azerbaijanâ€™s participation in the Eastern Partnership?

- The Eastern Partnership is a strategically important program in the direction of deepening and strengthening of relation between the European Union and Eastern Partnership members. The main purpose of this program is to achieve political union, to create bilateral deep and broad free trade zone between the European Union and Partnership members, to free visa travel. The Eastern Partnership also considers the development and strengthening of contacts in the human and scientific-cultural cooperation spheres. This program has a great importance both for Hungary and Azerbaijan in the fields of economics and development of political interests, and is perspective for the development this business, trade turnover, service and people. I think that the Eastern Partnership will not only bring the economical profit to Azerbaijan, but will also help to begin dialogue with its neighbors. It is the main aspect for the resolution of any conflict. The program plans to grant 600 mln Euros to its member countries till 2013. This allocation is planned to strengthen the state establishments, the control to the borders. The noted sum can be increased in the future. This program is an ambitious initiative both for the European Union and Azerbaijan, this initiative will greatly benefit Azerbaijan and will help to its active development.