CEIBC companies to be base of trade relations between Azerbaijan and European Union – Andris Piebalgs

Caspian-European Integration Business Club (CEIBC) held a session on the subject of “Caspian European energy cooperation” in Baku on September 15. The session was held with participation of EU’s energy commissar Andris Piebalgs.     While rendering a speech at the session, Andirs Piebalgs provided information about the activity of the European Commission, measures undertaken by the European Union in the field of energy, implementation of infrastructure projects and prospects of expansion of mutual relations with the private sector of Azerbaijan and other Caspian states. “Relations with Azerbaijan are not based only on energy. I would say that energy falls by the wayside just like within CEIBC”, A.Piebalgs noted in his speech. According to him, the process was initiated by the policy of good neighborhood which changed Azerbaijan’s reputation in Europe. Nowadays, foreign affairs ministers of the EU countries discuss new measures in Brussels for tightening of relations between Azerbaijan and EU. This includes the development of the associated agreement which may promote further expansion of trade relations. In spite of the fact that oil-gas sector remains the shell of the Azerbaijani economy, there is still a need for the development of other economy spheres for successful development of cooperation. This will provide an opportunity to participate in trade with EU countries which is considered to be a capacious market”, A.Piebalgs said.  The European Commissar assumes that this will not be an easy way since the country still conducts negotiations on entrance into WTO whereas this is a thorny path for the producing countries. “But nevertheless, this way shall be successful for Azerbaijan and I am sure that the Club shall become the framework of new trade relations between Azerbaijan and EU”, Piebalgs said. Speaking about energy issues, European Commissar reminded that EU was interested in diversification of energy supplies. According to him, diversification is the best way of obtaining of energy security. “This is beneficial for suppliers and customers and provides certain stability since the conjecture develops in different manner in various countries”, he noted. In opinion of the European Commissar, EU’s being unpoliticized market where many customers are present and each monopoly gets collapsed makes it attractive for gas producers in Azerbaijan. “This is a policy that EU adheres to and this is the way the market price is set without any political constituents”, he said. During CEIBC session, A.Piebalgs also touched infrastructure projects supported by the EU. “The European commission has been though a long way for signing of the intergovernmental agreement on Nabucco and I think that we developed a good prerequisite for transit through Turkey”, he noted. In his opinion, companies involved in the project shall do much work in future: “SOCAR works together with the European customers and Turkish BOTASH and discusses commercial issues of future commercial supplies of Azerbaijani gas to Europe”. He expressed an assurance for Azerbaijani gas to be supplied to Europe. “Some volumes have been indeed supplied from Azerbaijan to Greece and we are interested in the increase of supplies. 7-8 billion cubic meters per year are not sufficient for EU but it is enough for justify investments”, European Commissar said. In his opinion, further increase of supplies depends on the development of the market. He expressed an assurance that supplies from this region may increase up to 20-25 billion cubic meters per year that is quite sufficient for diversification of gas supplies to EU. EU approves the way the European companies operate in Azerbaijan. While summarizing his speech, A.Piebalgs mentioned the three major positions of EU in cooperation development with Azerbaijan. At first, general political and general economic relations which develop relations between Azerbaijan and EU, secondly, oil and gas supplies to the European Union, at third, opportunities for investing into Azerbaijan’s economy which are risky byt profitable particularly oil and gas. “Of course all of this will promote Azerbaijan’s development”, A.Piebalgs said while resuming his speech at CEIBC session.  European Commissar answered numerous questions of member-companies of CEIBC, congratulated Club companies on the 15th anniversary of the Contract of the century and invited CEIBC companies to conduct a meeting in Brussels. During the session, A.Piebalgs was handed a certificate of honorary member of CEIBC. Telman Aliyev, President and CEO, CEIBC, provided details on the history of the Caspian-European Integration Business Club. According to him, about 50% of member-companies of the Club represent non-oil sector of the economy. Attraction of revenues of gained from the oil sector into the non oil economy sector is considered to be one of the major goals of CEIBC. According to T.Aliyev Green Energy & Ecology Public Organization was established under the support of CEIBC. Within the framework of Caspian Energy International Media Group, established was also Alternative Energy International Publishing House for broad development of this project. New quarter journal, weekly analytical bulletin and daily news shall be released under the aegis of the new Alternative Energy subdivision. Besides, passed was a decision to establish Alternative energy Award which shall be given to companies and organizations, as well as to representatives of state structures and Mass Media for their contribution into development of application of alternative energy sources and maintenance of the ecological balance of the region.    Participating in the meeting were companies from Russia, Kazakhstan, turkey, Georgia, the USA, Great Britain, France, Ukraine, Latvia, Iran and other countries.     REFERENCE:   CEIBC was established in June 2002 at support of Caspian Energy International Publishing House and largest oil&gas companies working across the Caspian and Black Sea regions. Since 2002, CIBC Honorary Chairman has been HE President of the Republic of Azerbaijan Ilham Aliyev. At first CIBC brought together the companies from Azerbaijan, Russia and Kazakhstan. The Club’s activity proves to be very successful as the number of member companies grew from 16 businesses in 2002 to more than 300 in 2007 and over 500 member companies and organizations from 32 countries around the globe. CEIBC mainly seeks to create favourable business doing conditions in the Caspian-Black Sea and Baltic regions, to maintain business-to-government dialog in order to improve business doing conditions, promote contacts between large businesses and SME  and attract revenues from oil to the non-oil sector of the country. The Club has managed to consolidate the business community of the region and set up a number of branch Clubs that now bring together mainly the non-oil sector of the country and promote information exchange and active government-to-business dialogue.     * No part of materials, information, articles along with video and audio contents can be published or distributed without reference to the CEIBC event.   For additional information please contact: Tel.: (994 12) 447 02 36/38, 447 21 86/87 Fax: (994 12) 447 22 71 E-mail: info@caspenergy.com URL: www.caspenergy.com; www.cibcgroup.com   15/09/2009