TEMPTING PROSPECTS

- Mr. Ambassador, how do you assess the level of political and economic relations between Hungary and Azerbaijan?

- First of all, I thank the editor of Region Plus for his interest in Hungary. I am sure that information on the pages of your magazine will bring us even closer to each other.

With regard to political relations between Hungary and Azerbaijan, I am glad to say that they are not burdened by conflicts and disagreements, and gradually develop in a spirit of mutual respect and understanding based on common principles enshrined in the UN Charter, the Universal Declaration of Human Rights, as well as in numerous documents signed, on the one hand, by the European Union, of which Hungary has been a member since 2004, on the other hand, by Azerbaijan.

The development of our bilateral relations is proved by the numerous visits by high-ranking delegations. Azerbaijani President Ilham Aliyev has repeatedly visited Budapest, and Hungarian politicians and government leaders also often visit their Azerbaijani counterparts.

As regards the level of economic relations, I would like to say that each year they are developing dynamically. In 2008, our commodity turnover was over $86 million. This dynamism is also proved by the fact that Hungarian export between 2004 and 2008 increased by more than eight times - from $10 to $85.8 million. Unfortunately, Azerbaijani export is lagging behind that level. In 2008, it amounted to only $35,000.

One of the objectives of our embassy is to contribute to the development of trade and economic relations for mutual benefit. To this end, our embassy has an employee specializing in the issue.

- What steps have yet to be taken to strengthen the legal framework for the development of these relations?

- Within the framework of cooperation between the European Union and Azerbaijan, our countries are parties to fundamental international and inter-state treaties, agreements and conventions and other multilateral acts signed within the framework of international organizations such as the UN and its specialized organizations. Naturally, there are always areas where you can go further. For example, cooperation between the academies of sciences, scientific institutes, institutions of higher education in the field of joint research, development, information exchange, etc. 

I can say with confidence that the regulatory framework between our two countries is good for further joint work. Since 1992, when diplomatic relations were established, we have signed about 15 agreements, most of them being economic, for example, an agreement on reciprocal promotion and protection of investments, avoidance of double taxation, etc. In 2008, we agreed on the establishment of an Azerbaijani-Hungarian intergovernmental commission for economic cooperation. Both sides have already begun preparing for the first meeting of the commission, which is expected in the first half of next year here in Baku.

- Hungary is one of the active participants in the Nabucco project. Some analysts are still sceptical about the chances of this project. When do you think we can expect real progress in this regard?

- Nabucco is an initiative of incredible magnitude, involving a variety of states in different regions and even continents. It is clear that the organization of project preparation, coordination of conditions and the interests of the participants require painstaking work. Every day we move forward and resolve problems. Instead of hasty results, we need a strong, long-term framework for multilateral collaboration.

- What role do you think Azerbaijan could play in accelerating the implementation of this project?

- Azerbaijan's role in Nabucco is much more important: it is one of the suppliers of the gas transported through the pipeline. The government of Azerbaijan has repeatedly stated its readiness to supply gas, which is appreciated by the EU and countries participating in the project. Of course, there are a number of conditions that are necessary for the start of deliveries.

- How do you assess the potential of Azerbaijani-Hungarian economic relations in the non-oil field?

- We see great potential for the development of economic relations in the so-called non-oil sector and appreciate your economic policy, which is aimed at the comprehensive development of your economy, using revenues from the oil and gas industry. The structure of Hungarian exports shows the following picture: 54 per cent - machinery and equipment, 38 per cent - manufacturing and 7 per cent - food products. We have already started cooperation in the non-oil sector, although in small amounts.

- In which areas of the Azerbaijani economy do Hungarian companies have an interest and how can we increase this interest?

- We are interested in many industries:

- Development of small and medium-sized enterprises, joint ventures in trade and production;

- Agriculture: Supply of food products, high-quality seeds, equipment for processing agricultural products, training of Azerbaijani specialists, etc. I would say that we would be very happy if we could return some well-known Hungarian food products, such as, for example, Globus cans, to your market;

- Supply of cranes or modernization;

- Participation of Hungarian firms in the construction and reconstruction of various objects;

- Cooperation in the environmental field: Hungary has the potential to provide services and technologies such as handling and disposal of hazardous waste, cleaning up the environment (land, water), as well as recycling of secondary raw materials, biological recultivation, etc.;

- Cooperation in tourism: Hungary has great experience in this field and in so-called wellness tourism. Hungary is a centre training specialists in this type of tourism. It is necessary to develop the exchange of Azerbaijani and Hungarian tourists. You have a beautiful country with great potential to attract foreign tourists. We help establish contacts between a Hungarian university and your University of Tourism;

- Cooperation in the field of health and pharmaceutical industry: two Hungarian pharmaceutical companies Gedeon Richter and EGIS are already present in Azerbaijan with their high-quality medicines. In addition, Hungary can deliver modern medical equipment for hospitals and clinics.

- Azerbaijan has proclaimed the development of high technologies as a priority of the economy in the future. What can Hungary offer in this area?

- In the sphere of high technologies we can also offer something. For example, in Hungary electronics, as a new industry, already accounts for 16 per cent of GDP. Our income from exports is $20 billion. Primary products are mobile phones, medical diagnostics, automobile industry, industrial electronics, domestic appliances, etc.

In addition, we can also offer cooperation in biotechnology: in the field of clinical diagnostics, nanomedicine, services and technologies for the pharmaceutical industry.

- And finally, before the opening of the embassy in Baku, the Consulate General of Hungary operated here. How do you assess the activities of the Consulate General - are you satisfied with the foundation that was laid to promote cooperation?

- The Consulate General of Hungary, which worked in Azerbaijan under the leadership of Honorary Consul Kamran Hasanov, laid the foundation for further cooperation. But its scope and capabilities were inadequate for broader development of our bilateral relations. The opening of an embassy, that is, full representation at the highest level with appropriate powers, became a necessity. For comparison, our embassy in Baku has four highly experienced diplomats, while our other embassies have fewer employees. I think this is vivid evidence of the importance of relations between Hungary and Azerbaijan.

In conclusion, let me thank the government and people of your country for their hospitality and friendly relations with our country.