EUROPE BECOMES CLOSER

Azerbaijani-Italian relations can be called a real model of trade and economic cooperation between Azerbaijan and Italy. It is no coincidence that the last few years of this interaction have the character of a strategic partnership.

A visit of mutual interest

On February 19-22, 2020, President of the Republic of Azerbaijan Ilham Aliyev paid an official visit to the Italian Republic and the Vatican. During the visit, President Aliyev met with all the top leaders of the Italian Republic, as well as the leadership of the Holy See.

The main outcome of the visit was the signing of more than 25 documents, significantly strengthening the political and legal framework for bilateral cooperation. According to the vast majority of estimates, the economic agenda was the basis of the program of visit to Italy, as the significant part of meetings and negotiations was devoted to the diversification of trade and economic relations.

Italy is one of the leading states of the European Union, which became the third largest economy of the EU after the leave of Great Britain. That is why the nature of the relationship between Azerbaijan and Italy will greatly affect the nature of relations with the EU as a whole. Negotiations on signing the association agreement with the EU is reaching the finish line. After the adoption of the joint declaration on strengthening multidimensional strategic partnership, Italy becomes a locomotive in trade and economic cooperation between Azerbaijan and the EU.

Italy is one of the main buyers of Azerbaijani oil, and after the commissioning of the Trans-Adriatic Pipeline (TAP), it will also become the main buyer of Azerbaijani natural gas among the EU countries. This fact plays the role of a resource base for bilateral cooperation. According to the results of 2019, the trade turnover between the two countries exceeded $6 billion. In general, among the countries of the South Caucasus, Azerbaijan accounts for 92% of Italy's trade turnover.

President Ilham Aliyev has repeatedly drawn attention to the fact that the Azerbaijani economy is not only oil and gas. Azerbaijan has a diversified economy, in which other industries such as engineering, chemical, light, and food are present. Therefore, Italian investors can show great interest in participating in economic projects in a number of other sectors of the national economy.

Beyond oil and gas

The accelerated development of non-oil sectors in Azerbaijan urges the diversification of foreign economic activities. The willingness of the Azerbaijani government to attract foreign investment is combined with the interest of Azerbaijani investors to invest in promising projects abroad.

Today Azerbaijan is becoming one of the most important investors for Southeast Europe. In particular, our investments are noticeable in countries such as Macedonia, Bulgaria, Romania, Montenegro, Serbia, and Croatia. Azerbaijani investors harnessing the Balkan market may also be interested in investing in projects on the Apennines. Azerbaijan has always underlined that investment should be two-way, encouraging foreign investors in Azerbaijan and creating conditions for Azerbaijani investors. Therefore, in general, Azerbaijani-Italian cooperation has great prospects, including in the fields of transport, communication and tourism.

In recent years, Azerbaijan has become an efficient transport hub. Italy can take advantage of the transport infrastructure created in the region. This may be beneficial for Italian manufacturers, companies that want to be represented in the markets of the South Caucasus and Central Asia.

By the way, during the visit, a cooperation agreement was signed between the ports of Alat (Azerbaijan) and the seaports of Trieste and Genoa (Italy) on the development of cargo transportation from China through Kazakhstan, Azerbaijan, Georgia and Turkey to Italian ports on the Mediterranean Sea. This will create the necessary prerequisites for the activation of bilateral and transit trade.

“We welcome large investments from Italy and are ready to invest in Italian economy. Azerbaijan’s investments in Italian companies and real estate reach approximately $1.5 billion, and we have the potential for development,” said President Aliyev. He also noted that the development of cooperation in space industry and tourism is also promising. The number of Italian citizens visiting Azerbaijan is growing. There are many other sectors for development as well. In other words, close political relations provide a solid foundation for the business community.

The visit opens a new page in the history of bilateral relations in that for the first time the parties agreed to develop cooperation in the military-technical sphere as well. This is especially important in terms of Italy's support for the territorial integrity of Azerbaijan, which is reflected in the joint declaration.

Historic visit to the Vatican

The outcome of the visit of the President of Azerbaijan to the Italian Peninsula would be incomplete without a visit to the Holy See. One of the main items on President Aliyev’s agenda was the discussion of the prospects for humanitarian, or rather, inter-confessional and inter-civilisational dialogue, in which the parties play a prominent role.

The central event of the visit was the awarding of the First Vice-President of Azerbaijan Mehriban Aliyeva with the Grand Cross of the Order of Pius IX, one of the highest papal orders. This is a recognition of the merits of Azerbaijan and personally the First Lady and the head of the Heydar Aliyev Foundation in implementing large-scale programs in the Vatican in recent years.

Currently, the Heydar Aliyev Foundation is implementing several projects in the Vatican. According to the agreement signed in February 2019 between the Heydar Aliyev Foundation and St. Peter's Basilica, the Foundation is restoring the bas-relief Meeting of Pope Leo I and the Hun Emperor Attila in the St. Peter's Basilica and the tomb of Tullius Zethus located in the catacombs of the Vatican Basilica. The works will be completed in May this year.

In addition, restoration works in the catacombs of St. Comodilia are ongoing, and will be completed in 2020. As part of the project for the restoration of the museum-church of St. Sebastian in the catacomb complex, the last finishing works were completed.

The Heydar Aliyev Foundation was the only institution that responded to the call of Cardinal Ravazi for the restoration of the catacombs of Saints Marcellino and Pietro. Moreover, this was done on the personal initiative of Mehriban Aliyeva. The Vatican did not forget about this and openly admit that the Roman catacombs, which are of great historical value to humanity, have found a new life with the support of the foundation. Since then, partnerships between the Heydar Aliyev Foundation and the Pontiff Council on the Vatican culture have constantly grown and developed.

Undoubtedly, a visit to the Vatican was of great significance for the President and First Vice-President of Azerbaijan. The results of this visit will be felt for a long time in the implementation of joint projects and initiatives. They will further encourage not only  Azerbaijani-Italian cooperation, but also the cooperation between Baku and the Vatican. They will also have a stimulating effect on the development of EU interest in the Caspian region as a whole.