Baku, Azerbaijan, April 1. Spain eyes expanded
investment ties with Azerbaijan and proposes ‘Boomerang Model’,
Amparo López Senovilla, Secretary of State for Trade at Spain’s
Ministry of Economy, Trade, and Business, said in an exclusive
interview with Trend, as she attended the Azerbaijan-Spain business
forum held in Baku on March 11.
She pointed out that this long-awaited mission was a unique
opportunity to enhance relations between Azerbaijan and Spain.
“I am convinced that there are extraordinary prospects to be
realized in working and growing together. Along with trade
partnerships between our companies, I think that it is essential
that we position ourselves as members of a business community that
reflects our complementarities and our shared values and
aspirations,” she said.
Senovilla pointed out that on the one hand, Azerbaijan has
undertaken major projects in recent years and an ambitious route
towards decarbonization.
“Azerbaijan has led the development of energy infrastructures
critical for Europe’s energy security and achieved remarkable
improvements in the Middle Corridor. Initiatives such as the
Caspian-Europe Green Energy Corridor, the Southern Gas Corridor,
and the Caucasus Energy Corridor have placed Azerbaijan as a key
strategic partner to Europe’s decarbonization efforts.
On the other hand, Spain is one of the biggest and one of the
fastest-growing economies of the European Union. Our country is a
global reference in renewable energy, infrastructure, transport,
and digitalization, among other sectors. Our geographical location
and our historical ties make our country the perfect platform for
business with Africa and Latin America. We are eager to develop a
strong partnership with Azerbaijan in these as well as in other
fields,” she explained.
Spanish secretary of state for trade recalled that during this
visit a “Memorandum of Understanding regarding Strategic Economic
Cooperation between the Republic of Azerbaijan and the Kingdom of
Spain” was signed.
“The purpose of this MOU is to promote cooperation in all
strategic economic fields between Azerbaijan and Spain, including
cooperation between our respective institutions and the
establishment of joint ventures in different areas of cooperation.
We will encourage investments and the flow of capital, goods and
services. A Strategic Economic Dialogue was established. This
Dialogue will be very useful to discuss issues of great importance
between the Ministry of Economy of Azerbaijan and the Ministry of
Economy, Trade and Business of Spain, which I represent,” noted
Senovilla.
She believes that trade relations between Spain and Azerbaijan,
not being negligible (bilateral trade surpassed the billion-euro
mark in 2022, for example, but the level was lower in the following
years), are far from their potential, considering that Azerbaijan
is a strategic partner for Spain as a logistic hub connecting
Europe with Asia and also an essential partner and an ally, as far
as energy security is concerned.
“Energy should continue to be a key sector in our future
economic relations, linked to the green transition in both our
countries. We have a very competitive ensemble of Spanish companies
in the renewable energy sector that fit very well with the
decarbonization plans of the Azerbaijani government. Agroindustry
is also an interesting sector, as the recent visit of AGRAGEX (the
Spanish Association of Exporters of Agricultural Machinery and
Inputs) to Azerbaijan has proved. Railway transport, water
treatment, and information and communications technologies are
sectors in which Spanish companies excel and are ready to do great
things in Azerbaijan. City development is another of our strengths,
very well suited to the revitalization of the Karabakh region,”
said Spanish state secretary for trade.
She noted that more than twenty Spanish companies, headed by
representatives of the Chamber of Commerce of Spain and the Spanish
Confederation of Business Organizations (CEOE), were present to
participate in the Azerbaijan-Spain business forum.
“From the Spanish point of view, this is a real success. I am
sure that this event will be a milestone and a starting point for
future bilateral business meetings and trade missions to Spain and
Azerbaijan in the next few years. We have great confidence in the
capacity of the aforementioned new Strategic Economic Dialogue
framework, to boost cooperation in all relevant sectors. Enhanced
cooperation between AZPROMO and the Small and Medium Business
Development Agency, on the Azerbaijani side, and the Spanish Agency
for Trade and Investment (ICEX), CEOE and the Chamber of Commerce
of Spain on our side, will also be fundamental to develop new
initiatives in many essential fields. We will encourage our Export
Credit Agency (CESCE) and the Spanish Company for Development
Financing (COFIDES) to act more decisively in order to promote
business activities of Spanish companies in Azerbaijan. Our
ministry is also eager to support potential projects to be executed
by Spanish companies using the financial resources of the Spanish
Official Funding – Corporate Internationalization Fund (called FIEM
in Spanish), which is a very flexible instrument, able to give
financial support to trade and investment operations in favor of
public or private Azerbaijani entities,” noted López Senovilla.
She went on to add that SOFAZ, the State Oil Fund of Azerbaijan,
has shown a great deal of confidence in the Spanish economy.
“We are very grateful for this and we hope that Azerbaijani
investments in Spain will keep growing as the economic and
commercial ties between our two countries increase. We would be
delighted to organize a fact-finding trip of SOFAZ to Spain to
detect new investment opportunities. We are also very interested in
the combination of investments in both directions, the so-called
“Boomerang model”. I firmly believe there is great potential to
apply this model to Spanish companies. In this sense, we stand
ready to explore co-investment opportunities in Spain with the
recently created Spanish Government Fund FOCO (Co-investment fund),
managed by COFIDES. The aim of FOCO is to unlock the full potential
of strategic sectors that contribute to the green and digital
transition as well as to the development of new technologies, by
co-investing in private companies in pari passu terms with
international investors. COFIDES already has experience in
supporting investment projects of Spanish companies in Azerbaijan,
and will willingly explore co-investment deals with SOFAZ in both
directions,” Senovilla concluded.