Latvia sees growing direct investments from Azerbaijan: minister

In the first quarter of 2019, Azerbaijan’s foreign direct investments in Latvia reached 17 million euros (in 2018 investments made by Azerbaijan was 13 million euros), Minister of Economics of the Republic of Latvia Ralfs Nemiro said in an interview with Trend.

“Azerbaijan’s foreign direct investment to Latvia has a tendency to increase. However, Latvian foreign direct investment in Azerbaijan is still less than 1 million euros,” said the minister.

Nemiro believes that one of the most effective forms of economic cooperation among business representatives is the development of joint companies.

“Today (August 2019) we have about 50 companies in Latvia with Azerbaijani partners as shareholders in construction, communications, transport, trade, banking and insurance etc. sectors of Azerbaijan. Latvia is interested in a mutually beneficial investment exchange. We would welcome investments from Azerbaijan in ports and logistics centers,” said the minister.

Azerbaijan is an important economic partner for Latvia in the Caucasus region, he said, adding that development of mutually beneficial economic relations is significant to Latvia.

“The data of Central Statistical Bureau of Latvia show that the trade turnover between Latvia and Azerbaijan amounted to 28 million euros in 2018, similar trading volume was also in 2017. Positively that the trade turnover increased over the last two years. Exports of goods to Azerbaijan are dominated in the trade turnover between two countries which has a tendency to increase. However, in the first quarter of 2019 the trade turnover reduced by 16 percent compared to the same period of 2018,” said Nemiro.

He expressed satisfaction that diversification of commodities has occurred over the past two years.

“Recently, imports from Azerbaijan to Latvia are mostly dominated by food products (more than 90 percent of total imports structure). But now imports of mineral products, metals and its articles, electric equipment and machine mechanisms has started to grow. Exports from Latvia to Azerbaijan have been dominated by food products, particularly products of animal origin, as well as machine mechanisms and electric equipment, metal products, chemicals, pharmaceuticals, building materials etc.,” said the minister.