Economic cooperation between Azerbaijan and Italy

Since restoration of its independence in 1991 Azerbaijan has paid particular attention to development of its political and economic ties with developed market economies. One of the countries which became strategic partner for Azerbaijan is Italy. During recent years Italy and Azerbaijan have signed a number of bilateral documents related to development of economic relations thus creating solid legislative basis for bilateral cooperation. Italy and Azerbaijan made remarkable achievements in developing bilateral cooperation in oil and gas sector, including oil and gas refinery and transportation. Cooperation in this area will definitely continue due to the strategic locations both Italy and Azerbaijan. On the other hand, Italian companies can be also actively involved in development of non-oil sector of economy of Azerbaijan. Forms of cooperation may include 100% FDI, joint ventures, sub-contracting, license agreements, franchising. Cooperation on equity and non equity basis taking into consideration experience of Italy in developing of small and medium size enterprises (SMEs) could be right direction for expansion of bilateral economic relations. Cooperation with such economically advanced country as Italy would help Azerbaijan to increase further its competitiveness. Besides technical assistance, cooperation with developed market economies will allow Azerbaijan to attract more FDI, portfolio investment, technology and know-how and gradually increase competiveness of its economy.