President Ilham Aliyev has met with businessmen members of MEDEF, the Movement of the Enterprises of France, in Paris.
The President of Azerbaijan was met by the president of “MEDEF International”, Jean Burelle.
The president of “MEDEF International”, Jean Burelle, said:
- Mr. President, it is an honor for me and my friend and colleague Christian Mons to chair this meeting. We express our gratitude to you for taking the time. We know that the agenda of your visit to your favorite city of Paris is extremely tense.
There are about 60 representatives of various companies here who have come to hear your views on the economic development of Azerbaijan, the contribution French companies can make to this progress and the role they can play in your country. We are very interested to hear you.
My colleague Christian Mons will conduct the “question-and-answer” session. After my brief introduction, if you don’t mind, we will listen to you and then Christian Mons will start the “question-and-answer” session. Please share your thoughts with us.
Thank you again for taking the time.
You had a meeting with President Hollande yesterday. You also took part in the opening of rooms at the Louvre museum dedicated to Islamic art. In addition to the economy and gross domestic product, we know that friendship and culture are also a great asset of our countries. There is a kind attitude towards us. We know that you love France.
Thank you again for taking the time. We will be together for one hour.
Mr. President, I give the floor to you. Thank you.
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The President of Azerbaijan made remarks at the meeting.
Remarks by President of Azerbaijan Ilham Aliyev
- Thank you very much. First of all, thank you for the invitation. It is very nice to see old friends here in Paris. I remember our previous meetings at MEDEF. These contacts have greatly facilitated effective economic partnership between leading companies of Azerbaijan and France. I am very happy to come back to Paris.
As you said, I met with President Hollande yesterday. We had a frank and open discussion on many issues and, of course, on the successfully developing bilateral political ties.
This meeting has once again confirmed that our political relations are of strategic nature.
We are friends and partners, we actively cooperate both bilaterally and in the international arena. In particular, following Azerbaijan’s election to the Security Council, the relations between our two countries on international issues and on issues of mutual interest in the region and the world have become more active.
As you noted, along with political relations, we have also discussed our relations in the cultural sphere. These ties are also developing very well. As you mentioned, I attended the opening of the Islamic art section of the Louvre museum yesterday.
Today we will participate in the opening of the Azerbaijani Culture Center in Paris. This is the first culture center to open outside of Azerbaijan. Last year we laid the foundation of a French school in Baku. I could mention many other activities – exhibitions, cultural exchanges, concerts and other important activities that create further conditions for cooperation.
Overall, our political communication, the open and sincere relations play an important part in economic cooperation.
We are, therefore, very pleased to have established strong cooperation not only in the political sphere, but also among our nations, in the cultural sphere. As for economic cooperation between our countries, there is rapid development of mutual trade, now the figure is $4.6 billion and it keeps growing. In the future, we would like to witness greater diversification of trade relations.
I think that is a good potential for expanding our ties beyond the energy sector.
Azerbaijan's energy policy goes beyond regional borders. Today, we work with our European partners on the energy security of Europe, and French companies such as “Total” and “GDF-Suez” are our long-term partners. We are working together on the implementation of future plans and projects.
Azerbaijan has large reserves of oil and gas, and the already diversified pipeline infrastructure. We are working on a new system of pipelines. This system will enable us to export our available and future gas in different directions. Economic diversification and diversification of energy supply routes are extremely important to us. We are pleased that our interests coincide with those of our European partners in the energy policy. With regard to natural gas, Azerbaijan will become a major partner of Europe. With regard to oil, the share of Azerbaijani oil in the energy balance of some European Union member-states exceeds 30 per cent. Most of it is produced from a relatively new source. Proven gas reserves in Azerbaijan exceed 2.5 trillion cubic meters. As I said earlier, we are working on a new system of pipelines. We would be happy to see French company as partners in this project, in particular in the TANAP project, which will significantly change the energy map of the region and Europe.
If we look at the economic indicators, I think have achieved economic diversification. This manifests itself in a number of figures, in particular for the first six months of this year. The gross domestic product in the non-energy sector grew by more than 10 per cent. In general, the Azerbaijani economy grew three-fold in the last eight years. Living standards have improved, poverty declined from nearly 50 to 7 per cent, the unemployment rate is 5.4 per cent. Our foreign debt stands at nearly 7 per cent of the GDP. In a country of 9.3 million people, we have created over a million jobs. Unemployment, as was the case 5-10 years ago, is not a serious problem. International financial institutions are closely monitoring our achievements and challenges. We are pleased that even during the financial crisis the three leading rating agencies – “Standard & Poors”, “Fitch” and “Moody's” – raised Azerbaijan’s credit rating. The latest ranking of the Davos Economic Forum placed Azerbaijan in 46th place in the world for competitiveness. This is the highest indicator among countries of the region, among all our neighbors.
In the future, we will pay even more attention to the non-energy sector. I think we have achieved all the goals in the energy sector and have already launched the projects we are implementing now. Our goals in the next 10 years are modernization, diversification, industrialization of the economy, investment in agriculture and information technology, in particular space technology. In fact, French companies are assisting us in this area. This will be our goal in the next 10 years.
As I noted, we have achieved a threefold GDP increase and created a modern infrastructure in the last eight to nine years. In the next 10 years, a decade of sustainable development, our goal is to double the non-energy GDP. I think this will be possible in the next 10 years. I believe we can do this thanks to our experience in the field of transformation and effective communication with the world's leading companies.
French companies have been successfully operating in our country for many years. In the energy sector they operate as an investor, and in others as contractors. Of course, we would like to see French companies in the non-energy sector as an investor. I think there is a good potential for that as the economy develops and new opportunities emerge. Azerbaijan is becoming a regional center – not only political but also economic. Azerbaijan plays a balancing role in the region. I think that an assessment of Azerbaijan’s investment opportunities will be of interest to French companies. At the same time, we would like to see them as contractors. I can think of many French companies that work actively with us. Yesterday, at a meeting with President Hollande, I mentioned that prior to this visit my assistant gave me a brochure on the activities of French companies in Azerbaijan. I think that a book with the names of the companies will be published in a few years. This is our plan. I am satisfied with the level of our political and economic cooperation. We have a very sincere, predictable and steady cooperation.
Azerbaijan is an open country. I think that doing business in our country is promising. Currently, the private sector accounts for 80 per cent of Azerbaijan's GDP. There are very liberal economic policies. The World Bank’s “Doing Business” report has placed Azerbaijan among leading countries. The country has a favorable investment environment. For the volume of direct foreign investment per person, Azerbaijan ranks first among former Soviet republics.
We expect that $20 billion will be invested in Azerbaijan, in our economy this year. Currently, the proportion between foreign and domestic investment has changed, as 70 per cent of the investment is local. This means that the competitiveness of our companies is growing.
In fact, Azerbaijan has launched major investment projects abroad. In the region, we primarily invest billions in the Turkish economy. In the next five years this figure will reach nearly $20 billion. In Georgia, we are investor No 1. The largest taxpayer in Georgia is our State Oil Company. We also plan to invest in EU member-states and the former Soviet Union. We are also diversifying our financial reserves, which is very important.
Given the history of relations between Azerbaijan and French companies, we can operate even in third countries as co-investors in the coming years.
I don’t want to take too much of your time talking about Azerbaijan. I know that many of you have visited our country and have your own impressions. And those who haven’t been to Azerbaijan, I invite you to our country to explore business opportunities and strengthen our partnership. Thank you.
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Jean Burelle:
- Mr. President. We and any other country of Western Europe struggling with debts are pleased to listen to you here in Paris today and hear your presentation and views on Azerbaijan’s achievements and economic situation. Having heard a few minutes ago that the national debt of your country forms 7 per cent of the GDP, I wished it could be so in France too.
There are some questions we want to ask you. My colleague Christian Mons will start the “question-and-answer” session now.
Please, Christian.
Christian Mons: Mr. President, thank you for your participation. There are more than 50 executive directors and general managers representing French companies at this table. They, that is we, are here to ask questions primarily about your country’s progress. Our companies represent energy, transport, infrastructure, water management, service, tourism, banking and other sectors. They would like to ask you brief, specific and, at the same time, as always, precise questions. If you agree, I will start with the questions and answers with Mr. Borrell from “Total”. He would like to ask you a question.
Michael Borrell: Thank you very much. Mr. President, I don’t have a specific question I want to ask. I just wanted to comment in front of my colleagues on a few questions we discussed at the meeting with you on Monday. First of all, on the natural gas sector. In your remarks you noted the achievements in the energy sector and future goals. I think that this, as you pointed out, is a good indicator of the investment environment in the country.
On our part I can say that we are satisfied with our participation in Azerbaijan’s oil sector and are proud of it. We had the opportunity to have a discussion on the “Absheron” field the discovery of which we announced together with you in September last year. Together with our partners present here – “GDF-Suez” and SOCAR – we made a statement on the financial cost of the well on “Absheron”. As you know, the key condition for its development on the desired scale and in the desired timeframe is the enhancement of drilling opportunities in the Caspian Sea. We are working on the well together with SOCAR. I do hope that new drilling rigs will be used in production.
We also talked about the issue you mentioned, i.e. the gas produced in the region and how to deliver it to the European market. I think that our 10-per-cent interest in the “Shah Deniz” project demonstrates that we have a big role. We worked as an operator, then worked on the “CP” and its extension together with SOCAR, on the creation of what you rightly described as a strategically important infrastructure for the TANAP project, which will pass through Turkey to European markets. Then these two competing pipelines will deliver gas either to Italy or even higher up to Austria to become part of the European gas market. The main condition is partnership in this area.
We also had the opportunity to discuss further development of our partnership with SOCAR, our future activities on- and offshore. I think you have encouraged us for rapid progress in these talks. Thus, we continue to move towards the goals you have laid down in the petroleum sector.
I think, as I noted in the three bullets of my commentary, partnership with SOCAR and other companies in Azerbaijan is key to our success. The investment share of “Total” in Azerbaijan is a clear demonstration of your words about the attractiveness and stability of the investment environment in your country, of the confidence that allows us to invest billions of dollars in our long-term projects. This gives us a sense of confidence that they will pay off over a long period of time. And you can carry on convincing people that they should continue their efforts to cooperate with SOCAR and Azerbaijan, be reliable partners, increase their joint revenue both with our own and with your experts and companies. Thank you.
Christian Mons: Thank you. Mr. Christian Gazin from “Bouygues Travaux Publics”.
Christian Gazin: Mr. President, I represent the construction department of “Bouygues Travaux Publics”. We are engaged in the construction of various buildings, infrastructure, railway and civil facilities.
We are particularly interested in the development of the Baku underground. We cooperate with local company “Akkord”. We are currently working on the blue line of the underground. I would also like to say that there is a larger company in France which sometimes is in competition with us. We have decided to set up a French group with this company in Azerbaijan, which will also include local companies. Our company has 30 years of experience in underground construction in the capital of Egypt, Cairo.
Now we are involved in several other projects.
My question is as follows: What would you say about the future of the Baku underground, the blue line in particular?
President Ilham Aliyev: Thank you. We have a major plan on the development of the Baku underground. Some time ago I chaired a large conference and we adopted a state program on development of the Baku underground. So far we have 23 underground stations. Most of them were built in the Soviet era. But in the last few years we open a new station each year.
However, our plans are broader.
The major development plan envisages the construction of an additional 50 stations by 2030. This means that we have to work hard and will need good partners. Incidentally, French company “SYSTRA” is working on a large development plan of the Baku underground. This project will be funded entirely by the state, from the state budget. To this end, we allocate major funds each year. The only issue is that we need good contractors. We have our own company which is building underground for Azerbaijan.
It has bought a new drill installation which makes work easier. But given the scale of the work, the pace and the goal we must achieve by 2030, we will need international contractors. I am glad that you plan to work with local companies, which is very important to us. Because in the process of economic transformation we also work with foreign companies and want local companies to become international.
Working with a company like “Bouygues Travaux Publics” will be a good experience and track record for local companies. If they ever decide to work outside of Azerbaijan, they can refer to a joint project with “Bouygues Travaux Publics”. In general, I support this approach and wish you success.
There is still much to do on the underground. This will become one of the most important infrastructure projects to be implemented in Baku in the coming years. Thank you.
Christian Mons: Thank you for your answer, Mr. President. Mr. Bonneau from “Vinci Construction” wants to add a few things to your commentary.
Chairman and executive director of “Vinci Construction” Alain Bonneau: Good morning, Mr. President. I just heard about the underground project. I came to Baku to attend the World Tunnel Congress, met with many people working in the field of underground, in particular with the chief of the Baku underground. I would like to confirm what was said by Mr. Gazin. That is, if you agree, a new French construction group would be interested in the construction of underground lines. We talked a lot about this.
It is important for us to obtain good agreement, and I think we need to work with local companies, with Azerbaijani companies with good experience. As you noted, Azerbaijan already has long underground lines and we are ready to help you with upgrades and other projects. Thank you.
Christian Mons: Representatives of two leading water management companies are present here. if you don’t mind, they want to ask you two questions. First, the Europe director of “Veolia Eau”, Jean-Luc Debrand, and the executive vice-president of “Suez” on international development, Mr. Eric Gebel.
Jean-Luc Debrand: Mr. President, considering the major investment programs in water supply and sewage systems our company is involved in, there is a need for qualified professionals in the field of management. My first question is this: is it possible to establish a partnership with the government of the Republic of Azerbaijan to create such a school or training center?
My second question: will the ministry in charge of the water and sewage infrastructure turn to specialized French companies to meet these needs?
President Ilham Aliyev: We have major plans on water supply and sewage projects. We have always had this problem.
Unfortunately, the water supply of Baku and other cities of Azerbaijan has never been sufficient. The system established in the Soviet times was not adequate. It should be noted that this system is outdated and creates many difficulties. Therefore, we decided to implement a major program on the supply of clean water. The water quality must meet World Health Organization standards, all our cities must be provided with water. Of course, Baku in the first place because it is the largest city of Azerbaijan and the whole of the Caucasus.
The program is very broad, responsibility for it lies with our public company “Azersu”. As I know, they collaborate with “CDF-Suez” and have recently held discussions. I hope that specific steps will be taken soon to implement the project. Our goal is to supply water to all the cities of Azerbaijan by the end of 2013. In parallel, we will create a modern sewerage system. But it will probably be impossible to do that by the end of next year. This job may take several more years.
The issue associated with Baku is more complex. We have to do a lot not only financially, but also technically. Most of the work will be financed from the state budget again. We have loans from banks to help complete the project quickly. It will be one of the most important infrastructure projects in the coming years. Because all other infrastructure projects have either been implemented or such projects as the construction of new power plants, gasification of Azerbaijan and even the construction of main and rural roads are currently underway.
In the next five years, water supply and sewage will be of high priority. We will implement this project stage by stage. As I said, the first stage by the end of 2013 and the second by the end of 2016.
Therefore, we appreciate the cooperation with French companies. We have already discussed with representatives of “CDF-Suez” their experience in other countries and how they carried out these projects. I understand your company also cooperates with Azerbaijan, and quite successfully. I wish you success. We will continue working on this project. I do hope that this problem will not be there in the coming years. Thank you very much.
Christian Mons: Thank you, Mr. President. Mr. Gebel, is there anything you want to add?
Eric Gebel: No, I just want to assure you that we want to turn “Azersu” into a world-class company in the shortest possible time. We have cooperated with “Azersu” for two to three years now and are close to becoming the first company to have achieved an improvement of water supply of Baku. This is a serious issue for us and we are sure that in the next two to three years we will create a competitive environment.
President Ilham Aliyev: Thank you. I just wanted to add that after our meeting I told “Azersu” to work more closely with you and start the project. I also want to remind all our friends what I said what about water supply at the meeting two days ago. The tasks are very simple problem: we need water supply 24 hours a day, 100 per cent coverage and water meeting World Health Organization standards. These are three main and simple tasks. By achieving these results, I think we can resolve this problem forever. It will have a serious impact on people's lives, health and overall development of our country. Because Azerbaijan is developing very fast. The process of modernization is so fast that we can no longer accept the current water supply situation.
But I repeat that this problem has always existed in our country.
In the first years of our independence there were other serious issues that had to be resolved. Perhaps that was why this issue was not a priority. It was also very expensive. Until we started to invest in our country ourselves, the talks with international financial institutions held for over 10 years did not yield solid results. After we incorporated water projects in our budget and state financing programs, international financial institutions also expressed interest and became more active. Now there is a good coordination of projects funded by the state and banks, and this creates an environment for collaboration.
Christian Mons: Thank you very much, Mr. President. Can I ask you a question on behalf of the majority of French companies here? It is mostly a political question, but it is related to the economy. It would be interesting if you could inform us of the date of your country’s entry into the World Trade Organization. You spoke about this earlier, but we would like to hear about your plans.
President Ilham Aliyev: We are working on that. We are in the process of bilateral consultations with partner countries, and this process is continuing successfully. At the same time, I would like to note that there are two opinions as to when Azerbaijan will become a member of the World Trade Organization. First, as soon as possible. This view is quite reasonable because it will enhance our competitiveness in the market. And this, we hope, will have a positive impact on consumer prices. At present, Azerbaijan is a country integrating into a number of international organizations and is close to becoming part of the World Trade Organization. The other approach is somewhat different – not in terms of the content, but in terms of the timing. Because, as I said, we are working hard on diversification. We have a state program to encourage private enterprise. For example, funds in the amount of 300 million Euros are envisaged for small and medium enterprises in rural areas next year. The state will provide them low-interest loans. We provide major subsidies to agriculture. Our farmers buy fuel at half the price. They buy fertilizer with a discount of 50-70 per cent. Except for the land tax, they are exempt from all taxes. If they plant corn, they are given 100 Euros per hectare. These subsidies allow us to significantly reduce our dependence on imported agricultural products.
Today, we can meet our needs for some items by 80-85 per cent. Our goal is to provide ourselves with agricultural produce by the end of 2015. This has contributed to the creation of one million jobs, mostly in rural areas.
So, I want to touch upon the second approach. The second approach is that if we join the World Trade Organization today, it could have a negative impact on entrepreneurship in rural areas. This may cause problems related to employment. Some of our products may stop being competitive. So I would say that the main idea is to continue the process of improvement, diversification, investment, private sector development not only in agriculture but also in the heavy industry, and to become a member of the World Trade Organization at a time when our economy is in better condition. We are trying to find our way between these two approaches. Thus, we are in talks. Most likely, our membership will not happen in the near future.
Christian Mons: It was a very clear explanation.
President Ilham Aliyev: Thank you.
Christian Mons: Thank you very much. I think we can now move on to other questions. We have a little more time. If you wish, if you agree, we can talk about tourism and sport. We all know how beautiful your country is. It will be very interesting for “Gregory International”, which is better informed about tourism and sports infrastructure projects.
Representative of “Gregory International”: Good morning, Mr. President. Our company specializes in the construction of golf courses and athletic fields. We operate only on an international scale. We visited your country and witnessed a large growth potential. My question is very simple. I would like to know whether you have approved a project on the construction of a golf course and what sports facilities are to be built in the future?
President Ilham Aliyev: Yes, there are projects on the construction of golf courses and they are already being implemented. Two sites are under construction, not in Baku but 150-200 km from the capital, in the mountains and in a green area. There are plans to build two golf courses. But these are private investments, not public.
As for public investment, we invest a lot in sports infrastructure. The biggest sports or concert hall, “Chrystal Hall”, was built specifically for the “Eurovision” song contest. We had very little time and it was built in nine months. It is a beautiful sports facility with 17,000 to 20,000 seats. We are also upgrading our stadia. In the last 10 years 34 Olympic sports centers were built in Azerbaijan, which has contributed to our successful performance at the London Olympics.
Thus, sport will continue to be one of the main areas of investment in the focus of attention. We will do even more for that. We are currently in the final stages of building a new ski resort in the Caucasus Mountains. It is also realized through public investment. Most likely, the center will be open for skiing this season. It will be one of the most beautiful and comfortable ski resorts because we have studied the experience of all ski resorts, including those in France, Switzerland and Austria. We used their positive sides to create maximum comfort for people, athletes and everyone who likes this sport. So we will see an even greater number of projects in this area and are ready to work with partners. Currently, we plan to build an Olympic Stadium with a capacity of 60,000-80,000 people. The construction is likely to begin in the near future.
We have a lot of plans. You said you have been to Baku and are probably aware of our plans. I hope you will take part in some of the projects. Thank you.
Christian Mons: Thank you, Mr. President. Another question is about legislation. Mr. Nalet from “Lactalis” wants to ask you about customs procedures for dairy products and customs legislation. He has the floor.
Nalet: Good morning, Mr. President. Before talking about these procedures, I must note that what you have said about your country's agricultural sector and its development was very interesting. I represent “Lactalis Group” here. Two leaders in the production of dairy products are present in this room: my colleague from “Danone” is seated on the opposite side of the table.
We are the leader in the production of dairy products in France. We are represented in Azerbaijan by a small staff of 30 people.
We import products from the region and from France. It is the requirement of the day to create a business in your country, be partners with the Azerbaijanis and implement what is carried out in other European countries here.
We think there is a great need for that. The range of products offered by shops must be expanded. We wish to develop it and would like you to help us, the companies present here, not only in terms of trade but also in laying the groundwork for long-term and sustainable development, as we do in other countries.
President Ilham Aliyev: Thank you. I fully support your activities in Azerbaijan. I have already expressed my opinion on this issue and want to repeat that our plan is to provide ourselves with all consumer goods. Of course, we have a free market economy.
There are wide ranging products and people can buy them depending on their financial situation. But we must achieve 100-per-cent domestic production of everyday consumer goods, the main products. This would be useful both in terms of keeping the prices low and in terms of employment.
As for dairy products, we currently provide approximately 80-85 per cent of the country's demand for milk domestically. I attended the opening of most new and large dairy enterprises. I must say that these enterprises operate on the basis of modern and state-of-the-art technologies and their products are of very high quality.
It is hard to give recommendations, but I would like major manufacturing companies to set up facilities in Azerbaijan. This is the best way to go in terms of cooperation, business relationships and mutual benefit. The time when we were dependent on imported food is already in the past. The situation is quite different now. A few years later the situation in terms of local production will be even better. The country’s market is also growing. Some goods produced in Azerbaijan have a good potential for exports to regional markets because we have free trade agreements with some of our neighbors, so we have no problems with the export of our products.
Many agricultural products that are not consumed in our country are exported in fresh and processed form to regional markets.
As you know, these regional markets are large and broad.
So it would be safe to recommend our partners to assess the possibility of creating joint manufacturing facilities. Depending on your interest, these can be enterprises fully owned by you or created in cooperation with local manufacturers. The creation of quality manufacturing facilities meeting modern standards in Azerbaijan is something we are also interested in.
Christian Mons: Thank you, Mr. President. Now the floor is given to Mr. Limousi from “EADS Astrium” who will ask a question about the space industry.
Limousi: Good morning, Mr. President. I represent “EADS Astrium”. I am very glad that you mentioned the business relating to the artificial satellite and space. We have recently provided “Azerkosmos” with proposals on satellites for control over the surface of the Earth. I would like to have full support of the government of Azerbaijan in this issue. Because this is largely a non-commercial issue depending on the government. I would like to find out when you plan to start signing the agreements on this issue and what your assessment of France’s position is?
President Ilham Aliyev: We have major plans related to the creation of space industry and to this sphere. This was sometimes perceived with surprise internationally, some didn’t expect us to invest in this area. But if we are to become a competitive country, develop and transform it into a modern state, it would be difficult to do it without new technologies, especially space technologies.
We look forward to the launch of our first satellite. There has been some delay in this matter. We expected it happen last year, but it was postponed. It will be done by French company “Arianespace”. At the same time, as you noted, we are working on projects related to new satellites. I fully support the collaboration between the French company and “Azerkosmos”. French companies have extensive experience in this field and are considered leading companies in the world. Currently we are working on putting our satellite into space, then we can work together on other areas. We plan to speed up our efforts in this direction.
We can’t waste any time in areas that are of strategic importance. We are working to achieve these goals. In many ways we set ourselves ambitious and short-term plans and goals. But all this is not impossible. If we hadn’t worked so hard and fast, we couldn’t have tripled our GDP in eight years. This is a project aimed at the immediate future. I fully support your cooperation with “Azerkosmos” and am sure that you will build a relationship of cooperation in this sphere.
In fact, Azerbaijan’s cooperation with your company has been very successful – the purchase of “Airbus” aircraft. We are now considering other new projects. This cooperation has a good historical basis. Also, we earlier bought “Eurocopter” helicopters and ATR planes from French manufacturers. Our airline is mainly based on French-made aircraft.
Thank you.
Christian Mons: Thank you, Mr. President. Sorry there are so many questions. We understand that you have limited time.
President Ilham Aliyev: If there are many questions, we can extend our time.
Christian Mons: A lady wants to ask you about the security of the important infrastructure.
Representative of “MBDA”: Mr. President, I represent another company of “EADS” – “MBDA”. Our company specializes in the protection and security of important infrastructure. We have visited Azerbaijan several times and met with representatives of various ministries. I wonder how you see the cooperation between “EADS” and your country. We can consider cooperating with companies, including the State Oil Company of Azerbaijan, because this company has very important infrastructure, and with “Total”. My second question is somewhat similar to the questions asked by my colleagues. I will say it briefly. I am here for two reasons. I am also the chairperson of the CIS committee of the French group of companies “GIFAS”, which specializes in space industry and aeronautics. My colleague spoke about the space industry, but we have many other areas where we can work together, for example, aeronautics. I also represent many small companies interested in working with you. I would like to know whether it is possible to arrange a visit to your country at the level of “GIFAS”, so that French companies could find new partners there.
Christian Mons: Very interesting suggestion.
President Ilham Aliyev: Yes, it is. I can say that I fully support these issues. We are interested in working with a variety of large, small, medium-sized companies and investors, particularly in areas that are new to us, such as the aerospace industry. We don’t have much experience in these areas. Therefore, we feel the need for greater international cooperation. I am sure that our plans relating to the development of this industry will open up opportunities for most large, small and medium-sized companies.
Therefore, visits by various companies as part of large teams to become familiar with our plans and meetings with people would be a good idea for aligning their plans with ours.
As for the security of the infrastructure, it is a very important issue. In previous years, security was not up to standard. In fact, I would say that security was at such a simple level that it was limited to the construction of a fence. But important infrastructure is significant not only because of the energy sector, but also in other areas. Because we often witness accidents, earthquakes, floods. In fact, the devastating earthquake this year and the floods two years ago caused severe damage to our country. But no country is immune to such threats and acts against important infrastructure. We are creating a new system of energy infrastructure and reservoirs. It is a modern system similar to what you use in France. We are in the process of creating such systems.
Another plan is to create a system in the next few years that would enable 100-per-cent protection from negligence and error.
So I think there will be many opportunities for collaboration in this area.
Thank you.
Christian Mons: Thank you, Mr. President. Please, Mr. Burelle.
Jean Burelle: Our time is running out. My friend and colleague sitting next to me, Eric Fournier, who represents the Foreign Ministry’s department for regions of the European continent, has a question.
Eric Fournier: Mr. President, I express my deep gratitude to you for your time. You have perfect plans for the future. Yesterday you also witnessed a lot of attention to your region on the part of our President. We would like to see your region stable, we feel the need to work with all investors to establish peace and tranquility in the region. Your messages today show that French companies have confidence in the stability of the region. If there were no confidence in stability, then perhaps there would be no investment. I think we have very good plans in this regard. As part of these plans, as we informed your minister, Foreign Minister Laurent Fabius intends to visit your country next year. I think we can start to work together with such perfect plans. Thank you for your support.
President Ilham Aliyev: Thank you. I totally agree with you. We know from the history of our country that there have been periods of instability. And if there is no stability, it is impossible to think of development. Unfortunately, at the time of the collapse of the Soviet Union, Azerbaijan faced a very difficult situation. We were in a very difficult political situation – a political crisis, the Armenian aggression, the occupation of our territories, civil war. Our economy was in full recession, there was stagnation, inflation was at nearly 1,000 per cent. The economy was so weak we had to start everything not even from scratch, but from a lower, deeper level. But through political reform and stability we managed to overcome those difficulties. In 1997, economic stability was achieved, then the economy started growing. Of course, foreign investment plays a significant role. But investors can’t venture into a country where there is no stability. For this reason, we thank our partners, including French companies, for believing and supporting us in finding a way out of that difficult situation.
Today, Azerbaijan is not only a stable country, it is also a stabilizing factor in the region. We are involved in all major regional projects. We have initiated most regional energy, transport and political projects. Last year, we won the votes of 155 countries to be elected a member of the UN Security Council, which indicates that we have asserted ourselves in the world.
We have a clear vision for the future. We see a future Azerbaijan as a modern and developed country fully integrated into the international community, where all the freedoms, including economic, are provided and there are high standards of living. Perhaps the leader of any country would want this for his state and citizens. We have a very good chance to achieve this.
I would like to repeat what I said earlier. Bilateral relations between France and Azerbaijan are very important. Over all these years we have witnessed mutual cooperation and understanding at a high level. Our yesterday's meeting with President Francois Hollande confirmed again that the work done up to now opens the door for new cooperation. Therefore, the role of companies may be greater than before. Because now Azerbaijan has greater potential than 10 years ago. We will continue our reforms and there will be even more projects for our companies in the future.
Jean Burelle: Mr. President, we have reached the end of our meeting organized at breakfast. Your successes in the past suggest that your future plans will also be successful. We will look forward to seeing you in Paris or in Baku with the participation of delegations led by Christian Mons.
Thank you for taking the time and for your valuable answers.
President Ilham Aliyev: Thank you very much.
