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Azerbaijan Republic

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Azerbaijan Republic AZERBAIJAN REPUBLIC Internal and external economic relations Natural conditions, resources and assortments of products produced and its amount of the country or its regions determine its economic relations. The structure of economic relations depends on the quality of products produced in the country, its amount, its supply with raw and meeting the various demands of the population. Intra-republican economic relations are characterized by the distribution of industrial and agricultural products among cities and villages, its delivery to the industrial enterprises and population and other users. Thus, for provision of the population of cities with food, clothing, and industrial enterprises with raw materials products of agriculture and extractive industry are sent to the cities. The administrative regions dominated by the rural population get the industrial goods and foods. Cities carry out the distributive trade and the distribution the functions. Therefore, the imported products firstly are brought to large cities, in particular to Baku. Subsequently they are delivered to the appropriate places. Transportation of imported products occupies an important place in intra-republican relations. The volume and range of foreign economic relations are defined for Azerbaijan’s position ranked in International Organization among the countries of the world. At present, the country's institutions and organizations, private institutions have trade relations with 82 countries in the world. Thanks to the expansion of trade relations with foreign countries Azerbaijan’s negative foreign trade balance has declined in recent years. The volume of imports decreased and exports increased. More than half of foreign economic relations, as well as imports and exports belong to far foreign countries. Among them Iran, Turkey, United Arab Emirates, Germany, Great Britain, the United States, Sweden, Switzerland, Italy, France, etc. can be noted particularly. 74% of goods sent to abroad from our republic constitute oil and oil products. From Azerbaijan carpets, air conditioners, electric motors, chemical industry products are exported, too. Flour, wheat, sugar and sugar powder, butter, meat, rice, potatoes, tea, cloth, clothing, furniture, appliances, machinery and equipment are imported in our country. 30-40% of Azerbaijan's foreign trade turnover, as well as imports and exports come to share of the CIS countries. Among these countries Russia, Georgia, Ukraine, Kazakhstan, Turkmenistan and Belarus are in leading positions. Other types of foreign economic relations are cooperation in the field of financial- credit, scientific - research relations, tourism relations, material production. Recently, a number of enterprises, joint ventures of republic are being established, re-established. For the development of tea-growing joint ventures have been established on the basis of Baku, Masally and Lankaran tea factories together with Turkey's "Beta", "Sara" and the UAE's "Intersun" companies. For reconstruction of Khachmas, Masalli and Guba canning plants the equipment was purchased from Swedish "Tetra-Pak" company. According to contract concluded between U.S. "Reynolds" and Turkish "Star" companies and Baku Tobacco Plant a joint venture was established. In Absheron peninsula, the U.S, "Coca-Cola" and "Pepsi-Cola" soft drinks companies have been working. After Azerbaijan gained its independence in 1991, he became a member of many international organizations. In the same year he joined to the Islamic Development Bank under the auspices of the Organization of Islamic Conference. Since January 30, 1992 our republic is member of OSCE, since March 2, 1992 - the United Nations, since September 19, 1995 - the CIS. Our republic joined the International Monetary Fund and International Bank for Reconstruction and Development in the structure of the United Nations largest financial institutions in September 1992. Azerbaijan is also a member of the Economic Cooperation Organization and the Black Sea Economic Cooperation Organization, and many other international organizations. In January 17, 2001 the country became a member of the Council of Europe. INDUSTRY Industry - is one of the main areas of Azerbaijani economy. Natural resources, skilled human resources, labor resources, labor skills and potential consumers defining its development of the country is enough. However, these opportunities are not being used effectively, industrial fields producing end product is less. There are a lot of variances in territorial organization of the industrial areas in the country. 60% of the industrial products produced in the country, 57% of the main production funds are located in Absheron economic region. The country's economic sectors, particularly industrial enterprises are located in different industrial junctions formed under the influence of natural and socio-economic factors. Baku- Sumgait, Ganja-Dashkesan, Shirvan-Salyan, Mingachevir-Yevlakh, Goychay-Nakhchivan, Lankaran-Shaki, Khachmaz are the major industrial networks. Fuel and energy complex Fuel and energy complex is based on local energy resources (oil). The main sources of fuel: oil and gas, hydropower resources of rivers, sun and wind.Oil (mainly spread in Neozoic layer) industry More than 100 years the oil is extracted with technical equipment and rich experience is collected in this area. The first oil fields drilled in Azerbaijan include: Balakhany, Sabunchu, Ramana, Surakhany, Bibi-Heybet, Binagadi, etc. During World War II Azerbaijan produced 75% of Soviet oil. In 1949 "Oil Rocks" was established in the sea, in the 70-es "Sangacal-Sea" and "Duvani-sea" was drilled. Kura River depression: there are Kurovdag, Muxadkhanlı (Mesozoic layer), Mollakend, Kamaladdin deposits. In 1998, 11.4 million tons of oil extracted in Azerbaijan. Although on-shore oil reserves decreased, but a lot of new oil fields were discovered in the Caspian Sea ("Azeri", "Gunashli", "Chirag", "Shahdeniz, "Karabakh", etc.). Among them the largest is the "Azeri" field, which is rich both with the oil and gas. 90 oil products distinguished with structure in the world are produced from Azerbaijani oil. The most important of them is oil, gasoline and oil, etc. Oil from Azerbaijan are being transported by the Baku-Novorossiysk, Baku-Supsa (Georgia) and Baku-Tbilisi-Ceyhan (Turkey, since 2006) pipelines. Gas Industry 90% of the gas in Azerbaijan is extracted from from the Caspian Sea off-shore. The largest onshore fields are the Karadag-Gobustan, Gurgan-Zira and others. 6 billion m3 of gas extracted in the country. The largest natural gas fields in the Caspian Sea are "Shah Deniz". In the future, the Azerbaijani gas will be sold to Turkey through the Baku- Erzurum gas pipeline. Electric Power Azerbaijan is rich in power base. Total capacity of all electrical stations is 5 million kwt. The most of them, 80% is produced by TPP, and 20% by the HPP. Annually 3300 Kilowatt per capita of energy is produced. TPP-s are divided into 2 parts: 1. SDPS (state district power station); 2.TPC (thermal power center) – it produces the steam besides the electricity. TPC-s were mainly established in Baku, Sumgait, Ganja, Mingechevir, Shirvan. The most powerful TPC (1.2 million Kwt) is the first open state district power station in Shirvan and Europe. The first TPC ("Red Star" and Sabunchu) have been constructed in Baku. Then 2 TPC were built in Sumgait. Then the thermal power plant was built in Ganja and Mingechevir. Latest state district power station established in the north of the Absheron peninsula, "The North" TPC. In addition, the HPS (hydroelectric power stations) have been operating in Azerbaijan, which are built on rivers with hydropower resources. the first hydroelectric power station was built in country in Qalakand of Gadabay region. Cascading HPS were built on the Kura River, too. The most powerful (360 thousand kW) HPS is Mingachevir HPS. The water reservoir here serves for irrigation and regulation of stream, and also to prevent floods. Varvara HPS in Yevlakh, Shamkir HPS, Yenikand HPS, Sarsang (Tartar) HPS, Araz HPS do not use full of hydroelectric power of the Azerbaijan's rivers. The electricity network of Azerbaijan is coordinated with Russia, Georgia, Iran, Turkey. There is ecologically clean, long-term, wind, solar and geothermal (hot water) sources in the country. Mechanical engineering and chemical industry (cooperative) Machine-building complex covers energy, electrical engineering, radioelectronics, instrument-making, machine-tool construction, transport, agriculture, etc. fields of engineering, which interact with each other. The machine-building is ranked 1 for number of employees, for the value of manufactured products among the industries. Although the demand for various products of the engineering industry, many areas of modern engineering do not developed. Until the last years the engineering industry of Azerbaijan specialized in the field of petroleum engineering. It produces ¼ of the gross output in this area. One of the largest enterprises in the oil machinery is "Bashneflkimmash Union". This enterprise exports its products to 40 countries. Stationer platforms manufactured in Baku deep sea water piles plant located in Sahil settlement, it is possible to drill well in 200-300 meter of dept in the Caspian Sea. Other large enterprises related to the oil machinery of Azerbaijan are plant named after Sattarkhan, Keshla engineering plant, Binagadi clay and steel plants. After construction of electric plant in Baku, Azerbaijan does not purchase
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