Estonia and Azerbaijan

Bilateral relations

Relations between Estonia and Azerbaijan are good and have become somewhat closer over the past few years. Both parties are interested in the further development of mutual economic and political ties. One of Azerbaijan’s main directions in foreign policy in recent years has been close co-operation with Europe and Euro-Atlantic structures. Diplomatic relations between Estonia and Azerbaijan were established on 20 April 1992.

Ambassador Aivo Orav presented his credentials to Azerbaijani President Ilham Alijev on 6 February 2009. The Estonian ambassador resides in Ankara. Ambassador of Azerbaijan to Estonia Tofig N. Zulfugarov presented his credentials to President of the Republic Toomas Hendrik Ilves on 25 October 2007.

Azerbaijan opened its embassy in Tallinn in 2010.
Estonia supported Azerbaijan in joining the Council of Europe. Azerbaijan submitted its application in 1996, when Estonia presided over the Council of Europe, and became a full member in January 2001. Estonia supports Azerbaijan’s integration into Euro-Atlantic structures and appeals to Azerbaijan to use the opportunities offered by Eastern Partnership (visa facilitation and an Association Agreement along with a free trade agreement).

In January of 2009 President Toomas Hendrik Ilves was the first president of the Republic of Estonia to visit Azerbaijan since the two countries regained their independence, a few months after the visit of Prime Minister Andrus Ansip. Dialogue between the two foreign ministers is also active—Urmas Paet and Elmar Mammadyarov have met many times within the framework of international forums.

Visits

Agreements

• Agreement on co-operation between the interior ministries (came into force 21.10.1992)
• Agreement on the sharing and joint usage of transport vehicles and container inventory parks (came into force 22.01.1993)
• Agreement on co-operation in the field of railway transport (came into force 01.03.1993)
• Agreement on co-operation in customs matters (concluded 02.03.2000)
• Memorandum of co-operation between the defence ministries (signed 05.12.2007)
• Agreement for the avoidance of double taxation and fiscal evasion with respect to taxes on income and capital (came into force 27.11.2008)
• Agreement between the Government of the Republic of Estonia and the Government of the Republic of Azerbaijan on the facilitation and mutual protection of investments (came into force 30.06.2011)

Economic Relations

The potential for bilateral co-operation is very great, although we are still in the discovery phase. Estonia is interested in developing economic contacts and intensifying trade between the two nations. Azerbaijan has expressed interest in Estonia’s e-government experiences. Real estate with a high rate of return but a certain degree of risk involved and the sporadically developing telecommunications market (the entire nation is covered by mobile phone service, from the capital to mountain villages) are attractive to Estonian investors. The same can be said for the IT sector. The Estonian and Azerbaijani foreign ministers concluded an agreement on co-operation in the area of information technology that came into effect at the end of November 2009.

TRADE

Trade between Estonia and Azerbaijan has been minimal during the past few years, but it has tremendous potential. At the beginning of this century trade totalled 0.6 million euros, but after that it has steadily grown and peaked in 2006 (6.7 million). After that the trade volume began to fluctuate between 5 million (2007) and 7.2 million (2008). In 2009 the trade volume was 6.7 million euros. The fluctuation was not caused by steadily increasing Estonian export, but by changing import volumes from Azerbaijan (0.1-4.3 million euros). In addition to the effects of the crisis, trade is also affected by the one-sidedness of imports (over 80% are crude oil and gas shipments).

In 2010 total trade turnover totalled 10.259 million euros, of which export made up 9.959 million and import 0.336 million euros.

Trade between Estonia and Azerbaijan from 2000-2010 (in million euros):

The main export articles in 2009:

• metals and metal products - 56.4%
• paper and cardboard products - 24.7%
• animal and plant products - 4.8%
• prepared food products - 3.8%

The main import articles in 2009:

• prepared food products - 86.7%
• animal products - 12%
   

Source: Statistical Office of Estonia

INVESTMENTS

The rapidly growing Azerbaijani economy has also been an attractive destination for the investments of Estonian businesses. Azerbaijan’s investments in Estonia as of 31.03.2011 totalled 542 000 euros. Estonia’s direct investment position in Azerbaijan as of the same date was 3.377 million eurs.

Cultural Relations

About 2,000 Azerbaijanis live in Estonia today and they are very active in both introducing Estonian culture in Azerbaijan and introducing Azerbaijan to Estonia.

Works by the writers Mirza Shafi Vazeh, Molla Panakh Vagif and Mirza Fatali Ahhundov have been translated into Estonian. Also, the first Azerbaijani-
Estonian dictionary, compiled by Vidadi Mamedov, has been published.

As of 1990, an Azerbaijani Sunday school has been working in Tallinn, where children learn their native language and cultivate their national culture.

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