Ukraine’s Foreign Trade Relations with the Republic of Azerbaijan: State, Risks, Strategic and Innovative Areas of Strengthening

Keywords: foreign trade relations, exports, imports, risks, trading houses.

Abstract

The article contains an analysis of the state, features and effectiveness of foreign trade relations of Ukraine with the Republic of Azerbaijan. It is revealed that the top priority of Ukraine in its approach to the expansion of cooperation with the Republic of Azerbaijan is the policy of diversification of energy sources. Also, Azerbaijan is to a large extent lucrative for Ukrainian businesses as a market for metal and agricultural products and a customer of Ukrainian advanced technologies and developments and engineering works. The industrial and agricultural sectors of the Azeri economy demand products and materials for oil and gas, extracting, defense, chemical, food and manufacturing industries. So, the Republic of Azerbaijan is interested in supplies of Ukrainian goods and exploitation of its science & technology capacities.      

The main risks and threats limiting the expansion of trade between the two countries are highlighted: prioritization by Azerbaijan of the stability in exports of energy sources to the main partners and attraction of investment to the domestic economy. It means that the Azeri party is unlikely to prioritize the supplies of hydrocarbons to Ukraine, hence, the issue of supplies will be discussed only in a declarative manner, with no visible prospects for its solution in the interests of Ukraine. The procedure of relations between Ukraine and Azerbaijan is regulated by an agreement. It may involve the risk of unilateral violation of this agreement by Baku with respect to the implementation of free trade zone. Its signal is the imposition by Baku of unjustified unofficial limitations on the volume of imported products made in Ukraine. Also, in certain case Ukrainian goods may be subject to additional shadow duties.    

Strategic and innovative areas of strengthening the commercial relations of Ukraine with the Republic of Azerbaijan in transport and transit, agriculture and food industry, information technologies, food safety and tourism are proposed. The organization of trading houses as an effective scheme for intensifying foreign trade cooperation between Ukraine and the Republic of Azerbaijan is highlighted.

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References

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Published
2022-07-12
How to Cite
BulakhT. М., IvashchenkoO. А., & MotuzkaО. М. (2022). Ukraine’s Foreign Trade Relations with the Republic of Azerbaijan: State, Risks, Strategic and Innovative Areas of Strengthening. Statistics of Ukraine, 96(1), 40-46. Retrieved from https://su-journal.com.ua/index.php/journal/article/view/362