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Moderator: Mr. President, let me repeat my question to You which I asked be-
fore. How did economic and financial crisis influence Your country.
Ilham Aliyev: Of course, we are a part of the world economy. We feel the nega-
tive influence of the crisis. It especially concerns lack of relevant markets and in-
competence of enterprises to export enough goods which they produce.
According to our observations and assessments by the international financial
institutions, the crisis hit Azerbaijan very slightly. As I already noted, our economy
grows again and national currency is stable. Sometimes we see that in our region,
post-soviet region, even in Eastern Asia national currencies fall by 10, 20, 50 per-
cents. We have strong financial resources. According to the information of the be-
ginning of this year, currency reserve of Azerbaijan is equal to 18 billion dollars
and there is no deficit of budget. Of course, we may reconsider projects financed by
the government. Because drop in the oil price influenced us, but ordinary citizens
don`t suffer since prices of consumption goods dropped. Food prices fell by 20-30
percents and it could be said on other goods. In my view, we will live out the period
of the crisis with minimum losses.
Question: Mr. President thank You for Your speech. I am a representative of
the US NGO on security research. My questions concerns prospects of relations of
Azerbaijan with OPEC, an entitiy which is called a gas OPEC.
Question: Mr. President, in Your speech, You noted cooperation and partnership
with the EU. Is the EU integration Your choice or goal taking into account that your
neighbours, Armenia and Georgia, move towards this direction?
Question: I am a representative of the executive council of the EU Social and
Economic Commission. We are busy with the issue of new energy corridors in Eu-
rope, and I am also a head of the Democracy and Civil Society Foundation.
Your Excellency, my question is purely on new energy corridors. I would like
to know Your real and precise opinion on Nabucco. Second, Eurasian Economic
Forum will be held in Istanbul a week later. There is an alternative proposal to
Nabucco – construction of pipileine connecting Zonguldak with Constanca via the
bottom of the Black Sea and stretching to Poland, Baltic countries and south of Bul-
garia is in the agenda. How do you see possibilities of starting of the second phase
of Shahdaniz project in 2013? We`d like to hear your views on necessity of some
quota for such projects which will provide the EU with natural gas.
Ilham Aliyev: Our contacts with the OPEC are in stage of formation. Our rep-
resentatives took part in some recent events of the OPEC. It happened for the first
time. We had no contacts with the OPEC before. We had no contacts with the OPEC
because we were not a major oil producer. We increased oil production in recent
years. But if it is needed to establish our cooperation contacts, we can do it. Besides,
I would like to note that Azerbaijan was one of the very few countries that dimin-
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ished oil production, considered for this year, for our common cause.
I cannot comment on a gas OPEC which you pointed out. Until the end of 2006,
we were exporting gas to Russia, and now, we export it to Georgia and Turkey.
Turkey resells a part of our gas to Greece, and at the same time, we conduct swap
operations with Iran. We have also our gas pipeline with Russia.
That is why as I noted in my speech, we feel ourselves safe enough. As regards
our relations with the EU, we are satisfied with their level. Initiative in such rela-
tions always comes from the EU. We want to build our contacts with the EU as
much as the EU wants, and we are ready to move forward our integration with this
organization to an extension to which it is ready.
In your question you pointed out that Georgia and Armenia moves forward in
this direction. But their integration also depends on the EU. That is why we must
be realistic. If the EU wants to see us in a form of associated, integrated or in other
ways, we are ready to this. But at the same time, I want to note that we build our
policy not on populism, but realism. We want to abstain from statements that we
want to be there or here. This is a process. We have to be ready to this. Europe must
also be ready.
I want to say once more that our contacts with the EU develop in a very positive
direction, and of course, we look at the “Eastern Partnership” with great hopes. I
think that this initiative must certainly serve to a closer cooperation between Azer-
baijan and the EU.
Concerning energy corridors, including Nabucco, I would like to say that we
support all projects that emerge as a result of our initiatives. Talking about the proj-
ect of Nabucco, we have to look at how it appeared. Azerbaijan was not in the rank
of potential suppliers when this project was launched. Azerbaijan was considered a
transit country. Potential suppliers were other countries and they are considered the
countries with minimum resources for the project Nabucco. But, later on, it became
clear that Azerbaijan can not only be a transit, but also a supplier as well, so we
started to talk about this more. In November of the last year, we held a big energy
conference in Baku and there Nabucco and other projects planned for the future
were strongly supported by the participant countries. There were nine EU members
among the signatory countries of the joint statement of the summit.
In my view, for implementation of the Nabucco project, some important issues
must find their solution. First are transit issues. There is no transit agreement with
the transit countries. This issue is awaiting its solution more than one year. Our
position is completely based on the international norms and experience and this
position is supported by the EU. Second, a firm political support is needed. I think
without this, it will be hard to implement the Nabucco project. Third, a very strong
financial support is essential. If we look at the list of the countries of the Nabucco