Natalia Bejan: Moldova eyes Azerbaijani expertise for key infrastructure projects - INTERVIEW

In recent years, cooperation between Azerbaijan and Moldova has not been limited to the economic sphere but has also expanded into political, cultural, and humanitarian areas.

The intensification of high-level mutual visits between the two countries demonstrates the strategic nature of their relations.

Meetings of official delegations open up new opportunities for increasing trade turnover, expanding investment potential, and implementing joint projects in energy, agriculture, transport, and infrastructure. Regarding the prospects for the development of Moldova–Azerbaijan relations, Report conducted an interview with Natalia Bajan, Director of Invest Moldova Agency. The agency, which is engaged in attracting investments to the country, as the name suggests, operates under the Office of the Prime Minister of Moldova.

- How do you assess the current state of economic relations between the two countries?

- Economic relations between Moldova and Azerbaijan are very stable and show a growing interest in diversification. Over the past two years, we have seen a recovery in investments, especially from the Azerbaijan side. We also see an increase in trade after a period of volatility. Azerbaijan has become a very essential partner for Moldova. We see that both countries are very friendly to each other. Specifically, with regard to the economic sphere, sectors such as energy are of paramount importance, particularly in the context of partnership with Azerbaijan.

And on the side of Moldova, we see that we have been strengthening our position in providing pharmaceuticals, processed foods, and industrial products to Azerbaijan. So, we do have a balance in our relationship.

- Two months ago, a business forum was held between the two countries. What were the outcomes of this forum, and what new results can be expected?

- The forum served as an important platform for fostering institutional cooperation, bringing together the Invest Moldova Agency and AZPROMO from the Azerbaijani side, as well as relevant ministries from both Moldova and Azerbaijan. But most importantly, what we did after the forum was part of the networking; it was a platform to connect and to create partnerships between the business sectors. So, for us, every single forum is on one side about promotion, about awareness, economic opportunities in both countries, but on the other side, it is about connecting companies and trying to facilitate either investments or trade, or ideally, both investments and trade.

From the Moldovan side, four companies participated in the forum. All of them were in the beverages industry. We also had a wine and beverage tasting, a wine and beverage tasting that we did after the forum. We have made some very important connections with distributors from Baku. I know that the discussions are still ongoing. There are not yet contracts signed, but I think there is a very good potential that this will happen in the next, in the next future.

- Which specific products will be prioritized for export and promotion from Azerbaijan or from the Moldovan side?

- We see that there is a very increased interest in Azerbaijan for pharmaceutical products that are being produced in Moldova. This is actually the number one product that we are exporting from Moldova to Azerbaijan and we do see that we have more capacity and there is more interest also from the Azerbaijan side to do imports on this particular product.

It is extremely important to keep the cooperation in terms of energy. Every single country is heavily dependent on energy, so we must ensure that we have the flexibility to obtain supplies from Azerbaijan when we need more energy products. But there are sectors where we have to collaborate more. One of them is the ICT sector. In Moldova, we are quite advanced in terms of IT companies and business services companies, and we have a very attractive Moldovan IT part that is offering a simplified tax regime for IT companies.

At the same time, we see significant untapped potential in tourism exchanges between Chisinau and Baku. Longstanding historical ties and enduring friendship between our countries create a good foundation for the development of this cooperation.

- You mentioned the IT sector - are there any concrete steps being taken in this regard, or is this rather the beginning of a new phase?

- During the forum, we have identified the sectors. We have discussed what the potential is and what the most competitive advantage is for each country. On the IT side, what we have to do is to make sure that we talk to the Moldovan companies because it is all about business. It's all about the private sector. So, we have to talk with the private companies in Moldova and see which of them specifically are interested in Azerbaijan, and go with them together to Azerbaijan and do exactly the same thing on the other side. We have made efforts to collaborate with AZPROMO on some exchange business missions. You are organizing the investment forum in late September in Baku. But unfortunately, it coincides with the Moldova Business Week, which we're organizing here in Kishinev. So this time, we will have to go our separate ways for this month alone. But I'm sure that immediately afterwards, we will get back to the discussion and we will find a way to advance on this matter.

- What is your perspective on Azerbaijani business activity in Moldova? Do Azerbaijani companies already have a presence here, or are there growing intentions to establish operations in the Moldovan market?

- At present, there are over 100 companies in Moldova registered with Azerbaijani capital. This is quite a remarkable and encouraging figure. What is even more important for us is the steady increase in foreign direct investments from Azerbaijan. In fact, in 2023, we recorded the highest level of Azerbaijani investments to date, reaching approximately $5 million, which provides a solid foundation for further growth.

Among the Azerbaijani capital companies in Moldova, two stand out in particular. The first is Bemol, a petroleum company owned by an Azerbaijani businessman, which operates one of the most widespread and well-recognized networks of gas stations across the country. The second is Evrazkol, a company engaged in construction and infrastructure projects, playing a significant role in Moldova's development. Both companies are not only large in scale but also highly impactful for our national economy.

- Are new investments expected from Azerbaijan in Moldova?

- It is absolutely natural that every investor needs time before making an investment decision. From this perspective, we are still at the stage of building a very active partnership with Azerbaijan and ensuring that as many entrepreneurs and investors from Azerbaijan as possible become familiar with Moldova's economic and trade opportunities. An investment decision usually cannot be made within one month, and in many cases, not even within one year, as it requires both trust and a solid business plan. At this stage, we already have discussions with several potential Azerbaijani investors, and I have to emphasize the important role of the Azerbaijani Embassy in Chisinau, which has been very supportive. I sincerely hope that next year we will witness more Azerbaijani companies investing in Moldova.

- Do you see opportunities to increase trade turnover between Azerbaijan and Moldova?

- Although trade volumes have fluctuated over the years, the recent trend is positive, and there is clear growth potential. One challenge, however, is logistics. While our countries are not very far apart, they are not direct neighbors either, so we must work on more efficient transport routes. At the same time, Moldova should be seen not only as a local market but also as a gateway to the European Union. Our free trade agreement with the EU has significantly boosted our exports, and we encourage Azerbaijani businesses to use Moldova as a bridge to Europe.

- How does Moldova view the Azerbaijani market, both in terms of investment and trade opportunities?

- The perspective is very positive. In many cases, businesses tend to wait for governments or public officials to send clear signals of friendly and productive cooperation. This is exactly what makes me optimistic, as in recent times we have seen a strengthening of relations between Moldova and Azerbaijan. Events such as business forums and official meetings confirm our willingness to expand cooperation. This, in turn, encourages businesses to explore new investment opportunities in both countries. Moldova is equally interested in attracting Azerbaijani investors and in supporting Moldovan entrepreneurs to enter the Azerbaijani market.

- Large-scale reconstruction and infrastructure projects are being implemented in the Karabakh region of Azerbaijan. Have there been any discussions in this regard?

- During our visit to Azerbaijan, we were impressed by the scale of infrastructure projects already being developed in Karabakh, including airports and other strategic facilities. The opportunities we discussed include the possibility of inviting Azerbaijani companies with proven experience in this sector. As far as I know, in the Karabakh region, Azerbaijan has already built or is in the process of building several airports. Meanwhile, in Moldova, there is a pressing need to strengthen our infrastructure, particularly as the country actively pursues European Union membership. Moldova is currently an EU candidate state and has set a clear goal of becoming a member by 2030. EU accession is not only a political priority, but also a guarantee of long-term stability and predictability for investors.

In this context, numerous infrastructure projects are being unlocked. These include the reconstruction of roads as well as the construction of entirely new ones, the expansion of our only port, and the extension of our airport infrastructure. At present, Moldova has two airports, one of which operates at full capacity, registering more than a 40% increase in passenger traffic last year. Furthermore, there are plans to build several bridges across the river that separates Moldova and Romania-an essential step since Romania provides our land access to the EU market.

Taken together, these developments highlight Moldova's urgent need for reliable and experienced partners capable of delivering large-scale infrastructure projects. For this reason, we have already extended invitations and will unleash a new project. We were impressed by Azerbaijan's reconstruction efforts in Karabakh. Given Moldova's own ambitious infrastructure agenda as an EU candidate state, we see strong potential for knowledge sharing and collaboration with Azerbaijani companies that have proven experience in large-scale infrastructure projects.

- Could you provide more information about Moldova Business Week and Azerbaijani participation?

- Moldova Business Week is our main economic platform, lasting five days and consisting of 32 sector-focused events. Its main goal is to facilitate networking and partnerships. This year, we already have more than 560 registered participants, including delegations from over 20 countries. Key highlights include the launch of a new Moldovan–Romanian stock exchange and a tender in the renewable energy sector, focusing on wind energy and battery storage. In addition, we are organizing study visits to leading Moldovan companies and infrastructure sites, including our main port. We warmly welcome Azerbaijani companies and institutions to participate and explore opportunities during this important week.

- Which countries are currently investing in Moldova, and in which sectors?

- Even before EU membership, Moldova was strongly economically integrated with Europe. Around 67% of our exports already go to the EU, and 87% of foreign direct investment originates from EU member states. The leading investors are Romania, Cyprus, the Netherlands, Germany, the United Kingdom, Bulgaria, and France. Romania, in particular, has been increasing its investments steadily since 2015. The main sectors attracting investment are finance, manufacturing, and IT. Our banking system is dominated by foreign-owned banks, requiring significant capital. Manufacturing also attracts considerable investment, while the IT sector, despite requiring less capital, is rapidly growing in the number of companies, especially in the Moldova IT Park. Investments from Russia remain, but are mostly from the past, with no new projects in recent years.

- How will Moldova's EU accession affect its economy?

- The accession process is gradual and well-structured, meaning that there will be no shocks or surprises for our economy. Moldova is already closely integrated with the EU through trade, investment, and even travel, as our citizens benefit from a liberalized visa regime. EU membership will formalize this integration, ensuring higher standards of quality across all sectors. Importantly, we are already aligning our legislation step by step, so both the public and private sectors are adjusting progressively, which ensures stability throughout the transition.