Dr. Gubad Ibadoghlu, Senior Analyst, Economic Research Center
The European Commission has adopted a proposal for a COVID-19 macro-financial assistance package for its Eastern neighborhood partners to help the countries limit the economic fallout of the coronavirus pandemic.
As part of its global response to the coronavirus outbreak, the European Commission is mobilizing an emergency support package for Armenia, Azerbaijan, Belarus, Georgia, the Republic of Moldova, and Ukraine of up to €80 million for immediate needs and up to €883 million for the short and medium term to support the social and economic recovery of the region. StrategEast has interviewed leading experts from Eastern Partnership countries to hear their views on the implications of EU support measures in each country. Here are the answers from the expert on Azerbaijan.
Do you consider this kind of support sufficient?
Even though the European Union has allocated financial assistance (14 million EUR) to Azerbaijan is less than in other countries. Still, I think it is sufficient because Azerbaijan has assisted 13 states in fighting the coronavirus pandemic and donated $ 10 million to the World Health Organization.
What kind of EU programs would best help your country prevent the dramatic spread of COVID-19 and reduce the impacts of the outbreak – health, educational, technical, business support programs, etc.?
Ideally, EU programs would be allocated not only to the government but also to civil society institutions and business associations to meet their information and communication needs during the pandemic period. I think that the EU’s support for the state is more critical in the technical, educational, and medical spheres. Technical support can be focused on developing policy recommendations and modernizing the economy for specific projects, especially in the post-pandemic period. The involvement of the İFİs, such as EIB and EBRD in the technical support program, can also increase the effectiveness of the programs.
How did the pandemic influence the relations between your country and the EU?
The coronavirus pandemic has primarily affected tourist relations and student exchanges between the European Union. Thus, in January-April 2020, the number of arrivals from EU member states decreased by an average of 2.2 times compared to the same period last year. The number of Polish tourists decreased by 2.5 times, Dutch tourists – by 2.3 times. At the same time, the number of tourists and students visiting EU countries in Azerbaijan has sharply decreased.
Besides, since the primary buyers of Azerbaijani crude oil from European countries are Italy, France, and Germany, the country faced difficulties with the sale of oil, especially in connection with the situation in Italy. The price of Azeri Light crude oil, which has always been expensive than the British Brent crude oil, was at least $ 5 cheaper than Brent during the crisis period in Italy. As a result, Azerbaijan lost $ 100 million from crude oil sales.
