BAKU, Azerbaijan, August 21. Azerbaijan has
announced new state support measures for businesses, including
compensation for export transportation and customs clearance costs,
loan interest subsidies and state guarantees, according to the
Ministry of Economy.
The Economy Ministry said the measures were presented during a
meeting between Deputy Economy Minister Azer Bayramov and
entrepreneurs operating in the Lankaran-Astara economic region in
the city of Masalli.
The meeting highlighted that, in line with the economic policy
pursued under President Ilham Aliyev, the government is expanding
state support measures and introducing new mechanisms to promote
investment and production and increase economic activity in the
regions.
Entrepreneurs were encouraged to make active use of the
favorable business environment and implement new initiatives.
The ministry said more effective use of the Lankaran-Astara
economic region's economic potential, particularly through
industrial development, expansion of agricultural processing and
industrial production, and creation of value-added and
export-oriented industries, could contribute significantly to the
region's economic development.
A presentation was held on new and expanded state support
measures for businesses, as well as opportunities to promote
industrial and investment projects.
The government will cover up to 70% of transportation costs
incurred when exporting non-oil and non-gas goods of Azerbaijani
origin. The amount of support will be determined based on
transportation costs and the customs value of the goods, depending
on the mode of transport used.
The new mechanism will take effect on September 1 this year and
remain in place for 10 years. It is intended to increase the
competitiveness of local products in foreign markets, reduce
logistics costs and expand export markets.
The government will also cover part of customs clearance costs
for exports of non-oil and non-gas products of Azerbaijani origin.
Exporters classified as micro, small and medium-sized enterprises
will be eligible for the support.
The mechanism will take effect on September 1 this year and
remain in force for five years.
A separate mechanism will make loan guarantees and interest
subsidies more flexible and efficient, with the aim of expanding
entrepreneurs' access to financing and facilitating investment
projects.
Entrepreneurs will receive a subsidy equivalent to 50% of loan
interest payments. The subsidy will apply throughout Azerbaijan
except for Baku and the Absheron district.
The government will provide guarantees covering up to 90% of the
principal amount of loans issued in liberated territories and up to
50% of loans issued in other regions, excluding Baku and
Absheron.
The measures are expected to boost regional investment, reduce
the financial burden on businesses and provide an additional
stimulus to the non-oil and gas sector.
From 2027 to 2030, the government will cover 50% of the
connection fee paid by entrepreneurs when new industrial and
agricultural facilities are connected to the electricity grid.
A commission established to accelerate strategic investment
projects and strengthen coordination among government agencies will
process major projects through a one-stop-shop system. The new
approach is expected to reduce project implementation times by
about 30%-40%.
The ministry said the measures would help reduce the financial
burden on entrepreneurs, encourage new investment, expand
production, stimulate exports and increase economic activity in the
regions.
Entrepreneurs operating in the Lankaran-Astara economic region
presented their proposals and initiatives at the meeting, and their
questions were answered.
Masalli District Executive Authority head Araz Ahmadov said the
new state support measures and meetings with entrepreneurs would
play an important role in increasing business activity in the
region.
As part of the visit, a meeting was also held with residents of
the Masalli Industrial District. The delegation reviewed projects
being implemented by entrepreneurs and discussed issues of interest
to them.
The Masalli Industrial District was established to support
industrial and entrepreneurial development in the region, create
new production facilities and increase employment.
Covering 10 hectares, the industrial district is considered
important for expanding value-added production and increasing the
industrial potential of the Lankaran-Astara economic region.
Operating since 2018, the industrial district provides the
infrastructure needed by businesses and hosts various production
and processing projects, including the manufacture of plastic
containers, furniture, construction materials and other
products.
