An article titled "Why Azerbaijan Invests Hundreds of Millions in Central Asia?" has been published on the information-analytical and monitoring portal "Haqqin.az," stating that the government of Azerbaijan intends to allocate $125mn from its budget in 2023 to form the authorized capital of investment funds with Uzbekistan and Kyrgyzstan.
The agreement between Azerbaijan and Uzbekistan for establishing a joint investment fund was signed on February 24, 2023, with a cap on the authorized capital of $500mn. Azerbaijan would own 75% of the joint capital and Uzbekistan - 25%. The investment fund's primary objective is to finance collaborative projects, including those in third countries.
The article highlights the importance of this collaboration, particularly in developing projects in the oil and gas industry, automotive production, and transport communications from Uzbekistan to the Caspian Sea. The publication also notes that investment development in Uzbekistan is ahead of Kazakhstan's similar indicators in recent years.
Azerbaijan and Uzbekistan have agreed to expand cooperation in the production of motor vehicles, and a memorandum of cooperation was signed this year to expand passenger car production in Azerbaijan.
The investment fund's mechanism will focus on achieving three objectives: increasing trade with partner countries, expanding projects related to international transport corridors, and creating joint industrial potential within the framework of trans-regional integration tasks.
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