Azerbaijan and Uzbekistan seeking to establish investment fund with capital up to $500 mln

BAKU. May 12 (Interfax) - Azerbaijan's parliament on Friday approved an intergovernmental agreement with Uzbekistan on establishing a joint investment fund.

The fund's charter capital should be up to $500 million, with Azerbaijan contributing 75% of the capital and Uzbekistan contributing 25%.

The main objective of the fund is lending to joint projects, including those in third countries. The agreement on establishing the fund was signed on February 24, 2023, and is aimed at boosting investment and mutual trade.

Establishing the joint investment fund is expected to generate additional incentive to strengthen cooperation between Azerbaijan and Uzbekistan in the areas of auto manufacturing, the textile industry, sericulture, and the transportation industry.

Uzbek President Shavkat Mirziyoyev, during a meeting in March with Azerbaijani President Ilham Aliyev, noted that Baku and Tashkent are working on projects worth $800 million for implementation, particularly on a large oil and gas project being prepared with the State Oil Company of the Azerbaijan Republic (SOCAR), with a feasibility study under development.