Energy diversification important for overall resilience in Azerbaijan’s economy – IFC regional director

MARCH 15, 2023

Energy diversification is important for overall resilience in Azerbaijan’s economy, Rana Karadsheh, Regional Director of the International Finance Corporation (IFC) for Europe, said in an exclusive interview with Trend.

"Well, over the last 30 years, Azerbaijan has transformed to an upper-middle-income country, now helping the poorest countries through the World Bank's International Development Association. Growth was driven by the oil and gas sector, which brought in around 90 percent of Azerbaijan’s export revenues in 2021," he said.

Rana Karadsheh noted that oil and gas reserves are depleting globally, triggering price fluctuations, especially with major changes in geopolitics and energy systems in the region.

"Moreover, we also are increasingly realizing that, regardless of a country’s level of oil and gas resource, energy diversification is simply important for overall resilience. Decarbonization is crucial. It needs to be fast-tracked. While oil remains a pillar, optimizing the non-oil economy is high on the country’s agenda. Azerbaijan’s 2030 national development vision focuses on maintaining a competitive and sustainable economy, leveraging the power of the private sector," she added.