Within the first four months of 2016, Chinese companies have acquired an interest in strategic sectors and significantly raised the level of international trade
By Blerim Gjeladini, CBA Tirana
Business ties between Albania and China are strengthening as Chinese companies acquire players in strategic sectors of the Albanian economy.
In addition, China emerged as the second-largest trading partner for Albania during March, accounting for 7.7 per cent of the country’s total international trade, leaving behind traditional trading partners like Greece and Turkey.
The latest moves seem to show a growing Chinese ambition to control strategic sectors of Southeast Europe’s economy. That ambition has already borne fruit in Albania during the opening months of 2016.
In March, Canada's Banker's Petroleum announced the sale of oil exploration and production rights to affiliates of China's Geo-Jade Petroleum for a price of €384.6 million.
Banker’s started to exploit the Albanian oil fields of Patos-Marinze and Kucova in 2004, and since 2014 it has been the largest foreign company in the country. Now the Chinese will hold those drilling rights.
On April 26, China Everbright and Friedmann Pacific Asset Management announced the acquisition of Tirana International Airport SHPK, which operates the Albanian capital’s major airport. The group will take over the airport until 2025, with a two-year extension to 2027 after approval from the Albanian government.
The purchase was made public after the government of Albania and the airport’s shareholders agreed to end the airport’s monopoly on flights, which had been upheld since 2004.
Though a second Albanian airport is scheduled to open for service soon, Tirana will remain the most important transport hub. It is one of the fastest-growing airports in Europe, with annual passenger rates rising from 600,000 in 2005 to two million in 2015.
Albanians remember the strong relationship that the isolated communist country had with China during the 1970s and the investments which came as a result. But today, not all are enthusiastic about the return of Chinese investment.
Croatia - Turkey Business Forum, organized April 27, 2016 in Zagreb by the Croatian Chamber of Economy (HGK) and the Turkish Committee for International Economic Cooperation (DEIK), brought together more than 500 representatives of the leading Croatian and Turkish businessmen.
Business Forum in Zagreb was also attended by Turkish delegation led by Turkish President Recep Tayyip Erdogan including Deputy Prime Minister Yalcin Akdogan, Justice Minister Bekir Bozdag, EU Minister Volkan Bozkir, Economy Minister Mustafa Elitas, and Culture & Tourism Minister Mahir Unal.
Croatian President Ms Kolinda Grabar Kitarović was hosting the Turkish delegation at the Forum together with the Minister of Economy Tomislav Panenić and President of HGK Luka Burilović.
It was said at the Forum that Croatia and Turkey have excellent relations and very good economic cooperation with the potential for expanding cooperation.
President Erdogan also said that the goal in that regard was to increase bilateral trade between two countries to one billion USA$ annually within next 5 years from today's 350 million USA$ and that Turkish companies plan to increase their investments and partnerships with Croatian companies.
Turkish companies have a great interest in strategic partnerships/M&A with Croatian partners since this could facilitate entering in 500 million EU market. From other side Croatian companies can benefit a lot from entering market of Turkey and Turkish strong position in the markets of Middle East and Central Asia.
It was announced opening of the office of Turkish Development Agency in Zagreb as a support to Turkish companies and their future business developments in Croatia.
Besides the economy, Erdogan and Grabar Kitarović discussed different bilateral issues including Croatia’s potential support for Turkey’s EU membership negotiations.
CBBS, consulting – EU lobbying company from Zagreb (Croatia), focused on strategic partnerships, mergers & acquisitions and lobbying at national/EU level, as a part of Croatian – Turkish Friendship Association/Business Platform, is working closely with Turkish institutions/companies interested in investments and strategic partnerships in Croatia/SE European region.
By Berislav Čižmek, CBA Zagreb
