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Culture • Business • Politics P h o t o : US E m b as s y to A z e r b ai j an

US REITERATES SUPPORT FOR AZERBAIJANI STANCE Also in this issue: Kazan trilateral summit achieves little progress House of Commons debate indicates strong UK–Azerbaijani relations Nine killed in cargo plane bringing aid to Afghanistan Nagorno-Karabakh discussed in European Parliament 13-year-old girl killed in Alibayli village Badalbeyli plays the American way

July 2011

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TEAS EVENT 5–10 September 2011 Art from from Azerbaijan – a collection of paintings and drawings by Kabira Alieva Mall Galleries, The Mall, London, SW1Y 5BD TEAS is delighted to sponsor this exhibition of paintings and drawings at the prestigious Mall Galleries, which capture the essence of Azerbaijani nature and culture in a unique and imaginative manner. Attendees will also be able to hear tracks from UnVeiled, the first CD to be released by the Sabina Rakcheyeva Ensemble, which features a booklet illustrated

by Kabira, having been inspired by the compositions.

Affiliates P 12 Business News

Members P 14 Corporate Profile

P 15 Iteca Caspian Events

P 16 Facts and Figures

-DOD

UK MPs Bob Blackman (second from left) and Mark Field (second from right) during their visit to the Jewish Synagogue in Guba

In a well-attended debate entitled UK relations with Azerbaijan and the South Caucasus, a succession of MPs with firsthand experience of Azerbaijan emphasised the strategic importance of the country and the strength of UK–Azerbaijani relations.

The meeting came in the wake of a visit by a delegation from the All-Party Parliamentary Group (APPG) for Azerbaijan to the country. Bob Blackman (Con. Harrow East) led the debate, explaining the country’s geostrategic importance. He went on to state: “Since freeing itself from the Soviet yoke 20 years ago, Azerbaijan has taken tremendous strides as a democratic republic, and its relevance to the UK economy is attributable to its extensive oil and gas reserves.”

He went on to recall: “In 1918, Azerbaijan established the first secular democracy in the Muslim world, and Azerbaijani women received the vote before their counterparts in the UK and US. However, this progression was halted in 1920, when the country was annexed by the Soviet Union.

In 1990, there was a second revolution, and since regaining independence a year later, the country has cultivated relations with some of the most important international bodies, including the UN, IMF, EU Eastern Partnership, Organisation of the Islamic Conference (OIC) and the Council of Europe.”

Blackman went on to explain the racial and religious tolerance that prevails in Azerbaijan, particularly in relation to the Jewish community. He explained that Guba is the only exclusively Jewish town outside of Israel, and that Azerbaijan and Israel are the only countries that spend public money on building and renovating synagogues.

The MP continued by focusing on the close relationship between the UK and Azerbaijan: “During our visit to Baku, the APPG delegation visited a memorial to the British servicemen who died in the defence of Baku at the end of the Great War. Our relations have extended over the decades. Caspian oil and gas supplies will be transported via the Southern Corridor, thereby bypassing Russia, and thus represent energy security for Europe.

To date, BP has invested $20bn (£12.4bn) in the country, and the UK accounts for 52 per cent of foreign direct investment (FDI).

In a volatile region, Azerbaijan remains stable, and this is priority for the UK and across the European Union.”

Blackman’s comments were echoed

by Gerry Sutcliffe MP (Lab, Bradford South), and frontbench Home Affairs spokesperson. He recalled visiting the ‘contact line’ between Azerbaijan and the occupied region of Nagorno-Karabakh, and emphasised the legitimacy of the Azerbaijani position. Sutcliffe went on to suggest that other countries could learn from the Azerbaijani principles of religious and ethnic tolerance.

These sentiments were strongly reinforced

by Mark Field MP (Con, Cities of London and Westminster), who is also Chair of the APPG for Azerbaijan. He stated that: “The UK should foster closer links with Azerbaijan, which is moving forward, both politically and economically. Tremendous trading links have been created since the signing of the Contract of the Century between the Azerbaijani government and a BP-led consortium in 1994, and there are now 4000 UK expatriates in the country. There are great opportunities for UK businesses in such non-oil sectors as financial services and agriculture.

Furthermore, it is in Armenian interests to resolve the Nagorno-Karabakh situation.”

Stephen Hammond (Con, Wimbledon) was adamant that the Nagorno-Karabakh conflict should be resolved on the basis of Azerbaijani territorial sovereignty. He stated that self-determination was irrelevant in this context, as Armenia had forcibly expelled all ethnic Azerbaijanis during the initial conflict.

When responding to the debate, Alastair Burt, Foreign Office Minister, agreed that UK–Azerbaijani relations are excellent. He referred to the importance of trade between

the two countries, and the vital role that Azerbaijan plays in providing energy security to Europe. He also reiterated that the UK would encourage resolution of the Nagorno-Karabakh conflict, which could potentially destablise the entire region.

Mammadyarov meets Clinton

Elmar Mammadyarov, Azerbaijani Foreign Affairs Minister, has reiterated his country’s main foreign policy objectives during a visit to Washington D.C. Whilst speaking to the Atlantic Council, he explained that Azerbaijan is the leading state in the Caucasus region, due to its importance in the energy sector and participation in regional projects, in addition to its successful operation of a balanced foreign policy. Mammadyarov also praised the close US–Azerbaijani bilateral relationship. He went on to reiterate the facts regarding the non-implementation of the four outstanding UN Security Council resolutions by Armenia.

Following this, Mammadyarov met Hillary Clinton, US Secretary-of-State, and Philip Gordon, Assistant US Secretary-of-State.

The two ministers discussed bilateral cooperation, energy security and both global and regional issues, together with the Nagorno-Karabakh peace process. Clinton stated that, as an OSCE Minsk Group CoChair, the US would continue to provide full assistance to achieve a satisfactory resolution.

NEWS IN BRIEF New US Congress member for Azerbaijani working group According to the Embassy of Azerbaijan to the US, Republican Congressman Adam Kinzinger has joined a working group on Azerbaijan in the US House of Representatives, thus becoming the 40th member. He visited the country this year, having been elected to Congress from Illinois in 2010. Kinzinger is a member of the Energy and Commerce Committees.

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Politics & News

Commons debate emphasises importance of UK–Azerbaijani relations

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US–Azerbaijani military exercises on the horizon

Politics & News

and innovative approaches, such as informal contacts and consultations with societies from the breakaway territories.”

Matthew Bryza, US Ambassador to Azerbaijan (third from left), visits members of the US Peace Corps in Sheki

Despite cancelling joint military exercises with the US for two consecutive years, security co-operation between Azerbaijan and the country remains on track, according to Matthew Bryza, US Ambassador to Azerbaijan. According to the US Embassy, agreements have been signed regarding the countries’ mutual participation in two new sets of military exercises to be held later this year. Ambassador Bryza continued: “In the first instance, we will increase our contribution towards assisting Azerbaijan with protection of its critical energy infrastructure. Secondly, we will move ahead with some military exercises and co-operative programmes. One of these will be held in Romania in August, and the other is scheduled to take place in Germany, involving over 100 Azerbaijani soldiers, together with NATO partners.”

European Parliament increases pressure to end protracted conflicts

Following a discussion on the European Neighbourhood Policy, the European Parliament has adopted a resolution emphasising the EU’s role in ensuring security via the European External Action Service (EEAS). A primary objective will be to manage the protracted conflicts in Dnestier and the South Caucasus.

With regard to the Nagorno-Karabakh situation, Raul de Luzenberger, Head, EU Delegation to Armenia, commented that the EU only has official relations with recognised states. He cited paragraph 49 of the European Parliament on the European Neighbourhood Policy resolution, which: “Calls on Catherine Ashton, High Representative for Foreign Affairs and Security Policy, European Union, and VicePresident, European Commission, together with the EEAS, to develop more confidencebuilding measures and programmes, including the launching of new missions and public communication strategies and the consideration of pragmatic initiatives

Azerbaijan invests $5.7bn abroad since 2003

During the past eight years, Azerbaijan has made capital investments abroad amounting to $5.7bn (£3.6bn), equating to $711m (£443.5m) per annum, according to Azerbaijan’s Socioeconomic Development in 2003–11, published by the Strategic Studies Centre. The country remains a major investor in neigbouring Georgia and Turkey, with much investment being generated by the State Oil Company of the Azerbaijani Republic (SOCAR).

SOCAR entered the Turkish petrochemical industry via the purchase of the Petkim company, and is currently building a new refinery in Izmir. Sakit Samadov, Head, Sales and Export Department, Petkim, recently revealed that SOCAR would invest $17bn (£10.6bn) in Turkey during the next seven years.

An oil terminal is currently being built

by SOCAR at the Gulf port of Fujairah in the United Arab Emirates, and the company already owns and runs the Kulevi terminal in Georgia. It has also opened networks of filling stations in Georgia and Ukraine, and is constructing a network in Romania. However, during the past seven years, inward investment to Azerbaijan has considerably surpassed outward investment. During this period, foreign investment accounted for 53.5 per cent of all inward investment, equating to $45.1bn (£28.1bn), of which two-thirds were foreign direct investment (FDI).

By a considerable margin, the UK remains the single largest foreign investor in Azerbaijan, being attributable to the operations of BP, which is leading several oil and gas projects – the Azeri–Chirag– Guneshli (ACG) offshore bloc of oil fields; the Shah Deniz gas field; the Baku–Tbilisi– Ceyhan (BTC) pipeline; and the Sangachal oil terminal. BP claims that it and its partners have spent $29.5bn (£18.4bn) in Azerbaijan since 1994.

World Azerbaijanis Congress hosted in Baku

Baku has played host to the third World Azerbaijanis Congress. During the opening ceremony, Azerbaijani President Aliyev explained that the country was currently undergoing a massive programme of development, stating: “Azerbaijan has now become the most important state in the region, and accepted international experience is being a applied to all sectors.

An extensive programme of modernisation is being implemented. Furthermore, the recent world economic crisis had an insignificant impact on Azerbaijan, due to the economic reforms that have been undertaken.”

The President explained that the Azerbaijani economy had tripled during the past seven years, with Gross Domestic Product (GDP) increasing by 300 per cent and poverty levels decreasing by five times. He commented: “This shows that the human factor remains the basis of our economic policy,” thereafter outlining the improvements in living conditions.

President Aliyev also revealed that 75 per cent of the economy in the South Caucasus emanates from Azerbaijan.

NEWS IN BRIEF Farewell to Ambassador Browne Azerbaijani President Aliyev has received H.E. Carolyn Browne, outgoing UK Ambassador to Azerbaijan, following the completion of her threeyear diplomatic tenure in the country.

The President highlighted the successful development of UK–Azerbaijani bilateral relations during this period, and stated his gratitude. Ambassador Browne expressed satisfaction regarding her work in Azerbaijan. She thanked the Azerbaijani government and President Aliyev for developing excellent conditions to foster further expansion of UK investment, and stressed her wish for further development of these relations.

The new incumbent will be H.E. Peter Bateman, formerly UK Ambassador to Luxembourg, who will take up the position in August.

In a Reuters interview, Vitaliy Baylarbayov, Deputy Vice-President, SOCAR, predicted that Azerbaijani oil output would grow by less than a tenth over the next decade, after more than tripling since 2000. New discoveries suggest the country will now place greater emphasis on natural gas exploration and exports. Baylarbayov stated: “We will be producing 50–55bn m3 (bcm) of gas per annum by 2025, of which 70 per cent will be exported.”

Such exports would more than double current shipments, being sufficient to cover the current gas consumption of France.

Azerbaijan’s annual gas production rose by 11 per cent from 2009–10, now amounting to 26.2bcm. Estimated production this year is 28–29bcm, with the majority of customers being located in Turkey and Russia. Total gas reserves are estimated at 3–5tn m3 (tcm), and it thought that construction of the EU-backed Nabucco pipeline, linking Caspian fields with southern Europe, will help reduce Russian gas dependence. Last year, Azerbaijani geotechnical specialists found the Umid field in the Caspian Sea, acknowledged as the largest discovery since the giant Shah Deniz field. Baylarbayov claimed that Umid could contain 300-400bcm of gas and about 50m tonnes of condensate. He continued: “Babek is another major gas deposit, being located next to Umid. This has not been developed but, according to our information, may contain more gas than Umid.”

He predicted that oil production would reach an annual plateau of 50–-55m tonnes, commenting that this it would rise by 2013, following opening of the Shah Deniz 2 gas field, which will produce oil condensate, in addition to gas.

P ho to: A l ek sa nder K ar ls en

The crash of the Ilyushin IL-76 cargo plane claimed the lives of nine crew members

Cargo plane crashes over Afghanistan

Officials have reported that an Azerbaijani cargo plane from Silk Way airlines, chartered by coalition forces, has crashed over eastern Afghanistan. The Russianmade Ilyushin IL-76 was carrying nine

members of crew from Azerbaijan and Uzbekistan when it went down in the mountainous Siagerd area during the night of 6 July. Rescue teams reported that no survivors were found.

Reports stated that the plane was carrying tonnes of supplies from Baku to the Bagram base, near Kabul. The cause of the crash is not known, and there were no reports of bad weather or insurgent activity in the area. A spokesman for Azerbaijan Airlines (AZAL) stated: “An Il-76 cargo plane belonging to Silk Way Airlines, heading from Baku to Bagram, crashed 25km from Kabul.

According to preliminary information, the crash may have been the result of a collision with an unknown object.” Abdul Haleem, District Chief, Siagerd area, stated: “There was a big explosion when the aircraft hit the mountains.”

the country, including the improvement of living standards, employment, environmental protection and production development. The Crown Prince explained: “Transparency, accountability and effective management of resources are the main principles. To succeed, it is necessary to involve all sectors of society, including civil society.” He explained that an important challenge for governments remains the transformation of resources into long-term prosperity for society, thereby balancing current needs with those of tomorrow.

He concluded: “Our responsibility is to manage resources properly, creating long-term growth for the benefit of all people, focusing on health, safety and environment. Our common ambitious goal should be to create conditions whereby future generations will be able to enjoy all the benefits derived from the country’s resources.”

NEWS IN BRIEF

Crown Prince Haakon Magnus has given advice on the effective use of oil revenues

Crown Prince imparts Norwegian advice

Crown Prince Haakon Magnus of Norway has given the benefit of his country’s experience during a seminar in Baku entitled The Extractive Industries Transparency Initiative (EITI): transparency, accountability and proper management of oil revenues. During the meeting, he explained how oil industry profits could positively affect society, with decisions being based on strong, accountable institutions, political consensus and responsible resource management. The seminar was organised by the State Oil Fund of Azerbaijan (SOFAZ) and the Embassy of Norway to Azerbaijan. The Crown Prince went on to explain that, given their hydrocarbon resources, Azerbaijan and Norway could provide reciprocal assistance and advice.

Exploitation of Norwegian oil resources began in the late 1960s and, since that time, policies have been implemented to ensure positive long-term effects for

US Library of Congress recalls Azerbaijani women’s suffrage The US Library of Congress (LOC) in Washington DC organised a lecture entitled Azerbaijan and the US: pioneer nations in women’s suffrage by Jennifer Krafchik, Director of Collections, Sewall-Belmont House & Museum. The lecture explained how all Azerbaijani women over the age of 18 years received the franchise in 1918 under the short-lived Azerbaijan Democratic Republic, whereas it was not achieved by all US women until two years later, following the passing of Amendment 19 to the US Constitution. The media, students and NGO representatives were in attendance.

New opposition party chairman elected A new chairman will be elected to the Supreme Assembly of the oppositional Unified Popular Front Party of Azerbaijan (UPFPA), according to Elchin Mirzabeyli, an UPFPA spokesman. The move comes following the election of Mikhail Rahimov to the Central Election Commission (CEC) in October 2010.

The UPFPA was established in 2004 and passed state registration the following year. It focuses on integrity, statehood and democracy, being represented by a single MP. Kemaladdin Heydarov receives Shohret Order According to the website of Azerbaijani President Aliyev, the Shohrat (Glory) Order has been awarded to ColonelGeneral Kemaladdin Heydarov, Minister of Emergency Situations, recognising the efficiency of his work in the civil service.

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Politics & News

Azerbaijan puts emphasis on gas as oil nears peak

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German newspaper features Azerbaijani energy potential

Politics & News

The Frankfurter Allgemeine Zeitung has published an article entitled Building bridge for Caspian natural gas by Gabriele Deruakh, focusing on the Global Energy Conference, which was attended by the SOCAR office in Germany. Elmar Mammadov, Head, SOCAR Germany, explained: “Reliability is a prime advantage of our gas supply. It will enable Germany to diversify its energy suppliers and ensure European energy security.” The article states that exploitation of the Shah Deniz 2 field will facilitate delivery of an additional 10bcm of gas to Europe and refers to the successful exploratory drilling at the Umid and Babek fields. It predicts that, by 2020, gas production will double from its current level of 27bcm per annum.

According to Kobia, further talks will take place in summer regarding the Azerbaijan– EU Association Agreement. He also stated that the next EU Eastern Partnership Summit would occur in Poland in late September, to which Azerbaijani President Aliyev would be invited.

Swedish Foreign Minister Bildt recognised the excellent relations between the countries

Swedish relations on the up

The re-election of Turkish Prime Minister Erdogan has been applauded in Azerbaijan

YAP applauds AKP victory The ruling New Azerbaijan Party (YAP) has applauded the election victory of the Justice and Development Party (AKP) in Turkey on 12 June. Ali Ahmadov, Deputy Chairman, YAP, expressed his appreciation of the AKP policy towards Azerbaijan, citing his support for the statements of Prime Minister Recep Tayyip Erdogan. He explained: “He has satisfactorily demonstrated the clear position of the Turkish state regarding the Nagorno-Karabakh situation. I believe that continuity of the AKP rule will lead to further development of such governmental and societal activities.”

Azerbaijani–EU visa agreement to be concluded

Roland Kobia, Head of the EU delegation to Azerbaijan, has revealed that talks on visa facilitation are imminent. He explained that this would permit ease of access to EU countries for Azerbaijanis.

Kobia commented: “This is very important, as visa provision to some nations was problematic. If the two sides have political will, Azerbaijanis can easily gain entry to EU countries.”

Carl Bildt, Swedish Foreign Minister, has praised Swedish–Azerbaijani bilateral relations following talks with Elmar Mammadyarov, his Azerbaijani counterpart.

He explained: “There is excellent political dialogue between our two countries.

We are actively working together within international organisations, and the Association Agreement to be signed with the EU will contribute towards the modernisation of Azerbaijan. One of the main provisions of the Association Agreement will be support for human rights and territorial integrity in Azerbaijan.”

Mammadyarov commented on the presence of Swedish businesses in Azerbaijan: “Today, Swedish companies are successfully collaborating in the mobile communications sector in Azerbaijan, and Swedish companies in other spheres should be encouraged to show an interest in our country. We would also like Azerbaijani companies to be more active in undertaking business in Sweden.” The Swedish company Telia Sonera currently owns a 51.3 per cent controlling stake in Azercell, the Azerbaijani mobile operator.

Further OMV exploration anticipated

Austrian oil company OMV has expressed an interest in establishing and developing new oil and gas fields in the South Caspian Basin, according to a report from the Geology Institute of the Azerbaijani National Academy of Sciences (ANAS). It continued: “OMV and the Geology Institute signed an agreement regarding the provision of scientific consultative assistance during late 2010.”

Under this contract, several ANAS scientists, under the leadership of Professor Akbar Feyzullayev, ANAS corresponding member, visited the OMV head office in Vienna, Austria. They presented several scientific reports regarding aspects of the geological structure, development history and oil and gas content of the South Caspian Basin. Preceding this, SOCAR and OMV signed a memorandum of understanding on co-operation, particularly relating to the intention of the Austrian company to participate in Azerbaijani mining projects.

Azerbaijan awaits 60,000 Eurovision tourists

According to Abulfaz Garayev, Azerbaijani Minister of Culture and Tourism, Baku is preparing to receive 50–60,000 visitors when the Eurovision Song Contest comes to the city in May 2012. During a press conference, he revealed: “Six new five-star hotels will be completed by the end of the year. Additionally, we are also seeking to construct cheaper three-star hotels. Work to raise the quality of tourist services in Azerbaijan has begun, and training and seminars are being organised.”

He explained that on-line hotel booking would cover Azerbaijan by the end of the year, although Baku hotels can currently be booked at www.bakutourism.az. Garayev added that the Song Contest venue would soon be determined by the Azerbaijani Eurovision Organising Committee.

NEWS IN BRIEF Honours bestowed on artists, scientists and diaspora leaders President Ilham Aliyev has honoured some of the leading figures in Azerbaijani public life. Amongst the 50 recipients were Ebrahim Ehrari, Director, Berlin-Baku Art Gallery (Honoured Art Figure); the artist Teymur Rasul Rzayev, who is renowned for his figurative and symbolic paintings of Absheron (Honoured Painter); and Tale Heydarov, Chairman and Founder, TEAS (Taraggi Medal for Azerbaijani Diaspora Development).

Agreement with Euronews An agreement has been signed in Paris between Ismayil Omarov, Director-General, Azerbaijani Public Television (Ictimai Kanal) and Michael Peters, Managing Director, Euronews. As a Golden Member of Euronews, the Azerbaijani channel will be able to supply footage to Euronews and receive reports for rebroadcast. Euronews is currently broadcast simultaneously in ten languages, being available in 155 countries to an estimated 350m households.

Rashidova plays the Thaxted Festival

The talented 23-year-old Azerbaijani violinist Nazrin Rashidova has performed a memorable concert during the annual Thaxted Festival in Essex. The 500 seats of Thaxted Parish Church, at which composer Gustav Holst was an organist, were filled to capacity as Nazrin performed Mozart’s Sinfonia Concertante for Violin and Viola alongside Jon Thorne (viola) and the Brandenberg Sinfonia, conducted by Bob Porter. Featuring lively and joyous opening and closing movements, with the violin and viola in constant dialogue, the central movement was serene and emotionallycharged. Nazrin captivated all those in attendance and demonstrated her virtuosity in this acclaimed work.

The Expression of Regression, inspired by transitory objects found around Belgrave Square, comprised a taxidermied German Shepherd resting on a wolf pelt

Fresh from jointly co-ordinating the Azerbaijani Pavilion at the Venice Biennale, Mila Askarova, CEO and Founder of the Gazelli Art House, organised her latest exhibition of exhilarating contemporary artwork in the auspicious surroundings of an otherwise vacant Georgian town house in Belgrave Square, London. Attended by luminaries from the European contemporary art scene, this was the third in a series of ‘happenings’ based on the theme of the Greek elements.

Works from a multinational range of artists were represented – Mike Calway-Fagen (USA) focused on simulacrum of objects found around Belgrave Square that achieve a varying spatio-temporal impact, whereas Noguchi Rika (Japan) harnessed such simple media as pinhole cameras to generate works with an impact determined by nature and fate. On the other hand, Kyung Woo Han (South Korea) suspended amended household objects with piano wire, using paint and eerie perspectives to give the impression of items being suspended in liquid, whereas his compatriot Hyo Myoung Kim used natural bodies of water to form the basis of light- and sound-sensitive chromo-photographic works. Finally, Henry Krokatsis (UK) used smoke paintings and leaded windowpanes of ‘found’ glass to reflect the transformative and mysterious qualities of water. Working in dialogue with the stability of the historic venue, this juxtaposition of transitory artworks proved startling, provocative and devastating for all attendees.

The next Gazelli exhibition, Air I Breathe, will take place at Rochelle School, Arnold Circus, London, E2 7ES from 9 September–7 October. For more information, go to www. gazelliarthouse.com.

scene at present, with his singles Obvious and Any Time You Fall both being named Record of the Week on BBC Radio 2, the UK’s most popular station. Both were taken from the CD entitled Wonder, which has received the accolade of Album of the Week.

Emin is emotional about his work – he has commented that: “Every song is a story from my life. It’s important to pursue your passion, and to be truly happy, you must do what you truly love.” Following his radio success, his promoter, Solus Entertainment, has organised his inaugural London concert, which will take place on 22 July at Under the Bridge, Stamford Bridge, Fulham Road, London, SW6 1HZ. To book tickets, please visit www.underthebridge.co.uk or tel: 0871 220 0260. To see Emin’s videos and breathtaking stadium performances, go to http://bit.ly/eminmusicvid.

First Zulfuqarova exhibition in the East End Mugham Impulses, written for western instruments, simulated the impact of mugham to remarkable effect

Microtonality in Stuttgart

The acclaimed Azerbaijani composer Günay Mirzayeva (see TEAS Magazine, April 2011, pp. 12–13) has participated in the International Congress on Microtonality at the State University of Music and Performing Arts in Stuttgart, Germany, at which she is studying composition under Professor Caspar Johannes Walter. Attended by leading international musicians and composers, she premièred her piece Mugham Impulses, written in the Chahargah mugham mode for harpsichord, guitar and cello. This featured Swiss harpsichordist Johannes Keller; German classical guitarist Stefan Volpp; and French cellist Céline Papion, who is a member of the renowned Ensemble Cordial String Quartet.

Mirzayeva commented: “The purpose of this piece was to demonstrate the melody and impulsive rhythms of mugham, incorporating microtones, where the instrumental timbre is reminiscent of Azerbaijani national instruments.” Following wide audience acclaim, the piece was recorded for CD.

Pop star Emin to play London

London-based Azerbaijani singing sensation Emin Agalarov is making waves on the UK

An exhibition of works by the 29-year-old artist Naile Zulfuqarova will take place in London on 27 July at the Rich Mix, 35–47, Bethnal Green Road, London, E1 6LA. Resident in London, Zulfuqarova has a Master’s Degree from the Azerbaijan State University of the Arts, and specialises in expressionistic, colourful evocations of her homeland. To find out more, go to http://bit. ly/nailez.

NEWS IN BRIEF Karabakhi cuisine showcased in the US The US-based Karabakh Foundation is to publish a cookery book focusing on food emanating from the Armenian-occupied region of Nagorno-Karabakh. Entitled The Cuisine of Karabakh, the book will include recipes for such dishes as mountain raspberry and blackberry jam; Shusha-style tomato and herb salad; pilau rice with fresh herbs and lamb topping; garlic yoghurt sauce; lamb- and thyme-marinated veal kebabs; and Ganja-style baklavas, yoghurts and mint sorbet drinks. To place your order, go to www. karabakhfoundation.org.

Depardieu eats Azerbaijan The internationally famous actor Gerard Depardieu has revisited Azerbaijan to appear in a promotional film about Azerbaijani national cuisine. The script has been written

by Leila Kardizadeh, Creative Director, CineX, and has been sponsored by the Azerbaijani Ministry of Culture and Tourism.

Depardieu is an acknowledged gourmet and vineyard owner, and is known to appreciate Azerbaijani food and wine.

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Culture

Still or Sparkling?

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FARHAD BADALBEYLI – EMBRACING THE AMERICAN DREAM

Personalities Pianist, composer and educator Farhad Badalbeyli delights the audience at the 2010 Gabala International Music Festival

Farhad Badalbeyli ranks amongst the foremost Azerbaijani musicians, being acknowledged as a pianist, conductor, composer, educator and musical Ambassador for his country. Coming from an illustrious line of musicians, actors and directors, he has performed across the world. Together with cellist and conductor Dmitry Yablonsky, he directs the annual Gabala International Music Festival in Azerbaijan, which is now in its third year, running from 22 July–5 August.

The two musicians came to London in May to perform some of the most famous twentieth century American classical music at Cadogan Hall in Central London, appearing with the Royal Philharmonic Orchestra, who were the house orchestra at last year’s Gabala International Music Festival. The programme comprised Gershwin’s Piano Concerto in F and An American in Paris; Copland’s Billy the Kid: Suite; and Bernstein’s Candide Overture. I met Farhad following the concert: The concert featured some of the most well-known pieces of American classical music. Who suggested the programme?

The Piano Concerto in F was my suggestion, as I have performed it many times over the years. The remainder of the programme was proposed by the orchestra.

Was such Western music heard during the Soviet period? When did you discover the works of Gershwin, Bernstein and Copland, and what was your reaction to their use of jazz and blues idioms?

Since the 1970s, I frequently performed these composers’ works across the concert

halls of the former Soviet Union, including Baku, and in Western Europe, accompanied by the Moscow State Symphony Orchestra.

In addition to the Piano Concerto in F, I focused on Rhapsody in Blue and the Fantasy on George Gershwin’s Porgy and Bess, arranged by Percy Grainger. Such works were performed to full houses, buzzing with expectancy, for the music of American composers had previously been suppressed.

As a swiftly-composed follow-up to Rhapsody in Blue, Gershwin taught himself elements of theory, harmony and orchestration for Concerto in F. Is this apparent in the finished work?

It is a very mature piece, and it should be remembered that Gershwin went to meet Maurice Ravel in Paris to study musical technique, but the French composer refused to teach him, stating that he should try and compose with his own voice, rather than writing works that were a poor imitation of his teacher.

both the jazz and classical repertoires, such as André Previn, Oscar Levant and Gershwin himself. Equally, Sviatoslav Richter recorded the piece. Do you feel it is helpful to have experience of jazz techniques to understand its subtleties?

I do not feel that this is strictly necessary – the piece has a classical form, and can be interpreted regardless of the pianist’s improvisatory skills.

The performance took place alongside the Royal Philharmonic Orchestra, who were resident at last year’s Gabala International Music Festival, where they were also under the baton of Dmitry Yablonsky. What kind of reaction did they receive? How did they handle the varied repertoire?

The Festival was a tremendous success, and the public response to the varied repertoire was wonderful. This audience is very passionate about music, and it was a pleasure to include the rarely-performed

Piano Concerto in F ranks amongst the earliest examples of so-called ‘Third Stream’ music, combining classical structures with jazz idioms, and was acclaimed by Igor Stravinsky. Do you feel it was successful?

At the time of the première, the piece was not amazingly popular, and it was only really after Gershwin’s death that it attracted the plaudits it deserved. The concerto is excellent and adopts a classical structure, featuring expansive orchestration.

Many performances of the work have been undertaken by composers with hands in

Farhad Badalbeyli introduced Soviet audiences to US classical music during the 1970s

Rachmaninov’s Symphony No.2. This is a long (45-minute), demanding, emotionallydraining piece, and left the attendees openmouthed. The audience did not solely comprise Bakuvians, and there were many people from the provinces present. Each piece was prefaced with a few words of introduction to explain its significance to the people.

Which orchestras and soloists will perform at the 2011 Festival? Will the repertoire remain populist, or will you be expanding into longer symphonic music?

May I firstly reveal that the Royal Philharmonic Orchestra will return as the ‘house’ orchestra in 2012. However, this year, the Festival will play host to a range of orchestras, chamber music ensembles, and singers, including viola player Yuri Bashmet; soprano Anna Samuil; and tenor Massimiliano Pisapia. All types of classical music will be performed, including chamber and early music. Some repertoire will be very familiar, although such pieces as Rachmaninov’s Symphony No.2, performed last year, have been selected as glorious discoveries for many audience members.

The Gabala International Music Festival is notable, for it is the first regular festival to be held in the Azerbaijani countryside.

Altogether, there are 90 villages in the region. The chamber music concerts already take place inside, and it is hoped that a new concert hall will be constructed so there may be orchestral performances throughout the year. An airport that can accommodate full-size aircraft is under construction, which will make the region

far more accessible for overseas visitors.

Will any mugham, jazz or world music be performed?

Traditional mugham and the ‘symphonic mugham’ works of Azerbaijani classical composers will naturally feature heavily in the Festival programme. It has become traditional to focus on jazz for at least one evening, and this year we have invited renowned French jazz pianist Jacques Loussier to attend with the other members of his trio. Over a career spanning more than 50 years, Jacques has become bestknown for his jazz improvisations on classical themes, particularly those of Bach, although latterly he has also explored the works of Satie, Vivaldi and Debussy, amongst others.

This year, the Gabala International Piano Competition will precede the Festival for the second time. Do most entries come from Azerbaijan and the CIS, and what is your view of the candidates’ technical mastery?

This biennial competition was inaugurated in 2009 and is unique in Azerbaijan. I am most impressed by the standard and quantity of entries from the young people applying for the 2011 competition. I have been pleasantly surprised by the pianists applying from the Far East, particularly China, Malaysia, Japan and Korea, although plenty are also entering the competition from Western Europe.

The award is considerable, comprising a cash prize of $30,000 (£18,554), together with a début in London with the Royal Philharmonic Orchestra, which will be recorded for Naxos.

What other projects are you working on at the present time?

Conductor Azad Aliyev and myself are now going to the Berlin Philharmonic Hall to perform my piece entitled The Sea, together with the Piano Concerto written

by Fikret Amirov and Elmira Nazirova, which we have just recorded with the Royal Philharmonic Orchestra. Following this, Dmitry Yablonsky and myself will travel to Montenegro to perform some Western classical and Azerbaijani music, including works by Kara Karayev. We would particularly like to undertake a tour with that orchestra to London, New York, Berlin, Moscow and Vienna, focusing on Azerbaijani classical music. Regular concerts are the only way by which our music will become widely known in the West.

For more information on the Gabala International Music Festival, visit http://bit.ly/gabalamf

The Royal Philharmonic Orchestra, conducted by Dmitry Yablonsky, has just released a new CD of Rachmaninov’s Symphony No.2, together with the composer’s Vocalise, featuring the piano of Farhad Badalbeyli. To purchase, go to www. orchidclassics.com/rpo

Personalities

P h o t o : Pau l i n e Pe n i c au d

French pianist Jacques Loussier, famed for his jazz interpretations of Bach, will bring his trio to Gabala this year

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political and regional stability, and new economic opportunities. Roads, railways and pipelines could take the shortest route, and tie the countries of the region more closely together, and the South Caucasus could finally become what it should have been already – a gateway between Europe and Asia. The EU is ready and committed to step up its efforts in support of the work of the Minsk Group Co-Chairs. We hope to see progress by the time of the planned Eastern Partnership Summit in September in Warsaw.

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Nagorno-Karabakh The Kazan Summit between Armenian President Sargsyan (left) and Azerbaijani President Aliyev (right), brokered by Russian President Medvedev, proved disappointing

Kazan summit fails to produce results The international community’s hopes for resolution of the Nagorno-Karabakh conflict suffered a setback in the wake of the summit in Kazan, Russia, between Azerbaijani President Aliyev and Armenian President Sargsyan, mediated by Russian President Medvedev. After an hour, agreement proved impossible, although the sides announced that: “A common understanding had been reached on a number of issues, whose resolution will help create conditions for the approval of the Basic Principles.”

Thomas de Waal, Caucasus specialist at the Carnegie Endowment for International Peace, Washington D.C., USA expressed his disappointment: “This was supposed to be the moment. Every year that this continues, the positions of the sides harden, and therefore it becomes easier to have a war.”

An agreement on the Basic Principles would enable Armenia and Azerbaijan to begin work on a peace treaty. The principles include granting NagornoKarabakh an interim self-governing status; returning a buffer zone to Azerbaijani control; guaranteeing refugees the right of return; providing a safe corridor between Nagorno-Karabakh and Armenia; creating an international peacekeeping force, and – perhaps the thorniest challenge – beginning the process of determining the enclave’s ultimate status. An interview with President Aliyev on Euronews, given prior to the Summit, can be seen at http://bit.ly/ en-aliyev.

On 4 July, the OSCE Minsk Group CoChairs and Ambassador Andrzej Kasprzyk, Personal Representative of the OSCE Chairperson-in-Office, met Lamberto Zannier, Secretary-General, OSCE, to discuss the outcome of the Kazan Summit.

The Co-Chairs plan to hold consultations in Moscow and to visit the region in the near future.

Baroness Ashton raises Nagorno-Karabakh in Strasbourg

Baroness Catherine Ashton, EU High Representative for Foreign Affairs and Security Policy and Vice-President of the European Commission, spoke on the current state of the Nagorno-Karabakh negotiations in an address to the European Parliament in Strasbourg on 6 July. The comments came in the wake of the Kazan Summit between Azerbaijani President Aliyev and Armenian President Sargsyan, mediated by Russian President Medvedev.

Baroness Ashton remarked: “The Deauville statement of Presidents Obama, Medvedev and Sarkozy made clear that the time had now come for an agreement, failing which the parties’ commitment to a solution would be questioned. Regrettably, despite strong messages at the highest level, the expected breakthrough at Kazan on 24 June did not materialise. President Aliyev of Azerbaijan and President Sargsyan of Armenia did not take this opportunity to reach a compromise.

“Nevertheless, efforts to find an agreement on the Basic Principles must continue, and I welcome the fact that both parties have recommitted themselves to the diplomatic process and to finding a peaceful solution.

But we need to see more than that in the coming months. The parties need to redouble their efforts to find an agreement before the end of this year. This would then happen before domestic priorities take over, with elections in Armenia and Azerbaijan in 2012 and 2013, respectively.

“Indeed, a continuation of the status quo is unacceptable, as is any effort to resolve the conflict or influence the negotiations by using force, or even the threat of force.

The peaceful settlement of the NagornoKarabakh conflict is a key strategic interest of the EU. A settlement of the conflict would transform the South Caucasus region, and would pave the way towards

“I have proposed the appointment of a new Special Representative for the South Caucasus to take these different work strands forward, in close consultation with the OSCE Minsk Group Co-Chairs.

Perhaps our most important contribution, however, will be to continue strengthening our relations with both Armenia and Azerbaijan.”

Christina Ojuland, Estonian MEP, reiterated that conflict resolution must occur on the basis of maintaining Azerbaijani territorial integrity, being adopted in accordance with the 2010 European Parliament resolution that calls for the withdrawal of Armenian forces from the occupied Azerbaijani territories.

Christian Vigenin, Head of the EU Delegation to EURONEST commented: “The unsuccessful results of the Kazan Summit are indicative that the OSCE Minsk Group has exhausted its abilities. However, the sides should also make more efforts towards achieving conflict resolution.”

He stressed that the European Parliament should also try to play a more important role in resolving the conflict by promoting dialogue between Azerbaijan and Armenia.

NEWS IN BRIEF EU delegation visits Azerbaijani IDPs An EU delegation comprising regional experts; representatives from Hungary, which holds the current EU Presidency; and European Commission officials, has visited the IDP hostels in the Darnagul district of Baku. Roland Kobia, Head of the EU Delegation to Azerbaijan, said the objective was to assess the inhabitants’ living conditions and problems.

Mass exodus of Armenian citizens According to the Aykakan Jamanak newspaper, around 64,000 Armenians left their homeland during the period January–May 2011, whereas 58,000 did so during the same period last year. It been found that a significant proportion of the emigrants do not intend to return for the foreseeable future. The newspaper reported that there were around 20,000 more emigrants than migrants entering the country each year.

and their aftermath. The Ambassador concluded: “We must never forget all those who gave their lives for their country and nation.”

The tomb of journalist Chingiz Mustafayev in Martyrs’ Alley, Baku

On 18 June, the achievements of television journalist Chingiz Mustafayev were remembered during a moving event at Azerbaijan House, Hackney, London.

Mustafayev – who lost his life in 1992 at the age of 31 years near the town of Nakhichevanik – is chiefly remembered for his 18 reports on the Nagorno-Karabakh conflict, which ultimately claimed his life.

The event began with a CNN film about Mustafayev’s eight-month career as a journalist, having originally studied medicine. He was also a main instigator of the Azerbaijani hip-hop movement, recording politically-motivated lyrics that were frowned upon by the Soviet authorities.

Most notably, Mustafayev covered the aftermath of the Khojaly Massacre in 1992, which claimed the lives of 613 civilians. His moving footage, showing the bodies of men, women and children, was accompanied by the sound of his sobbing. Mustafayev was also filming at the time when a shell exploded near him in a trench, and his camera kept rolling as his life ebbed away.

H.E. Fakhraddin Gurbanov, Ambassador of Azerbaijan to the UK, spoke on his personal recollections of Mustafayev, who he first knew as a student activist in 1985 during his own employment in the Azerbaijani Foreign Ministry. He recalled Mustafayev’s work in hip-hop music and his involvement with the Popular Front, which culminated with an independence rally of over 1m Azerbaijanis in Baku in 1990. These were forcibly quashed by Soviet troops during the Black January events of 19–20 January, but were the catalyst for the regaining of Azerbaijani independence. Ambassador Gurbanov went on to explain how Mustafayev broke the news blockade in 1992–93 to cover the Nagorno-Karabakh war and depict the truth of the situation. Mustafayev was thus responsible for the majority of the footage from the war that depicts the furious battles

Emil Agazade, Head of Media and Diaspora stated: “At the time of the Nagorno-Karabakh war, Azerbaijani television was very provincial and lacked talented reporters.

This makes Chingiz’ work monumentally heroic. He was a hostage of conscience and left an immeasurable impact – those who followed him felt they could ask questions that were left unsaid in Soviet times. He filmed the only truthful account of the Nagorno-Karabakh war, and paved the way for modern television journalists in the region. Chingiz’ legacy lives on with ANS TV, founded by Vahid, his brother, in 1992.

This was the first independent broadcasting company in the former Soviet Union.”

Following this, a musical tribute was paid

by Babek Sonmaz on vocals and saz, who performed A Wave in the Black Sea, a poem

by Ahmad Javal set to music by Uzeyir Hajibeyov, whose ancestral home was in Nagorno-Karabakh, and My Country, sung by tenor Farhad Amiri.

13-year-old Azerbaijani girl loses life

There has been condemnation of an incident in the Alibeyli village of the Azerbaijani Tovuz district, bordering Armenia. The APA news agency reported that a toy dog was loaded with an explosive device. This was allegedly dropped on the Armenian side into the Tovuz River flowing through the village.

Elsevar Jafarov and Aygun Shahmaliyeva, who were playing near the river, brought the toy to the home of Hasan Jafarov. When 13-year-old Aygun placed the toy on a table, the device detonated, killing her and seriously wounding her mother, Elnara Shahmaliyeva, aged 32 years, in the hip.

The Shahmaliyevs live in Saint Petersburg, Russia, and were visiting the town to see their relatives. The local prosecutor’s office has launched an investigation.

The tragedy occurred whilst the MEPs José Manuel Ferreira Fernandes, Gaston Franco, and Alain Destex were visiting the Azerbaijani region of Agdam to visit IDP and refugee settlements. Fernandes expressed his outrage, stating: “We have received information in Azerbaijan about the murder of a 13-year-old child. Killing a child cannot be explained.” He went on

to describe the Armenian side’s actions as “unacceptable”. Bernard Fassier, French OSCE Minsk Group Co-chair, commented: “The murder of an Azerbaijani child again shows how useful it would be to create a mechanism to investigate these incidents.”

Lindblad: more pressure should be exerted on Armenia

Göran Lindblad, former Chair, Political Affairs Committee of the Parliamentary Assembly of the Council of Europe (PACE), former Vice-President, PACE, former head of the Swedish delegation to PACE, and Senior Political Affairs Consultant, TEAS, has commented: “It is necessary that Russia and the international community should exert more pressure on Armenia to be more open and transparent.” He said that the risk of war between Azerbaijan and Armenia had increased since the Kazan Summit.

Lindblad continued: “It is necessary that negotiations get back on track. Moscow should put pressure on Armenia and stop arming them, and make Armenia sign the updated principles on peaceful solution of the problem.”

NEWS IN BRIEF AZN3.7bn spent on Azerbaijani IDPs since the ceasefire Ali Hasanov, Head, State Committee for Refugees and Internally Displaced Persons (IDPs) and Deputy Prime Minister has revealed that AZN3.7bn (£2.9bn) was spent on assisting IDPs from 1993– 2011. Altogether, AZN2.1bn (£1.7bn) came from the state budget, whilst the remainder came from the State Oil Fund (SOFAZ) and international organisations.

Hasanov stated that the Azerbaijani government spent an average of AZN684 (£545) for each IDP in 2010, being the greatest amount internationally spent on IDPs per capita. In 2011, the amount is expected to further increase.

Armenia ready to establish relations with Turkey Tigran Sargsyan, Armenian Prime Minister, has reiterated his willingness to establish diplomatic relations with Turkey without pre-conditions. However, Tayyip Erdogan, Turkish Prime Minister, replied that the return of the occupied territories remains a necessity. Turkey ended diplomatic relations with Armenia in 1993 in protest at the Armenian occupation of Azerbaijani territories, resulting in closure of the border.

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Nagorno-Karabakh

Remembering Chingiz Mustafayev

The refinery complex will be constructed 60km from Baku on a 1,500ha site.

The feasibility study included several international companies, such as Technip, Foster Wheeler and UOP.

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Business News

P h o t o : L o g an J ac k s o n

import fuel-efficient diesel-engined cars to the country.”

Vanessa Raine, TEAS, explained membership benefits to exhibition delegates

TEAS at the oil and gas show TEAS exhibited at this year’s Caspian Oil and Gas Exhibition and Conference in Baku for the second successive year, held from 7–10 June. Organised by the ITE Group, the event attracted an estimated 8,000 delegates, with 280 companies exhibiting.

TEAS took the opportunity to explain its role in cultivating business relations between Azerbaijan and Western Europe and the benefits of the various membership categories. For more information on these, visit http://bit.ly/teasmembership.

New Azerbaijani refinery on the drawingboard

Tofig Gahramanov, Vice-President: Strategic Development, State Oil Company of the Republic of Azerbaijan (SOCAR), has announced the construction of a new oil and gas refinery in Azerbaijan during the Caspian Oil and Gas Exhibition and Conference. He advised that the necessary investment would equate to $12–13bn (£7.4–8.1bn), and that investors would see a return within seven years.

The commissioning of the refinery complex will be performed in tranches and be completed between 2018–20. A gas processing plant (GPP) with a capacity of 10–15bn m3 (bcm) will be initially constructed, followed by an oil refinery with a capacity of 10m tonnes. The design and survey process, which is anticipated to take approximately two years, could commence in Q4 2011.

The GPP will process gas from fields developed independently by SOCAR, in addition to the Azeri–Chirag–Guneshli fields, and, if deemed necessary, gas taken from SOCAR’s allocation of the Shah Deniz resource. Gahramanov advised that the refinery complex would also produce A-92, A-95 and A-98 petroleum, in addition to jet fuel. He stated that a substantial production facility would be dedicated to diesel fuel, thereby catering for growing domestic and global demand.

He continued: “Diesel will comprise most of the oil products, making it possible to

Gas deals on the horizon SOCAR has announced that it will ratify a gas deal with German-based RWE before the end of 2011. This will enable RWE to begin exploratory drilling on the Nakhchivan gas and oil deposits in the Caspian Sea, following the signing of a memorandum of understanding between the two companies in March 2010.

Additional gas export contracts will also be ratified with Russia and Iran.

Vagif Aliyev, Head, Investment Department, SOCAR, informed the press at the Caspian Oil and Gas Exhibition and Conference that this arrangement would comprise a production-sharing agreement (PSA). RWE leads the consortium that intends to build the Nabucco pipeline to transport Caspian gas to Europe.

SOCAR has also announced plans to sign gas export contracts with Russia in September and with Iran in late 2011.

Kyamal Abbasov, Head, Gas Export Department, SOCAR, advised that: “Azerbaijan will export 2bcm of gas to Russia in 2011, and it is anticipated that the same amount will be transferred the following year. The sales contract for 2012 will be signed in September.” Azerbaijan exported 800 million m3 (mcm) of gas to Russia in 2010.

Abbasov went on to explain that a contract regarding the direct sale of gas to Iran would be signed during the Summer. In January 2011, SOCAR signed a five-year deal with the National Iranian Gas Export Company (NIGEC), which predicts the doubling of the annual Azerbaijani gas supply to the country, equating to 1bcm.

The commercial elements of the deal are still to be finalised. He continued: “At the beginning of 2011, we agreed on the main long-term contract conditions with Iran.

We plan to hold another meeting in the very near future to discuss the commercial details so we may sign the contract this Summer.”

Currently, Azerbaijan supplies 400mcm of gas to Iran per annum, comprising part of an agreement whereby Iran reciprocates by sending 350mcm of gas to the Azerbaijani Nakhchivan Autonomous Region (NAR). In April 2011, Azerbaijan established a new gas-compression station to facilitate the proposed increase in gas supply via the Southern Corridor of proposed pipelines.

The exterior of the Petkim petrochemicals plant in Istanbul

SOCAR prepares draft development plan

SOCAR has prepared its preliminary development plan for 2025, according to Rovnag Abdullayev, President, SOCAR. The announcement was made following a meeting whereby the draft document was presented to the board by Tofig Gahramanov, Vice-President: Strategic Development, SOCAR. This provided an opportunity to incorporate suggestions and comments within the agreement.

SOCAR is the only oil products manufacturer in Azerbaijan, operating two oil refineries. It also owns petrol filling stations under the SOCAR Petroleum brand and is the co-owner of Petkim, the largest Turkish petrochemical complex. It works in collaboration with foreign partners in major projects and oil and gas development ventures. In 2010, SOCAR produced 7.3m tonnes of oil and over 7bcm of gas.

Oil exports reach $7.5bn during Q1 2011

Azerbaijani oil exports reached $7.5bn (£4.6bn) during the first quarter of 2011, according to the Central Bank of Azerbaijan (CBA) Payment Balance Report. Of the total amount, the Azerbaijan International Operating Company (AIOC) produced $7.1bn (£4.3bn) worth of oil.

The report states that SOCAR and other on-shore operating companies accounted for $372.4m (£226.8m), and Shah Deniz condensate equated to $12.6m (£7.8m).

In 2010, Azerbaijan exported $22.3bn (£13.6bn) of oil to world markets. Of the total amount, AIOC produced $21bn (£12.8bn) worth of oil; SOCAR and other off-shore operating companies amounted to $1.3bn (£793m); and Shah Deniz condensate was valued at $126.3m (£77m). Azerbaijan’s total general oil product exports totalled $1.571bn (£960m) in 2010.

The Heydar Aliyev Centre, designed by London-based Zaha Hadid Architects, is the focal point of the Baku White City project

Baku White City in the spotlight

The Baku White City project has been showcased at the Caspian Oil and Gas Exhibition and Conference, being named as one of the country’s most important projects by Azerbaijani President Ilham Aliyev, during his visit to the project stand.

The Baku White City project will be a major catalyst in transforming the aesthetics of the capital. This has led an increasing number of investors to express a participatory interest. Spokespersons advised that land remediation of the 20ha Green Hill site is complete, and that the project has now progressed to the structural development stage.

Baku White City ranks amongst the largest modern development projects in the world, being situated on an ecologicallyreclaimed industrial zone. Altogether, the site will cover 244ha, eventually housing 50,000 residents across 10 districts. The site will comprise 20,000 residential or commercial units; 48,000 workplaces; 40,000 parking spaces (internationally recognised as one of the most generous per capita parking allocations); the largest boulevard in the world; a 65m-high Ferris wheel; 4ha fountain square; the region’s largest shopping mall; and a new metro station.

ADFD to provide power plant finance

The Azerbaijani government has signed a loan agreement with the Abu Dhabi Fund for Development (ADFD), whereby it will provide AED223m (£37m) as a concessionary loan to finance the Janub Thermal Power Plant Project. The agreement was formalised during a meeting in Baku between Mohammed Saif Al-Suwaidi, Acting General Director, ADFD, and Samir Sharifov, Azerbaijani Minister of Finance.

Following this, Al-Suwaidi advised that the plant would have a production capacity of 780MW, thereby meeting the increased Azerbaijani electricity demand.

include concessional financing of AZN5m (£3.9m) provided by the National Fund for Entrepreneurship Support. The enterprise will create over 460 new jobs in the region.

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Sharifov spoke of his appreciation for this ADFD support and the further strengthening of Azerbaijani–UAE bilateral agreements. The plant will provide a highquality, reliable power supply, thereby increasing Azerbaijani power generation system efficiency. It will be located next to the Shirvan Thermal Power Plant, near the existing Ali-Bairamli Thermal Power Plant, thereby facilitating the continued use of the existing infrastructure, including overhead lines, gas pipelines, access roads and railway lines.

The Azerbaijani–German Business Forum was organised by the Azerbaijan Export and Investment Promotion Foundation (AZPROMO); the Bavarian Ministry of Economic Affairs, Infrastructure, Transport and Technology; and the Azerbaijani Embassy in Germany, supported by the Azerbaijani Ministry of Economic Development.

The event attracted Azerbaijani and German officials, in addition to approximately 90 businessmen from the agricultural and food sector, together with representatives from the energy, finance, logistics, tourism and other industries.

Following the loan agreement, the total amount of development assistance provided by ADFD to Azerbaijan stands at AED260m (£43.5m), all of which has been invested in the Azerbaijani power and transportation sectors.

Nikoil Bank becomes AMF agent

Nokia maintenance service network roll-out

Finnish-based Nokia has launched a maintenance service network across Azerbaijan. The news was announced by Rashad Nazarli, Brand Manager, Mobitel, which acts as the official distributor of Nokia in the country. He explained that a new service centre would be constructed in Ganja. It will be the company’s second authorised service centre in Azerbaijan, following the opening of the first in central Baku.

Nazarli commented: “The service centre offers users a warranty and post-warranty repair service for Nokia phones. Customers can also purchase accessories for phones and receive instruction on the efficient use of Nokia devices.” He explained that service maintenance centres would be opened across Azerbaijan to meet expanding demand.

Top-quality bread for Azerbaijan

The Azerbaijani Delta Group has signed a contract at the Azerbaijani–German Business Forum in Munich to purchase bread production equipment for installation in a new factory from Germanbased Werner & Pfleiderer Bachverfahren Technik.

The factory will be constructed in Sumgait, an industrial city north of Baku, with a capacity of 122 tonnes per day, baking 60 bread types. The total project cost will be $15.4m (£9.4m), which will

Nikoil Bank has been awarded authorised agent status by the Azerbaijan Mortgage Fund (AMF), which operates under the auspices of the Central Bank of Azerbaijan (CBA), being the 24th bank to gain accreditation.

Nikoil Bank was founded by the Nikoil Azerbaijan Investment Company (AIC Nikoil), and has operated in Azerbaijan since 1997. The following year, AIC Nikoil became a shareholder in the Ulpar Commercial Bank, and Topaz Investments purchased a controlling stake in AIC Nikoil three years ago.

AMF was established in Azerbaijan in 2005, with the main objective of providing funding mechanisms to endorse mortgage uptake for Azerbaijani citizens via longterm financing. It also intends to attract domestic and foreign investments that provide mortgage finance in the country.

The AMF’s 24 authorised agents comprise 19 insurance companies and 12 appraisal organisations.

NEWS IN BRIEF Baku on the buses South Korea-based Daewoo is to supply 200 new passenger buses for use in Baku, according to Namik Hasanov, Head: Secretariat, Azerbaijani Ministry of Transport.

Hasanov explained: “New Daewoo buses have already been delivered to the capital, and more are expected during the next two months.” This will enable Baku’s public transport requirements to be adequately met. From January–April, Azerbaijan imported 212 new buses, costing $9.84m (£6m).

Business News

He commented: “The project will include the acquisition of gas and steam turbines, related auxiliary and safety systems, together with civil engineering works, transmission lines and equipment.”

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INNOVATION TECHNICAL & CONSTRUCTION SERVICES

Corporate Profile Innovation Technical & Construction Services (ITCS) provides a wide range of specialist electrical and mechanical services for the oil, gas and construction sectors. Established in 2010, the company has built a strong reputation in these industries. We caught up with Fidan Jabiyeva, Chief Director, ITCS, to find out more: What is your company’s specialisation?

ITCS specialises in providing a range of services for the oil, gas and construction sectors, focusing on procurement, installation, testing, and commissioning of both on- and off-shore mechanical, electrical, instrumentation and telecommunication services. ITCS also offers calibration and equipment rental facilities.

What is the size of your company?

The company has 20 office-based staff and a database of approximately 200 technical employees.

What are the special strengths of ITCS? In addition to the specialist services supplied by the company, ITCS is dedicated to maintaining the highest possible quality for clients. The company places great emphasis on understanding all customer requirements. ITCS also adheres to a high health and safety specification level, having established a Health, Safety and Environmental Policy that is implemented across all work locations.

Where do you sit in the Azerbaijani marketplace?

ITCS has secured a strong market position over a relatively short period, establishing an impressive customer base, due to its unique portfolio of services. The company has a primary philosophy of working closely with all clients to fully understand their requirements. Once this initial process

An ITCS engineer undertaking equipment installation

is complete, it develops a bespoke set of specific services to satisfy commercial and technical project objectives.

Are you experiencing any competition from outside of Azerbaijan?

This is not currently the case – as ITCS offers such a diverse range of customised services, the company has not encountered external competition, thus far.

Do you have a presence in other countries?

The company is officially registered in England and Wales, with a representative office in Baku.

What are the aspirations of ITCS in Azerbaijan?

The company aims to become a leader in its sector by introducing improvements and advancing methodology. ITCS brings applied expertise and an innovative approach. It aims to be viewed as a world-class partner for the world’s leading companies, delivering innovative solutions via pioneering methods.

What are your wider regional objectives?

ITCS plans to establish representative offices in Georgia or Kazakhstan to gain experience across Europe. It intends to become even more competitive as it grows, entering into competition with providers from other regions.

Why Azerbaijan?

What was the impetus behind your establishment in Azerbaijan?

ITCS recognised that there was a gap in the Azerbaijani market that it had the experience to effectively fill.

How do you view the business climate in Azerbaijan?

The business climate in Azerbaijan is incredibly healthy. Effective legislation has helped to develop an efficient business environment.

How has ITCS grown?

The company was only established in 2010, and has since established a sizeable customer base comprising some of the most renowned names in the oil, gas and construction sectors. The company is continually growing, and hence has created a desire to enter new geographies.

What is the skills base amongst the Azerbaijanis?

ITCS enjoys an excellent working relationship with its Azerbaijani workforce.

It has found the skills base to be high and the level of experience to be excellent.

Does your company provide training or operate apprenticeship schemes?

The company offers both training and apprenticeship schemes. It is dedicated to investing in all employees by providing extensive training and education courses.

Do you use foreign/expatriate workers?

The company employs local, foreign and expatriate workers at all levels, seeking to hire the best people for the job, regardless of their background.

Innovation Technical & Construction Services, 13th Floor, AGA Business Centre, 55, Khojaly Avenue, Baku, AZ1025, Azerbaijan Tel: +994 12 464 41 96 E-mail: fjab@innovation-technical.com www.innovation-technical.com

AZERBAIJAN: QUICK FACTS Official name: The Republic of Azerbaijan Capital: Baku Area: 86,600km2 Population: 9,000,000 Density: 104 inhab./km2 Urban population: 51.8 per cent Population of main cities excluding suburbs: Baku (2,500,000); Gandja (300,000); Sumgait (270,000); Mingacevir (95,000) Religions: Shiite Muslims (65 per cent), Sunni Muslims (28 per cent), Orthodox Christians (5 per cent), Others (2 per cent) Principal exports: Oil, gas, aluminium, carpets Official language: Azerbaijani Business languages: English and Russian

Monetary indicators

2006

2007

2008

2009

2010

Average annual exchange rate for US$1

0.89

0.86

0.82

0.81

0.80

Exchange rates as of 11.7.11: AZN1=US$1.27; US$1=AZN0.79; AZN1=£0.80; £1=AZN1.25; AZN1=€0.91; €1=AZN1.10

Please note that previous TEAS phone numbers have now been replaced.

Please call +44 (0)207 808 1918 if you have any queries.

www.teas.eu

Ph o t o : Az e r O l y m p i c

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