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MAGAZINE News • Views • Interviews

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SOMALIA RECEIVES TEAS AID Also in this issue: Azerbaijani–Turkish agreement secures future for Nabucco Illegal French MPs’ visit to Nagorno-Karabakh provokes outrage Remembering Robin Bennett – a true Bakuvite David Parry discovers a modern theatrical masterpiece Azerbaijani artwork attracts UK acclaim

September 2011

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26 September Labour Party Conference: Russia, Azerbaijan and the West: what does the new great game mean for Europe’s energy security?

1245–1400hrs: Baby Blue, 17, Edward Pavilion, Albert Dock, Liverpool, L3 4AB Organised by TEAS, in association with Progress. To attend, e-mail: wayne.green@ teas.eu 4 October Conservative Party Conference: New opportunities and old challenges on Europe’s Eastern Frontier 1930–2100hrs: Hall 3, Manchester Central, Petersfield, Manchester, M2 3GX Jointly organised by the Foreign Policy Centre and TEAS. To attend, e-mail: jack.pegoraro@ teas.eu

Affiliates P 12 Business News

Members P 14 Corporate Profile

P 15 Iteca Caspian Events

P 16 Facts and Figures

-DOD

Azerbaijan and Turkey tread the Nabucco path

The early-August meetings confirmed the reciprocal agreements on Nabucco, with the remainder of the month being devoted to drafting and verifying the implementation language in the various translations of the 130pp. draft agreement. This covers transmission and gas sales related to exploitation of the Shah Deniz 2 deposit.

Turkey already receives 6.6bn m3 (bcm) of natural gas from Shah Deniz 1 on an annual basis, which will be augmented with a further 6bcm from Shah Deniz 2 by 2016–17. It is expected that the remaining 10bcm will traverse Turkey to Europe. The Shah Deniz consortium is operated by BP (25.5 per cent). The other participants include Norwegian Statoil (25.5 per cent); Russian Lukoil (10 per cent); Iranian NICO (10 per cent); the State Oil Company of the Azerbaijani Republic (SOCAR) (10 per cent); French Total (10 per cent); and Turkish TPAO (9 per cent).

Prior to the meetings in Baku, Vagif

An earlier bilateral agreement over gas supplied from Shah Deniz 1 had defined British legal jurisdiction as governing the accord. However, SOCAR suggested Swiss legislation as an alternative for Shah Deniz 2, but Turkey insisted on taking jurisdiction itself. The final decision has not been publicly divulged.

For some time, the Nabucco Consortium has pursued separate negotiations with Turkmenistan and Iraq to achieve the annual pipeline capacity of 31bcm.

There has been significant progress with both countries, and no authoritative agreement has been reached with either potential partner.

Earlier this year, the European Commission was pushing the Nabucco and ITGI consortia to co-operate on such projects as the Bulgaria–Greece Interconnector. This will facilitate gas imports into Italy as part of a first stage, together with a possibly reducedcapacity second stage, following the original Nabucco route through Bulgaria, Romania and Hungary into Austria. This could necessitate initiating gas supplies to Europe at levels below the 31bcm per year projected for the entire project, as the annual design capacity of ITGI is 10bcm.

Azerbaijan will retain ownership of the gas traversing Turkey, which will eventually be sold in Central and Southeast Europe. Its gas customers could be widened to include countries not located along the Nabucco design route, such as Croatia, Macedonia, Serbia, and Slovakia. These could be integrated with the distribution network using a series of relatively inexpensive connectors, possibly creating a gas pipeline ring with independently reversible segments.

If the annual anticipated 16bcm production from Shah Deniz 2 is later increased to 25bcm, then it will be possible for gas to traverse Turkey to Syria, Jordan, and even Israel. However, in late July, Aliev commented: “We will start selling natural gas to all customers in the

Middle-East, once Syria has stabilised.”

Although Azerbaijan and Jordan signed a joint economic co-operation protocol regarding oil and gas exports in April, current events have led to postponement of this pipeline section.

Azerbaijani aid for Somalia

Elkhan Polukhov, Spokesman, Azerbaijani Foreign Ministry, has announced that the Azerbaijani government has decided to allocate $100,000 (£62,000) in financial aid to Somalia to tackle the consequences of drought and famine.

Over 29,000 children below the age of five years have died of hunger in the country, during the past three months.

TEAS has also donated £100,000 to the African Development Trust, which distributes food and medical supplies and constructs water treatment plants.

The UN has already declared five areas in Somalia to be famine zones, being attributable to the worst drought in the region in over 60 years. According to the UN, 640,000 children are acutely malnourished in Somalia, whilst 3.2m people require medical assistance.

Photo: UN

Instructions to push the talks to a conclusion were agreed in late July between Turkish Prime Minister Recep Tayyip Erdogan and Azerbaijani President Aliyev. A hiatus in the talks was attributable to the Turkish General Election, although legal matters also affected them during the following month. These issues were apparently resolved during President Erdogan’s working visit to Azerbaijan in August.

Aliev, General Manager of Investments, SOCAR, stated that the two sides had already agreed the “main substantive issues”, including transit payments, gas volumes and possible routes. He explained that the only outstanding issue necessitated “converting all these details into a legally binding contract.”

The Azerbaijani aid package will assist with alleviating the humanitarian situation in Somalia

NEWS IN BRIEF Ambassador Browne bids farewell H.E. Carolyn Browne, UK Ambassador to Azerbaijan, left Baku in mid-July, following the end of her diplomatic term. Dr Browne, a career diplomat, had been UK Ambassador to Azerbaijan since 2007. She previously worked in the UK missions in Russia, the UN and EU, together with various offices at the Foreign Office. In September, her replacement, Peter Bateman, formerly UK Ambassador to Luxembourg, will take up his new diplomatic role.

Politics & News

The extensive negotiations between Azerbaijan and Turkey that have slowed development of the Nabucco pipeline are nearing a conclusion. Rovnag Abdullayev, Director, SOCAR, revealed that talks had resumed between his company and BOTAŞ, its Turkish counterpart, at the beginning of August, preceding the official date by three weeks. Hulusi Kılıç, Turkish Ambassador to Azerbaijan, predicted that a gas export agreement between the two countries would finally be signed during September. However, a bilateral Azerbaijani–Turkish agreement will be insufficient in itself to make the Nabucco pipeline a reality, although it is necessary for this hurdle to be overcome.

Nabucco’s two competitors for delivering gas to Europe are the Trans-Adriatic Pipeline (TAP) and Interconnector Turkey–Greece–Italy (ITGI). The Turkey– Greece section of the latter is already complete, although the Greece–Italy length is not yet under construction.

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Azerbaijan, mon amour 4

Politics & News

Although Joanna Botteau Jacques remains devoted to her adopted homeland, she harnesses a longing to revisit France for one final occasion

Sabuhi Mammadli, Correspondent, Institute for War and Peace Reporting (IWPR), has uncovered a fascinating story regarding Joanna Botteau Jacques, an 83-year-old resident of the Azerbaijani region of Murguzalli, located 159km (100 miles) west of Baku. It transpires that, as a young woman in France during World War II, she fell in love with Shammad Shirmammadov, a young Azerbaijani man who had joined the French Resistance.

Shammad had been a Soviet soldier who was captured by German forces, held as a prisoner-of-war in Italy, and managed to escape and cross into France in 1944.

After joining the Resistance, he befriended a young man called Paul Botteau Jacques, who had a beautiful sister named Joanna.

In due course, Joanna persuaded her father to permit their marriage.

She recalled with pride: “My father arranged a great wedding for us in Paris, and a month later I obtained a visa from the Soviet consulate in Paris and set off for Azerbaijan. We were on the road for two months, passing through the whole of Europe, then Moscow, and finally arriving in Baku.”

Her husband’s family had been erroneously informed that Shammad had lost his life during the war, thus receiving a tumultuous welcome from the entire village. Joanna recalled: “When we entered the courtyard, all the relatives were there. As soon as they saw Shammad, they all began shouting, crying and falling to the ground. It transpired that they believed him to be dead, and had already mourned his passing.”

Following this, Joanna converted to Islam, at the request of Shammad’s relatives, subsequently changing her first name to Amina. She commented: “At first it was hard to become used to the different culture and customs, and even harder to adapt to the climate. The heat used to kill me. But I didn’t regret my decision – our son Rafael was born a year later. Sadly, our happiness didn’t last long, as Shammad died a little while later.”

Joanna’s mother then attempted to rescue her from the Soviet Union, even coming to Baku to meet her. However, the authorities would not allow Joanna to leave the country with her son, a Soviet citizen.

Joanna explained: “The only option was to abandon the boy and go, so I refused. I said we’d either go together, or I would remain here, and that’s what I did.”

After that meeting, she never saw any of her relatives again, although Joanna continued exchanging letters, particularly with her brother Paul, then a French diplomat in India. Having remarried, Joanna now has 30 grandchildren and 22 great-grandchildren.

As time passes, she has one remaining dream – to return to France and visit the graves of her family. In the early 1990s, she sought help from Ahmadiyya Jabrailov, another Azerbaijani who fought alongside members of the French Resistance during the war.

The French awarded Jabrailov the Croix de Guerre and other honours, but the Soviet authorities persecuted him when he returned. He was only recognised as a war hero when President de Gaulle enquired after him during a visit to Moscow in 1966. Joanna recalled: “I was sure that this legendary partisan and close friend of de Gaulle could help me get to France.”

Although Jabrailov promised to help her, he was struck by personal tragedy when his son was killed during the Nagorno-Karabakh conflict, and died soon afterwards. Joanna acknowledged: “I haven’t long left to live.

If I die without seeing my home, then my spirit won’t be at rest.” IWPR subsequently contacted the French Embassy in Baku, who advised that Joanna’s case was being processed and that consular officials had already contacted her. Zevfira Guliyeva, Consular Officer, French Embassy, went on to explain that Joanna would also need to prove that she has sufficient funds in the bank, before being allowed to travel to France. She further elaborated: “Remember that Europe is in crisis – the French Embassy cannot shoulder the costs of this trip itself.”

Robin Bennett: A rock and roll accountant Anne Thompson remembers The expatriate British community in Azerbaijan has lost a stalwart with the passing of Robin Bennett OBE, at the age of 69 years. He first came to Baku in 1995 as one of the first managers of Ernst & Young in the city and went on to establish the Baku branch of the Moore Stephens accountancy and consulting firm, being the driving force behind the creation of the British Business Group (BBG) in Azerbaijan.

The

astute,

convivial

Robin

was

considerably more than a summation of career statistics. He was an unfailing source of help and advice to friends, colleagues and visitors, even those just passing through Azerbaijan, and was consistently excellent company.

When a group of students at Baku State University wished to establish the Azerbaijan–Great Britain Youth Society (an early incarnation of TEAS) to help bring the two countries closer together, Robin offered guidance and encouragement.

He was made an honorary member in 2003, and continued to provide support as the society went on to produce Visions of Azerbaijan magazine and a range of other publications.

Robin’s personality could be seen in his vision for the BBG, which he chaired for a decade from its inception in 1997.

Under his guidance, it became a forum from which businesspeople could discuss the latest developments, seeking advice and support. Robin was also active in other UK–Azerbaijani forums, including the Anglo–Azerbaijani Society. He was much sought after for his understanding of the Baku business environment.

Perhaps his greatest legacy in Azerbaijan was to his current and former staff.

Throughout his career, Robin provided invaluable guidance to his team, nurturing colleagues as they established careers in finance and accounting and setting tough standards for them to achieve. Kamilla Qayibova, Moore Stephens, recalled: “He would always listen, even to the younger members of staff, and explore our ideas.”

At the funeral in Bath, James Bennett, Robin’s son, recalled that his father’s career took him from Ethiopia to Aden, Saudi Arabia to Libya, Athens, Zürich, Lagos and, finally, Baku. Along the way, he collected an OBE for his work in Tripoli. During the memorial service in Baku, H.E. Carolyn Browne, outgoing UK Ambassador to Azerbaijan, spoke warmly of Robin and acknowledged that his advice had enabled the Embassy to become a model of financial administration for other medium-sized UK diplomatic posts.

Many speakers at the funeral and memorial service recalled Robin’s musicianship, sociability and sense of fun. Robin made a tremendous contribution to the British community in Baku, and will be sorely missed by colleagues and friends alike.

His son James summed him up in his eulogy: “Dad made many, many friends.

He was always the last to bed, and liked nothing better than putting the world to rights through the small hours with good company, a good cigar and a bottle of 10-year-old Macallan.”

The Azerbaijani artist Kabira Alieva is flanked by H.E. Fakhraddin Gurbanov, Azerbaijani Ambassador to the UK, and Sabina Rakcheyeva, Violinist and Arts and Cultural Advisor, TEAS Advisory Board

Kabira Alieva’s work is replete with phantasmagorical evocations of her homeland

The drawings and paintings of the young Azerbaijani artist Kabira Alieva have been showcased in ZANN, a landmark exhibition at the prestigious Mall Galleries in Central London. Around 250 enthusiastic viewers attended the private view on 5 September, including H.E. Fakhraddin Gurbanov, Azerbaijani Ambassador to the UK; H.E. Volodymyr Khandohiy, Ukrainian Ambassador to the UK; Lord Laird; Florian Seitz, Deputy Head of Culture and Education, German Embassy to the UK; renowned violinist Nazrin Rashidova; members of the London-based Azerbaijani diaspora; international journalists; and those involved in the artistic and creative communities, including many members of the British public.

Whilst exploring the artwork, the guests also enjoyed a variety of sweets and drinks sourced from Azerbaijan. This TEAS-sponsored event formed part of celebrations marking the 20th anniversary of regaining Azerbaijani independence.

Sabina Rakcheyeva, Violinist and Arts and Cultural Advisor, TEAS Advisory Board, commented: “One of the main objectives of TEAS is to promote Azerbaijani culture, art and artists to a multicultural London audience. TEAS is honoured to sponsor this showcase of works by Kabira Alieva. She was born in Baku, capital of Azerbaijan, and held her first exhibition at the age of six years.

One of her most recent commissions was a collection of drawings inspired by the tracks on UnVeiled, the inaugural CD by my Ensemble. I am delighted that these works form part of the exhibition.”

Kabira ranks amongst the foremost Azerbaijani artists, seamlessly integrating elements of her homeland’s culture in an homogenous, sweeping and individual manner. Entitled ZANN, the exhibition unites a collection of artworks, serving to visually engage, educate, introduce and explore Azerbaijani identity.

The work of Kabira is charged with an ethnic undercurrent of stylised dynamic imagery, together with the vibrant play of line, colour and texture. Her paintings breathe with soul and messages. In many instances, relief surface textures tease the viewer with tactile sensations for the eyes, enhancing engagement with the energy and meaning of the work. To see more, visit www.kabira-alieva.com.

German audience applauds Azerbaijani musicianship

The Azerbaijan State Academic Opera and Ballet Theatre Symphony Orchestra has participated in the Munich Opera Festival, which ranks amongst the foremost showcases for opera, ballet and other classical music genres.

The Festival featured talented performers and visionary directors representing 34 countries in Europe, Asia and Latin America. The Orchestra was invited to participate in the Grand Final Concert, conducted by Professor Javanshir Jafarov, People’s Artist of Azerbaijan.

The concert included works by the Azerbaijani composers Gara Garayev, Fikret Amirov, Tofig Guliyev and Polad Bulbuloglu.

The vocal and orchestral performances attracted wide acclaim from the audience. Following the concert, Cornelia von Kerssenbrock, Art Director and General Conductor, Munich Opera Festival, explained: “I was already aware of the high professional level of the Orchestra, who were invited to perform at the festival for the first time.

I admire the talent, selflessness, and inspiration of the Azerbaijani musicians.

Their performance at the Grand Final Concert was fantastic. I have frequently accompanied Ludwig Baumann, Director, Munich Opera Festival, on his visits to Azerbaijan, and am proud of our friendship with the country.”

Azerbaijani musician to perform in the US

Imamyar Hasanov mesmerised his audience in the Windy City

Imamyar Hasanov, the acclaimed Azerbaijani kamancha player, performed at the Silk Way concert at Harper College, Chicago, USA. He performed pieces from Act II of the Koroglu opera by Uzeyir Hajibeyli; Dance by Rashid Efendiyev; Gracious Dance by Jahangir Jahangirov; Azerbaijani Suite by Fikret Amirov; Under the Moonlight by Gambar Huseynli; folksongs; and the Shur, Chahargah, Mahur, and Rast mughams. The organisers claimed that over 1000 people were in the audience.

Other participants included musicians from the UK, US, Brazil, Pakistan, Bulgaria, the Czech Republic and other countries.

Hasanov’s CD, entitled An Undiscovered Treasure, features music by such Azerbaijani composers as Tofig Guliyev, Fikret Amirov, Arif Malikov and others, together with Hasanov’s Rhapsody based on the Chargah mugham, and improvisations on the BayatiShiraz and Chargah mughams. To order a copy, go to http://amzn.to/kamancha.

Azerbaijani national dress in Argentina

A exhibition entitled National Costumes of Azerbaijan and their Design has been launched at the design and architecture department of Belgrano University in Bueños Aires, with the help of the Azerbaijani Embassy in Argentina. Its purpose is to increase knowledge and understanding of the country amongst Argentinians.

During the opening ceremony, diplomats from the Azerbaijani Embassy in Argentina, launched last year, gave a presentation on the rich cultural heritage and realities of contemporary Azerbaijan. Following this, there was a lecture on Azerbaijani national dress, focusing on design elements; materials; and sewing techniques. During a five-month period, Argentinian students will be instructed on methods of cutting and sewing national dress, culminating in a display of the finished costumes.

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Kabira Alieva – an unique approach to Azerbaijani symbolism

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SATIRE, SURREALISM AND SHAKESPEARE – A MASTERPIECE IS AWAKENED

Personalities

contains the performance of a scene from Shakespeare’s Romeo and Juliet to demonstrate the sensitivity of the inmates. The text certainly contains elements of Soviet realism and there are many analogies regarding a lack of political sensitivity.

Professor Elchin Efendiyev, Azerbaijani Deputy Prime Minister, seen with Sevda Kaygısız, Turkish film producer

Portsmouth-born David Parry is a literary archaeologist and polymath, having graduated in Religious Studies from King’s College, London, and thereafter going on to teach language and literature in various academic institutions across London.

An enthusiastic and knowledgeable pagan, David has published two books of poems and mini-sagas – The Grammar of Witchcraft and Caliban’s Redemption.

Having been a devotee of Russian literature for several decades, David became aware of the breadth of Azerbaijani literature after cofounding the London-based Gruntlers’ Arts Group in collaboration with Sanan Aliyev two years ago. Working alongside a culturally diverse array of participants, David sought to ensure that Azerbaijani literature was represented in many Gruntlers’ performances. This desire was most notably manifested last year by a costumed reading of the 1851 play The Botanist Monsieur Jordan and The Sorcerer-Dervish Mastali Shah by Mirza Fatali Akhundov, and during an evening celebrating the life, works and influence of poet Imadaddin Nasimi.

However, David’s passions are not limited to the Azerbaijani literature of the past, and Gruntlers’ is currently addressing its greatest challenge to date – a fully-staged performance of the play Shakespeare, being a satire by the astoundingly prolific Professor Elchin Efendiyev, who also serves

as the Azerbaijani Deputy Prime Minister. Performed at the atmospheric 18th century Horse Hospital in Bloomsbury, this will represent the first presentation of the playwright’s work in the UK, also being amongst the few productions of his oeuvre to take place outside Azerbaijan. David visited the TEAS office to explain his motivations and give an insight into this unusual work.

How did you become aware of the plays of Professor Elchin Efendiyev?

Last year, I was invited to speak at the International Theatre Conference in Baku. On the final day, Professor Elchin sent me an English translation of Shakespeare, his play, with which I was most impressed. I then contacted Professor Elchin via Teymur Tahmazov, a translator at the conference, who has been an invaluable contact regarding the practicalities of the production.

To date, Professor Elchin has published over 100 books. How would you describe his range of work?

His range appears to be extensive, covering realism through to surreal imagery. Professor Elchin is extraordinarily prolific, and he takes theatre extremely seriously. There are undeniably elements of dadaism in Shakespeare, which is ingeniously written. In a veiled manner, the play states that politics reduces people to the level of fools. The play itself is set in an Azerbaijani lunatic asylum, just after the end of Soviet rule, where the patients clearly have greater sanity than the staff. The play

Professor Elchin’s work is currently available in at least 21 languages.

Why do you think that his output is comparatively unknown in the UK? This is attributable to the impact of the Soviet Union, which created an impenetrable cultural wall between East and West. Furthermore, cultural media reporting almost exclusively focuses on new plays and wellknown works from the past, rather than previously unknown Azerbaijani plays from 20 years ago. It is thought that audiences are not interested in retrospectives that are beyond their standard frames of reference.

Are there are any comparisons you would draw with Western European authors?

It certainly resonates with the more radical elements of Western European culture, and feels like a Western play.

Shakespeare seems to be imbued with gentle European humour, being reminiscent of the Azerbaijani master, Mirza Fatali Akhundov, and two of my heroes – August Strindberg and Antonin Artaud – both of who sought to transport the viewer towards an understanding of truth via theatre and emphasised characterisation over plot.

I am also a proponent of Stanislavski’s

Professor Elchin Efendiyev’s extensive literary canon stretches back to 1959

to date. I am most honoured that Professor Elchin will attend on the first night.

What are the future challenges for Gruntlers’ Arts Group?

We certainly hope to further showcase Professor Elchin’s work. Many of his plays are full of cutting-edge political comment, and we will explore his oeuvre. His work proves that art need not be merely entertainment.

The inaugural English-language presentation of Professor Elchin’s Shakespeare is due to the determination and drive of David Parry, seen here at the International Theatre Conference in Baku

approach to performance and the ‘window’ on a naturalistic production.

What can audiences expect when they come to attend this play?

They can anticipate a fast-paced production, featuring excellent characterisations.

Shakespeare is being performed over an entire week, so hopefully audiences from a range of backgrounds will be able to attend.

Audiences can expect a unique play and an unforgettable occasion.

Have the characterisations proven a particular challenge for the actors?

Not at all – there are many strong characters in the play, and this will be an overly character-driven performance.

The personalities are universal, and there are many equivalents in Western European society. I personally see echoes of Leo Tolstoy’s work, particularly regarding the motivation of characters.

Dervish Mastali Shah. Our evenings have also regularly featured dramatic monologues. It thus seemed like a natural progression to produce a play at this time. In this instance, the quality of the play won the cast over, and they demonstrated genuine enthusiasm for the text. Previously, it had been impossible to persuade all the Group members to perform at the same event, but this has now been disproven.

Shakespeare, by Professor Elchin Efendiyev, will be performed from 5–9 December at The Horse Hospital, Colonnade, Bloomsbury, London WC1N 1JD (website: www.thehorsehospital. com). Please note that invitation to the opening night is by invitation only. Tickets are £10 (concessions £7) and may be booked at www.thehorsehospital.com.

Shakespeare has been performed in Azerbaijan, but only a small number of productions have taken place,

What led you to select the Horse Hospital as the venue for this play?

The Horse Hospital in Bloomsbury has been a centre for the avant-garde over a long period. It is also a wonderful backdrop for the action, being reminiscent of the sanatorium setting for the action.

A costumed, fully-staged play represents a new challenge for the Gruntlers’ Arts Group. Why did you think that this was the time for the Group to enter the theatrical sphere?

Gruntlers’ has been toying with entering the theatrical sector for some time, particularly since the costumed reading of The Botanist Monsieur Jordan and The Sorcerer-

Shakespeare will be performed amidst the atmospheric surroundings of the Horse Hospital in Bloomsbury, constructed in 1797 and now a centre of avant-garde theatre

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Personalities

Will the play go on tour, either in the UK or Azerbaijan?

The Group certainly hopes to take the play on tour around the UK. Some impresarios in Oxford have already given a firm assurance that it will be performed there.

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MIKE PULLEN – FERVENT SUPPORTER OF THE AZERBAIJANI CAUSE

Personalities

Yorkshire-born Mike Pullen is amongst the most passionate supporters of Azerbaijani business potential, allied with a strong belief in upholding the country’s territorial integrity. An international trade lawyer, he works as Head of Competition and Trade: EMEA Region, DLA Piper, specialising in European Union (EU) competition law and regulation. DLA Piper is the world’s largest law firm, employing 4,200 lawyers in 76 offices across 30 countries.

Mike has extensive experience in dealing with EU competition regulation; E-commerce equipment and services; and has advised several Eastern European governments on EU accession. He has been a consultant to many leading organisations, including the UK Department of Trade and Industry (DTI); the European Commission; and the European Parliament. Due to the breadth of his experience, Mike has the ability to assess patterns of national development, analysing structures and predicting the next stage. I caught up with him in his London office to discuss Azerbaijan: When did you first visit Azerbaijan?

What were your first impressions of the country?

I first visited Azerbaijan two years ago through a trade mission organised by the Middle-East Association (MEA), with support from the International Bank of Azerbaijan (IBA). I then began to realise the relevance of the UK to the country, and its strategic

importance as a supplier and transit nation for Caspian energy. Azerbaijan remains pivotal to the Trans-Caspian region, and I remain very positive about the prospects for the country, acknowledging the fact that sweeping economic reforms have been implemented over a short period.

When I visited Baku for the first time, I was struck by the vibrancy of the population.

It is undeniable that progress has been initiated, but it is always possible to go a step further. A major forward move would be to expedite World Trade Organisation (WTO) membership. Georgia has already become a full WTO member, and Armenia has acceded to the WTO Government Procurement Agreement.

In addition, there would be a strong case behind the establishment of an EU–South Caucasus Free Trade Agreement.

However, the major challenge that must be solved before such measures can be implemented in the Caucasus region is a satisfactory conclusion to the Armenian invasion of NagornoKarabakh and the seven surrounding regions. The OSCE Minsk Group, which has focused on establishing a negotiated peace, has proven unsuccessful for 17 years. Awareness of the conflict remains comparatively low across the EU. The four UN Security Council Resolutions must be implemented, as they specify removal of Armenian forces from the occupied territories.

Azerbaijani President Aliyev (second from left) participated in a session on Europe’s Energy Future at the World Economic Forum in Davos, Switzerland

Mike Pullen seeks to promote the peaceful resolution of the NagornoKarabakh situation

How has the legal system evolved since your first visit?

In Azerbaijan, as with much of the former Soviet Union, much of the legal system evolved from the Marxist doctrine that determined all aspects of internal and external affairs for much of the 20th Century. In turn, many elements of these codes were derived from German Civil Codes.

The Azerbaijani government has developed and implemented many new laws, but these have been added to the existing system, and many pieces of the jigsaw do not currently fit together successfully.

The legal system must be homogenous, and Azerbaijan should train its own, experienced, judges and lawyers, who must hold relevant legal knowledge. Such specialists did not exist under the state-run system.

In Azerbaijan, there is not one dominant legal system – be it EU or US – and this must change.

How is DLA Piper operating in the country?

DLA Piper operates on a regional basis, and expansion has generally been due to the mergers and acquisitions of legal practices in various countries. It currently has practices in St. Petersburg, Moscow, Istanbul and Kiev, so despite not having an office in Baku, it is ideally positioned to provide services to Azerbaijani clients.

What is Azerbaijan doing to harmonise its legal system with either the EU or US? The two predominant legal systems are those for the EU or US and, since regaining its independence, Azerbaijan has generally come to favour that of the EU. This is because Azerbaijan is important to the EU in terms of its geopolitical location and acts as a bridge between the Caucasus region and the EU. However, the US acknowledges the need to create such geopolitical trade links. The Trans-Caspian region was particularly mentioned at this year’s World Economic Forum in Davos.

Azerbaijan is continuing to prosper without Nagorno-Karabakh, despite the enormous difficulties associated with accommodating 870,000 Internally Displaced Persons (IDPs) and refugees. Peace between Armenia and Azerbaijan would thus benefit the entire Caucasus region, possibly

What is your view on the legalities surrounding the Nagorno-Karabakh conflict?

It is necessary to assess the methods by which Azerbaijan engages with the EU, and how the nation is regarded in member countries. A widely held misconception is that Muslim Azerbaijan has persecuted the smaller, Christian, Armenia, and has committed indescribable savageries in that regard. In fact, Azerbaijan is secular and both religiously and racially tolerant. It was also the first Muslim democracy, declared during the time of the Azerbaijani People’s Republic in 1918.

setting an example to the North Caucasus. It would also optimise the efficiency of pipeline routes.

What do you regard as the major industrial sectors for future development in the country?

Obviously, oil and gas will remain the major industries in the Azerbaijani economy for at least another 20 years. However, the government is attempting to achieve diversification, particularly with regard to developing agriculture and IT, and Azerbaijan is undeniably a knowledge economy.

For more information, visit www.dlapiper.com

Azerbaijani membership of the Geneva-based World Trade Organisation is supported by Mike Pullen

Unfortunately, Azerbaijanis are less successful at getting their message across than the Armenians, who have been doing so since the tragic killings in 1915, following which they depicted themselves as a ‘victim’ state. Perpetuated by the wealthy and influential Armenian diaspora, they have used this as an excuse to give themselves a soft option towards fulfilling their obligations. Azerbaijan should be proud of its achievements.

It is Europe-facing and should not be forced to cow to these false perceptions.

The Nagorno-Karabakh situation is a Gordian knot, despite the four UN Security Council Resolutions against Armenia and a non-binding General

Mike Pullen advocates bringing the Nagorno-Karabakh situation before the International Court of Justice in The Hague

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Personalities

Assembly resolution. To achieve any degree of movement, it is necessary to take the facts of the conflict to the International Court of Justice (ICJ).

Successful, lawful, resolution is in the interests of all sides. We need to reignite the resolution process, and this will not be possible under the OSCE Minsk Group, as all three CoChairs have voted against bringing the case to the ICJ. The conflict should also be brought before the European Court of Human Rights.

P h o to : World Trade Organisation

What are the main priorities of DLA Piper’s Azerbaijani clients?

DLA Piper is collaborating with the IBA, and is focusing on public and international law. It is assisting with the establishment of trading relations with the EU, and attempting to establish some free-trade agreements.

The company is also undertaking the preliminary legal work regarding WTO accession. The Azerbaijani government is responding well to its advice.

10

New letter to UN Secretary-General issued

Nagorno-Karabakh

during the Kazan meeting, but this does not indicate that the whole procedure has failed. Of course, the inability to reach an agreement at the meeting is disappointing, but a few days later a meeting was held in Sochi between the Azerbaijani and Russian Presidents. I heard it was held in a positive atmosphere, and we would like this process to continue. I would not like to think that the settlement process has ended.”

Kobia then touched upon the incidents occurring at the ‘contact line’ between Armenian and Azerbaijani troops. He explained: “We are saddened by the situation in the frontal zone. Such cases from the Azerbaijani or Armenian sides must not take place, because there is a ceasefire régime. No-one should die there, and both sides must respect the this.”

Agshin Mehdiyev explained the extent of Armenian-perpetuated misinformation to Ban Ki-Moon, UN Secretary General

Agshin Mehdiyev, Permanent Representative of Azerbaijan to the UN, has despatched a new letter to Ban KiMoon, UN Secretary-General. According to the UN News Service: “Instead of preparing its people for peace and a prosperous and stable future in friendship and co-operation with its neighbouring nations, the President of Armenia openly incites the youth and future generations of his country to new wars and violence.

The increasing number of casualties over the past few months amongst Azerbaijani civilians residing in the front-line areas testifies to Armenia’s apparent disregard of its obligations under international law and in the context of the ongoing conflict settlement process.

“In their joint statement of 26 May, made in Deauville, France, the Presidents of France, the Russian Federation and the USA inter alia, strongly urged the sides to prepare their populations for peace, not war. At a meeting with the participants in the fifth Pan-Armenian Olympiad for the Armenian Language, Literature and Armenian Studies held in Gara Chichek (Tsakhkadzor), Armenia, on 25 July, the head of the Armenian State instructed the youth of his country to continue implementing the policy of hatred and mistrust among the peoples of the region.

Thus, in response to the question from a student about the prospects for expanding Armenia’s territory at the expense of neighbouring Turkey, Serzh Sargsyan said that the realisation of this duty would depend on the efforts of the new generation, and referred to the fulfilment of a task to capture part of what he called “our fatherland – Karabakh.”

Mehdiyev continued by stating: “Azerbaijan considers the historical assertions of the Armenian side to be false, a vivid example of which is the reference by the President of Armenia to the occupied Nagorno-Karabakh region of Azerbaijan as allegedly the occupiers’ ‘historical land’ or ‘fatherland’. These have the sole purpose of misleading the international community and justifying a policy of violent territorial expansionism.”

Mehdiyev noted that, having implemented the total ethnic cleansing of both the territory of Armenia and the occupied territories of Azerbaijan, the Armenian President had succeeded in creating an uniquely mono-ethnic culture in these areas. He concluded: “Thus, the Armenian leadership has unveiled its expansionist intentions, at the core of which are historical delusions and racial animosity.”

The letter concluded by outlining the impact of Armenian ceasefire violations during July, highlighting the deaths of a 13-year-old Azerbaijani girl and an Azerbaijani soldier, together with the wounding of two civilians.

Kobia requests accelerated conflict settlement

During a press conference, Roland Kobia, Head of the EU representative office in Azerbaijan, outlined the necessity for expediting resolution of the NagornoKarabakh conflict. He stated: “Armenia and Azerbaijan failed to reach an agreement on the Nagorno-Karabakh settlement

ICRC missing persons database created

The International Committee of the Red Cross (ICRC) has registered 4,575 unaccounted Azerbaijanis as ‘missing persons’, all of whom disappeared during the Nagorno-Karabakh conflict. Sylvie Graenicher, Co-ordinator, ICRC Defence Programme Co-ordinator in Azerbaijan, explained that the ICRC had collected this information from the families of disappeared people to create the Ante Mortem database. The ICRC undertook the work in collaboration with the Azerbaijani Red Crescent Society. To date, questionnaires regarding 3,631 missing persons have been received. Graenicher explained: “The collection of Ante Mortem data is being undertaken by the ICRC to support the authorities’ efforts, as they bear primary responsibility for clarifying the fate of the missing persons.”

NEWS IN BRIEF ICRC employees visit Azerbaijani POW in Armenia Members of the ICRC visited Roman Huseynov, Azerbaijani Prisoner-of-War (POW), who is currently being held in Armenian captivity. According to Shahla Gahramanova, Spokesman, ICRC Baku Office, employees from the ICRC Yerevan Office assessed the prisoner’s conditions, followed by an exchange of letters to and from his family. Azerbaijani army sergeant Huseynov was captured on 27 August 2010. Working under the Geneva Conventions, the ICRC has operated in the region since 1992, in connection with the Nagorno-Karabakh conflict.

The Azerbaijani Embassy in Paris has submitted a formal protest to the French Foreign Ministry regarding an illegal visit by four French MPs – Guy Teissier, Jacques Remile, Georges Colombier and Valérie Boyer – to Nagorno-Karabakh and the seven surrounding territories. Elman Abdullayev, Spokesman, First Secretary of the Foreign Ministry, revealed: “The French MPs will be added to the ‘blacklist’ of persons whose entrance to Azerbaijan is considered undesirable, due to a lack of respect for the sovereignty and territorial integrity of Azerbaijan and failing to inform the relevant Azerbaijani government bodies about visiting the Nagorno-Karabakh region.”

Abdullayev went on to explain that the Azerbaijani Embassy in Paris had sent a protest note to the French Foreign Ministry. It also appealed to the French Foreign Ministry, requesting clarification from the French National Assembly. He outlined: “In this letter, Baku demanded an explanation in connection with the French parliamentary delegation’s visit to the occupied Azerbaijani territories.”

Previously, France has repeatedly voiced official support for Azerbaijan’s territorial integrity.

However, the Azatutun (Freedom) radio station reported that Guy Tessier, Chairman of the French Assembly’s Defence and Armed Forces Committee, led the delegation. He is the mayor of the ninth and tenth arrondissement of Marseille, which is densely populated by Armenians. The visit was clearly an attempt to gain diaspora votes in the French legislative elections, scheduled to take place next year.

Musa Gasimli, Azerbaijani MP, commented: “France is one of the OSCE Minsk Group Co-Chairs, and mediators should be neutral, impartial and operate within their mandates. The French MPs’ visit to the Nagorno-Karabakh region of Azerbaijan casts a shadow on the mediation mission of this country.”

The arsenal of the Armenian armed forces in Nagorno-Karabakh has been considerably expanded and modernised

Occupying forces boast of military buildup

Lieutenant-General Movses Hakobian, Armenian Armed Forces Commander in Nagorno-Karabakh, has revealed that the Armenian-controlled territory has substantially boosted its weapons arsenal over the last six months, according to RFE/ RL. The Commander estimated that the ‘military potential’ of his troops grew by 20 per cent during the first half of 2011.

During a press conference, he explained: “During this period, the qualitative and quantitative state of our weapons and military hardware changed considerably.

Quite serious reforms were implemented, involving the restructuring of two army brigades.” Hakobian explained that the military would obtain new artillery, air defence and anti-tank weaponry, and this year would receive two divisions of new tanks. These have been supplied by Armenia, presumably having originally been sourced from Russia, although no disclosure has been made on the UN Register.

Important role for Germany

Professor Udo Steinbach of Hamburg University, specialist in Middle-East studies, has given his perspective on EU– Azerbaijani integration and the potential for resolution of the Nagorno-Karabakh conflict. He explained: “On the German side, I think we could do more, we should be more aware about Azerbaijan and the place of the country in terms of political stability in the Caucasus. When it comes to Nagorno-Karabakh, the Germans have a role to play. Unfortunately, Germany and – especially – the German parliament and government do not fully comprehend how Germany should participate in

bringing about a solution to the NagornoKarabakh problem. This is slowly developing, but is inadequate at present.”

He continued: “I think that there is apprehension in Germany and in Berlin about retaking Nagorno-Karabakh by force. The politicians are continually insisting that this problem should be solved politically. If a military conflict over Nagorno-Karabakh came to pass, this would exacerbate instability in the Southern Caucasus and the entire Near East region. People are very sceptical whether anything would be achieved by military means. We should do all that is possible to contribute towards a political solution, and this is a widespread opinion here in Berlin. Many other people and myself are trying to increase awareness about Nagorno-Karabakh in Berlin to make the German government more ready and open to contributions from a German perspective regarding the achievement of a political solution to the NagornoKarabakh conflict.”

During a briefing in Baku, Markus Lening, German Commissioner for Human Rights, reiterated his country’s support for Azerbaijani territorial integrity. He stated that the Nagorno-Karabakh conflict could only be resolved by peaceful means.

Lening recalled the plight of the internally displaced persons (IDPs) that he witnessed during his earlier trip to Azerbaijan, eight years previously.

Professor Steinbach emphasised the potential role of the German government in achieving peaceful resolution

Nagorno-Karabakh

Official protests over illegal visit of French MPs

P h o t o : A r m e n i an M i n i s t r y o f D e f e n c e

P h o t o : N i c o l as B e au m o n t

Valérie Boyer is amongst the group of blacklisted French MPs that illegally visited Nagorno-Karabakh

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12

Creating Brand Azerbaijan

Business News

As readers will be aware, Azerbaijan is a hidden gem with huge potential, a rich history and exciting culture. Thus, Happold Consulting, in collaboration with numerous stakeholders, is currently organising a workshop entitled Brand Azerbaijan. Held in Baku, this will emphasise the business potential emanating from tourism, coming in the wake of this year’s government-led Year of Tourism and hosting the 2012 Eurovision Song Contest.

The workshop will explore the issues surrounding the country’s nascent tourism sector, particularly focusing on the:

• • •

importance of a co-ordinated approach to investment, development and branding role of the various stakeholders and industries hotel industry in general.

The four-day event will focus on the development of a resilient tourism industry that complements the country’s need for economic diversification and enhances commercial prospects for investors and operators in the sector.

It is anticipated that Brand Azerbaijan will attract some top-flight speakers, including Hugh Mulcahey, Director: Asset Strategy, Happold Consulting; Gabrielle Gambina, Senior Associate, Jones Lang La Salle Hotels; Niclas Ljungberg, Brand Strategist; and Adam Crozier, Associate: Strategy, Planning and Development, Happold Consulting.

The date and venue are still to be determined. To find out more, e-mail: adam.crozier@happoldconsulting.com.

SOCAR to build rigs and refinery

The State Oil Company of the Azerbaijani Republic (SOCAR) has unveiled plans to construct two offshore drilling rigs to facilitate further exploitation of oil and gas reserves. Rovnag Abdullayev, President, SOCAR, explained: “SOCAR has launched a large-scale geological survey. Following the discovery of the Umid gas field, we are now investigating the Babek geological structure. SOCAR is also preparing exploratory work on the Shafag–Asiman structure, whilst the drilling of a new exploratory well on the Absheron Peninsula will necessitate the use of the latest rigs, as the current equipment cannot be used to undertake the entire scope of works.”

He said that the decision to build two new offshore drilling rigs had been taken and the relevant paperwork completed.

Abdullayev continued: “Work has already begun on preparations for construction of these facilities, and the necessary tasks and design work are underway. The rigs will be constructed in Azerbaijan at the new shipbuilding and ship repair plant and at the Caspian Shipyard Company’s construction site, using its own equipment.” The new rigs will be used to sink wells to a depth of 8,000m, initially passing through 1,000m of water. The estimated cost of each rig is $300–400m (£184–245m).

According to Abdullayev, construction of the new oil and gas-refining complex in Baku’s Garadag District is scheduled for early 2013. He explained: “The design of the new complex is being developed; a project feasibility study has been completed; and detailed engineering work has begun. The long process of selecting licensees and sourcing other equipment will begin once this work is complete. The whole process is proceeding according to schedule, and construction will begin in early 2013.”

In June, Tofig Gahramanov, Vice-President, SOCAR, predicted that the refinery would gradually come into operation during 2018–20. Initially, the gas refinery, with an annual capacity of 10bn m3 (bcm), will come on-stream, followed by a petrochemicals production facility and oil refinery, with an annual capacity of 10m tonnes. The refinery will process gas from fields independently developed by SOCAR and from SOCAR’s share in the Azeri–Chirag–Guneshli (ACG) and Shah Deniz fields, if required.

The plant will produce A–92, A–95 and A–98 grade petrol, jet fuel and diesel.

There are two refineries currently in Azerbaijan – the Heydar Aliyev Refinery and Azerneftyag – both of which are owned by SOCAR.

French Total explores new gas field on Azerbaijan’s Caspian Sea shelf

Geoscientists from Total have examined a major new gas field on the Azerbaijani section of the Caspian Sea shelf, located 100km south-east of Baku. According to a Total report, the gas reserves at the field are estimated at: “Many trillions of cubic feet.” Exploration was undertaken on the Absheron block, located at an average depth of 500m.

According to Total, exploratory drilling indicated that a 160m-high gas column with a total area of around 270m2 is located in a sandstone formation on the northern slope of a large gas field. Marc Blaizot, Chairman, Exploration Division, Total explained: “The discovery is the result of Total’s bolder exploration strategy, aimed at exploiting high-risk, high-reward prospects, both in prolific and frontier basins, particularly in high-pressure, deeply buried reservoirs.”

In late 2009, SOCAR signed an agreement with Total on geological surveys and development of the Absheron block on the Caspian Sea shelf. This stipulates that the revenues are split 60/40 between Total and SOCAR. Latterly, French utility GDF Suez purchased 20 per cent from Total, and now Total and SOCAR hold equal stakes in the project.

Total has been present in the country since 1996, deriving revenues from 13,000 barrels of oil produced each day from the Shah Deniz field, in which it holds a 10 per cent stake. The company also holds interests in the South Caucasus Pipeline Company (10 per cent) and the Baku–Tbilisi–Ceyhan (BTC) company (5 per cent).

World Bank lines up four new projects for Azerbaijan

The World Bank looks likely to approve funding for four Azerbaijani projects in 2012. In a statement, the World Bank Office in Baku outlined: “We are ready to submit four projects to the Bank’s Board of Directors. They concern assistance for the economic development of Internally Displaced Persons (IDPs); a construction project regarding wastewater discharge from the Hovsan aeration station into the Caspian Sea; a campaign concerning the third phase of the Azerbaijan rural investments (AzRIP) programme; and another on agricultural development and lending.”

The World Bank plans to earmark $30– 50m (£19–31.7m) for the AzRIP project and agricultural development and lending, and nearly $80–90m (£50.6–57m) for the Hovsan waste-water treatment plant. The Bank is lending $50m (£31.7m) to assist with IDP economic development. This project is costing $74.5m (£47.7m) overall, with the Azerbaijani government paying a quarter of the cost and tax expenses.

The World Bank portfolio in Azerbaijan comprises 20 projects costing $2.3bn (£1.5bn) altogether. Azerbaijan has been cooperating with the World Bank since 1992 and has provided $2.9bn (£1.8bn) to fund 43 projects, to date.

According to a recent Banking System Outlook published by Moody’s Investors’ Service, the Azerbaijani economy is predicted to achieve consistent growth throughout 2011–12. The report claims this is attributable to increased government spending, which is boosting the non-oil sector and creating business opportunities for domestic banks.

resources have transformed the country into one of the strongest performing economies in the post-Soviet space.

It is also regarded as one of the few former Soviet republics with a growing population. The article entitled End of the USSR: visualising how the former Soviet countries are doing, 20 years on, continues by recognising that: “The frozen conflicts of Nagorno-Karabakh and Abkhazia have exacted a political and economic price.” The article continues by revealing that Armenia suffers from the worst unemployment of all 15 republics.

of SOCAR’s activities, and is expected to further increase this year.

The subsidiary is currently constructing an oil storage terminal at the United Arab Emirates’ port of Fujairah, which will be a key foothold for the company to expand its trading activities, following its commissioning in October 2011.

The Singaporean office is now fully responsible for the development of crude oil trade in Asia, including the increasing of its market share.

Moody’s forecast a ‘stable’ outlook for the Azerbaijani banking system. This reflects its expectation that the banks will benefit from a beneficial operating environment, thereby stabilising asset quality, improving profitability and ensuring that adequate capital levels are maintained. Lev Dorf, Analyst and Report Author, Moody’s, commented: “We expect the operating environment in Azerbaijan to remain favourable over the next 12–18 months, thereby supporting the banks’ growth and profitability, leading to asset-quality improvements.”

Beyond the clouds

According to Rufat Hajialibeyov, Head, HP Azerbaijan Office, Azerbaijan is to become one of the first CIS countries to introduce ‘cloud’ infrastructure, whereby shared resources, software and information are provided to computers and other devices as a utility over a network (i.e. the internet). The system provides computing, software, data access, and storage services that do not require end-user knowledge of the physical location and configuration of the service delivery system.

Hajialibeyov informed journalists that the HP Blade Matrix System is only currently available in Azerbaijan, comprising a hardware base of ‘cloud’ infrastructure. He explained: “HP is focusing on improving knowledge about ‘cloud’ technologies amongst Azerbaijani specialists. It thus undertakes periodic focus workshops on ‘cloud’ solutions. We are currently undertaking active co-operation with both the private and public sectors.”

Guardian newspaper acknowledges Azerbaijani economic strength

The Guardian newspaper in the UK has reported that Azerbaijani hydrocarbon

SOCAR oil is to be stored in Korea

SOCAR to stockpile oil at Korean terminals

Azerbaijan requests Shah Deniz tenders

SOCAR Trading is currently marketing about 80 per cent of all Azeri Light crude produced from the ACG block in the Azerbaijani section of the Caspian Sea. As crude oil production from the fields has peaked at around 1m barrels per day, the future growth of SOCAR Trading operations will come from marketing oil from third parties, with oil sales going to Asia, Europe, Africa, the US and Canada.

In 2010, this accounted for 37 per cent

SOCAR revealed that Shah Deniz was a “giant project”, the purpose of which was to move natural gas from Azerbaijan to European consumers. The statement continued: “It is one of the largest gas development projects anywhere in the world, and the new Southern Corridor will substantially increase the security and diversity of European gas imports.” To find out more, visit www.socar.az.

SOCAR Trading (a SOCAR subsidiary) and the Korea National Oil Corporation (KNOC), has signed an agreement in Baku regarding the storage of oil at terminals in Korea. Under the agreement, SOCAR Trading will use these repositories to store 5.3m barrels of oil, with the option of a possible extension for a year. Valery Golovushkin, President and Chief Executive, SOCAR Trading, explained that the company intends to triple its volume of crude oil and oil product sales over the next five years. He revealed that the company was considering the acquisition of refining facilities in the region.

SOCAR has issued a request for tenders regarding gas transit from the Shah Deniz field to the three main European pipeline groups. The company said it was calling upon pipeline groups involved in the proposed Greece–Italy natural gas interconnector; Trans-Adriatic Pipeline; and Nabucco Project to provide information regarding the transit of Shah Deniz gas to Europe. According to a SOCAR statement: “The date for submissions, which should include a tariff offer and associated terms and conditions, together with detailed information on the wider aspects of the projects, has been set for 1 October.”

13

Business News

Moody’s predicts strong economic growth during 2011– 12

QBS – Caucasian Building Services all contracts and deal with any queries.

To complete the range of services, it can provide procurement services to supply and deliver good-quality products from Azerbaijan.

14

Corporate Profile

Caucasian Building Services (QBS) specialises in providing comprehensive support for those international companies wishing to operate in Azerbaijan. The focus of QBS’ operations is the minimisation of all logistical challenges associated with employing expatriates, enabling managers to focus on their businesses and optimising efficiency. Regardless of the services provided, one monthly invoice covers all elements within each client package. TEAS chatted to Mayina Emirkhanova Phillips, Managing Director, QBS, to learn more: What is your company’s specialisation?

QBS can arrange all aspects of resettlement, ranging from initial airport pickup through to facilitating hotel accommodation or apartment rental. It also provides visa, residence and work permit services for expatriate staff.

Furthermore, QBS sources staff apartments, including utilities; satellite television; telephone and internet; cleaning and laundry services; and apartment maintenance. QBS can also cover all transportation requirements, ranging from the hiring of minibuses and four-wheel drive vehicles through to saloon cars. Its packages include insurance, fuel, routine maintenance and repair cover. Vehicles are provided with or without drivers.

QBS can provide offices, storage facilities and workshops, in conjunction with a complete facilities management and maintenance package. Its maintenance engineers are fully-qualified, covering all required disciplines and being certified to ISO: 9001:2008.

The QBS portfolio includes accountancy and legal services. This can range from provision of a Chief Accountant and Accounts Staff through to the supply of auditing services to advise on tax issues on a weekly or monthly basis. The company has a legal team, experienced in all aspects of Azerbaijani and international law. In addition, QBS can supply all manpower requirements, from secretarial to technical and management.

This serves to remove any HR risks to clients’ companies, as the QBS legal team can take responsibility for issuing

What is the size of your company?

QBS employs 53 permanent staff members and has a large pool of additional employees available, enabling it to expand and contract very quickly to satisfy client demand.

What are the special strengths of QBS? The special strength of QBS is its staff, who completely understand both Azerbaijani and Western business methodologies, with an excellent command of corporate governance and ethics.

Where do you sit in the Azerbaijani marketplace?

QBS has already attracted a number of blue chip clients, and is building on this foundation, subsequently enhancing its capabilities on a dynamic basis by fulfilling client requirements. It then delivers services that satisfy and surpass these needs.

Are you experiencing any competition from outside of Azerbaijan?

There are no competitors located outside of Azerbaijan.

Do you have a presence in other countries?

Yes – we have associated business units in the UK and Turkmenistan.

What are the aspirations of QBS in Azerbaijan?

To provide world-class client services that make it easy and attractive for international companies to come to Azerbaijan and do business.

What are your wider regional objectives?

QBS would like to operate throughout the Caspian Region and Central Asia, providing the same level of service to all clients, many of which already or certainly wish to operate regionally. As QBS grows, it will help its clients to do the same.

Why Azerbaijan?

What was the impetus behind your establishment in Azerbaijan?

Azerbaijan is a growing economy, and provided that company directors understand its business methods, the country is a stable and cosmopolitan place in which to base a business, facilitating expansion throughout the region.

How do you view the business climate in Azerbaijan?

Mayina Emirkhanova Phillips, Managing Director, QBS

Currently, Azerbaijan has been unaffected by the financial crisis, although it has sensibly remained cautious. The business climate is picking up pace, although it has done so at a measured, sustainable speed.

How has QBS grown?

QBS has steadily grown by listening to the needs of its clients and carefully planning how to satisfy these requirements. It began its operations six years ago, and has subsequently grown exponentially.

What is the skills base amongst the Azerbaijanis?

QBS does not share the general opinion of international companies that skilled labour must be imported. It may be necessary for specific engineering tasks on specialist equipment, but the majority of skills are already available amongst the welleducated Azerbaijani population.

Does your company provide training or operate apprenticeship schemes?

QBS believes very strongly in training its staff, and operates ongoing programmes.

There are many benefits associated with this, ranging from the boost of enthusiasm to the employee, who gains additional skills, through to an improvement in company performance. QBS supports and encourages this approach, and will continue to do so on an ongoing basis.

Do you use foreign/expatriate workers?

A minority – below five per cent – of the QBS team are non-Azerbaijanis. They are mainly employed by the company to transfer their knowledge and support the Azerbaijani staff.

Caucasian Building Services (QBS), Suites 29–32, 48, Nizami Street, Baku, AZ1005, Azerbaijan Tels: +994 124934369/+994 124933698 Website: www.qbs-azerbaijan.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 13.9.11: AZN1=US$1.27; US$1= AZN0.79; AZN1=£0.80; £1=AZN1.25; AZN1=€0.93; €1=AZN1.07

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