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EUROVISION WINNER NIKKI VISITS TEAS Also in this issue: Azerbaijan to the fore at UK party political conferences Farkhad Khalilov’s artistic journey reaches London Two shot in Nagorno-Karabakh, hours before Sarkozy’s visit Nagorno-Karabakh issue brought to UN General Assembly Scott Taylor’s frontline experiences
October 2011
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7 November Azerbaijan’s untapped opportunities: What financial institutions need to know 1200–1615hrs: Baker & McKenzie, 100 New Bridge Street, London, EC4V 6JA. Organised by Baker & McKenzie and TEAS. To attend, e-mail: vanessa.raine@teas.eu
The European Azerbaijan Society, 2, Queen Anne’s Gate London SW1H 9AA E-mail: editor@teas.eu
19 October Azerbaijan 20th Anniversary of Independence Celebration 1830–2200hrs: Central Hall Westminster, Storey’s Gate, London, SW1H 9NH Organised by the Azerbaijani Embassy to the UK and TEAS, with the support of the Heydar Aliyev Foundation. Features Ell & Nikki and the Rast Jazz Group. RSVP to ulviyya@teas.eu.
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UK Minister for Europe stresses relevance
David Lidington MP, Minister for Europe, outlined the longstanding UK–Azerbaijani relationship
David Lidington MP, Minister for Europe, has emphasised the importance of expanding the UK’s relationship with Azerbaijan during a fringe debate at the Conservative Party Conference in Manchester on 4 October. The debate, entitled New opportunities and old challenges on Europe’s Eastern Frontier: What now for UK and EU engagement in the South Caucasus? was organised by The European Azerbaijan Society (TEAS) and the Foreign Policy Centre. The other panel members were Geoffrey Van Orden MEP; Dr Laurence Broers, Caucasus Programme Projects Manager, Conciliation Resources; and Michael Dennison, Research Director, Control Risks. The chair was Adam Hug, Policy Director, Foreign Policy Centre. When discussing the recent EU Eastern Partnership Summit, David Lidington explained that the UK would have preferred a declaration on Article 49 of the EU Treaty relating to accession. He acknowledged that the Partnership was valuable in its own right, but should also be considered as an antechamber for EU membership, with all six Eastern Partnership countries being considered as ‘European’. Mr Lidington went on to outline the clear UK national interest in the South Caucasus, especially in Azerbaijan, given the extraordinary scale of UK investment in the country regarding Caspian hydrocarbon resources. He noted that Baku was now a frontier town, due to the considerable development and investment in the city. The Minister explained that UK economic interest in the region made it increasingly relevant to establish a peaceful solution to the continuing Armenian invasion of Nagorno-Karabakh and seven surrounding territories, although he stressed his understanding that the UK or EU should not interfere with the OSCE Minsk Group, tasked with achieving a negotiated settlement. He went on to comment that a treaty between Azerbaijan and Armenia would only represent the first step, and there was a necessity for genuine reconciliation between the two communities. Mr Lidington also explained that the review of
the EU Neighbourhood Policy had come in the wake of events in North Africa, which had deflected the attention of the EU. It remains imperative for the EU to maintain its focus on the Eastern Partnership, and future energy security can only be achieved by maintaining the relationship with the region. During the question-and-answer session, Mr Lidington discussed the volatility of the Nagorno-Karabakh situation, where both civilians and servicemen are being regularly killed on the ‘contact line’, leading the Foreign and Commonwealth Office (FCO) to advise that there should be no travel to that area. Following this, TEAS hosted the Enterprise Forum Business Reception, attended by Alistair Burt, Parliamentary Under Secretaryof-State at the FCO. In his introduction, Leon Cook, Head of Government Relations, TEAS, outlined the extent of UK investment in Azerbaijan, which accounts for 52 per cent of all foreign domestic investment (FDI). He went on to explain that 175 UK businesses are active in the country, and that the UK has invested £20bn in Azerbaijan since 1994, largely due to the operations of BP. Mr Cook invited all of those in attendance to visit Baku for the Eurovision Song Contest final in May 2012.
LibDem Conference learns of Azerbaijani relevance
TEAS organised a fringe reception at the Liberal Democrat conference on 18 September entitled From Baku to Birmingham. The speakers were H.E. Fakhraddin Gurbanov, Azerbaijani Ambassador to the UK and two members of the Azerbaijan All-Party Parliamentary Group (APPG) – Lord German and Stephen Gilbert, Liberal Democrat MP. The chair was Leon Cook, Head of Government Relations, TEAS. Stephen Gilbert MP commented on the Azerbaijani armed forces’ participation in the International Security Assistance Force (ISAF) in Afghanistan. He also explained that 25 per cent of the coalition’s supplies bound for the country pass through Azerbaijan. Ambassador Gurbanov noted that Azerbaijan is currently celebrating 20 years since regaining its independence, and acknowledged that the UK was amongst
the first countries to recognise this new state. He went on to outline the excellent economic relations between the UK and Azerbaijan. His Excellency noted that oil and gas production and transportation remained key priorities for Azerbaijan, being essential to the Azerbaijani–UK relationship. He explained that Azerbaijan was working to open up its banking, tourism, agriculture and other economic sectors. Ambassador Gurbanov reiterated that Azerbaijan played a key role in the NATO Partnership for Peace Group and was active in the anti-terrorism coalition.
Azerbaijan and energy security highlighted at Labour Conference
On 26 September, Labour Party Conference delegates in Liverpool attended a fringe debate entitled Russia, Azerbaijan and the West: what does the New Great Game mean for Europe’s energy security?, organised by TEAS, in association with Progress. The panel comprised Wayne David MP, Shadow Minister for Europe; Richard Howitt MEP; Charles Grant, Director, Centre for European Reform; and Dennis Sammut OBE, Executive Director, LINKS. The chair was Mike Gapes MP. Dennis Sammut explained that Azerbaijan still had to decide its strategy regarding organisation of its energy future. He revealed that, since the inception of the second oil boom, a decision had been made regarding collaboration with the West, as opposed to Russia, regarding exploitation of its natural resources. Mr Sammut referred to the recent news that the EU is aiming to ratify an agreement with Azerbaijan and Turkmenistan to construct a new Trans-Caspian pipeline. He also renewed calls for a peaceful and just resolution to the Nagorno-Karabakh conflict, requesting that the EU should increase pressure on Armenia to withdraw its troops from Azerbaijani territory. Mr Sammut concluded that the EU has an unique opportunity to take the relationship with Azerbaijan to the next level, and reported that Total had found enormous resources of gas in the Caspian Sea, necessitating further EU engagement with Azerbaijan. During a lively question-andanswer session, Mr Sammut expressed his hope that a unified EU would speak with one voice during negotiations with Azerbaijan on the proposed Trans-Caspian pipeline.
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Politics & News
of Azerbaijan at Conservative Conference
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Politics & News
Georgian President Saakashvili (second from left) speaks to Azerbaijani President Aliyev, flanked by Armenian President Sargsyan (far left) and Ukrainian President Yanukovych
Azerbaijan participates in Eastern Partnership Summit
Azerbaijani President Aliyev has attended the EU Eastern Partnership Summit in Warsaw. In his introduction, Štefan Füle, European Commissioner for Enlargement and European Neighbourhood Policy, expressed a wish that visa facilitation and readmission agreements should be concluded with Azerbaijan and other member states. During his time in the Polish capital, President Aliyev met Baroness Catherine Ashton, EU High Representative of the Union for Foreign Affairs and Security Policy and Vice-President, European Commission. Discussion topics included the latest developments in the NagornoKarabakh conflict peace talks and EU– Azerbaijani co-operation in energy and other sectors. He also met Georgian President Saakashvili to outline plans for further development of bilateral economic and trading relations. President Aliyev went on to meet the three Co-Chairs of the OSCE Minsk Group, tasked with brokering peaceful resolution of the NagornoKarabakh conflict. This discussion with Robert Bradtke, USA; Bernard Fassier, France; and Igor Popov, Russia; accompanied by Andrzej Kasprzyk, Personal Representative, OSCE Chairmanin-Office, focused on the current state and prospects for peace talks regarding the Nagorno-Karabakh conflict. President Aliyev also met Vladimir Filat, Prime Minister, Moldova, stressing the significance of expanding bilateral economic co-operation and their joint involvement in international and regional organisations, including the GUAM Organisation for Democracy and Economic Development.
Argentina and Azerbaijan unite
During a visit to Baku, Federico Pinedo, Argentinean MP, and Member of the Azerbaijani–Argentinean Inter-
Parliamentary Friendship Group, revealed that the opening of the Azerbaijani Embassy in Argentina last year had marked a turning point in bilateral relations between the countries. He explained: “The Azerbaijani Embassy in Argentina is actively engaged in studying the issues on which it is possible to co-operate, and there have already been some positive results. I believe that economic co-operation will play an important role in developing relations between the two countries. We have already begun to co-operate in the delivery of agricultural technologies to Azerbaijan. But I think that we should not be limited to the agricultural sector, and should try to influence the development of other spheres.” He went on to reiterate that Argentina supports a peaceful, fair solution to the Nagorno-Karabakh conflict. Pinedo continued: “After returning from Azerbaijan, we will express our opinion to the relevant Argentinean bodies regarding the importance of opening an Embassy in Baku and the significance of this issue. We regard Azerbaijan as an important country, from an economic and political perspective, and as a bridge to Central Asia and the neighbouring regions. Opening an Argentinean Embassy in Baku will be an integral element towards capitalising on the opportunities in Azerbaijan and promoting bilateral co-operation. The application of biotechnology in Argentinean agriculture has had a great impact on productivity, and I believe Azerbaijan will benefit from the adoption of such techniques.”
Azerbaijan requests Metsamor nuclear plant inspection involvement During a meeting of the International Atomic Energy Agency (IAEA), Mahmud Karimov, President, Azerbaijani National Academy of Sciences (ANAS), requested that Azerbaijani scientists should participate in the inspection of the Sovietera Metsamor Nuclear Power Plant
(NPP) in Armenia. Karimov explained his reasoning: “The Armenian side says ten different committees checked the Metsamor NPP in 2011. However, the test results are unavailable to neighbouring countries, and lack transparency.” He acknowledged that inspection had increased in importance, following the incident at the Fukushima-1 nuclear power plant in Japan. Karimov continued: “The Metsamor plant is a major threat to the region, because it does not meet modern European standards, has exhausted its resources and is outdated. The EU has repeatedly demanded closure of the plant.” Metsamor is located in mountainous terrain and, according to Karimov, insufficient water would be available to cool the reactors in a real accident situation. He added that Armenia also has insufficient resources with which to develop adequate incident response measures.
NEWS IN BRIEF Visa rule relaxation under discussion The EU has proposed reopening negotiations with Azerbaijan regarding visa facilitation and readmission agreements with Azerbaijan. A EU press release explained that agreements on easing procedures for short-stay visas and the readmission of irregular migrants between the EU and Azerbaijan would be based on reciprocity. Cecilia Malmström, EU Commissioner for Home Affairs, explained: “Easier access to visas will improve cooperation and exchanges between the EU and Azerbaijan. Visa facilitation and readmission agreements are tangible results of the EU Eastern Partnership, and I know how much this means to the citizens of these countries.” The suggested changes include the introduction of long-term multiple-entry visas, simpler requirements concerning documentary evidence to support visa applications, and the reduction or elimination of administrative fees for some traveller categories. Ambassador Bateman arrives H.E. Peter Bateman has arrived in Baku to take up his post as UK Ambassador to Azerbaijan. After presenting his credentials to Elmar Mammadyarov, Azerbaijani Foreign Minister, Ambassador Bateman was installed in his office. The new Ambassador previously worked in the UK Ministry of Foreign Affairs, holding diplomatic positions in Africa, Germany, Japan, and being UK Ambassador to Luxembourg, prior to his Baku appointment.
Rashidova shines in Baku, Watford and London
Farkhad Khalilov (centre) was delighted to exhibit his work in London for the first time, flanked by Nicolas Iljine, Global Cultural Asset Management Group, New York (left) and H.E. Fakhraddin Gurbanov, Azerbaijani Ambassador to the UK
It is undeniable that Farkhad Khalilov is a legend of the Azerbaijani art scene. Now aged 65 years, he studied at the Moscow Industrial Art College and Moscow Polygraphic Institute. Since 1967, his work has been exhibited in over 40 countries, including France, Germany, Italy, Japan, Poland, Spain and the USA. His paintings are also displayed in the State Museums of Russia, Azerbaijan, the Ukraine, Lithuania, Germany, and China, in addition to private collections in the USA, Mexico, Germany, Poland, and France, amongst other countries. Despite his continual drift towards abstraction, Khalilov seeks to explore the depths of visual layering to achieve a phenomenological sense of subjective reality, particularly focusing on Azerbaijani nature. Despite his international acclaim, Khalilov’s work had not previously been exhibited in the UK before the exhibition Acquaintance opened at the 1508 Gallery in Central London. At the private view, attended by H.E. Fakhraddin Gurbanov, Azerbaijani Ambassador to the UK; Leyla and Arzu Aliyeva; and Lord Poltimore, Chairman, Sotheby’s Russia and Deputy Chairman of Sotheby’s Europe, he commented: “London is amongst the most important centres of the art world, and it is interesting to see the reaction of critics and professionals to the pictures when they are removed from the natural habitat of my studio.” The abstract works powerfully demonstrated the inner dimensions of his artistic reality and the extent of his undeniable talent. To see his work, visit www.farhadkhalilov.com.
Tora’s divine artistry
As many may be aware, ToraKhanim (Tora) Aghabayova ranks amongst the most exciting emerging artists in Azerbaijan (see TEAS Magazine, April 2010, pp.11– 12). Having attained a Master’s Degree
at the Azerbaijan Fine Arts Academy, Tora specialises in her own, personal interpretation of Social Realism, exploring contemporary existence in Baku in an evocative, and sometimes humorous, manner. Some of Tora’s work, inspired by the oil industry that has transformed her homeland, was exhibited earlier this year during an exhibition at the Royal Opera Arcade, supported by TEAS. Tora’s compatriots will now have chance to experience her artistry at a gallery in the heart of the Old City, as her work will be exhibited at Kiçik QalArt, established and curated by Olivier Mestelan (see TEAS Magazine, June 2011, pp.9–10). Entitled Double Meaning, all works represent familiar topics whilst exhibiting implicit, subjective subtexts. The exhibition runs from 6 October–7 December. To find out more, visit www.kicikqalart.az.
Ell & Nikki to celebrate independence in London
Eldar Gasimov and Nigar Jamal (Ell & Nikki), the acclaimed 2011 Eurovision Song Contest winners, are to top the bill at a concert to celebrate the 20th anniversary of Azerbaijan regaining its independence. Organised by TEAS and the Embassy of the Republic of Azerbaijan to the UK, with support from the Heydar Aliyev Foundation, the event will take place the prestigious Central Hall Westminster, near the Houses of Parliament, on 19 October. Attendees will also have the opportunity to enjoy Azerbaijani food, wine and hospitality, together with experiencing the artistry of the renowned Rast Jazz Ensemble. To attend this free event, contact Ulviyya Allahverdiyeva on ulviyya@teas.eu.
During a televised concert in Baku, Nazrin Rashidova duetted with Anar Ibrahimov for Bach’s Double Violin Concerto
The undeniably talented 23-yearold violinist Nazrin Rashidova has exhibited the full gamut of her talent during recent concerts in Baku and Watford, her adopted hometown. On 18 September she performed in the delightful surroundings of St Luke’s Church, Watford, in a programme of duets alongside pianist and organist Jeremy Cooke. Bookended between Franz Schubert’s Ave Maria and William Lloyd Webber’s Benedictus, both of which featured the church organ, the works included Sergei Rachmaninov’s gloriously lyrical Vocalise; Pablo de Sarasate’s rhythmic and stirring Zigunerweisen; and Azerbaijani composer Kara Karayev’s Aisha’s Dance from the Seven Beauties Ballet, inspired by a Nizami poem. Later that week, Nazrin flew to Baku to participate in the third Uzeyir Hajibeyli International Music Festival. She performed at the newly renovated Lutheran Church of the Saviour, before an audience of around 350 people. Nazrin duetted with Anar Ibrahimov for Bach’s Double Violin Concerto, with the performance being accompanied by the Kara Karayev Azerbaijan State Chamber Orchestra, conducted by Teymur Geoychayev. Other works included de Sarasate’s Navarra, and the concert was broadcast on AzTV and Lider. Nazrin will also perform in St. James’s Church, Piccadilly, London on 21 October, duetting with Bulgarian guitarist Stanislav Hvartchilkov. Works will include Astor Piazzolla’s Histoire du Tango and Johann Sebastian Bach’s Sonata in A Minor. To book tickets, go to www.nazrin.co.uk or www.hvartchilkov.com or tel: 01923 245671.
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Culture
Art master Khalilov reaches London
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NIKKI REFLECTS ON AZERBAIJANI GLORY Photo: EBU
Personalities Ell & Nikki sang their way to victory in the 2011 Eurovision Song Contest
Bakuvian singer Nigar Jamal is an Azerbaijani resident of North London. She came to prominence after participating in Milli Secim Turu 2011, the Azerbaijani Eurovision selection contest, in which she eventually triumphed. The judges went on to team Nigar with Eldar Gasimov, a runner-up in the fifth heat. Singing under the pseudonym of Ell and Nikki, they were selected to perform the song Running Scared, composed by Stefan Örn and Sandra Bjurman of Sweden, co-writers of Drip Drop, the 2010 entry, which achieved fifth position, together with Iain Farquharson from the UK. The song achieved victory in the Eurovision Song Contest final in Düsseldorf, achieving 221 points.
What does winning the contest mean to you, as an Azerbaijani? I was actually very surprised to be selected as one half of the Azerbaijani singing duo this year. It had always been my greatest dream to win the Eurovision Song Contest, and it was wonderful to see this come true. I am immensely proud that I could play my part in bringing the award to my homeland and that this will go down in Azerbaijani history. I was elated and delighted to achieve such success, and could not have foreseen the reception I received in Baku. What did President Aliyev say during your meeting? The President congratulated Eldar and myself, and expressed his joy that the next Eurovision Song Contest would be hosted in Baku for the first time.
The song was partially composed by the same Swedish writing team as Drip Drop, which achieved fifth position in last year’s Eurovision. Did you feel that you had a strong chance of achieving success with this song? It is impossible to predict the winning formula for the Eurovision Song Contest. For example, merely possessing a good singing voice is insufficient to win. It is necessary to engage the enormous audience and really perform the song. Furthermore, a good relationship with journalists in the press centre is essential, where candidates must be able to communicate in English. What do you feel is the secret of the song’s success? Was it the theme of the song, concerning the depth of the protagonists’ emotions, or the accompanying choreography of the dance?
Following an extensive international tour, Nigar paid a visit to the TEAS office in Central London, where I had the pleasure of interviewing her: May I firstly congratulate you on winning the Eurovision for Azerbaijan. Could you describe the tour you have been on during the past four months? How have you been received? I have been on a whirlwind tour, and it has been a great honour to experience new cultures and meet new people. Ell and I have performed in Belarus, France, Germany, Malta, Russia, Turkey and Ukraine, amongst other countries. Eurovision is extremely popular in many of these nations, and Running Scared has attracted rapturous applause wherever it has been performed.
The successful duo have found themselves immersed in the media spotlight
In my opinion, the theme of the song played a role in its success – currently the world is full of sadness and misery – yet this song concerns pure and innocent love. The dance choreography was delightful, featuring Swedish backing singers and dancers, and demonstrated that we could develop a song production that is equivalent to all other Eurovision songs. How did it feel to perform in front of 125m viewers? How did you deal with the pressure? It was wonderful to know that, for those three minutes, we were being heard by millions of people. In fact, during the performance, I felt able to relax and enjoy the occasion. However, when we reprised the song, following the victory, we were shouting badly, although this was unimportant as we were not being judged. We were not actually singing at all towards the end of the song! All the other competitors were very good to us, and shared in our success.
How is the organisation of the 2012 Eurovision contest in Baku progressing? All is progressing well, and a new stadium will be constructed. I regard Baku’s hosting of Eurovision as equating to London’s hosting of the Olympic Games. We want to demonstrate that all people, regardless of their ethnicity or religion, are welcome in Baku. People across the world are excited about the Olympics and Eurovision, and this surmounts all real or imagined boundaries. A recent BBC report has cast some doubt on Azerbaijani tolerance of gay visitors to Eurovision 2012. Do you have any comment to make on this? I wish to reiterate that all visitors are welcome in Azerbaijan, and that there are no issues of homophobia. Azerbaijan is a peaceful, progressive, tolerant nation.
Ulviyya Allahverdiyeva, TEAS, congratulates Nikki on her Eurovision success
The official Ell and Nikki website will be found at http://ellnikki.net They will also headline the Azerbaijan 20th Anniversary of Independence Celebration in London on 19 October, organised by the Embassy of the Republic of Azerbaijan to the UK and TEAS, supported by the Heydar Aliyev Foundation.
What was the reaction to your success back home in North London? Certainly some of my neighbours in Palmers’ Green were aware of my success, and were very excited when I arrived home. In particular, the parents at my children’s school thought such an occurrence was unbelievable. They have all shared in Azerbaijan’s success, which has been wonderful to experience.
Photo: Neale Atkinson
How did you come to team with Eldar? The decision to create a duo was made by the judging panel of seven people. In fact, previously we had sung in competition against each other during the Milli Secim Turu 2011 selection competition. The judges recognised the potential for some chemistry between us.
performed by Elnur and Samir, included some mugham harmonies. Such features are really dependent on the song, and the singer’s voice must be specially trained to adequately perform such music.
What is Eldar working on at the present time? Eldar is currently acting in his first film, which is a remake of a successful 1970s Azerbaijani comedy entitled Don’t Be Afraid. The song is very strongly influenced by contemporary power ballads, as was Drip Drop. Do you feel there is any opportunity for elements of Azerbaijani mugham or ashiq music to be incorporated in a Eurovision song? Actually, the 2008 entry, Day After Day,
Members of the TEAS team meet Nikki in London
Personalities
Photo: Neale Atkinson
Nikki is filmed for the video to Running Scared, the successful Eurovision entry
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SCOTT TAYLOR – SEEING BOTH SIDES NOW
Personalities
A former professional soldier, Canadian Scott Taylor has been editor and publisher of Esprit de Corps since 1988. During the mid-1990s, this little independent magazine embarked on a campaign to expose crime and corruption amongst the upper echelons of the Canadian Forces. After exposing several top-level coverups and scandals whilst defending the rights of the rank and file soldiers, Scott was dubbed the ‘Voice of the Grunts’ by the Canadian Globe and Mail and a ‘One Man Army’ by the Toronto Sun. Following the launch of Esprit de Corps, Scott has travelled over one million air miles as a war correspondent, reporting from the Persian Gulf, the former Yugoslavia, South Ossetia and, of course, Armenia, Azerbaijan and the Armenianoccupied Azerbaijani region of NagornoKarabakh. Since August 2000, Scott has made 21 trips into Iraq, and was held in captivity for five days by the Ansar alIslam mujahedeen in northern Iraq in September 2004. Scott regularly appears in the Canadian media as a military analyst, and was the recipient of the 1996 Quill Award for outstanding work in the field of Canadian communications. That same year, he also won the Alexander MacKenzie Award for journalistic excellence. He is a weekly columnist for the Halifax Chronicle-Herald, a columnist for Embassy Magazine and has contributed to the Ottawa Citizen, Maclean’s Magazine, the Globe and Mail, Reader’s Digest, Indian Defence Review and Al-Jazeera, amongst others. He has received numerous international awards, and in 2008, London-based Press TV declared Taylor to be the Unembedded Journalist of the Year. Scott has also written seven books of reportage. TEAS met Scott at the Azerbaijani Embassy in London during the presentation of this latest book, entitled Unreconciled Differences: Turkey, Armenia and Azerbaijan. What are your objectives in publishing the new book Unreconciled Differences: Turkey, Armenia and Azerbaijan? It is my intention to make people challenge their own preconceived notions of the history of which they consider themselves to be aware, thus opening their minds to reassessing their existing opinions about certain historical events. I also wish to contextualise the circumstances preceding; during; and immediately following the Great War to
War reporter Scott Taylor shares a meal with Azerbaijani troops near the Nagorno-Karabakh ‘contact line’
enable the readers to consider whether or not the tragic loss of Armenian lives can genuinely be labelled as ‘genocide’. Bringing things forward, the comparison with the 1992–94 conflict in NagornoKarabakh serves to illustrate how little we know about the ongoing suffering in the Caucasus. You have spent 20 years as a war reporter. What initially brought the NagornoKarabakh War to your attention in 2006? I was intrigued to be offered a visit to Azerbaijan to report on this former Soviet Republic’s economic development since independence. Until this point, I was admittedly unaware of the scale of the fighting between the Armenians and Azerbaijanis, and I certainly had no idea that it remained a ‘frozen’ conflict. As a news junkie and war correspondent, I could not believe that a conflict of such brutality had occurred concurrently with a similar-sized civil war in Bosnia – yet virtually no news had been reported in the West. Why do you feel the conflict has been largely overlooked in the western media? I believe that this is due to the fact that it occurred inside a region of which westerners previously had very little geographic and historical knowledge. Few news agencies had representatives familiar with these former Soviet Republics and, consequently, the dissolution of Yugoslavia garnered the vast majority of international press coverage at the time. You visited Nagorno-Karabakh in 2008 as a guest of the Armenian Dashnak Party. What view of the conflict did they present? They portrayed it as a war of liberation
fought by poorly-armed local Armenians against the powerful forces of Azerbaijan. They justified the mass expulsion of Azerbaijanis from their homes in the provinces surrounding Nagorno-Karabakh as a strategic necessity to create a buffer zone between them and the ‘Tartars’. When I asked how that differed from the Ottoman strategy of forcibly displacing Armenians from Eastern Anatolia in 1915, they became furious with me. What is life like for the current inhabitants of Nagorno-Karabakh? Do you believe that they genuinely regard the region as constituting Armenian territory? There is a strong military presence, comprising both Armenian and local Nagorno-Karabakh (Artsakh) units in the province itself. However, life in the regional capital of Stepanakert (Khankendi) is akin to a submerged bubble of civil normalcy. For example, the newly-built Hotel Armenia encourages international tourists to visit the region and hosts local business conferences. It became apparent, when talking to Dashnak officials, that NagornoKarabakh is only the beginning of their quest to exert influence and control over a ‘Greater Armenia’. Did you see the ‘contact line’? Were snipers visible along the boundary? I saw the contact line from the Azerbaijani side in 2007. I was given a full tour of the bunkers and trenches, and a display of the local units’ high state of preparation. My visit to Nagorno-Karabakh was not fully sanctioned, and thus I did not get to tour the occupied zones or the front lines on their side. Did you see any of the internallydisplaced persons (IDP) camps in
Which testimonies did you hear regarding the Khojaly Massacre? I spent a full day at the camp housing the majority of the Khojaly survivors. I interviewed around a dozen women who had survived the massacre, and although there were male survivors in the camp, they felt ashamed to tell their stories to another man. They felt that they had failed to protect their own women and children during that night. You interviewed Major-General Vasily Chitchyan, the Armenian officer who commanded his troops to capture Shusha. How did he defend his actions? Chitchyan is absolutely lionised as a hero by the Dashnak Party and the local inhabitants of Nagorno-Karabakh. He was one of the officers that I asked to rationalise how the forced expulsion of 700,000 Armenians by the Ottomans in 1915 compared with the Armenians forcing 800,000 Azerbaijanis from their homes in 1992. His response was simple: “One was the genocide of my people, whereas the removal of the Azerbaijanis is to protect my people.” What evidence did you uncover to support the view that Armenians are deliberately being relocated to the occupied territories? Coincidentally, during my short visit in October 2008, there were preparations for a mass wedding of 500 couples. This was entirely funded by donations from the Armenian diaspora, and I was surprised to learn that there are also huge cash incentives provided for these young couples to have children. I forget the exact amounts, but for each successive child born this increased in value, with the fifth newborn resulting in the provision of a brand-new Mercedes-Benz car. On 22 July 2010, the International Court of Justice ruled that the Kosovan Declaration of Independence did not violate international law. Do you feel there are any parallels with NagornoKarabakh? Whilst one can easily draw parallels between the Kosovo situation and NagornoKarabakh, it must be remembered that the
unilateral Declaration of Independence has not resulted in widespread joy for the Albanians. The International Court of Justice may have declared the process as ‘legal’, but Kosovo is still not recognised by more than two-thirds of UN Security Council members. Russian vetoes prevent Kosovo from gaining seats in the UN and EU, and such countries as Greece and Spain block future membership. Such a unilateral declaration of independence in Nagorno-Karabakh would be likely to set off another wave of violence. How effective are the Armenian diaspora at getting their message across? The Armenian diaspora is not only wellfunded, but well-entrenched throughout Europe and North America. It has now dropped the tactics of violent terrorism that were used during the 1980s, and now relies on political lobbying. More importantly, its collective financial contributions to Armenia give virtual control over Yerevan’s foreign policy. Any softening of the current hardline position against Azerbaijan and Turkey would result in the diaspora denouncing the Armenian Republic. You are clearly of the view that the killing of Armenians by Ottoman Turks in 1915 did not constitute ‘genocide’. Do you feel that the US government will eventually capitulate to the diaspora and acknowledge these as such? So far, saner heads have prevailed over the pressures of the Armenian lobby to not have the ‘genocide’ label approved at the executive level of the US government. Turkey is a key NATO ally and one of the most influential entities in the volatile Middle-East. Furthermore, Turkey has recognised Israel, and maintains strong diplomatic ties with Tel Aviv. There is much to lose and little to gain for the US by supporting the Armenians on this matter. Why do you feel that Section 907 of the Freedom Support Act was passed? Do you sense that there is any possibility of it being permanently repealed? During the early stages of the NagornoKarabakh conflict, the Armenian diaspora was very effective at convincing the US government that the Azerbaijanis were the heavily-armed aggressors in the war. That generated Section 907 of the Freedom Support Act, which singled out Azerbaijan as the sole former Soviet Republic to be banned from receiving development aid. Since 2001, US presidential authority has been invoked to waive the ban, consequently rendering this process virtually null and void. It would require only a procedural change to remove Section 907, but this symbolic reversal would represent a huge blow to the Armenian lobby.
On an international level, what needs to be done to increase international pressure on Armenia, forcing them to comply with the four outstanding UN Security Resolutions regarding the liberation of Nagorno-Karabakh and the seven adjacent territories? I think that the more people who can be made aware of the ongoing suffering of the Azerbaijani people, the more pressure can be brought to bear on the UN. The international community appears to prefer Azerbaijan to use its oil wealth to resettle the displaced persons, and if enough time passes, the Armenians will simply repopulate the vacant territory. This would not be a just solution. What evidence did you see regarding the destruction of Azerbaijani villages in the occupied regions? On the drive through the Lachin corridor, every single former Azerbaijani home had been vandalised or destroyed. Entire villages were sitting empty and deserted, as has been the case since 1994. My Armenian driver became agitated after I snapped a couple of distant photos and hissed: “There is no need to photograph the ruins – you will soon see the beauty of Artsakh (Nagorno-Karabakh).” Do you believe there is now any possibility of Turkish–Armenian rapprochement before the return of the Azerbaijani territories? I do not think the Armenian diaspora will permit any rapprochement with Turkey. These are the major obstacles in the path towards peace. By their insistence on defining the hate and misery of the past, they are preventing the people of the Caucasus from experiencing the possibility of a peaceful, prosperous future.
Military hardware wrecks are strewn across the landscape in Nagorno-Karabakh
To view a video by Scott Taylor on the Nagorno-Karabah situation or order his invaluable book, entitled Unreconciled Differences: Turkey, Armenia and Azerbaijan, please visit http://bit.ly/udbook.
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Personalities
Azerbaijan? Under what conditions do these people live? The IDP camps ranged widely in terms of accommodation when I first visited them in 2006. Many were still living in rudimentary shelters – or even in converted railway goods wagons. However the Azerbaijani government had already initiated several major projects to improve living standards in more permanent camps. Of course, the one element you cannot replace is a sense of purpose, and most IDPs are still keen to return to begin rebuilding their former homes.
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Nagorno-Karabakh
The continuing volatility of the Nagorno-Karabakh conflict became brutally apparent just before the arrival of French President Sarkozy in Baku
Nagorno-Karabakh death toll rises before Sarkozy visit
According to the Azerbaijani Defence Ministry, Armenian snipers have killed two Azerbaijani soldiers near the NagornoKarabakh ‘contact line’, just hours before the start of French President Nicolas Sarkozy’s visit to the South Caucasus. The killings occurred on 5 October – the same day that President Sarkozy gave an interview urging Armenia and Azerbaijan to take more decisive steps towards striking a peace deal. Teymur Abdullayev, Spokesman, Azerbaijani Defence Ministry, commented: “Shooting from the Armenian side killed 20-year-old soldier Novruz Aliyev and 22-year-old serviceman Suleiman Askerov.” In an interview preceding his two-day Caucasus visit, President Sarkozy called on both Armenia and Azerbaijan to “take the risk of peace.” He commented: “There is no greater danger than inaction, which gives rise to illusions, fuels resentment and, bit by bit, delays the chances of peace on a daily basis.” To date, this year has seen 17 soldiers killed on both sides, amidst regular exchanges of gunfire along the ‘contact line’.
OSCE Minsk Group Co-Chairs to visit South Caucasus in October
The OSCE Minsk Group Co-Chairs – Robert Bradtke, USA; Bernard Fassier, France; and Igor Popov, Russia – tasked with brokering a negotiated peace over Nagorno-Karabakh, will pay their next visit to the region during October. Popov made the announcement to APA’s Moscow correspondent, but did not reveal the exact dates of the visit. The three Co-Chairs recently met Azerbaijani President Aliyev and Armenian President Sargsyan separately during the EU Eastern
Partnership Summit in Warsaw. The CoChairs also reaffirmed the commitment made by Russian President Medvedev, US President Obama, and French President Sarkozy in their Deauville Statement of 26 May in which they pledged to assist the sides in achieving a settlement. The Co-Chairs will also meet at the OSCE Ministerial Council in Vilnius in December.
Germany pledges support for the Azerbaijani perspective
H.E. Herbert Quelle, German Ambassador to Azerbaijan, has commented that peaceful resolution of the Nagorno-Karabakh conflict is only achievable with the support of the international community. Speaking during the Day of German Unity in Baku, he reiterated: “World public opinion will play a key role in establishing this support. We have always backed Azerbaijani territorial integrity, although we must simultaneously accept the OSCE Minsk Group negotiation format and that this must not be disturbed.” He went on to explain that the EU, including Germany, is mostly concerned with questions on how to construct a framework around the ongoing negotiations that will be conducive to a solution. He continued: “I am confident that the new EU Special Representative for the South Caucasus will establish some proposals in the near future.”
PACE President requests respect for Nagorno-Karabakh Subcommittee
Mevlüt Çavuşoğlu, President, Parliamentary Assembly for the Council of Europe (PACE), has pledged his
support for re-establishment of the PACE Subcommittee on NagornoKarabakh, requesting respect from all parties on this matter. During a press conference in Strasbourg concerning the move, he answered questions from Armenian journalists regarding the development: “PACE adopted the resolution on Nagorno-Karabakh in 2005, and the PACE Bureau passed a decision to establish a Subcommittee on Nagorno-Karabakh. Following the death of Lord Russell-Johnston, the first Committee Chairman, the PACE Bureau reconsidered the issue and passed a decision to resume its activity, which was not accepted by the Armenian side. “But I must reiterate that any decision passed by PACE and its Bureau must be accepted by all member states, and this decision must be respected. I consider it important to reiterate that this Subcommittee will be engaged mainly in the humanitarian elements of these issues and make efforts towards strengthening dialogue between both countries’ delegations to PACE. The next meeting of the Committee will be held today, and I hope the Armenian delegation will participate in its work.”
NEWS IN BRIEF Azerbaijani army officer suffers head wounds Gabil Abdullayev, an Azerbaijani Lieutenant, was wounded by the Armenian armed forces on 14 September in the ‘contact line’ of the Fuzuli region. He was hospitalised with head wounds, which an Azerbaijani Defence Ministry spokesman described as ‘stable’. Armenian mines in Aghdam According to the APA news agency, Armenian-made PMN-57 antipersonnel and anti-tank mines have been discovered in the Khachin River, near the Ashagi Garvand village in the Azerbaijani Aghdam region. The devices were discovered by the local residents, who immediately informed the Azerbaijani National Agency for Mine Actions (ANAMA). The mine-clearance specialists commented that such mines are frequently discovered in rivers and tributaries passing through the Armenian-occupied territories. Armenian-made plastic-coated mines are lightweight and can easily be released in water.
Mammadyarov addresses UN General Assembly
Elmar Mammadyarov, Azerbaijani Foreign Minister, has reiterated his call for the withdrawal of Armenian armed forces from Nagorno-Karabakh, during a meeting of the UN General Assembly in New York. He explained: “Azerbaijan is confident that conflict resolution must start with the withdrawal of Armenian armed forces from the occupied territories, according to the fixed timetable. This should be followed by the restoration of communications, return of refugees and internally-displaced persons (IDPs) and the creation of conditions to ensure the peaceful coexistence of Azerbaijanis and Armenians in the Nagorno-Karabakh region within the territorial integrity of Azerbaijan.” According to Mammadyarov, the incremental approach, which has been proposed by the mediators and supported by the international community, other than the Armenian leadership, will bring about durable peace, stability and predictability for the region. Mammadyarov welcomed the UN General Assembly’s adoption of a resolution on strengthening the role of mediation in the peaceful settlement of disputes, conflict prevention and resolution. He continued: “In this document, the UN General Assembly reiterates that all Member States should strictly adhere to their obligations, as laid down in the UN Charter, and reaffirms the commitment to respect the sovereignty, territorial integrity and political independence of all States. Azerbaijan looks forward to implementation of the relevant guidance for more effective mediation, as indicated in the resolution, and we are ready to actively contribute to its elaboration.”
The Minister recalled that, in 1993, the UN Security Council adopted four resolutions, which demanded the immediate, complete and unconditional withdrawal of Armenian forces from the occupied territories of Azerbaijan and reaffirmed the sovereignty, territorial integrity and inviolability of internationally-recognised Azerbaijani borders. The same appeals were made by other international organisations. He commented: “Unfortunately, Armenia continues to ignore the calls of the international community.”
Bryza maintains positivity
Matthew Bryza, US Ambassador to Azerbaijan, has voiced his opinion regarding a perceived reduction in military rhetoric from the sides regarding the Nagorno-Karabakh conflict. He commented: “Statements regarding the military solution of the Nagorno-Karabakh conflict are being heard less frequently than was previously the case. This is a very positive indicator and development. I wish to state that Azerbaijan advocates the non-use of force and a peaceful solution to the conflict. It is necessary to finalise the process of co-ordinating the basic principles. This is not an impossible issue, and dischord between the sides can be resolved. I reiterate that the conflict cannot be solved by military methods.”
Pashayeva demands PACE condemnation of Nagorno-Karabakh elections
Ganira Pashayeva, Member of the Azerbaijani delegation to PACE, has delivered a stinging rejection of the elections held in Nagorno-Karabakh by the occupying powers. She explained: “Armenia has not fulfilled its PACE and UN
Nagorno-Karabakh motion tabled in Swedish parliament
The Swedish-Azerbaijani Academic Society (SAAS) has announced that a motion for resolution regarding the Armenian occupation of Azerbaijani territories will be presented to the Swedish parliament. The motion specifies the withdrawal of the Armenian military forces from the occupied Azerbaijani lands and the rights of the Azerbaijani refugees and IDPs to return home. Mehmet Kaplan, the renowned and influential Swedish MP, who leads the Green Party in the Swedish Parliament, tabled the motion. The motion demands that Sweden, within the UN, EU and other international organisations should work to: • break the international silence on Nagorno-Karabakh, and ensure that the issue is brought up the international political agenda • bring about the immediate and unconditional withdrawal of all Armenian military forces from the occupied Azerbaijani lands • ensure that the Armenian minority in Nagorno-Karabakh is guaranteed safety, security and autonomy within the framework of Azerbaijan’s territorial boundaries • develop special programmes for reconciliation and tolerance between Azerbaijanis and Armenians in the Nagorno-Karabakh region. Before the Swedish parliament votes on whether to adopt the motion, the Foreign Affairs Committee will debate its contents. If it fails to gain unanimity in its recommendations, voting in the assembly will be preceded with a discussion. The decisions of the parliament are mandatory, thus a positive outcome of the voting would necessitate that the Swedish government should execute the contents of the resolution and adopt it as an active part of its foreign policy.
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P h o t o : U N /L o u R o u s e
Elmar Mammadyarov, Azerbaijani Foreign Minister, reminded the UN General Assembly of its four outstanding resolutions against the Armenian invasion
resolutions, and has held illegal elections in the occupied Azerbaijani lands, including the unrecognised ‘Nagorno-Karabakh Republic’. It has not paid attention to the calls and demands of the Council of Europe. The municipal elections held in the occupied Azerbaijani territories on 18 September are contrary to international law, to UN, OSCE and PACE resolutions, and are simultaneously a serious blow to the negotiations between Azerbaijan and Armenia regarding the settlement of the Nagorno-Karabakh conflict. They have also caused tension in the region. The Assembly must condemn such cases and demand that Armenia stops their recurrence.”
P h o t o : E m b as s y o f t h e US i n B ak u
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the capacity, being commensurate with the gas that Azerbaijan could supply. However, the pipeline would be flexible enough to be upscaled, if other sources of gas emerge. Riccardo Puliti, Head of Energy and Natural Resources at the European Bank for Reconstruction and Development (EBRD) concluded: “It is in the interests of everyone to find that magic number which makes the pipeline both commercially viable and politically interesting.”
Over $100bn invested in Azerbaijan since independence H.E. Matthew Bryza, US Ambassador to Azerbaijan; Zeyno Baran Bryza, his wife; and US President Obama, seen at the White House
US Ambassador praises Baku’s economic development
During a speech at the Caspian-European Integration Business Club (CEIBC) in Baku, Matthew Bryza, US Ambassador to Azerbaijan, praised the government’s job in reducing poverty, acknowledging that the country’s economic buoyancy remains virtually unappreciated in the West. He outlined: “Due to the energy sector, economic growth has been 300 per cent since 2004; it’s tripled the size of your economy, primarily due to oil and gas production.” He went on to reiterate his support for the Azerbaijani government’s emphasis on diversifying economic growth away from the energy sector. Bryza explained that poverty had been reduced from 49 per cent of the population in 2003 to 9.1 per cent in 2009. He continued: “We have spent a lot of time in the West thinking that we need to educate [other countries] about the need to diversify [their] economic growth, to make sure they are fighting poverty, and to ensure the benefits of oil and gas revenues are shared throughout society. You are already doing that.” Bryza pointed out that the Azerbaijani government focuses on the spheres of transportation, tourism, information technology, and agriculture. He revealed: “At least 85 per cent of your gross domestic product emanates from the private sector. Again, this powerful statistic is not sufficiently appreciated in the West. The recent estimate by the World Economic Forum shows that Azerbaijan now ranks 56th in the world, in terms of competitiveness, but is No. 1 amongst the countries of the former Soviet Union.”
BP plans UK– Azerbaijan gas pipeline
The Financial Times has reported that BP is proposing the construction of an 800-mile pipeline traversing three countries that will bring Azerbaijani gas to Europe. Previously, three projects were under consideration, each of which would alter the strategic picture of European energy by constructing a ‘Southern Corridor’ to Azerbaijan’s Shah Deniz 2 gas field, which is currently being developed by seven companies, including BP. The existing proposals are the Nabucco route, favoured by the European Commission; the Trans-Adriatic Pipeline; and the IGI Poseidon scheme. BP’s new plan – known as the ‘South-East Europe Pipeline’ – has been submitted to the Shah Deniz Consortium alongside those of its competitors. This will decide which project to favour by the end of 2011. Al Cook, Vice-President for Shah Deniz development, BP, described the SouthEast Europe Pipeline as “another possible solution”, stating that BP was “open to the idea” of direct involvement in the project. He added: “It doesn’t follow from this that we necessarily find flaws in the other three proposals. But it is wise to have another option.” Cook noted that BP had spearhaded the construction of the two existing pipelines, linking Azerbaijan with Turkey, and commented: “This gives us the confidence that we could do it again.” The new proposed pipeline would start in Western Turkey, running across Bulgaria and Romania to the eastern frontier of Hungary. Existing infrastructure would be used to link with Azerbaijan in the east and the Austrian gas hub in the west. In all, it would be about a third of Nabucco’s length, making it far cheaper. It would also have about a third of
Shahin Mustafayev , Azerbaijani Economic Development Minister, has analysed Azerbaijani progress since it regained its independence 20 years ago. Speaking at an event at the Caspian Fish Factory in Baku, he described the period 1991–94 as a time of decline, with GDP falling by 13–20 per cent and incomes declining 3.6-fold. On the other hand, the 1995–2003 period was a time of dynamic development, with the Baku–Tbilisi–Ceyhan (BTC), Baku–Supsa and Baku–Novorossiysk oil pipelines and Baku–Tbilisi–Erzurum (BTE) gas pipeline being constructed. Azerbaijan also began to co-operate more closely with international financial institutions; GDP grew by 9 per cent; and wages increased by an average of 5.6 times, with inflation sharply decreasing. He continued: “The period since 2003 is one of accelerated development in the country’s economy. There has been diversification of the economy; accelerated development of the non-oil sector and the regions outside Baku; effective use of strategic currency reserves; improved banking system reliability; strengthened state support for entrepreneurship; and a consistent improvement in people’s welfare.” Mustafayev acknowledged that international agencies have increased Azerbaijan’s rating on an annual basis, whilst GDP growth amounts to 14 per cent and foreign exchange reserves total $40bn (£25.4bn). Furthermore, Azerbaijan accounts for 75 per cent of the South Caucasus economy, whilst more than 900,000 jobs have been created since 2003, 655,000 of which are permanent. The Minister calculated that investment in the Azerbaijani economy since regaining independence now exceeds $100bn (£64.1bn). He continued: “Azerbaijan retained its leading position among the CIS states in the Global Competitiveness Report 2011–12, developed by the World Economic Forum. In comparison with previous years, Azerbaijan has improved its standing by two places, coming 55th out of 142 countries.”
Charles Hendry (first left), UK Minister of Energy and Climate Change, outlined BP’s proposed investments to Azerbaijani President Aliyev
Co-ordinator, TEAS, on vanessa.raine@
teas.eu UK Minister promises further £20bn investment Regardless of pipeline, in Azerbaijan Germany favours During a visit to Baku, Charles Hendry, UK Minister of Energy and Climate Southern Corridor Change, revealed that BP will invest an additional £20bn in Azerbaijan. He recalled that the UK is the top-ranking foreign domestic investment (FDI) source for the country, accounting for 52 per cent of such payments. He continued: “The investments are mainly related to the oil and gas sector. In future, the UK will invest in the financial and construction industries, in addition to other sectors. To date, BP has invested £20bn in Azerbaijan, and will invest an additional £20bn in the future. This will enable the pipeline infrastructure to be extended, and enhance the security issues of oil and gas production. All Trans-Caspian gas pipelines must be considered, as Azerbaijani gas should be supplied to Europe as soon as possible.”
TEAS to focus on the financial sector
TEAS has revealed that it is to host a conference focusing on the financial sector during a landmark event on 7 November. The event, organised with Baker & McKenzie CIS Ltd, will include presentations from representatives of the World Bank, the Azerbaijani State Committee for Securities, and the European Bank for Reconstruction & Development (EBRD). A wide range of subjects will be discussed, including the role of the Sovereign Wealth Fund; developing Azerbaijani capital markets; and the operations of the EBRD in the financial sector. Entitled Azerbaijan’s untapped opportunities: What financial institutions need to know, the conference will take place at Baker & McKenzie, 100 New Bridge Street, London, EC4V 6JA. To register your attendance, free of charge, e-mail Vanessa Raine, Business
H.E. Herbert Quelle, German Ambassador to Azerbaijan, has stated that Germany, together with other EU member states, strongly favours the Southern Corridor, irrespective of the pipeline project that is eventually adopted. He commented: “I hope that a decision on the pipeline route will be taken during the next few days.” The gas derived from Shah Deniz Phase 2 will be a main source for the Southern Corridor project, with reserves estimated at 1.2tn m3 (tcm), enabling 10bn m3 (bcm) to be sent to Europe on an annual basis. The Ambassador said the recent mandate by the EU Commission to negotiate with Azerbaijan and Turkmenistan regarding a Trans-Caspian Pipeline Network demonstrates the essential role of these countries in ensuring Western European energy security. He commented: “Due to the new discoveries of gas, Azerbaijan is gaining in importance as a provider, and will also become a transit country.” Azerbaijani gas reserves are currently estimated at 2.2tcm, but once the gas reserves on the Absheron field are fully explored, this figure may reach 2.6tcm. Ambassador Quelle also expressed hope that the Turkish–Azerbaijani transit agreement would be concluded in the very near future.
SOCAR investments in Turkey and Georgia announced
The State Oil Company of the Azerbaijani Republic (SOCAR) has revealed that its investments in Georgia and Turkey during 2007–11 totalled more than $2bn (£1.3bn). Of this, $1.7bn (£1.1bn) was accounted for by the Petkim Turkish petrochemical complex, in which SOCAR
The remaining $470m (£301.2m) of investments was allocated to projects implemented by SOCAR Georgia. This includes those in the Black Sea Oil Terminal in Kulevi, which comprises a system of gas stations and distribution networks. SOCAR Georgia currently comprises 70 filling stations and manages 30 Georgian petroleum distribution enterprises.
World Bank invests in Azerbaijani railways
A World Bank (WB) mission, headed by Ben Gericke, Manager, World Bank Transport Programme, participated in a meeting at Azerbaijan Railways JSC to become acquainted with the progress achieved by the country’s Rail Trade and Transport Facilitation Project. Gurban Nazirov, Deputy Chairman, Azerbaijan Railways JSC commented: “Around 8.5km of the Tatli–Agstafa stretch will be initially repaired during reconstruction of the Baku–Boyuk–Kesik railway, which borders Georgia.” Prior to this, a loan agreement worth €215m (£188.2m) was signed with the Czech ExIm-Bank regarding implementation of the Azerbaijani State Programme on Railway Transport System Development 2010–14, forming part of the Rail Trade and Transport Facilitation Project, funded by the Azerbaijani government and World Bank. During the meeting, Nazirov briefed the World Bank representatives on such aspects as the purchase of 50 new locomotives; transference to an alternating current system on the Baku–Boyuk–Kesik stretch; and the development of systems to prevent oil spills on the line. The loan agreement between the Azerbaijani government and World Bank was signed in December 2009, allocating $450m (£288.5m) to the Rail Trade and Transport Facilitation Project, to which the Azerbaijani government will add $223.8m (£143.5m). The 300km Baku–Boyuk–Kesik section will be reconstructed in the first instance, as part of overhauling the 503km railway.
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has a share. Further Turkish projects included an alliance with SOCAR and Turcas Petrol/Injaz Projects, following the winning of a tender in 2008 to buy a 51 per cent stake in the chemical projects sector. Turkey currently imports 70–75 per cent of chemical products, and it is hoped that SOCAR investments in Petkim will reduce this figure by 30 per cent. In Summer 2011, SOCAR increased its share in the SOCAR–Turcas Joint Venture, which manages the complex, from 51 to 75 per cent.
FM INVESTMENT MANAGEMENT The FMIM staff has been carefully selected, according to some or all of the following criteria:
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Corporate Profile
• • FM Investment Management (FMIM), headquartered in Knightsbridge, London (a sister company of FM Capital Partners) focuses on creating partnerships with large institutions based in emerging markets. Its predominant objective is to manage and/or advise on investment portfolios, together with offering bespoke financebased educational programmes. I spoke to Yuliya Zakutayeva, Business Development Manager, FMIM, to learn more: What is FMIM’s specialisation? The goal of FMIM is to partner with large institutions, based in emerging markets, in order to both manage and advise on investment portfolios, together with offering bespoke, finance-based education programmes for key selected staff. In addition to managing assets, FMIM offers a unique, modular set of financial education programmes, the purpose of which is to share and transfer knowledge regarding the financial services industry. FMIM clients can send candidates for training courses lasting from nine months to three years. They are trained on various elements of modern asset management, after which they become experienced employees of their respective companies. FMIM thus intends to create a pool of world-class asset managers, capable of operating independently on a world-class level. What is the size of your company? The FMIM personnel currently comprises:
• • •
40 employees, with a combined 300 years’ experience 10 funds across various strategies and asset classes approximately $1.5bn (£973,000) in assets under management.
What are the special strengths of FMIM? FMIM’s approach is unique, with a primary objective of generating superior returns and building a significant, long-term partnership with key investors. This is the main focus of its Financial Education Programme. The aim of FMIM is to manage largescale investment portfolios, together with the delivery of bespoke finance-based education programmes to key selected executives and the provision of top-tier investment management services.
• • •
senior practitioners with 10–15 years’ minimum market experience demonstrable ability to generate consistent returns under varying market conditions strong commitment to the educational spirit of the company, combined with knowledge transfer experience in toptier investment banks a background in prestigious hedge funds graduate education from the most prestigious universities, such as the École Polytechnique, École Centrale Paris, University of Chicago, the Comillas Pontifical University (ICADE), and The Norwegian School of Economics and Business Administration.
Do you have a presence in other countries? FMIM has clients in Europe, the MiddleEast, Africa and Asia. What are the aspirations of FMIM in Azerbaijan? Its objective is to assist institutions in the oil-rich and commodity-belt regions to manage and grow their assets, thereby securing revenues for future generations. What are the wider regional objectives of FMIM? FMIM is planning to open operations in Kazakhstan, Tajikistan, Uzbekistan, Georgia, etc.
Why Azerbaijan?
What was the impetus behind the establishment of FMIM in Azerbaijan? FMIM assumes that financial training is essential in the contemporary business world. Its Financial Education Programmes therefore facilitate the transference of a considerable knowledge base in the finance sector, equipping participants with both the theoretical understanding and practical skills to operate independently at world-class level in the asset management industry. How do you view the business climate in Azerbaijan? In the 20 years since the regaining of Azerbaijani independence, great strides have been made in the energy sector, thereby securing a promising future for the country. Azerbaijan is achieving notable improvements regarding business and labour freedom, and the economy is continuing a process of transformation and restructuring. The country has the
Yuliya Zakutayeva, Business Development Manager, FMIM
potential to combat poverty, increasing job generation and economic activity, and becoming transformed into a regional economic leader. Does your company provide training or operate apprenticeship schemes? FMIM Financial Education Training Programmes comprise a set of modular and bespoke courses that constitute an unique professional development qualification in asset management. All are full-time, academically rigorous financial courses, designed in-house. They last from a few months, for an introductory course, to three years, for an advanced asset management course. FMIM has been running a variant of the latter for the executives of a MENA Sovereign Wealth Fund. The inception of this programme began its first year intake during early 2010, with daily classes being held at its offices in Knightsbridge. FMIM has selected high-quality instructors capable of fully engaging with all students. Particular emphasis has been placed on ensuring that there is a high level of interaction between instructors and students. The company firmly believes in the importance of maintaining a collaborative tutorial style, where actual learning and the professional progression of the participants are the sole objectives.
FM Capital Partners Ltd., 1 Knightsbridge, London, SW1X 7LX, UK Tel: +44 (0)20 3130 7173; website: www.fmcapitalpartners.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 10.10.11: AZN1=US$1.27; US$1=AZN0.79; AZN1=£0.81; £1=AZN1.23; AZN1=€0.93; €1=AZN1.08
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Ph o t o : Az e r O l y m p i c
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