Tm 14 06

Culture | Public Affairs Business | Philanthropy

Please see inside for how to win £100 of Amazon vouchers

MANY HAPPY RETURNS CAMPAIGN GOES LIVE – PLEDGE SUPPORT NOW Also in this issue: Republic Day celebrated in the Council of Europe Khojaly Witness book launched Southern Corridor in the spotlight at Caspian International Oil and Gas Exhibition Turkey and Azerbaijan sign $3.39bn credit agreement Kamran Aliyev spearheads the fight against corruption www.teas.eu

6 / 2014

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Welcome to the TEAS Magazine The European Azerbaijan Society (TEAS) is a UK-registered pan-European organisation dedicated to raising awareness of Azerbaijan and fostering closer economic, political and cultural links between that country and the nations of Europe.

As well as promoting the positive aspects of Azerbaijan, TEAS also highlights the plight of the 875,000 refugees and Internally Displaced Persons (IDPs) within the country. These people are unable to return to their homes and lands because of the illegal occupation of Nagorno-Karabakh and seven surrounding districts by Armenia’s armed forces – in defiance of four UN Security Council resolutions.

TEAS has three main facets to its operations: • Culture – TEAS raises awareness of Azerbaijan’s rich and vibrant culture to a worldwide audience by organising cultural events and operating as a networking centre.

• Business – TEAS supports its membership of European and Azerbaijani businesses. It provides a platform for organisations to establish links and strengthen their existing business relationships via a programme of networking opportunities across the regions.

• Public Affairs – TEAS works to increase awareness about Azerbaijan amongst key opinionformers, key decision-makers and other political, academic and civil society stakeholders.

In pursuit of its objectives TEAS: • Organises meetings with interested parties, opinion-formers and decision-makers • Arranges roundtables, seminars, lectures and conferences • Publishes pamphlets, reports, bulletins, books and produces films • Facilitates fact-finding trips by politicians and business people.

Mailing List

TEAS is always bringing the latest news, views and interviews from Azerbaijan. Sign up to our mailing-list to receive the latest information straight to your inbox: www.teas.eu

Facebook

The TEAS Facebook page is your chance to learn about the latest news, events, campaigns and other Azerbaijan-related items. Visit and ‘like’ our page at: http://bit.ly/TEASFB.

Membership and Sponsorship

TEAS offers a range of corporate and individual membership packages, providing such benefits as advertising, trade missions, networking, business sector advice and hotel discounts.

TEAS also offers numerous sponsorship opportunities throughout the year for its events and conferences. To find out more, e-mail: membership@teas.eu.

Win £100 of Amazon vouchers!

To stand a chance of winning £100 of Amazon vouchers, simply answer the following 10 questions, the answers to which will be found in this issue of the TEAS Magazine. In the case of a tie, a draw will be made. Previous winners are ineligible to enter, as are TEAS employees and their families.

Please send all entries to editor@teas.eu by 14 July: 1.

Which England football legend has indicated his support for the TEAS Many Happy Returns campaign?

2.

What is the symbol of Many Happy Returns?

3.

Who took the photographs of IDPs used on the Many Happy Returns site?

4.

Who is the president of the Azerbaijan Golf Federation?

5.

What is the Azerbaijani precursor of polo?

6.

What date is Republic Day? 7.

Where is Krasnaya Sloboda located in Azerbaijan?

8.

Name one of the composers whose work was performed by pianist Saida Zulfugarova in Sweden?

9.

How many people were prosecuted for corruption offences in Azerbaijan in 2009?

10.

What is the value of the credit agreement between Azerbaijan and Turkey for construction of the STAR refinery?

Upcoming Events For full details of all TEAS events, go to www.teas.eu/upcoming-events 27 June Gala Charity Boxing Night: Repton vs. Gabala (London) York Hall Leisure Centre, 5 Old Ford Road, London, E2 9PJ Doors: 18.30hrs. Tickets: £5–15.

Book at www.repton-Gabala.eventbrite.co.uk In commemoration of World Refugee Day, TEAS, in association with Tony Adams and Darren Barker, is organising a night of charity boxing between the legendary Repton Boxing Club (est. 1884) and the Azerbaijani club Gabala. Azerbaijan is renowned for the quality of its boxers, achieving six medals in the London 2012 Olympic Games. This memorable night will benefit the Mo Farah Foundation and be attended by Frank Bruno and other celebrities from the world of sport and entertainment.

Latest Member

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Politics and News

03

Lionel Zetter, Director, TEAS

From the TEAS Director

This has been a momentous month for Azerbaijan and for TEAS. First and foremost, there has been the launch of the Many Happy Returns online campaign at www. manyhappyreturnsidp.com.

Aimed at ordinary members of the public with little or no knowledge of the Nagorno-Karabakh conflict, this explains the complexities of the situation and its human dimension in graphic novel form. It culminates with a very real opportunity for you to pledge your support and sign a petition to the UN, requesting that 20 June be rededicated to both refugees and Internally Displaced Persons (IDPs).

This campaign has the potential to make a difference, and I ask you to pass it to all your friends and colleagues.

The campaign features the stark IDP photos

by Philipp Rathmer, taken in camps across Azerbaijan, and we were honoured to take the exhibition of his photos to Azerbaijan’s sister country, Turkey, for a well-received exhibition in Central Istanbul. In Baku, TEAS also launched a new book of testimonies and facsimile documents relating to the Khojaly Massacre, entitled Khojaly Witness of a War Crime. This invaluable addition to the existing information on this darkest day in the conflict will surely raise awareness that the perpetrators remain unpunished and occupy leading roles in the Armenian government.

On a lighter note, 28 May marks Azerbaijani Republic Day, commemorating the triumphs of the Azerbaijan Democratic Republic (ADR), the first democracy in the Muslim East, which lasted from 1918–20. This year, it coincided with Azerbaijan taking on the Chairmanship of the Committee of Ministers in the Council of Europe, and TEAS organised a reception at the Council of Europe in Strasbourg. My colleague Sabina Rakcheyeva led the Deco Ensemble to entertain around 300 influential guests, making this a memorable evening for all.

Lionel Zetter, Director, TEAS

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MHR campaign brings Nagorno-Karabakh conflict victims’ faces to the heart of Westminster

The website for the ‘Many Happy Returns’ (MHR) campaign – a TEAS initiative – has gone live at www.manyhappyreturnsidp.com. This supports an innovative concept whereby a birthday card is sent to every MP and Peer in the UK Parliament. In each instance, the card contains a message related to one of the estimated 875,000 refugees and IDPs. All those portrayed were forcibly displaced from their homes during the Nagorno-Karabakh conflict.

Despite four UN Security Council resolutions being passed that condemn the invasion, the lands remain under illegal Armenian occupation. The attempts by the OSCE Minsk Group to mediate between the sides have proven unsuccessful.

The cards feature the common English birthday greeting ‘Many Happy Returns’ which, in this instance, also refers to the desire of the people to return home. Each card includes a portrait of an IDP or refugee, taken in three camps by the renowned German photographer Philipp Rathmer.

On the MHR website, the recipients can learn about the background to the conflict in graphic novel form, read personal testimonies, register their support and sign a petition.

They can also view messages of support from such political and cultural figures as Tony Adams, former Arsenal and England football captain; Christopher Pincher MP, Chair, All-Party Parliamentary Group for Azerbaijan; Lord Kilclooney; and acclaimed US photojournalist Ed Kashi. The campaign will also be rolled out in TEAS offices across Europe.

Azerbaijan completes EU visa simplification procedure

Azerbaijan has finalised the legal procedures necessary to assist its citizens in obtaining visas for EU entry. Ogtay Asadov, Speaker, Milli Majlis (Azerbaijani Parliament), explained that the agreement is targeted at preventing illegal migration and facilitating visa regime simplification.

The agreement stipulates that Azerbaijan will take responsibility for its citizens entering or residing in the EU, or citizens from third countries or without citizenship that hold Azerbaijani visas or residence permits. The EU will assume the same responsibility for its citizens, and deportation on the basis of the travel document will be performed within five working days. The agreement was not ratified by the UK, Ireland and Denmark.

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04

Politics and News

Baku’s fiery towers receive architectural prize

The Flame Towers complex – an icon of the new Baku – has been placed in sixth position for the Emporis Skyscraper Award 2013. Germany-based Emporis is a leading information database about building and construction projects. Held since 2000, the international jury nominated buildings for the award according to their aesthetic and functional design criteria. The winning structure was The Shard in London, designed by Renzo Piano. The Flame Towers comprise three structures that rise 190m above Baku.

Their shape was inspired by the ongoing connection of Azerbaijan with gas exploitation and its nickname as ‘The Land of Fire’. The Flame Towers are covered with LEDs, and are visible from across the city. At night, they are illuminated to depict flames, a waving Azerbaijani flag, and other moving images.

The Flame Towers have three separate uses – at the south is the main residential block, comprising 130 luxury apartments on 39 floors, looking out either across the Caspian Sea or Baku itself.

To the north is the hotel tower, with 250 rooms and 61 serviced apartments on 33 floors, paired with the 33,114m 2 office tower to the west.

The Flame Towers dominate the skyline of the new Baku

TEAS continues support of Macmillan Parliamentary Tug of War

For the second successive year, TEAS was a Gold Corporate Patron for the 27th annual Macmillan Parliamentary Tug of War competition as part of its philanthropic objectives.

Pitting the brute strength – but also the guile and technique – of both male and female teams from around the UK against each other, the event culminated with a competition between the Houses of Lords and Commons that was won by the Commons’ team.

The event – compèred by BBC presenter Jeremy Vine – was in aid of Macmillan Cancer Support, which helps people take back control of their lives, so that none of the two million people afflicted with cancer in the UK have to face the illness alone. Last year’s Tug of War raised an estimated £135,000. Attendees this year included the Rt Hon the Lady D’Souza, Speaker of the House of Lords, and The Rt Hon John Bercow MP, Speaker of the House of Commons.

TEAS supports the invaluable work of the Macmillan nurses (Photo: James McCauley)

In Azerbaijan, the format of Tug of War differs to that in the UK and other countries, with individual men, matched by weight and fitness, competing against each other. Such competitions normally take place during the Novruz celebrations in March.

Golfing in Guba

The only Azerbaijani golf course has been added to the European Challenge Tour for 2014, just 20 months after completion. The inaugural Azerbaijan Challenge Open will be held at the course in Guba from 31 July–3 August. The course was completed in October 2012 and is managed by Troon. The course, designed by Jon Hunt of the International Design Group, boasts views of nearby hills and mountains, together with “challenging changes of elevation.”

Alain de Soultrait, Director, European Challenge Tour, commented: “We are absolutely delighted to be bringing the Challenge Tour to Azerbaijan for the first time. It always gives us great pleasure to bring golf to new nations such as this, and it is sure to be a memorable event.

“The Azerbaijan Golf Federation (AGF) has already shown great enthusiasm and commitment towards making this tournament happen, and we look forward to building a long and fruitful relationship with them in the coming years.” The tournament will have prize money of $300,000 (£179,000) at stake.” The tour will end in Dubai in November, having visited 22 countries.

Anar Mammadov, President, AGF, commented: “Golf is new to Azerbaijan, so we hope to popularise it at all levels. The implementation of a major tournament as part of the European Challenge Tour is extremely important for the country. We are certain that the players will enjoy the golf course, together with the many tourist attractions the country has to offer. We hope that the ‘Land of Fire’ will be one of the brightest events in Challenge Tour history.” The event will be the 16th stop on the 28-stop tour.

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www.teas.eu

Politics and News

05

Polo coming home

Following the great success of the first Arena Polo World Cup Azerbaijan, the Azerbaijani Equestrian Federation (ARAF) will present the second edition of this historic event from 5–7 September in a newly-built polo stadium at the Horse Centre Bina in Baku.

Four professional polo teams from Argentina, the US, Europe and Azerbaijan have confirmed their participation in the competition. Manouchehr Ahadpur Khangah, Vice-President, ARAF, explained that Raul Laplacette and his team from the Alegría Polo Farm in Buenos Aires and renowned Hamburgbased polo player Thomas Winter have coached the Azerbaijani team. He said: “Training of the Azerbaijani National Team started in April and, since then, it has gone from strength-to-strength and has now qualified for the international tournament. Like parents proud of their successful children, I am proud of our national players.”

The second Arena Polo World Cup Azerbaijan will be produced and hosted

by ARAF, World Polo, and the Elite Horse and Polo Club Bina. The Bina Horse Centre features a completely new polo area, and modern polo facilities were

Azerbaijani players participate in an exciting game of Chovgan

constructed last year to welcome local and international polo fans. In addition to the arena, which features high-definition lighting systems, 40 horseboxes are provided, and there are plans to add two full-size playing fields.

The antecedent of polo – Chovgan – originated in Azerbaijan. The country recently made an application to UNESCO to include Chovgan in its List of Intangible Cultural Heritage.

The Azerbaijan Chovgan Championship will follow the Arena Polo World Cup Azerbaijan on 10 September.

The Bringing Polo Home concept is the

vision of Mr Khangah, who initiated the first modern polo tournament in Baku last year. The country also became a member of the Buenos Aires-based Federation of International Polo (FIP).

Mr Khangah commented: “This is a special year for us, as this will mark the debut of the Azerbaijani National Polo team. This tournament will surpass the previous edition, featuring greater participation, sponsorship and entertainment. We foresee another sold-out event and an increase in the international and local audience. The 2014 event will offer even more fun, entertainment and surprises for our guests.”

Baku United trounce Manchester to lift Futsal Crown

Baku United FC – founded by the Odlar Yurdu Organisation – has won the FA National Futsal League Grand Finals for the second consecutive year after recording a compelling 5–1 victory against Manchester in a tightly contested match. All six goals came in the second half at St George’s Park, the national football centre of the English Football Association.

Baku United FC celebrates footballing success

Strikes from Jonathan Camera, Marcelo Dos Reis Soares, Carlos Munoz Delgado and a brace from captain Kevin Ramirez Valadez were sufficient to propel Baku United into the position of national champions. Earlier in the afternoon, Baku United had secured their place, following their 3–1 victory over Helvecia. Despite the game ending 5–1, the match was not as one-sided as the score indicates. Manchester played courageously throughout, but Baku proved too strong in the end, the club’s second consecutive title being testament to their current dominance of English Futsal.

NEWS FROM BRUSSELS

e-mail: brussels@teas.eu The results of the European elections held in all 28 member states However, this will not be an easy task, as a European group from 22–25 May proved polls to be correct. The big winners in the must represent at least seven member states. The French European Parliament are the far-right and left nationalists, which Front National is now working to create a European Alliance for are mainly Eurosceptic parties. By contrast, the main European Freedom Group, with the support of, amongst others, the Italian parties, the conservative European People’s Party (EPP), the North League, the Belgian Flemish Interest, the Austrian FPÖ socialist Progressive Alliance of Socialists and Democrats (S&D) and – maybe – the Dutch Party for Freedom. The British UK and the liberal Alliance of Liberals and Democrats for Europe Independence Party (UKIP) led by Nigel Farage, the other major (ALDE) all lost seats, with the EPP remaining the biggest party. anti-EU party, already belongs to the Europe of Freedom and Democracy group, which needs to attract new parties to avoid As most of the new parties do not yet belong to a European political disappearance. group, they will be looking to join an existing group or try to create a new one. This is necessary in order to have more influence In any case, with or without a European group, the influence of on the discussion – it allows presiding committees to have more these anti-EU parties will probably remain fairly limited, as the talking time and receive increased financial means. This is why traditional parties (EPP–S&D–ALDE–Greens) account for around parties who are allergic to the EU might, quite paradoxically, end 60 per cent of the MEPs. This figure might still increase, as some up uniting and building a European party together. new parties could also join them.

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06

Politics and News

TEAS brings Republic Day to the Council of Europe

In commemoration of Azerbaijani Republic Day on 28 May – a national holiday in Azerbaijan – around 300 diplomats, Council of Europe staff members and representatives from the 47 member states attended a unique concert and reception at the Council of Europe in Strasbourg. Organised by TEAS Brussels, this event also recognised the start of the inaugural Azerbaijani chairmanship of the Committee of Ministers of the Council of Europe.

Dr Sabina Rakcheyeva, violinist and Cultural Advisor, TEAS, together with the London-based Deco Ensemble, entertained the audience with a vibrant range of works by the Argentine composer Astor Piazzolla, jazz-mugham pioneer Vagif Mustafazadeh and arrangements of Azerbaijani traditional pieces. Attendees also had the opportunity to experience an exhibition of Azerbaijani carpets, musical instruments and archaeological finds, organised by the Heydar Aliyev Foundation.

H.E. Ambassador Emin Eyyubov, Head of the Permanent Representation of the Republic of Azerbaijan to the Council of Europe, commented: “This year Azerbaijan is assuming the Chairmanship of the Committee of Ministers of the Council of Europe. However, tonight we are commemorating the achievements of the Azerbaijan Democratic Republic (ADR), founded in 1918. This lasted for 23 months, after which Azerbaijan became part of the Soviet Union for 70 years. The ADR elected the first constitutional government in the Muslim East.

“This officially secular, modern, European-modelled republic was extremely progressive. Achievements included introducing the voting franchise for all women, predating this development in the US, UK and other western nations. It also embodied the concepts of religious and ethnic tolerance that are still upheld today. Today’s Azerbaijan is strong economically and forms part

H.E. Ambassador Emin Eyyubov opened the event

of the family of nations, and this Chairmanship is indicative of its current position in the international arena.”

Gabriella Battaini-Dragoni, Deputy Secretary-General of the Council of Europe, recalled: “In the past, I was supervising the Cultural Sector of the Council of Europe, and have assisted with organising numerous conferences in Baku. This city has also played host to meetings of the Cultural Ambassadors from the Council of Europe, UNESCO and other organisations.

These meetings have focused on international dialogue and cooperation.

“In Baku, I had the pleasure of seeing exhibitions of carpets, artifacts and ancient musical instruments, and I understand that Azerbaijan occupies a unique position at the crossroads of Europe and Asia. The art of Azerbaijan embodies the influence of all the many ethnic groups and nations who have lived on Azerbaijani territory. The culture of Azerbaijan is vibrant, diverse and in no way reduced by the geographical size of the country.

It has much to show to the world and of which to be proud.

“Sites range from the Old City of Baku, with its rich architectural legacy, to the Stone Age archaeological sites in Gobustan, and the Fire Temple outside of Baku. Modern societies cannot exist if they are isolated from each other. The road to dialogue comes from understanding the differences between nations and societies and integrating with each other.”

Violinist Sabina Rakcheyeva and the Deco Ensemble entertained the audience

Dr Roman Huna, Head, TEAS Brussels, said: “Tonight we have brought something special from Azerbaijan to the Council of Europe. This is thanks to Dr Sabina Rakcheyeva, my colleague, a violinist from Azerbaijan who is also a cultural ambassador for the country. We have brought a rich and melodic Azerbaijani message full of peace, indicating the strong cultural heritage and tolerance of the country. The creation of the ADR in 1918 has been celebrated with Azerbaijani and international music, underlining this message of freedom, peace and tolerance.”

Azerbaijani Minister of Defence visits NATO Colonel-General Zakir Hasanov, Azerbaijani Defence Minister, has paid an official visit to Belgium at the invitation of General Philip Breedlove, Supreme Allied Commander for Europe (SACEUR), NATO, and Commander of US European Command.

Prospects for Azerbaijani–NATO relations were discussed during the visit.

The Azerbaijani delegation visited the NATO Supreme Headquarters Allied Powers Europe (SHAPE), headquarters

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of Allied Command Operations (ACO). This is one of the two NATO strategic military commands and is located at Casteau, north of Mons. At the invitation of Anders Fogh Rasmussen, NATO Secretary-General, General Hasanov also attended a meeting of the NATO International Security Assistance Forces’ (ISAF) defence ministers of the alliance partners in Vilnius.

During this meeting, there was acknowledgement of Azerbaijani participation in the NATO missions in Afghanistan, Iraq and Kosovo.

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Conference Report

07

Multiculturalism

explored in Azerbaijan

by Neil Watson

Now in its fifth edition, the international conference entitled Actual Problems of Azerbaijanism took place at Baku Slavic University from 5–7 May in commemoration of the 91st anniversary of the birth of former President Heydar Aliyev, regarded as the National Leader of Azerbaijan.

Delegates included academicians from Belarus, Bulgaria, Germany, Japan, Poland, Russia, Turkey and Ukraine, in addition to myself from the UK. There was standing room only in the main hall of the university for the opening ceremony. Professor Kamal Abdulla, former Rector of Baku Slavic University, recently promoted to the Presidential Administration, where he will form a department focusing on interreligious and multi-ethnic matters, commented: “Azerbaijan is like a flower – it has many layers of beauty. The country is renowned for its multiculturalism and tolerance of faiths, and this was particularly the case in the Nakhchivan Autonomous Republic (NAR), an exclave of Azerbaijan, which was the homeland of Heydar Aliyev.

“The Cultural and Educational Centres at Baku Slavic University, dedicated to the Czech Republic, Belarus, Bulgaria, France, Germany, Greece, Poland, Russia, Turkey, and Ukraine are indicative of Azerbaijan’s acceptance of foreign cultures and the foundation of Azerbaijani centres in many of those countries demonstrates how Azerbaijan is reaching out. All those present today are friends of Azerbaijan, where tolerance is a cornerstone.”

Professor Asif Hajiyev, who has been instrumental in developing the university’s Cultural and Education Centres over the past 15 years, has recently succeeded Professor Abdulla as University Rector.

Following this, parallel sessions took place in each of the Cultural and Education Centres. I attended those in the Belarusian centre, which focused on Heydar Aliyev’s Heritage and the Development Strategy of Azerbaijan. This was followed by a roundtable session, during which the international delegates discussed the current status and understanding of Azerbaijan on an international level.

On the second day of the conference, whilst the parallel sessions continued, the international delegates visited Guba in north-west Azerbaijan. After a brief pause at the recently-constructed Olympic Centre, we visited an archaeological

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Professor Kamal Abdulla opens the event

site. In 2007, during excavations for foundations to the new stadium, there was the grisly discovery of human bones.

Further excavations uncovered the remains of around 600 Azerbaijanis who had been thrown in mass graves, all of whom were killed during ethnic cleansing

by Armenian Bolsheviks in 1918. Damage to the skulls was indicative of violent death, and some of these bones remain piled up near the place of discovery as a memorial.

A stark, modernistic concrete structure nearby housed an interactive museum, which explained, using contemporary photographs and facsimile documents, how the killings were a deliberate and systematic attempt to rid the area of Azerbaijanis.

After visiting this monument to man’s inhumanity to man, the international delegates moved on to Krasnaya Sloboda (Red Town), which is one of the foremost indicators of Azerbaijani tolerance. This is one of the only solely Jewish villages in the world outside of Israel, and is home to the largest community of Mountain Jews in Azerbaijan. The Azerbaijani government has made an active attempt to maintain the fabric of the village and to ensure that the Jewish way of life is permitted to continue without hindrance. During our time in the town, we visited the synagogue, which was recently reconstructed with the assistance of the Azerbaijani government.

Located on the riverbank, the synagogue faces a mosque on the opposite side of the river, the situation being emblematic of Azerbaijan’s all-inclusive approach to religion.

Following this, all the delegates travelled to the Heydar Aliyev Centre in Guba, where they viewed an exhibition about Heydar Aliyev’s life and participated in a roundtable session, where representatives of all ethnic groups in Guba – including Lezgins, Russians and Jews – bore testament to Azerbaijan’s tolerance and how this is enshrined in the Azerbaijani constitution. As the local Lezgin leader

recalled, Heydar Aliyev once said: “I am proud of all Azerbaijani people, regardless of ethnicity and religion.”

The final day of the conference began with a visit to the National Security Ministry, where the delegates saw the Heydar Aliyev Museum, which houses the former President’s uniforms, four Orders of Lenin, Order of the Red Star and two Hero of Socialist Labour awards. It continued with a trip to the Azerbaijan History Museum, which contains archaeological discoveries and items relating to the development of Azerbaijan’s rich and colourful history, including artisanal copper items, ceramics, carpets and other handicrafts.

Following the closing ceremony, the event concluded with a concert from those students studying in the various Cultural and Education Centres who performed songs and dances related to the country that is the focus of their study. There was a performance of Azerbaijani ashiq and mugham music, followed by a press conference for overseas delegates.

Attending the conference was a remarkable experience, and drew attention to the positive work being undertaken at Baku Slavic University to make the country better known on an international level and the realities of tolerance in Azerbaijan.

Azerbaijani remains on display near the mass grave in Guba

To find out more about Baku Slavic University, go to www.bsu-edu.org

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08

Culture

Photographer Philipp Rathmer at the opening, flanked by Rena Rzaeva (left) and Turkish TV personality and author Pelin Batu

TEAS organises exhibition by Philipp Rathmer in historic Istanbul arts hub

More than 200 guests attended the opening on 5 June of an emotionally-charged exhibition focusing on the stark faces of some of the estimated 875,000 Azerbaijani refugees and Internally Displaced Persons (IDPs) – the ongoing victims of the NagornoKarabakh conflict – in the 14th Century Tophane-i Amire Culture and Arts Centre (Mimar Sinan University) in Istanbul. This moving exhibition, which ended its run on 29 June, was organised by TEAS Turkey, and showcased the outstanding and inspirational work of the renowned German photographer Philipp Rathmer.

Attendees included Pelin Batu, television personality and author; Inci Aksoy, Chair, Education, Culture and Research Foundation; actress Wilma Elles; Beyhan Murphy, Art Director, Istanbul Opera and Ballet; Murat Pilevneli, renowned gallerist; Zeynep Dereli, President, Turkish-American Business Association; and Mustafa Kemalettin Eruygur, Turkish Consulate-General to Belgium.

All 50 photographs were taken in Azerbaijan in the IDP camps of Takhtakorpu and Gunzali, near the Armenian border, and Darnagul and Gizilgum, located north of Baku. Rena Rzaeva, Istanbul Representative, TEAS Turkey, posed some pertinent questions: “I would like to ask you all – have you ever been expelled from your own home? Has your land been unlawfully taken away? Have you been forced to move to another place – a place that is unknown to you? In Azerbaijan, one in nine people live as refugees and IDPs, and approximately one-fifth of Azerbaijani land remains under Armenian occupation. This has continued for over 20 years, this human tragedy unfortunately still continues, and this critical problem remains unresolved. As Azerbaijanis, we are requesting the return of our rightful lands, and seek peaceful resolution of the Nagorno-Karabakh conflict.”

Rena then made reference to some of the photographs on display, saying: “Surrounding us tonight are the different faces of young and old men, women and children. Each individual reveals their own personal story of this tragedy in their own way.” She focused on the image of the most elderly person photographed for the project, commenting: “Let me introduce Samaya Mammadova to you. Samaya was 86 years old when she was photographed, and it’s as if the wrinkles on her face depict her experiences. Prior to the Armenian occupation, Samaya fled from Shusha with her family. Her son volunteered to go to the front. In 1992, he was officially recorded as ‘missing’ and his fate remains unknown.

After losing her husband and daughter, Samaya was left alone, and she now just has one wish – to be reunited with her family in the other world.”

Rena then made reference to one of the youngest photographic subjects: “At just eight years of age, Afat Karimova is still a little girl. Afar is eagerly learning English so she can explain to the world about her hardships and experiences growing up in IDP camps. Perhaps by looking at these Azerbaijani faces you can see and share their pain.”

Philipp Rathmer explained more about the project: “The subjects were aged from six to 86 years, so some have never even seen their homeland. Their faces show the pain and suffering, but also capture their hope of returning home one day, using one of the five roads that lead to the occupied districts – one of the Five Roads Back Home.” The exhibition was previously shown in Berlin and Paris and is continuing to tour the cities where TEAS has offices.

Zulfugarova brings Azerbaijani spirit to Sweden

The outstanding Azerbaijani pianist Saida Zulfugarova performed works by some of her compatriots

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In celebration of Azerbaijani Republic Day on 28 May, the Parisbased pianist Saida Zulfugarova gave a recital of Azerbaijani classical works at the invitation of the House of Azerbaijan in West Gotaland, Sweden at the initiative of Sona Zahidova. The programme included pieces by Gara Garayev, Fikret Amirov, Azer Rzayev, Farhad Badalbeyli, Tofiq Guliyev, Jovdat Hadjiev and Jahangir Zulfugarov.

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Culture

09

The Isfar Sarabski Trio performed for a wildly enthusiastic audience in Paris

Isfar Sarabski Trio headlines Paris jazz festival Six months to the day since its acclaimed concert at the Duc des Lombards club in December, the Isfar Sarabski Trio made a triumphant return to Paris on 16 May as a part of the famous Festival Jazz à SaintGermain-des-Prés Paris, performing before a wildly appreciative audience of over 300.

Now in its 14th edition, the festival is one of the staple fixtures of the Parisian jazz calendar, and audiences comprise critics, musicians and fans alike. Performing a rich blend of music, most of which comprised Isfar’s own compositions, this concert was supported by TEAS. It took place at the Maison des Cultures du Monde cultural centre, which focuses on cultural exchange and the maintenance of cultural diversity.

In recent years, Isfar has won numerous awards, including that of the Jazz Solo Piano Prize at the Montreux International Jazz Festival in 2009 when he was aged only 19 years. He is also an Honoured Artist of the Azerbaijani Republic. Performing in the standard trio setting with Makar Novikov (bass) and Alexander Mashin (drums) he

performs in a post-bop jazz style, mixed with mugham, the traditional music of his homeland.

and, spurred by the enthusiastic audience, Isfar began to improvise wildly, his dizzying fingers becoming a blur.

Isfar’s programme began with a dreamlike introduction to his Déjà vu, which picked up tempo with the introduction of Alexander Mashin’s drumming. The trio has been playing together for some years, and this was evident when hearing the interplay between Isfar and the innovative Alexander. This piece – as with many on the programme – demonstrated Isfar’s exciting and percussive style. On the other hand, Transit to New York was a more contemplative piece, this time showcasing the talents of bassist Makar Novikov. Isfar’s delicate piano solo went on to elicit a call of ‘magnifique’ from members of the audience.

Isfar is classically-trained, and his Prélude began with an obvious homage to J.S. Bach, before developing into a funky riff that led the audience into spirited clapping on the beat. This also gave Alexander Mashin chance to demonstrate the full range of his techniques. After wild applause, Isfar’s trio returned to the stage for an encore of his Novruz, which incorporated the eastern harmonies of his homeland.

After a solo introduction that alluded to the magical aspects of the ballet, Isfar’s next solo went on to develop into the Dance of the Cygnets from Tchaikovsky’s Swan Lake Ballet. Taking this as a point of departure, the tempo gradually picked up

A jazzy take on Azerbaijani classics

In commemoration of the 32nd anniversary of the passing of Azerbaijani composer Gara Garayev (1918–82), the US-based Karabakh Foundation has announced the release of the album QaraBağ: ZulfiqaRenatuS. The programme encapsulates a contemporary approach to Azerbaijani classical music, featuring Azerbaijani saxophonist Zulfugar Baghirov and Portuguese pianist Renato Diz. Mr Baghirov has an illustrious musical pedigree, being the grandson of both Gara Garayev and Zakir Baghirov (1916–96), also a composer and musical professor.

The CD programme takes well-known Azerbaijani pieces as its root, drawing upon the techniques of jazz and contemporary fusion. Mr Baghirov commented that it uses “music as the conduit that surpasses language and speaks about things that can’t be

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Isfar’s set was followed by the popular French BFG (Bex Ferris Goubert) Hammond organ-led trio, which wowed the audience with a rich and energetic blend of funky improvisation. A short TEAS-produced concert documentary can be seen at http:// bit.ly/isfarteas. Piano jazz fans will also be pleased to know that Amina Figarova’s landmark interview with the late Marian MacPartland on the National Public Radio’s famous Piano Jazz series is now available for free download at http://bit.ly/aminanpr.

expressed using words.” The two musicians have previously undertaken extensive collaborations, and their synergy permeates every aspect of the musical presentation.

The CD is designed to capture the spirit of Nagorno-Karabakh, hence its name, which also combines the surnames of Gara Garayev and Zakir Baghirov. Mr Baghirov was born in the town of Shusha, often thought of as the heart of Nagorno-Karabakh and the ‘Conservatory of the Caucasus’. Tracks include arrangements of Gara Garayev’s Concerto for Violin and Orchestra (1967); Zakir Baghirov’s Prelude Andantino from Miniatures: Andantino (1950s); Faradj Qarayev’s The Shadows of Gobustan (1969); and The Blind Man’s Son from Koroglu by Uzeyir Hajibeyli (1885–1948). To order the CD or download the tracks, go to http://bit.ly/zulfiq.

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10

Personalities – Kamran Aliyev

Tackling the corruption curse Corruption remains one of the major ongoing issues across much of the postCommunist world. Despite this, many afflicted countries are making negligible attempts to curb the impact of this problem. However, the same cannot be said of Azerbaijan, which is actively recognising, combating and taking avoidance measures in order to negate the issue.

Dr Kamran Aliyev is a prosecutor with over 25 years’ experience, and it was natural that he would be selected to spearhead the Azerbaijani fight against corruption.

He currently holds the position of Director, Anticorruption Directorate, Office of the Azerbaijani Prosecutor-General.

New anticorruption bureau premises have recently been opened, and this includes a hotline that is manned 24/7, reception, and interrogation rooms for the accused, witnesses and victims. TEAS spoke to Dr Aliyev to find out more: What are the objectives of the Anticorruption Directorate (ACD) within the Prosecutor-General?

The ACD’s objectives are to: • investigate information about possible corruption infringements • commence criminal prosecution and conduct pre-trial investigations into corruption-related offences • apply investigative procedures to prevent, detect and expose corruption-related offences and oversee compliance with legislation by other bodies as they undertake such procedures, according to written instructions from the ACD • apply legal restitution of damage inflicted as a result of corruptionrelated offences, including the possible confiscation of property • study the anti-corruption situation; collect, analyse and summarise corruption-related information; and formulate proposals and recommendations to optimise efficiency in combating corruption • instruct appropriate authorities in taking the necessary measures to protect witnesses, victims, accused persons and other participants in criminal processes, including pre-trial investigation and trials • report to the Azerbaijani President and the Anti-Corruption Commission, through the Prosecutor-General, on anti-corruption measures • co-operate with public institutions and other bodies regarding the fight against corruption • ensure that appropriate measures to

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Dr Kamran Aliyev outlines the very serious work being undertaken to reduce corruption

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protect employees of the department and family members are adopted raise public awareness of anticorruption measures and ensure transparency in their implementation undertake educational and preventative measures concerning the fight against corruption.

How did participation in the Extractive Industries Transparency Initiative (EITI) lead to the anticorruption drive in the country?

Participation in EITI has led to the development of an improved investment climate by providing a clear signal to investors and international financial institutions that the government is committed to the achievement of greater transparency. It has also assisted in strengthening accountability and enhancing good governance, together with promoting greater economic and political stability.

Companies and investors have benefited from the mitigation of political and reputational risks, as political instability caused by opaque governance is a clear threat to investment. In the extractive industries, where investments are capitalintensive and dependent on long-term stability, reducing such instability is beneficial for business. Transparency of payments made to a government can also help demonstrate the contribution that such investments make to the economy.

The benefits to civil society come from increasing information in the public domain about the revenues that governments manage on behalf of citizens. Due to the implementation of sound policies and reforms, diversification of the Azerbaijani economy has continued, despite the global financial and economic crisis.

According to the Global Corruption Barometer, published by Transparency International in 2013, 68 per cent of those questioned agree that ordinary people

can make a difference in the fight against corruption.

What are the main concepts of the National Strategy to Increase Transparency and Anti-Corruption (NSITAC) 2012–15?

As part of the NSITAC, the Azerbaijani government envisages: • increasing the accountability and transparency of the civil service • reducing the potential for influencing decision-making processes • simplifying the rules for businesses • improving co-ordination between state institutions and civil society • increasing penalties for violations of rules regarding corruption legislation.

The NSITAC package forms part of the government’s broader economic strategy that covers such areas as poverty reduction and regional development. The concepts were formulated during public discussions and roundtables by numerous public institutions, non-governmental organisations (NGOs) and international experts. The results of NSITAC will be evaluated by state agencies and NGOs. How does the ACD collaborate with other institutions in the fight against corruption?

The ACD is the national specialised criminal investigation and operative detection agency focusing on corruptionrelated offences. It comprises seven departments undertaking information analysis, detection, prevention and criminal investigation.

As part of the Azerbaijani Prosecution Service, which is an independent institution of the Judicial Authority, the ACD is not accountable to any other public institution and it only has to substantiate its decisions to the courts.

Although it is a statutory requirement, binding for all institutions, to submit information related to corruption offences

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Personalities – Kamran Aliyev to the ACD, its powers include launching criminal enquiries and investigations into information submitted for consideration.

The ACD can also use its resources to detect corruption offences on its own initiative.

The ACD has concluded several Memoranda of Understanding (MoUs) to undertake collaboration with the Chamber of Auditors, Financial Monitoring Service (FMS), Ministry of Internal Affairs and Ministry of Taxes.

The Commission on Combating Corruption is a specialised national agency preventing and managing the fight against corruption, co-ordinating the efforts of all institutions.

If it receives information indicating possible occurrence of corruption, this is referred to the ACD, which undertakes analysis.

The FMS is a body that, amongst other functions, detects instances of moneylaundering and other financial offences.

Subject to these criminal procedures, this information is supplied to the ACD that, in turn, provides the FMS with feedback.

How does your office operate to punish those involved in corruption crimes?

If the ACD investigation indicates that there are sufficient grounds, a criminal investigation is launched and a court indictment is filed.

If there are insufficient grounds for investigation, the ACD may launch administrative or disciplinary proceedings, or file a civil law suit. It also has the right to submit a motion to any public or private institution, asking it to eliminate practices conducive to corruption.

How many people have been prosecuted, to date?

The statistics are as follows: Year

No. of cases submitted to court

No. of people prosecuted in court

2005

12

35

2006

39

79

2007

41

69

2008

70

121

2009

103

176

2010

104

188

2011

142

229

2012

170

298

2013

201

367

2014 (Q1)

45

63

How is Azerbaijan learning about the correct implementation of anticorruption measures from other countries?

Azerbaijan is actively involved in determining and implementing anticorruption policy at both a regional and international level. In order to establish an effective policy, it is assessing the

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measures that have been put in place by other countries, and is disseminating its own positive experience.

In order to share such knowledge and experience, Azerbaijan is evaluating such international instruments as the Council of Europe’s Criminal Law Convention on Corruption and the United Nations Convention against Corruption (UNCAC).

Azerbaijan is also participating in the mutual evaluation of the countries participating in the Council of Europe’s Group of States against Corruption (GRECO) programme. It also plays a role in the Istanbul Action Plan of the Anticorruption Network for Eastern Europe and Central Asia at the OECD (IAP ACN OECD).

The successes of Azerbaijani anticorruption practice were recently acknowledged in the Executive Summary of the UNCAC National Implementation Report, published by the UN Office on Drugs and Crime (UNODC).

Under the European Neighbourhood Policy Initiative (ENPI), the ACD entered into a twinning programme with the Lithuanian Special Investigation Service (STT) and General Prosecutor’s Office during 2009– 11. During this project, it is learning from the experience of Baltic countries, Austria, Romania and other members. Azerbaijan also has access to the network and information resources of the International Association of Anticorruption Agencies.

Azerbaijan is also involved in the Agreement for the Establishment of the International Anti-Corruption Academy as an International Organisation. This will enable the training of qualified anticorruption staff.

How are e-government systems being used in Azerbaijan to reduce corruption levels?

On 23 May 2011, Azerbaijani President Ilham Aliyev signed a Decree entitled Measures to Arrange the Application of E-services by State Agencies. This has led to the development of e-government and further strengthened the fight against corruption.

E-services are currently being used internationally to improve, simplify and facilitate relations between the state and society. E-services are also regarded as an effective method of corruption prevention and ensuring transparency.

According to reports from international organisations, Azerbaijan now occupies

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a leading position amongst CIS and some European countries regarding the application of information and communications technologies (ICT) to assist state agencies. This infrastructure has been developed in tandem with the necessary legal framework.

The implementation of E-services, using the innovative ASAN xidmet (Easy Service) centres, play an integral role in enhancing the efficiency and quality of relations between state agencies and citizens, ensuring transparency and eradicating those factors conducive to corruption.

E-services serve to minimise direct contact between state agents and citizens, reducing opportunities for corruption.

A special e-service section has now been incorporated on the websites of all state agencies. For each service, the necessary documentation is specified, and this and any other information may be submitted in scanned format. It is possible to make payments relating to several services.

Following the submission, applicants will immediately receive the necessary confirmation receipt.

Dr Aliyev speaks on the Azerbaijani experience in Panama at a meeting of the Session of the Conference of the States Parties to the UN Convention against Corruption

What can be done to change attitudes towards corruption in Azerbaijan?

The key to success in the fight against corruption is the maximisation of transparency and increasing the accountability of public institutions and officials. It takes time and effort to train and teach public officials and the general public so they become accustomed to the new environment.

It is imperative to ensure that public institutions are open for service and make the boundaries of these services completely clear. It is the responsibility of the state and the ACD, in particular, to show public officials and the public that crossing those boundaries will have serious consequences.

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12

Nagorno-Karabakh Conflict

‘Khojaly Witness’ launched by TEAS

TEAS has issued a new book of factual evidence focusing on the Khojaly Massacre, when 613 civilians were killed by Armenian troops on the night of 26 February 1992.

Entitled Khojaly Witness of a War Crime – Armenia in the Dock, edited by Ian Peart and Fiona Maclachlan, it is notable as the first book using original documentary evidence of the massacre to be printed in English and published in the West.

The book opens with a series of interviews with the massacre survivors, being the first collection of first-hand accounts taken by western journalists. It includes the personal recollections of international journalists who were present in Aghdam as the survivors ended their trek to safety. Their contemporary reports are printed in full, alongside facsimiles of the original reports, together with assessments of international human rights organisations and later academic studies. The book also brings Western and Russian sources and photographs together for the first time.

The appendix to the book includes the text of resolutions passed by many organisations demanding justice and restitution for the Azerbaijani refugees and Internally Displaced Persons (IDPs). This includes the four outstanding UN Security Council resolutions that demand Armenian withdrawal from the occupied Azerbaijani territories. The book is presented as an objective record of the Khojaly Massacre, the perpetrators of which remain in positions of power in Armenia. The book is available in both hard and softback editions from secretariat.baku@teas.eu, and will be available at Amazon from September.

Burkhalter stresses need for intensified peace talks

Didier Burkhalter, OSCE Chairperson-in-Office and Swiss Foreign Minister, began his official trip to the South Caucasus with a visit to Baku, where he discussed new aspects of OSCE– Azerbaijani co-operation with President llham Aliyev, calling for the implementation of measures to reduce the tensions surrounding the Nagorno-Karabakh conflict.

The visit also included meetings with Elmar Mammadyarov, Azerbaijani Foreign Minister; Ogtay Asadov, Speaker, Milli Majlis (Azerbaijani Parliament); and representatives from political parties and civil society. Mr Burkhalter encouraged President Aliyev to move towards peaceful Nagorno-Karabakh conflict settlement. He stated his encouragement for intensified negotiations and the organisation of another meeting between the Armenian and Azerbaijani Presidents as a starting point towards a structured process leading to resolution.

additional confidence-building measures. He reiterated the full support of the Swiss OSCE Chairmanship for the work of the OSCE Minsk Group Co-Chairs and Andrzej Kasprzyk, his Personal Representative, in facilitating the negotiation process.

Another key subject under discussion was the work of the recently-established Project Co-ordinator’s Office. Mr Burkhalter said he hoped for close co-operation between the Azerbaijani government and Alexis Chahtahtinsky, Project Co-ordinator, which will take the needs and priorities of the country into account and cover all three security dimensions – the politicomilitary, economic and environmental – together with the human element. Angelo Gnaedinger, OSCE Special Representative for the South Caucasus; Andrzej Kaspryzk and Alexis Chahtahtinsky accompanied Mr Burkhalter throughout his visit.

Didier Burkhalter called for intensification of the negotiation process

He stated: “Violent incidents 20 years after the ceasefire are unacceptable to the Swiss OSCE Chairmanship.” Mr Burkhalter called on both sides to strictly adhere to the ceasefire agreement, implement an incident investigation mechanism, encourage contact between the sides via civil society, and agreement on

Dutch-based Fund to defend the rights of Azerbaijani IDPs

Elsever Mammadov, First Vice-President, Benelux Azerbaijanis Congress (BAC), based in Rotterdam, has announced that a new international fund focusing on democracy and human rights has been created in the Netherlands. He said that the fund had addressed the Dutch parliament on the violation of the rights of Azerbaijani refugees and IDPs, and that an appeal had been sent to

the International Court of Justice in The Hague.

Mr Mammadov said: “The Dutch are heads of the organisation, but representative offices of the Fund are being opened in other European countries – we plan to open an office in Baku. We will also be making submissions to the European Parliament and the UN.”

New French OSCE Minsk Group Co-Chair appointed

Pierre Andrieu has been appointed as the French OSCE Minsk Group Co-Chair, tasked with establishing a negotiated peace to the Nagorno-Karabakh conflict. Travelling to Yerevan with the other Co-Chairs – Igor Popov (Russia), James Warlick (USA), outgoing French Co-Chair Jacques Fauré and Andrzej Kasprzyk, Personal Representative to the OSCE Chairperson-in-Office, met Armenian President Serzh Sargsyan. He stated his appreciation for the contribution of Mr Fauré to the process and thanked him

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for his participation in the negotiations.

H.E. Pascal Meunier, French Ambassador to Azerbaijan, commented on the appointment: “We met 20 years ago. He was my Deputy while I was working as a diplomat in China.

He subsequently worked in Moscow and as an Ambassador in Tajikistan and Moldova, and knows the former Soviet republics very well.”

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Nagorno-Karabakh Conflict

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Ambassador Malena Mard expressed her concern about recent incidents on the ‘contact line’ (Photo: AFP EU/Neighbourhood Info Centre)

EU Delegation head comments on ongoing risk

Ambassador Malena Mard, Head, EU Delegation to Azerbaijan, has commented on the ongoing risk of the Nagorno-Karabakh conflict.

Making reference to recent incidents on the ‘contact line’, she said: “The fact that we still have a situation where the conflict is unresolved is extremely worrying 20 years on in itself.” Mrs Mard reminded journalists that such conflicts result in civilian and armed casualties. She said: “This puts emphasis on the need to really move forward towards resolving the conflict. I know the OSCE Minsk Group Co-Chairs are working both with Azerbaijan and Armenia to hopefully achieve a peaceful solution.”

OSCE Minsk Group hopes for Presidential summit James Warlick, US Co-Chair, OSCE Minsk Group, has expressed his hope that Azerbaijani President Ilham Aliyev and Armenian President Serzh Sargsyan will come together in the very near future. He commented: “The success or failure of the peace process depends on the political will of the sides. I look forward to working with my Russian and French colleagues to continue bringing new ideas to the table, helping the sides find their way towards real negotiations on a peace agreement.”

In an interview with news.az, Mr Warlick continued to remain optimistic, saying: “My challenge to the Presidents of Armenia and Azerbaijan is that they meet again soon, and we begin peace negotiations that can result in an agreement to resolve the conflict. Peace is within grasp if there is the political will. If not now – when? The territories surrounding Nagorno-Karabakh are occupied and must be returned to Azerbaijan as one element of a comprehensive settlement.

Mr Warlick went on to add that the primary goal of the Co-Chairs’ recent trip was to visit the Kelbajar, Lachin, and NagornoKarabakh regions, which remain under Armenian occupation. He said: “We look forward to meeting Azerbaijani President Ilham Aliyev in the region or another convenient location to continue work on the substance of our negotiations.”

“The US recognises only two sovereign states – Armenia and Azerbaijan. There are also affected parties, including the people in Nagorno-Karabakh and those refugee and IDP communities that are a consequence of the conflict. We need to take all views into account as we work towards a lasting settlement.”

Defending territorial integrity amongst main PACE goals

Speaking in Baku, Anne Brasseur, newly-appointed President, Parliamentary Assembly of the Council of Europe (PACE), has revealed that defending territorial integrity, including that of Azerbaijan, remains one of the main PACE objectives. She also congratulated Azerbaijan on its success in ratifying PACE conventions. The comments were made in advance of a meeting of the PACE Standing Committee.

A PACE delegation, led by President Anne Brasseur, meets Azerbaijani President Ilham Aliyev

Ombudsman meets UN Special Rapporteur on IDP rights

Elmira Suleymanova, Ombudsman and Azerbaijani Commissioner for Human Rights has met a delegation led by Chaloka Beyani, UN Special Rapporteur on the human rights of Internally Displaced Persons (IDPs). Commenting that she frequently visits IDP camps, Mrs Suleymanova noted the recent seismic changes regarding the living conditions and human rights of Azerbaijani IDPs and refugees, making particular reference to the new IDP accommodation.

Ms Suleymanova explained that the Ombudsman’s Office had

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undertaken bilateral co-operation with the UN High Commission for Refugees (UNHCR) and implemented joint projects. Chaloka Beyani praised the Ombudsman on these developments and that the IDPs’ rights and conditions had developed at the same rate as for the remainder of the population. He noted the attention paid to the needs of the IDPs and refugees, particularly female IDPs, their participation in decision-making and the attention paid to gender issues. Mr Beyani said: “There is state support for these people in all areas and their material security has improved.”

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Business News Azerbaijani President Ilham Aliyev discusses French involvement in the Southern Gas Corridor at the GDF Suez stand

Southern Gas Corridor takes centre-stage at oil and gas show

In his address to the 21st Caspian International Oil and Gas Exhibition, organised by Iteca Caspian, British Prime Minister David Cameron stated his ongoing support for the Southern Gas Corridor, aimed at ensuring European energy security.

Charles Hendry MP, Prime Ministerial Trade Envoy to Azerbaijan, Kazakhstan and Turkmenistan, read his statement. This said: “Energy is vital for the economic well-being and development of all Europeans. That is why the Southern Gas Corridor is an important project.”

time would have been required to achieve all this.”

Prime Minister Cameron noted that 2013 had been the key year in development of the Southern Gas Corridor, due to the signing of major agreements regarding construction of the TransAdriatic Pipeline (TAP) and Trans-Anatolian Pipeline (TANAP).

He said: “This is a huge milestone regarding implementation of the project. I congratulate all who worked hard to achieve it. Much should be done in 2014 to realise the full ambition of the Southern Gas Corridor, but I am confident that this will be achieved.” He expressed hope that the project would provide a source of European energy for many years to come, and said: “Commercial links are the major foundation of the relationship with such UK companies as BP, as this is the largest source of foreign direct investment (FDI) in Azerbaijan, especially in the oil and gas sector.”

H.E. Richard Morningstar, US Ambassador to Azerbaijan, delivered a speech on behalf of US President Barack Obama, who said: “Making the Southern Gas Corridor a reality will require hard work and close co-operation between Azerbaijan and its international partners.” The US President remarked that the developing role of Azerbaijan as an energy supplier would facilitate the evolution of a diversified economy, strengthen the rule of law, and raise the living standards of the Azerbaijani people.

In his speech, Azerbaijani President Ilham Aliyev focused on the benefits to the country from development of the Southern Gas Corridor. He said: “Hundreds – perhaps thousands – of new Azerbaijani companies, working as contractors, will get the contracts. This will lead to tens of thousands of new jobs, and contribute towards development of the non-oil sector of the Azerbaijani economy. The building, assembly and infrastructure projects will ensure this development. The Azerbaijani non-oil sector is growing by at least by 9–10 per cent each year, thereby ensuring diversification of the country’s economy.”

The President made reference to the significance of the Contract of the Century in 1994. He said: “We took advantage of this situation very effectively, and turned oil capital into human capital. The investments made by the Azerbaijani side ensure the general development of the country today. During the past few years, Azerbaijan has successfully implemented economic reforms. The country’s foreign debt equates to eight per cent of GDP, and unemployment is just five per cent. Strategic currency reserves amount to 70 per cent of GDP. The country’s competitiveness is growing. The Azerbaijani economy ranks 39th in the Global Competitiveness Index, according to the World Economic Forum. Azerbaijan was able to achieve all this with the help of reforms. However, if it were not for the oil factor – the country’s rich deposits, resources and their effective use – more

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Malena Mard, Head, EU Delegation to Azerbaijan, acknowledged that the Southern Gas Corridor would satisfy between 10 and 20 per cent of European demand. She said: “Azerbaijan will be a substantial contributor to the Southern Gas Corridor. Our energy co-operation has a very solid basis, and our common goals regarding energy security provide an appropriate condition for fruitful co-operation.”

Kjetil Tungland, Managing Director, TAP, revealed that construction work on TAP would begin next year. He said: “We are now in the process of securing access to the lands, and the next step will be to award the necessary contracts. We will start inviting bids this summer.” He said that the Southern Gas Corridor would be developed step-by-step, and that TAP would explore all supply opportunities, explaining that the supply chain extends far beyond Italy. He said: “Italy is interconnected with other European gas markets and it is important that these interconnections are in place.”

TAP construction will be divided into five sections, three of which will be in Greece, with two in Albania. The initial capacity of the pipeline will be 10bn m 3 (bcm) per year, but it will have a design capacity of 20bcm per year. Mr Tungland noted that as Albania is currently without gas networks, they would have to be constructed in the near future. He said: “TAP supports the Albanian government in this initiative.” Last year, SOCAR expressed interest in creating gas infrastructure in Albania, to which the Albanian government was receptive.

Charles Hendry MP, Prime Ministerial Trade Envoy to Azerbaijan, Kazakhstan and Turkmenistan, delivered Prime Minister Cameron’s speech

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Business News

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Azerbaijani President Ilham Aliyev and Rovnag Abdullayev, President, SOCAR, stand alongside TPAO representatives at the Caspian International Oil and Gas Exhibition

Largest project finance agreement signed in Turkish history Turkey and Azerbaijan have further developed their economic relationship by signing a $3.29bn (£1.94bn) credit agreement for the SOCAR–Turkey Aegean Refinery (STAR) – where the Turkish subsidiary of the State Oil Company of the Azerbaijani Republic (SOCAR) – will construct a refinery at Aliaga on the Turkish Aegean coast, capable of processing 10bn tonnes of oil per year.

The credit package is the largest single project finance agreement in Turkish history, extending across 18 years, also being the deal with the longest maturity, to date. It involves 23 international financial institutions, including Santander, BNP Paribas, Deutsche Bank, Unicredit and Société Générale, together with the Exim banks of the US, Japan, Canada, Spain and Italy. SOCAR will contribute a further $2.4bn (£1.4bn) to the $5.7bn (£3.4bn) project, in which around $800m (£476.8m) has already been invested.

Tecnicas Reunidas (Spain), Saipem (Italy), GS Engineering and Construction (South Korea) and Itochu (Japan) will form a consortium to construct STAR. Azerbaijan and Turkey have an increasingly close economic relationship, and the deal comes soon after the signing of agreements for Türkiye Petrolleri Anonim Ortaklığı (TPAO), the Turkish State Oil Company, to

buy Total’s 10 per cent stake in the Azerbaijani Shah Deniz II gas field and for Boru Hatlari Ile Petrol Taşima AS (BOTAS), the Turkish state gas transit company, to take a 30 per cent stake in the Trans-Anatolian Pipeline (TANAP).

Taner Yildiz, Turkish Energy Minister, stated that the STAR refinery development would bring total investment in oil and gas sector projects involving the two countries to the level of $45bn (£26.8bn) by 2018. STAR is not the sole example of Azerbaijani investment in the Turkish downstream oil sector.

When operational in 2018, STAR will supply the adjacent Petkim petrochemical plant with 1.3m tonnes of naphtha feedstock per year. SOCAR owns 61 per cent of this plant, and this will save the company up to $100m (£59.6m) a year.

The bulk of the refinery’s output, including nearly 5m tonnes of low sulphur diesel per year, will be distributed to the Turkish market. This will reduce Turkish import dependency and the government’s current account deficit by up to $2.5bn (£1.5bn).

Shahin Mustafayev, Azerbaijani Minister of Economic Development, noted that Turkey remains his country’s main trading partner. He estimated that over 1000 Turkish companies are active in Azerbaijan.

EBRD to loan $300m to Azerbaijan The European Bank for Reconstruction and Development (EBRD) has announced plans to allocate $300m (£178.8m) in loans for Azerbaijani projects during 2014. Neil McKain, Head: Baku Resident Office, EBRD, made the comments in an interview with Reuters. In 2013, the EBRD allocated almost $180m (£107.3m) across 17 projects. The EBRD is particularly focusing on the private sector, including investment into stock capital and raising volumes by directly crediting to companies. The EBRD is also set to launch two new credit lines in Azerbaijan during the year.

Mr McKain said: “Within the first line, three banks in the country will receive funds for financing small- and medium-sized enterprises (SMEs) that specialise in energy

efficiency. The second credit line relates to support for female entrepreneurs.” All these measures form part of the new EBRD strategy in Azerbaijan, which was approved in late April.

Neil McKain told Reuters that the nonoil sector is projected to grow from 9–10 per cent in 2014, as was the case in 2013. Despite this, overall GDP growth is expected to reduce from 5.8 to 3.75 per cent, due to a fall in oil output. Mr McKain explained that the EBRD encouraged government efforts to reduce dependency on the hydrocarbons sector, which currently accounts for about 70 per cent of state budget revenues. He continued: “I think the government has become very serious about diversification, but will require a constant

reform process if the 10 per cent growth in the non-oil economy is to be achieved each year.” Mr McKain explained that fiscal strength and a low level of integration into the regional economy as a non-energy exporter has served to insulate Azerbaijan from the currency troubles experienced by other former Soviet states and Turkey.

The Azerbaijani current account surplus currently stands at 15–16 per cent of gross domestic product (GDP), and the currency reserves of the Central Bank of Azerbaijan (CBA) rose by almost 20 per cent yearon-year to reach $15.1bn (£8.9bn). Total currency reserves, including the assets of the State Oil Fund of the Azerbaijani Republic (SOFAZ) have exceeded $50bn (£29.8bn).

EU welcomes potential Azerbaijani WTO accession

Malena Mard, EU Ambassador to Azerbaijan, has reiterated her support for Azerbaijani membership of the World Trade Organisation (WTO), saying: “Azerbaijan is holding meetings regarding WTO membership on a regular basis. The EU welcomes Azerbaijani accession to the WTO. This will pave the way regarding further deepening of trade and economic co-operation. As you know, the EU is the biggest trade partner of Azerbaijan, and the steps being taken by Azerbaijan to become a WTO member are quite positive.

We know that it’s a complex and time-consuming process. The next meeting will be held in late June, and we are observing that the dialogue is intensifying.”

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