Tm 15 09

(Photo: Ines Qvirtiya)

Culture | Public Affairs Business | Philanthropy

AZERBAIJAN – THE ANCIENT VIEWED THROUGH THE PRISM OF MODERNITY Also in this issue: Violence flares on the ‘contact line’ UK FCO calls for an end to Armenian occupation Isfar Sarabski brings an Azerbaijani spark to Ronnie Scott’s Iranian resources to flow through the Southern Energy Corridor Inna Kvirtiya brings Azerbaijani style to the catwalk 09 / 2015

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

9 / 2015

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Welcome to the TEAS Magazine The European Azerbaijan Society (TEAS) is a UK-registered pan-European foundation 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

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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!

Firstly, congratulations to Boris Stchekine, Director: CIS and Middle-East, Groupe CEI, who won the competition in the August issue of the TEAS Magazine. To stand a chance of winning £100 of Amazon vouchers, simply answer the following five questions, the answers to which will be found in this issue. 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 17.00hrs (GMT) on 5 October.

1. What is the approximate average daily production rate of Azerbaijani oil?

2. In how many languages has the book Azerbaijan: Bridge between East and West by Dr Yury Sigov now been published?

3. Which guest British drummer sat in with the Isfar Sarabski Trio at Ronnie Scott’s Club in London?

4. In which Italian town did pianist Saida Zulfugarova and violinist Elvira Di Bona duet in August?

5. What is the title of photojournalist Reza’s latest exhibition on Azerbaijan?

Upcoming Events For full details of all TEAS events, go to www.teas.eu/upcoming events 14 October TEAS Business Forum Brussels Diamant Conference & Business Centre, Auguste Reyerslaan 80, 1030 Brussels, Belgium RSVP to aygun.ismayilova@teas.eu.

This business forum will comprise the following sessions: energy, agribusiness, infrastructure and ICT. Companies from Azerbaijan, Belgium, the Czech Republic, France, Germany, Hungary, Italy, Luxembourg, the Netherlands, Slovakia, Spain and the UK will be in attendance.

Partners: AZPROMO, Belgian Chambers (Federation of Belgian Chambers of Commerce), DBH Group, Flanders Investment and Trade, Chamber of Commerce Luxembourg–Azerbaijan (CCLA).

21 October Geostrategic Maritime Review: The Caspian Sea – geopolitical and geostrategic stakes for the wider region (Paris) L’Hôtel de l’Industrie, Société d’Encouragement pour l’Industrie Nationale, 4 Place Saint-Germain, 75006 Paris, France RSVP by 10 October to paris@teas.eu or communications.assistant@obgms.org.

This landmark conference will focus on energy security and supply for the region; its impact on employment, innovation, food and human security, pollution and the environment; and the potential effect on the European/Eurasian region.

Organisers: TEAS; International Geostrategic Maritime Observatory (IGMO); Société d’Encouragement pour l’Industrie Nationale (SEIN).

09 / 2015

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Politics and News

03

Lionel Zetter, Director, TEAS

From the TEAS Director

The positive ratification of the Iranian nuclear deal framework has opened up the prospects for Iranian gas flowing through the Southern Energy Corridor. This is a timely boost for both the Trans-Anatolian Pipeline (TANAP) and Trans-Adriatic Pipeline (TAP) projects, the latter of which is set to receive a loan of €2bn (£1.47bn) from the European Investment Bank (EIB).

Michael Tatham, Director, Department of Eastern Europe and Central Asia, UK Foreign and Commonwealth Office (FCO) has issued a strong call for Armenia to end its illegal occupation of Nagorno-Karabakh. Mr Tatham said: “The occupation of Azerbaijani lands must be brought to an end, and refugees and internally displaced persons (IDPs) must return to their native lands.”

Meanwhile, representatives from the International Committee of the Red Cross (ICRC) have visited the two Azerbaijani hostages held by the universally unrecognised occupying regime in Nagorno-Karabakh.

Shahbaz Guliyev and Dilham Asgarov have now been held for more than a year, following a televised kangaroo court appearance.

The international campaign to secure their unconditional release is gathering pace.

Azerbaijani football continues to flourish.

Two teams – FC Qabala and FC Qarabag – have reached the knockout round of the UEFA Europe League, whilst Azerbaijan has climbed to 26 th place in the UEFA rankings, its highest-ever position.

On the cultural front TEAS sponsored a concert by pianist Isfar Sarabski at the world-famous jazz venue of Ronnie Scott’s.

A packed house was comprised of European and Azerbaijani VIPs and jazz lovers.

The award-winning and gripping documentary Endless Corridor, which is narrated by Jeremy Irons, has been entered in competition at the Milan International Film Festival. The film deals with the human cost of the events of 1992, when Armenian armed forces invaded Khojaly, killing 613 civilians – the greatest single atrocity of the Armenian–Azerbaijani conflict over Nagorno-Karabakh.

Lionel Zetter, Director, TEAS

09 / 2015

Peter Weinberg from the Aachen-Laurensberger Rennverein (ALRV) board congratulates the outstanding Azerbaijani rider Jamal Rahimov after winning the Prize of Soers on his trusty steed Excenel (Photo: Aachen 2015/Michael Strauch)

Sole Azerbaijani showjumper wins in Aachen The only representative of Azerbaijan at the Fédération Equestre International (FEI) European Championships in Aachen, Germany has won a jumping class in the main arena. Jamal Rahimov, aged 27 years, won the Prize of Soers, an international penalties/time competition on Excenel, his 11-year-old Belgian stallion. Mr Rahimov crossed the finishing line in a time of 63.14 seconds, with second place going to Turkey’s Omer Karaevli on Dadjak ter

Puttenen. Italian rider Daniele Augusto da Rios came third on his stallion Baedeker.

Mr Rahimov was the only Azerbaijani rider competing in Aachen, but has represented his country twice at Olympic level. Rahimov, who lives near Antwerp, said: “I would like to make equestrianism more well-known in Azerbaijan!” Following his victory in Aachen, he may have come a step closer to achieving that objective.

Azerbaijan moves to highest-ever UEFA ranking

The victory of FC Qarabag over BSC Young Boys from Switzerland (1–0) and the 0–0 draw between FC Qabala and Greek club Panathinaikos in the first leg of the UEFA Europa League playoffs on 20 August propelled Azerbaijan towards its the highest-ever UEFA ranking of 26th – just one place behind Norway. The wins resulted in Azerbaijan jumping three places and passing Bulgaria and Slovenia with an additional 0.375 points.

The momentum continued in Athens on 20 August, when FC Qabala achieved a 2–2 draw in the return match against FC Panathinaikos, thereby earning a ticket to the group stage of the UEFA Europa League.

Speaking to APA Sport, Tale Heydarov, President, FC Qabala, commented: “This is a really historic match, and we know that. This was a chance for us, and to overcome four stages and reach the group stage is a great achievement. I am glad that FC Qarabag, the other Azerbaijani club in the league, also performed well in the group stage. Many did not believe that we would achieve this, as we drove a strong team with a great history out of our way.”

Despite the strength of the clubs in the competition, he remained optimistic: “As you know, there are no weak opponents in the group stage. The teams are much stronger than our own, but the main thing is to represent our club and country. I believe that we will achieve good results.”

On 27 August, the positive mood continued in Baku, when FC Qarabag also reached the group stage after thrashing BSC Young Boys 3–0 in Baku. Richard Almeida scored on a penalty in the fifth minute to give FC Qarabag a 1–0 lead over Young Boys, whilst the second goal came from Reynaldo dos Santos Silva at the 43rd minute of the revenge match. The final blow came from Afran Ismayilov, the FC Qarabag and Azerbaijani national team midfielder, in the 62nd minute.

On 28 August, FC Qarabag was drawn against leading British club Tottenham Hotspur – initially playing away at Spurs’ legendary White Hart Lane ground on 17 September, and then at home in Baku on 26 November. Meanwhile, FC Qabala was drawn against PAOK of Greece. www.teas.eu

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Politics and News

Microsoft cloud tech to receive governmental application

The Azerbaijani Ministry of Communications and High Technologies will use Microsoft cloud technologies to deploy its virtual services through a regional data centre. The issue was discussed during a meeting between Ali Abbasov, Azerbaijani Minister of Communications and High Technologies, and Trudy Norris-Grey, Managing Director, Public Sector: Central and Eastern Europe, Microsoft. The sides discussed the current situation and prospects for co-operation between Microsoft and the Azerbaijani government, particularly regarding cyber-security and the provision of e-government services.

Trudy NorrisGrey, Managing Director, Public Sector: Central and Eastern Europe, Microsoft, outlined the advantages of Microsoft cloud technologies

The largest data centre in the region will be commissioned in Azerbaijan by the end of September. It is currently undergoing certification by the American Uptime Institute to ensure it meets the criteria for Tier 3 conformity, thereby officially confirming that the design meets the best international standards for reliability and safety. Several major global companies, including Facebook, Google, Amazon, and Yahoo have already expressed interest in placing their infrastructure within the data centre.

AzerSpace-1 broadcast quality control to be ensured The Teleradio Production Association of the Azerbaijani Ministry of Communications and High Technologies has launched a new system to monitor the broadcast quality of television and radio programmes from the AzerSpace-1 communications satellite.

The new system ensures constant signal quality control from three AzerSpace-1 transponders relaying nine television and ten radio channels, broadcast on the 11175.0MHz frequency, and 13 television and three radio programmes on 11135.0MHz, all of which are in the Azerbaijani language. It also makes it possible to control the broadcast quality of 11 overseas television and seven radio channels, all of which are broadcast at 11095.0MHz.

The quality of broadcasts from AzerSpace–1 will be closely monitored

Altogether 140 television and radio channels are relayed via the AzerSpace-1 satellite, which is located at the orbital position of 46° east longitude. The satellite – the first in the South Caucasus – was launched on 8 February 2013, and covers countries in Europe, the Caucasus, Central Asia, the Middle East and Africa.

World Bank endorses 2015–20 Country Partnership Framework According to its website, the World Bank Group’s (WBG) Board of Executive Directors has discussed and endorsed the 2015–20 Country Partnership Framework (CPF) for Azerbaijan. This represents a five-year joint strategy involving the International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC), and Multilateral Investment Guarantee Agency (MIGA). It aims to support Azerbaijan on its path towards sustainable, inclusive and private sector-led growth.

The CPF is underpinned by Systematic Country Diagnostics (SCD) for Azerbaijan, which provides a comprehensive analysis of the economic conditions, challenges and constraints faced by the country in the shortand long-term. It proposes a programme

that is aligned with Azerbaijani development priorities and the twin objectives of the WBG to reduce poverty and boost shared prosperity. In the current environment of low oil prices, the slowdown of oil production, and uncertain regional economic prospects, Azerbaijan is seeking a new growth model in which the private sector will play a central role.

Henry Kerali, Regional Director for the South Caucasus, WBG, explained: “The new CPF is coming at a challenging, yet opportune, time for Azerbaijan. Amidst a turbulent global economic environment that necessitates efficiency in public spending and application of a new growth model, the CPF will help Azerbaijan maintain and enhance its achievements towards achieving its twin

objectives and strengthening its resilience to external shocks.”

The CPF focuses on two areas – Public Sector Management and Service Delivery and Economic Competitiveness, which are supported by eight specific objectives.

Under the first focus area, the WBG will help the country strengthen public resource management, facilitate public service delivery, and improve the quality of environmental assets. The second focus area will see the WBG will provide support for improving selected infrastructural networks, increasing the financial inclusiveness of Azerbaijan, reducing the regulatory burden on the private sector, and supporting economic activities in rural areas.

Bulgaria offers Azerbaijan ‘a package’ of energy projects The Bulgarian government has proposed a major package of energy co-operation projects to Azerbaijan. However, according to EurActiv, it remains unclear if the massive deal forms part of property swap linked to a plan to divest 17 per cent of Azerbaijani shares in Greek gas operator DEFSA to a third country.

Bulgaria is reported to have invited Azerbaijan to participate in the construction of filling stations, and to invest in the construction of oil and gas storage facilities and refineries. Currently, Bulgaria only operates one refinery near the port city of Burgas, owned by the

09 / 2015

Russian company Lukoil, which has been designed to solely process Russian crude oil. Bulgarians frequently complain about Russian monopolisation of its fuel market, due to the dominant position of Lukoil. Bulgaria is also interested in purchasing Azerbaijani gas, and its government has already committed to the annual purchase of 1bn m 3 (bcm) of gas, once Azerbaijani gas starts flowing through the Southern Energy Corridor from 2020. Currently, Bulgaria uses 3bcm of gas per year, all of which is supplied by Russia. Bulgaria will receive the gas from the Trans-Adriatic Pipeline (TAP) through the Interconnector Greece–Bulgaria (IGB).

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Politics and News

05

EIB to lend €2bn to TAP

It has been proposed that the European Investment Bank (EIB) should lend €2bn (£1.45bn) to the Trans-Adriatic Pipeline (TAP) AG. According to the EIB, the project has been included in the European Commission’s (EC) list of 33 Priority Energy Security Projects of Common Interest (http://bit.ly/eibtapaz). The EC also granted “exemption to the pipeline from third party access”, highlighting the “overall positive impact for the EU of this investment as it is responding directly to the Security of Supply objective, achieved by diversifying gas sources, routes and counterparts.” The EIB is currently considering the possibility of allocating loan funds, and this remains unapproved by its Board of Directors at the time of going to press.

TAP will transport natural gas from the Shah Deniz II field in Azerbaijan to Europe.

The approximately 870km-long pipeline will connect with the Trans-Anatolian Pipeline (TANAP) at the Turkish–Greek border at

An agreement – facilitating TAP construction – is signed between Dimitris Avramopoulos, Greek Foreign Affairs Minister (left) and Giulio Terzi, his Italian counterpart (Photo: Greek Foreign Affairs Ministry)

Kipoi, traverse Greece and Albania and the Adriatic Sea, and come ashore in Southern Italy, which it will go to an Italian interconnector to facilitate distribution across Europe. TAP construction will begin in 2016, initially transporting 10bn m 3 (bcm) per annum, although it has been designed

at overcapacity to carry over three times that amount. The shareholders are BP (20 per cent), the State Oil Company of the Azerbaijani Republic (SOCAR) (20 per cent), Statoil (20 per cent), Fluxys (19 per cent), Enagás (16 per cent) and Axpo (5 per cent).

OPEC predicts steady oil production The Organisation of Petroleum Exporting Countries (OPEC) has predicted that Azerbaijani oil production will remain consistent during 2015. On 11 August, according to the OPEC Monthly Oil Market Report: “Azerbaijan’s oil supply is anticipated to average 0.86m barrels per day, remaining unchanged from the previous Monthly Oil Market Report and indicating steady production in 2015.”

FDI grows by 46.4 per cent In July 2015, foreign direct investment (FDI) in the Azerbaijani economy grew by 10.8 per cent on the previous month, and the January–July 2015 figure equated to an increase of 46.4 per cent, year-on-year.

The Azerbaijani State Customs Committee (SCC) stated that FDI during this period came to AZN3.87bn (£2.39bn).

During

January–July

2015,

the

UK

Azerbaijani crude oil output in June increased by 21,000 barrels per day to reach an average of 0.78m barrels per day, following a decline of 57,000 barrels per day in May, due to maintenance on the West Chirag platform. Most Azerbaijani oil is produced from the Azeri–Chirag–Guneshli (ACG) field, the majority of which is Azeri Light oil with a sulphur content of 0.15 per cent (35ºAPI). There are nearly 1bn tonnes of proven oil reserves in the ACG block.

continued to top the FDI rankings, making investments of AZN1.2bn (£740.5m), thereby accounting for 31.8 per cent of total FDI. Second place went to Turkey with AZN548.6m (£338.6m) (14.1 per cent), followed by Norway with AZN407.9m (£251.8m) (10.5 per cent). Iran and Russia shared the fourth and fifth positions with investments of AZN261.7m (£161.5m) (6.8 per cent) each.

The US made investments of AZN226.2m (£139.6m) (5.8 per cent), opening the second top five of investors in the country.

It was followed by Japan with investments of AZN201m (£124m) (5.2 per cent); Sweden with AZN198.3m (£122.4m) (5.1 per cent); Malaysia with AZN127m (£78.4m) (3.3 per cent); and the Czech Republic with AZN88.4m (£54.6m) (2.3 per cent).

IFC Invests $25m in AccessBank to boost MSMEs The International Finance Corporation (IFC), a member of the World Bank Group (WBG), is providing a $25m (£16.2m), subordinated loan to AccessBank to spur lending to micro-, smalland medium-sized enterprises (MSMEs), thereby helping drive job creation and increase economic development across the country.

Aliya Azimova, Country Representative in Azerbaijan, IFC, replied: “IFC provides investment and advisory services to support private sector growth in Azerbaijan. Our co-operation with AccessBank will increase financial inclusion in Azerbaijan and boost economic diversification.”

IFC support to AccessBank, a long-time IFC partner, will help the bank serve more MSMEs. Such businesses are key sources of employment and innovation, but are often challenged by limited access to loans and other forms of finance. The project is expected to contribute towards the development of the Azerbaijani non-oil sector and to foster sustainable development.

IFC, together with other international financial institutions, promoted the establishment of AccessBank in 2002. Since then, the bank has developed into the largest financial institution in Azerbaijan specialising in MSMEs. Azerbaijan became an IFC member in 1995. During the past 20 years in the country, IFC has invested more than $365m (£237.2m) in 54 long-term finance projects in the financial services, infrastructure, and manufacturing sectors, and mobilised nearly $73m (£47.4m) from other lenders. IFC has also supported trade worth about $78m (£50.7m) through its trade finance programme, and implemented advisory projects focused on private sector development.

Michael Hoffmann, CEO, AccessBank, commented: “We strongly welcome the support from IFC, our close partner and shareholder.

The funds will be on-lent to our MSME clients through our extensive branch network, which will further stimulate the economy in these important market segments.”

09 / 2015

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06

Personalities – Dr Yury Sigov

Examining Azerbaijan’s astonishing and unique pathway Dr Yury Sigov is an extraordinary travel writer and researcher that has, to date, visited more than 160 countries. He has lived and worked in various nations, including the UK and Hong Kong, and served as a spokesman for the UN mission in South Africa. Dr Sigov has written more than two dozen books about numerous countries, including the US, Malaysia, Tajikistan, South Africa, Kazakhstan, Brazil, Singapore, Indonesia and Brazil, many of which have been translated and published in foreign languages.

Now based in Washington D.C., Dr Sigov recently attended the launch of his new book Azerbaijan: Bridge between East and West at the Kensington Close Hotel in London. Neil Watson caught up with him to discover what this brings to the rich library of existing literature on the country.

What prompted your interest and awareness of Azerbaijan?

I was born in Southern Russia, and have therefore always been interested in the Caucasus region – I first visited Azerbaijan when I was three years old, and know Azerbaijan very well. The genus of this book goes back to 2004, when I published a book on Malaysia, which was sent to all Embassies of the former Soviet republics, amongst which was Azerbaijan. H.E. Hafiz Pashaev, Azerbaijani Ambassador to the US in Washington D.C. was greatly interested by the book, and his wife – who was an Orientalist – read it in its entirety. They greatly appreciated my approach, and asked if I could write something about Azerbaijan.

However, at that point, I had not visited Azerbaijan for around 20 years. I made this clear, but their response was that I would see the country with a fresh eye. In order to write the book, I visited Azerbaijan twice and saw all the regions, and all that exists in the country. I also met and interviewed many officials, citizens and villagers. The book was eventually published in the Russian language during 2008.

However, that edition was radically different to the current Englishlanguage publication. The book has now been published in 11

09 / 2015

Dr Yury Sigov takes a break from his research to enjoy some flowers in Lankaran on the coast of the Caspian Sea

different languages, but this is not simply a translation exercise – in each instance, the emphasis of each book is completely different, and determined by its readership. In all instances, I have rewritten 30–40 per cent of the text. Only the sections on the habits and traditions of the people effectively remain unchanged.

Every year, Azerbaijan changes dramatically, so it is necessary to establish how it is evolving and to incorporate this in the latest edition of the book. Reassessment of certain aspects that seemed stable just a year or two ago is a necessity.

Why did you decide to publish a new edition of the book?

Whilst writing the latest edition, I had a very co-operative relationship with H.E. Tahir Taghizade, Azerbaijani Ambassador to the UK. He approached me in June or July 2014, and stressed that this edition should be specifically tailored for a British – rather than just English-speaking – audience. In fact, the UK is very active in every aspect of Azerbaijan. It is the leading foreign direct investment (FDI) contributor to the country.

Despite this, in the UK, Azerbaijan probably remains the least-known of the former Soviet republics. There are many misconceptions about the country, a general lack of information, and an absence of understanding about what the country is and represents. Many people are under the misapprehension that all former Soviet countries are exactly the same, and believe that they are synonymous with Russia or operate under Russian influence.

It is often thought that many of these countries will come closer to Russia under the influence of, or integration with, certain Russian organisations.

Can you describe Azerbaijan’s geopolitical situation?

Azerbaijan has enormous oil, gas and financial resources. This allows it to be more or less independent. The country is not completely independent, because it is comparatively small and is sandwiched between three huge regional giants – Russia, Iran and Turkey. It needs to be extremely cautious, both politically and economically.

It is like playing a simultaneous game on 25 chessboards with very

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Personalities – Dr Yury Sigov sophisticated players. For the time being, they have managed to do this successfully.

This is attributable to the leadership of particular individuals, who also took into account the social dimension of the country.

People need to understand that this is not Russia, yet is heavily influenced by Russia, despite also being strongly affected by Iran and Turkey.

Azerbaijan also has a very strong desire to join some European structures, and tries to combine certain elements of Asia and Europe with some uniquely Azerbaijani characteristics. In this situation, much depends on the President, and on the perception of the world understood by the intelligentsia and the elite of the country, but it is simultaneously dependent on whether ordinary people support this course of action. Azerbaijan wants to be independent, yet also aims to be close to Europe, which is why they staged the Baku2015 European Games and the Eurovision Song Contest.

Dr Yury Sigov signs copies of his book Azerbaijan: Bridge between East and West during its launch in London

The country has a strong relationship with the EU yet, in reality, it is a well-developed Asian nation. The government always looks ahead, and not backwards, and aims to develop a high level of education with its policy of sending its best students to the UK, US and other countries. They have excellent relations with their neighbours (except Armenia), and are not arrogant in their region due to their buoyant economy.

The West sometimes criticises Azerbaijan for becoming too close to Russia or Iran.

However, there are important historical ties to Russia, and around 30m ethnic Azerbaijanis living in Iran. Although it is imperative to develop connections with the EU, it must be remembered that Iran is an immediate neighbour. The Azerbaijani government knows that the country – with a population of just 9.5m – will collapse if friendly relations are not retained with all surrounding countries, as far as possible.

It is all very difficult and challenging, but such a policy is bearing fruit at the present time. It may be perceived that the Azerbaijani government is exercising Realpolitik but, in fact, this is also a way of reducing tensions and issues.

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07

However, there is one outstanding issue – the Armenian–Azerbaijani conflict over Nagorno-Karabakh. Militarily, Azerbaijan could use force in an attempt to regain these lands, but this would inevitably blow up the entire situation in the Caucasus. Armenia is physically and politically supported by Russia, and there is a Russian military base in Gyumri, close to the Turkish border.

Furthermore, Azerbaijan remains one of the most important trading and economic partners for Russia.

Can you characterise the relationship between Azerbaijan and Russia?

Russia once suggested that it should become the sole purchaser of all Azerbaijani gas, and that it would organise its transportation to Europe – a suggestion that Azerbaijan wisely did not take up.

However, there is excellent personal chemistry between Russian President Vladimir Putin and Azerbaijani President Ilham Aliyev, whose daughter Leyla lives in Moscow. Relations are good, and the top political elites in Azerbaijan consider that these should never be allowed to deteriorate.

Azerbaijan exhibits neutrality in many situations – it is not a member of the Kremlin-led Eurasian Economic Union, nor OSCE, or any other bodies of this type. It aims to avoid membership of any organisations that could impact political independence. It has also become a member of the Non-Aligned Movement.

This serves to place it in a very strong position, where it is independent, yet simultaneously maintaining excellent relations with other countries, including members of the Organisation of Islamic Co-operation (OIC). In order to be truly non-aligned, it is necessary for the country to maintain internal stability and achieve financial independence. In fact, this is a key issue for many former Soviet republics.

How will Azerbaijan develop in the future?

It is also necessary to be strategically oriented to ensure development. In many other former Soviet republics, presidential policy solely relates to ensuring maintenance of power, achieved via the rewriting of constitutions and other techniques. Instead, the Azerbaijani government is seeking to develop this republic into something very civilised, yet with an Oriental flavour. The government reflects on the best of the Soviet past, but also looks ahead, with its future in Europe.

This is why the government sends students and businessmen to study in Europe and also looks at investments, which are not solely in the oil and gas extraction industries. The government recognises

Dr Yury Sigov in his Washington D.C. office

that such factors as education and banking will play an integral future role, as will the development of tourism and agriculture, following the decline in hydrocarbons.

Until recently, Azerbaijan has been solely reliant on oil and gas resources, and their use remains dependent on how efficiently the President and his team handle these revenues.

In Azerbaijan, all decisions begin at presidential level and trickle down, and nothing changes at grassroots level or on the street. In all former Soviet countries, corruption is endemic at all levels as a way of surviving and the issue is what can be done to curb this. Corruption can never be totally eradicated, but employing new staff with different values and ways of thinking can help to change the situation.

Just over 20 years after the fall of the Soviet Union, it is impossible to consider that the entire population can be suddenly transformed into becoming independentlyminded individuals. In fact, we are in the midst of a process, and it is impossible to change every aspect of the country overnight. Azerbaijan is definitely on the right path, and this is already paying dividends.

To order a copy of Azerbaijan: Bridge between East and West by Dr Yury Sigov, go to http://bit.ly/azerbaijansigov

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08

Culture

Isfar brings the funky sophistication of Azerbaijani jazz to Ronnie Scott’s in London’s Soho

Isfar Sarabski’s exciting performance – alongside bassist Makar Novikov and guest drummer Corrie Dick – whipped the Ronnie Scott’s audience into a footstamping frenzy (Photo: Riotsquad Publicity)

Ronnie Scott’s jazz club ranks amongst the most pre-eminent in Europe. Founded by the eponymous late British bebop saxophonist in 1959, it has played host to some of the world’s leading jazz musicians and singers over nearly six decades. On 10 August, a capacity audience of London’s jazz cognoscenti had chance to experience the music of a great Azerbaijani pianist born exactly 30 years after the club was founded – Isfar Sarabski, in a TEASsponsored concert.

Following his acclaimed debut concert at the club in February, Isfar was invited for a swift return visit as part of the second Ronnie Scott’s Piano Trio Festival, filling the headline slot between trios led by the Los Angeles-based Gerald Clayton and the UK’s own Ashley Henry. Isfar – who is still unrecorded – has been making waves since winning the Montreux Jazz Festival Solo Piano Prize at the tender age of 19.

Playing with his longstanding bassist – Makar Novikov – alongside guest British drummer Corrie Dick, his work is clearly rooted in the mugham harmonies and other folk music of his homeland, combined with approaches from the post-bop school and jazz-funk.

The introspective Prélude belied Isfar’s classical training, giving opportunity for bassist Makar Novikov to show his abilities, bringing the excited audience to rapt silence. The mood continued for the introduction to Transit to New York, which began with a bass introduction. Isfar then developed the theme at an exhilarating pace before handing over to guest drummer Corrie Dick, who gave an innovative and compelling solo.

Edge began with Isfar reaching into his Steinway to thoughtfully pluck the strings, before exploring the mugham-influenced harmonies of his Eastern homeland, adopting a hypnotic rhythm and perfectly demonstrating his unique distillation of jazz, classical and Azerbaijani national influences. After a delicate segue, the tempo increased, and the excitement reached a new level.

Generation was in a dramatic minor key and featured an interesting call-and-response passage with Makar Novikov. Isfar returned to the rhythms and harmonies of Azerbaijan with Novruz, his dexterity evoking a 6/8 national dance rhythm, which then developed into an impressionistic passage before returning to the main theme at a remarkable tempo. Propelled by Corrie Dick’s drumming, Isfar’s improvisations became increasingly daring and impressive.

Almost entirely comprising his own compositions, the set began with the delicate, rhapsodic introduction to Déjà vu, before settling into a rhythmic groove that provided opportunity for him to show off his formidable command of the keyboard, effortlessly jumping octaves to reach new heights of improvisation.

The set concluded with one of Isfar’s most popular compositions – G Man – which began with a Bachian introduction, before developing a funky bassline that gave rise to Isfar’s evermore inventive and octave-jumping improvisations.

This was followed by a pensive and mystical introduction by Isfar to his variations on themes from Tchaikovsky’s Swan Lake Ballet, which swiftly transformed into a compulsive, funky groove, Isfar’s nimble fingers evoking thoughts of cygnets dancing at impossible speed.

Despite screaming and whistling for more, the transfixed Ronnie Scott’s audience was disappointed, as the scheduling of the evening gave no opportunity for encores. However, their rapturous response left no doubt that he will soon return to the club.

Topchubashov biopic to hit the big screen A documentary on the Azerbaijani delegation sent to the Paris Peace Conference in January 1919 under the leadership of Alimardan bey Topchubashov – second leader of the Azerbaijan Democratic Republic – is being produced by the Baku Media Centre. Due to the hard and intensive work of the delegation, the de facto independence of Azerbaijan was internationally recognised in January 1920. However, the 11th Red Army Bolsheviks seized power three months later, and the country remained part of the Soviet Union until 1991. The members of the Azerbaijani delegation

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were subsequently unable to return home and fought for the restoration of Azerbaijani independence until the end of their lives.

The film is based on archival documents sourced from Paris, Moscow, Saint Petersburg and Tbilisi, and pays testament to the memory and importance of those Azerbaijanis who suffered the pain of eternal exile. Complementing the film, a book will be published, containing details of the delegation members, together with other Azerbaijanis who were exiled to France or other countries.

The attention to detail to achieve a simulacrum of actual events is outstanding

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Culture

09

Painting with music in the Abruzzi region For the third successive year, Azerbaijani pianist Saida Zulfugarova has duetted with Italian violinist Elvira Di Bona for a concert during the Voci dalla Montagna (Voices of the Mountains) music festival in Pescasseroli in the picturesque Abruzzi region of Italy, located in the shadow of the Apennine Mountains. Elvira is also the artistic director of the Festival. The theme of the 2015 edition was Consonanze (Consonances), and participants included author Vanni Santoni; artist Antonino Ercolino; cellist Francesco Dillon; musicologist and violinist Alberto Sanna; and musicologist and philosopher Vincenzo Santarcangelo.

The concert, by Elvira and Saida, was given on 15 August in the Abbazia (Abbey) SS. Pietro and Paolo, consisting of music written for a project premiered at the Sorbonne University, Paris in June. The name of the project was Les Images Accordées (Tuned Images), being related to the theme of consonances.

It comprised original music, composed specifically for Elvira and Saida, inspired by paintings selected by Azerbaijani and Italian composers. The composers are acclaimed film composer Pasquale Filastò, who wrote music as an evocation of the Expressionist artwork Melancholia by Edvard Munch; Germano Mazzocchetti, who represented the Futurist artwork Visioni Simultanee by Umberto Boccioni; and Photo(,)synthesis by Azerbaijani composer Turkar Gasimzada, which encapsulated the spirit of photorealistic paintings by Gerard Richter.

During the concert in Pescasseroli, the Hopper Sonata by composer and philosopher Marco Gatto, who also introduced the concert, was premiered. This was dedicated to Edward Hopper’s evocative painting Nighthawks. The composer commented: “This was a really sensitive interpretation of my Hopper Sonata: the Di Bona–Zulfugarova duo offered a tasteful and impressive reading of all the harmonic and voiced aspects, from the American

Pianist Saida Zulfugarova and violinist Elvira Di Bona perform the Hopper Sonata

by Marco Gatto, following an introduction by the composer, against a projection of Nighthawks by Edward Hopper, which inspired the piece (Photo: Marco Andreini)

atmosphere of the first movement to the romantic space of the central waltz, until the dancing finale, which is written in a Bartokian manner.”

Saida and Elvira also included the Bach–Schumann Chaconne in their programme, dedicated to Caravaggio’s Deposizione.

Following an enthusiastic reaction from the audience in the packed abbey, they performed the traditional Azerbaijani folksong Sari Gelin as an encore.

International gamers experience Azerbaijani computer challenge The Last DeadEnd, an Azerbaijani-developed computer game, has been presented at the 2015 Gamescom gaming exhibition, held from 5–9 August in Cologne, Germany – the largest forum for the industry. This marked the first time that an Azerbaijani game has been displayed alongside such major international gaming companies as Sony, Electronic Arts, Ubisoft, Microsoft and Activision.

Created by the AzDimension studio, with the support of the Azerbaijani Ministry of Youth and Sports, The Last DeadEnd is an action adventure game with horror elements, focusing on the struggle between good and evil. It is set in the walled Baku Old City (Icheri Sheher), a UNESCO Heritage Site, which is renowned for its historic monuments.

The game takes place against the backdrop of the actual historical monuments and streets of Icheri Sheher, including the Shirvanshah’s Palace, the Maiden Tower, mosques, and Karvansaray. Throughout the game, the protagonist is forced to solve puzzles in order to move forward in search of truth. It takes place in a parallel world, where the forces of evil are on the offensive.

Commenting on the exhibition, which was attended by 345,000 people from 96 countries, Farid Hagverdiyev, Director, AzDimension commented to echo.az that thousands of gamers had trialled The Last DeadEnd during the five-day exhibition. To date, an alpha version of the game, including one full chapter of play, has been released online. It is expected that the full

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An eerie screen capture from The Last DeadEnd ­– a new treat for fearless gamers

version of the game will be released in 2016.

In 2012, AzDimension presented the first Azerbaijani threedimensional shooter computer game, entitled Under Occupation: Shusha, centred around the Azerbaijani regions of NagornoKarabakh and the seven surrounding districts, which remain under Armenian occupation, being followed by the sequel Under Occupation: Agdam in late 2013. Both games feature scenarios set against backdrops created by three-dimensional mapping of the captured cities, created using archive photos and maps.

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10

Culture

Reza’s Azerbaijan: Land of Tolerance to be featured in Paris The Azerbaijan: Land of Tolerance exhibition will open its doors to Parisian photography aficionados at the City Hall of the first arrondissement of Paris on 18 August, coinciding with the second Azerbaijani Village celebration. This featured photographs by the worldfamous Paris-based South Azerbaijani photographer Reza, focusing on the Christian, Muslim, and Jewish communities coexisting in Azerbaijan. Reza has worked for hundreds of publications, including the National Geographic Magazine, Time, Newsweek and Paris-Match. He is a National Geographic and HIPA Fellow, and a recipient of the Chevalier de l’Ordre National du Mérite, the highest French civilian award, for his work in empowering women in the media.

Reza commented: “After having spent four decades as a witness to the chaos of war and those ravages it leaves in its wake, I seek to capture the resilience of those who are made to endure the inconceivable but, above all, to never stop observing the beauty of life which always continues to survive and persist. This visual quest has led me to seek to shed some light on the ‘Children of Abraham,’ in order to show what brings us together, rather than what divides us.

“Consequently, the Azerbaijan: Land of Tolerance exhibition presents a series of my reportages on the Christian, Muslim and Jewish communities that cohabit in Azerbaijan. All are driven by a deep

Azerbaijan, Baku: Martyrs’ Lane, The Eternal Flame (9 May 2013) (Photo: Reza)

commitment towards sharing, mutual respect and dialogue with each other. This exhibition highlights the myriad ties which all of these religious communities have forged with each other. Together, they live a dream of communal harmony, which I hope will become a reality throughout the world one day.

“I was invited to break the fast with Muslims during the month of Ramadan; saw the first Caucasian Christians (the Oudis) pray;

and explored the small streets of the ‘Red Village,’ the only Jewish enclave outside of Israel. From one community to the next, I was deeply moved by these profound believers.”

Azerbaijan: Land of Tolerance is a travelling exhibition, organised by the Heydar Aliyev Foundation, previously exhibited at the UN Headquarters in New York, the European Parliament in Brussels and UNESCO and the Azerbaijani Cultural Centre in Paris.

Azerbaijani village in Paris opens its doors For the second successive year, Paris opened its doors to the Azerbaijani Village in the first arrondissement of Paris, organised by the Heydar Aliyev Foundation. This formed part of the Villages du Monde (Villages of the World) initiative that takes place in various locations across Paris. From 29 August–8 September, Parisians and foreign visitors alike had the opportunity to discover the rich and varied Azerbaijani culture.

Hosted in a magnificent location near the PalaisRoyal in the centre of Paris, the event focused on the culture and achievements of Azerbaijan, and surpassed the impact of the 2014 edition, which took place in the sixth arrondissement in Place SaintSulpice.

The programme of the 2015 edition was designed to be rich, varied and to operate as an invitation towards discovery of the richness of Azerbaijani culture. Five sub-exhibitions enabled a large number of visitors to experience the warmth and conviviality of the Azerbaijani people, and to watch artisans as they manufactured items using time-honoured methods.

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The Azerbaijani Village was located within a stunning recreation of the walls of Icheri Sheher, situated in the Palais-Royal courtyard, opposite the world-famous Louvre

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Personalities – Inna Kvirtiya

11

Inna Kvirtiya – bringing Azerbaijani spirit into the 21 st century Having studied fashion design at Moscow Social University, Baku-born Inna Kvirtiya spent the first part of her career in the hospitality industry and in mobile communications promotions.

She became a freelance model in January 2011, and finally achieved her objective of opening her own eponymously-named fashion house named ‘Ines Qvirtiya’ (Azerbaijani spelling of her name) in January 2014. Inna brought her first collection – inspired

by Azerbaijani motifs and traditional symbols – to London in April 2015 for a fashion show at The Grand in Trafalgar Square. Neil Watson interrupted design work on Inna’s next collection to find out more:

National Collection 2015. My plan was to use the national colours with a modern twist.

Which designers do you admire?

I admire those designers who can undertake the entire creative process to produce a collection. They need to be excellent, original designers – not imitators, but innovators. For me, the top designer of all time was Cristóbal Balenciaga (1895–1972).

With regard to contemporary design, I gaze in wonder at the work of Nicolas Ghesquière, formerly head of Balenciaga and now creative director for Louis Vuitton. I also admire the London-based Georgian designer David Koma, who runs his own brand and is artistic director for Thierry Mugler, and Konstantin Kofta, the very promising Ukrainian accessories designer.

Inna models part of her eponymous Ines Qvirtiya collection – inspired by Azerbaijani carpets – that was launched in London in April (Photos: Ines Qvirtiya)

What prompted you to develop an interest in fashion?

This interest did not arise overnight, as I knew what I wanted to do since my childhood. I always aimed to make the world more colourful, cultures more accessible, and clothing more interesting.

My childhood dreams are now starting to be realised, and for me this is the best route towards self-realisation and emotional expression.

Where did you study fashion and how did you career develop?

I was educated at Moscow Social University in the Faculty of Fashion Design, and then worked as a freelance designer, engaged in graphics, illustration, painting and photograph retouching. I went on to create prints on textiles, and theatrical and showbusiness costumes.

With which fashion houses in Azerbaijan and abroad have you worked?

I have work solely with the Azerbaijani brand L’EthnicAz. I have not yet worked with any brands outside of my country.

On which collections have you worked, to date?

My first independent collection was the National Collection 2015, which was launched in London.

Which national elements did you integrate into the collection that was launched in London in April?

The motifs of Azerbaijani national carpets, and prints derived from our ancient culture, symbols and sights, form the basis of the

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An eye-catching pomegranate-inspired ensemble from the Ines Qvirtiya design house

How would you describe the Azerbaijani fashion scene?

There have always been many distinctive and unique creative people in Azerbaijan. However, until recently, it was impossible to develop their careers. The fashion scene in our country is now experiencing a kind of renaissance, and we can see many talented designers, whose work is displayed in the annual Azerbaijan and Baku Fashion Weeks.

How do you see your career progressing?

My objective is not solely to make money – I’m just doing what I love. The ‘Ines Qvirtiya’ brand is more about the realisation of a dream than achieving commercial success. [

To see the ‘Ines Qvirtiya’ band on Instagram, go to https://instagram.com/ inesqvirtiya and to contact Inna Kvirtiya, email: inna.kvirtiya@gmail.com.

Combining carpet designs with traditionallyinspired trousers and shoes, Inna has created a range that is irrefutably Azerbaijani and undeniably unique

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12

Nagorno-Karabakh Conflict

Five dead on the ‘contact line’

Azerbaijani armed forces have taken the counter-offensive against Armenian armed forces on the ‘contact line’ between Azerbaijan and the occupied regions. According to the Azerbaijani Defence Ministry, on the evening of 22 August, Armenia fired on Azerbaijani positions in the Aghdam and Khojavand districts using 60mm and 82mm calibre rocketpropelled grenades (RPGs) and large-calibre machine guns.

Five Armenian soldiers were killed and a further eight were injured in the retaliation.

Following the short-term heavy fire, the Azerbaijani side decided to halt the counteroffensive to let the Armenians collect the dead bodies from the combat zone and assist the wounded. During the violence, three Azerbaijani soldiers received shrapnel wounds.

After receiving first aid, they were transferred to a military hospital, where their condition was described as ‘satisfactory’ and ‘non-life-threatening’.

UK FCO: Occupation must be ended Ali Hasanov, Azerbaijani Deputy Prime Minister and Chairman of the Azerbaijani State Committee for Refugees and Internally Displaced Persons (IDPs) has met Michael Tatham, Director, Department of Eastern Europe and Central Asia, UK Foreign and Commonwealth Office (FCO).

Mr Hasanov commented on the double standards demonstrated by the international community in relation to the ongoing Armenian– Azerbaijani conflict over Nagorno-Karabakh. He also indicated the need for justice to be restored in the region and for Armenian culpability in the conflict to be recognised on a pan-European level.

The violence left five Armenians dead and eight more injured

Mr Tatham replied: “The growing international influence of Azerbaijan in recent years has attracted my attention. The UK attaches great importance to its ties with Azerbaijan. There are especially good relations in the trade, economic, and energy sectors.” He went on to recognise the sensitive geopolitical position of Azerbaijan and continued: “The occupation of Azerbaijani lands must be brought to an end, and refugees and IDPs must return to their native lands. The UK strongly supports the mission of the OSCE Minsk Group. Nevertheless, it is disappointing that the Group has not made any significant progress in achieving its objectives.”

Chatham House respects Azerbaijan’s sovereignty, independence and territorial integrity Responding to a letter from TEAS, Dr Robin Niblett, Director, Chatham House, (headquarters of The Royal Institute of International Affairs) has commented on the decision to invite Bako Sahakyan, head of the illegal occupying regime in NagornoKarabakh, to speak during a meeting in July.

Dr Robin Niblett, Director, Chatham House, was insistent that the visit by Bako Sahakyan, head of the illegal regime in Nagorno-Karabakh, did not represent endorsement of the occupying force (Photo: World Economic Forum)

Dr Niblett commented that this insignificant private meeting in Chatham House was aligned with the procedures of the Institute, but should not be regarded as recognising or endorsing the Armenian occupying force.

He reiterated that Chatham House respects Azerbaijani sovereignty, independence and territorial integrity.

In his letter, Dr Niblett went on to highlight that Chatham House is ready to invite a representative of the Azerbaijani community of Nagorno-Karabakh to such events in future. He concluded: “We are always ready to make all conditions available at Chatham House to hold negotiations with the officials from the Government of Azerbaijan and to invite their participation in various events.”

Endless Corridor to compete at Milan IFF

The documentary Endless Corridor, directed by Lithuanian Aleksandras Brokas, focusing on first-hand testimonies of the Khojaly Massacre in 1992, will be screened in competition at the Milan International Film Festival in November. It has been nominated in the categories Best Short Film, Best Documentary Cinematography and Best Documentary Editing.

The film is narrated by Jeremy Irons, the Oscar-winning British actor, and the Emmy-winning American producer Gerald Rafshoon was the Executive Producer. In February, Endless

Corridor was screened in Istanbul, Ankara, Rome, Vilnius, London, Paris, Dublin, Berlin, Bern and Luxembourg in events organised by TEAS under the auspices of the Justice for Khojaly campaign.

Earlier this year, the film received the Best of Show Award in the California-based Accolade Global Film Competition. It went on to pick up two awards at the Tenerife International Film Festival in Madrid, where the film was acknowledged as Best Documentary, with Mr Brokas being named as Best Documentary Director.

Two Armenian drones destroyed

For the fifth time nearly in a month, Azerbaijani armed forces have destroyed Armenian drone unmanned aircraft as they provocatively attempted to fly over Azerbaijani positions. According to the Azerbaijani Defence Ministry, two Armenian Krunk-25 tactical unmanned aerial vehicles (UAVs) attempted to fly over Azerbaijani armed forces positions on the ‘contact line’ in the Aghdam region. Azerbaijani

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forces immediately destroyed both drones.

According to the Ministry, the Krunk-25 tactical UAV is designed to conduct aerial reconnaissance. It has a programmable autopilot and is equipped with video and stills cameras.

On 29 July, the Azerbaijani army destroyed an Armenian DJI Inspire1 (Quadcopter) drone, and earlier in the month shot down

three Armenian drones flying over the ‘contact line’ – two in the Tartar region, and one in the Fizuli region. In January, Azerbaijani armed forces destroyed an Armenian UAV whilst it flew over Azerbaijani positions in the Aghdam region. In late 2014, an Armenian military helicopter was destroyed by Azerbaijani armed forces whilst undertaking an act of provocation over the ‘contact line’.

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Personalities – AleksandrasConflict Brokas Nagorno-Karabakh

13

Armenia transforms Sarsang reservoir into a weapon

An Azerbaijani MP has lambasted Armenia for committing ecological terrorism against Azerbaijan, according to the AzerTac agency. Elkhan Suleymanov, a member of the Azerbaijani parliamentary delegation to the Parliamentary Assembly for the Council of Europe (PACE) and President of the Association for Civil Society Development in Azerbaijan, explained that the Sarsang water reservoir in the Martakert region – currently in the hands of the illegal occupying Armenian forces – has become an extremely dangerous weapon against Azerbaijan.

Sarsang, the highest Azerbaijani water reservoir, located 726m above sea level, was constructed on the Tartar River during the Soviet period in 1976 and its 50MW hydroelectric dam is 125m high, making it the highest in the country. Since 1992, the Sarsang reservoir has been under the control of the Armenian armed forces and, as a result, regions near the ‘contact line’ have been deprived of water.

Armenia uses the water reservoir to subject the six regions downstream to flooding by releasing runoff from the reservoir in winter months, thereby causing serious damage to the agriculture of nearby regions. A delegation led by Milica Markovic, PACE rapporteur on The inhabitants of the frontier regions of Azerbaijan who have been deliberately denied access to water visited Azerbaijan again on 24–27 August.

The delegation toured the Azerbaijani districts impacted by the Sarsang reservoir – Aghdam, Aghjabadi, Barda, Goranboy, Tartar and Yevlakh – held meetings with the local communities, and examined the impact of the reservoir on the local socioeconomic situation in detail. Discussions took place with Elmar Mammadyarov, Azerbaijani Minister for Foreign Affairs; Huseyngulu Baghirov, Azerbaijani Minister

Despite its apparent tranquility, the absence of maintenance to the Sarsang reservoir by the occupying forces places 400,000 Azerbaijani lives in jeopardy

of Ecology and Natural Resources; Haydar Asadov, Azerbaijani Minister of Agriculture, members of the Azerbaijani delegation to PACE, and representatives of the Azerbaijani State Water Resources Agency, the World Bank, and members of civil society.

It had been planned that Mrs Markovic would follow this with a visit to Armenia, but the aggressor country and its supporters proved obstreperous. Mr Suleymanov stressed that attempts by the rapporteur to organise a visit to Armenia had continually failed since last October, as Armenia has not yet given its consent on this issue.

Ms Markovic, an MP from Bosnia and Herzegovina, was appointed as rapporteur on the Sarsang reservoir in May, despite the Armenian delegation mobilising every

resource to prevent the appointment of a rapporteur and to hinder the position at state level.

Since the Armenian occupation in 1992, the regions of Azerbaijan near the ‘contact line’ have been unable to source water from the reservoir, which is currently in a poor state of repair, as it has not been maintained due to the occupation.

Experts have indicated that there is a high probability that the reservoir will collapse due to a natural disaster, technical reasons and deliberate sabotage and, if this was the case, it will flood more than 30 villages and put the lives of 400,000 Azerbaijani citizens in jeopardy. The Association for Civil Society Development in Azerbaijan initiated a project entitled Sarsang – Prevention of Humanitarian Catastrophe in May 2013.

ICRC representatives meet captured Asgarov and Guliyev Representatives of the International Committee of the Red Cross (ICRC) have visited Dilham Asgarov (aged 55) and Shahbaz Guliyev (aged 46), who were taken hostage by the illegal occupying Armenian forces in the Kalbajar district of Azerbaijan in July 2014. According to Ilaha Huseynova, Head of Communications Department, ICRC Baku Office, the visit took place on 20 August, during which the two men received messages from their families.

The ICRC regularly visits the detainees to monitor their treatment and conditions of detention, and seeks to ensure that they are able to maintain contact with their families. The two men were taken hostage in July 2014 whilst visiting the graves of their families.

A third man – Hasan Hasanov (aged 38) – was shot dead during the ambush. An unrecognised and illegitimate court subsequently sentenced Mr Asgarov and Mr Guliyev to life imprisonment and 22 years, respectively.

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Meanwhile, human rights activists have visited Armenian serviceman Andranik Grigoryan, who remains in Azerbaijani custody. Elchin Behbudov, Chairman, Azerbaijani Committee against Torture, accompanied by his deputy Elchin Shirinov, interviewed the man at length during their visit. The Armenian soldier voluntarily surrendered to the Azerbaijani side on 22 March. Mr Behbudov told APA: “Mr Grigoryan has no complaints about his detention conditions and expressed satisfaction with his treatment.”

Speaking to Trend News, the serviceman recalled: “I, lifting a white flag, voluntarily crossed to the Azerbaijani side due to the unbearable conditions in our military unit. We are tired of the unbearable conditions, absence of discipline, lack of ammunition, poor attitude of the officers towards soldiers and warrant officers, and general disorder. In contrast to what is happening there, I am being treated very well here.”

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14

Business News

Official Baku suggests that Tehran should join Southern Energy Corridor According to the Fars News Agency in Iran, Azerbaijan has officially proposed that Iran should join the Southern Energy Corridor project, which will convey gas from the Caspian to an Italian interconnector by 2020. It quotes an unnamed official as saying that the proposal was raised during a recent visit to Iran by a delegation led by Shahin Mustafayev, Azerbaijani Minister of Economic Development.

The Iranian official explained: “The Azerbaijani delegation officially requested… that Iran should participate in the [project to] export natural gas to Europe through Azerbaijan.” The objective of the collaboration would be to ensure that the necessary export volumes to Europe are supplied. During the meeting between the Azerbaijani delegation and Iranian oil officials, it was decided that it would be much easier for Iran to export its natural gas through Azerbaijan, than for Iran to pipe gas to Europe itself. The main pipelines comprising the Southern Energy Corridor are the South Caucasus Pipeline (SCP), Trans-Anatolian Pipeline (TANAP) and Trans-Adriatic Pipeline (TAP).

Shahin Mustafayev, Azerbaijani Minister of Economic Development, exchanged dialogue with Iranian President Hassan Rouhani in Tehran

Azerbaijan set to benefit from Iran deal The ratification of the Iranian nuclear deal framework between Iran and the P5+1 group of world powers in Lausanne has the potential to make the Southern Energy Corridor of pipelines – which will bring Azerbaijani Caspian Gas to Italy by 2020 – play an even more essential role in ensuring the future of European energy security.

Azerbaijan is now preparing to export both Azerbaijani and Iranian gas, and it appears

that official Tehran is enthusiastic about the suggestion. H.E. Mohsun Pakayin, Iranian Ambassador to Azerbaijan, commented: “Iran is interested in the TAP and TANAP projects.” However, the first leg, the existing SCP – currently under expansion and development – traverses Azerbaijan to Turkey via Georgia, and this provides the opportunity for the pipeline to incorporate Iranian resources.

Pre-empting

the

lifting

of

sanctions,

Ambassador Pakayin revealed that the nations are preparing to bargain over joint supply options. Any agreement could have a major impact on pan-European gas prices, particularly as Iranian resources account for about 18 per cent of the world’s natural gas supplies, according to Fitch Ratings.

TANAP has already been designed at overcapacity, so it will be able to carry up to 31bn m 3 (bcm) per annum by the time that Iran increases gas production and becomes ready to export to European markets.

BakuBuild 2015 – constructing the new BakuBuild 2015, the largest construction event in the Caspian region, will take place from 21–24 October, marking the inception of Caspian Construction Week. The exhibition is a long-awaited event for many specialists across the world. Each year, it gives new impetus towards development of the construction market both in Azerbaijan and overseas by strengthening the partnership between Azerbaijani and foreign manufacturers and consumers of building materials and services.

The Azerbaijani Ministry of Economy and Industry, Azerbaijani State Committee for Urban Planning and Architecture, Azerbaijani National Confederation of Entrepreneurs’ Organisations (ASK), and Azerbaijani Export and Investment Promotion Foundation (AZPROMO) support BakuBuild. The organisers are Iteca Caspian and ITE Group, its partner.

This year, the exhibition, which will comprise more than 400 companies, will encompass all pavilions at the Baku Expo Centre, including the outdoor area and the main lobby. The sponsors are Corella

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(NB Group) and Akkord Cement. Seven countries will present their national stands, including Germany, Italy, Iran, Spain, and the UAE, together with the newcomers India and the Czech Republic. In particular, Turkish manufacturers remain interested in the Azerbaijani market and will be heavily represented at the exhibition. Despite the difficult global economic situation, the number of exhibitors at BakuBuild has increased.

The product sectors presented at the exhibition have also expanded. This year, it will encompass the full range of building and construction materials, including ceramics, finishing stone, marble, paint and coatings, windows and doors, interiors, roofing and flooring materials, furniture, street lighting, landscaping, park development, metal and bronze works. Both European brands and local manufacturers will exhibit their ranges of wooden windows, doors and floors. An elite bathroom fixtures line from Italy will be presented in conjunction with an exhibition of construction glass and glass items. The recently-launched Azerbaijani stained-glass company Art-

Vitrage will also exhibit at BakuBuild. The Construction machinery sector, located in an outdoor area in front of the complex, featuring regular exhibitors and numerous Turkish equipment manufacturers, will be another highlight of the exhibition.

BakuBuild will present a large number of innovations making their debut on the global marketplace. These include innovative lift systems that negate the requirement to install machine rooms; modular polypropylene coatings for outdoor areas; protective and staining agents for wood; a new generation of cementitious materials and coatings; and high-quality mixer taps.

The exhibition will also provide an ideal opportunity to gain first-hand information on the best offers and products, and to communicate with partners and new contacts. Go to www.bakubuild.az for information about e-tickets, new offers and products, and a schedule of presentations and workshops.

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Business News

15

First container train from China arrives at the Port of Baku The first Nomad container block train from China has arrived at the Port of Baku. Senior Azerbaijani, Kazakh, and Georgian officials, diplomats and representatives of national ports, railways and shipping lines were present to greet the train upon arrival.

The train, which travelled from Northwest China to Azerbaijan, represented the culmination of joint efforts by the Co-ordination Committee on the Development of the Trans-Caspian International Transport Route (TITR), an initiative of Kazakh Railways, that comprises ports, railways, shipping, and logistics companies from Azerbaijan, Kazakhstan, Georgia, Turkey and China.

The train, carrying 82 containers, departed Shihezi in the Xinjiang Uygur Autonomous Region of China on 28 July, travelling 4023km before reaching the Caspian port of Aktau in Kazakhstan. From there, the train was transported by rail ferry to the new Port of Baku in Alyat, 69.2km south of Baku. The Port of Baku comprises a new, 400ha. port complex that includes logistics zones, commonuse oil supply-base facilities, and customs bonded areas. The development is a part of the government-led strategy to achieve economic diversification. The current maritime route from East China to Europe takes 30 to 35 days. The Co-ordination Committee members aim to shorten door-to-door delivery of Chinese goods to Europe to below 14 days.

The Nomad container block train is able to travel from China to Baku in less than two weeks

The forthcoming completion of the Baku–Tbilisi–Kars (BTK) railway project, linking the rail networks of Azerbaijan, Georgia and Turkey with the EU offers new opportunities to transport cargo from China over a shorter, faster land route and represents a revival of the Silk Road between China and Europe.

30 new carriages for the BTK route Azerbaijan Railways is to purchase 30 passenger carriages for use on the BTK railway corridor, enabling passengers to travel from Azerbaijan to Turkey in one day. Nadir Azmamedov, Spokesperson, Azerbaijani Railways, said that his company had asked Turkey if it could purchase 30 passenger carriages, and confirmed the deal had been accepted. He explained: “The carriages will be comfortable, and equipped with modern technology. The carriages will arrive in Azerbaijan by the end of next year.”

The purpose of the BTK railway is to improve trade and economic relations between Azerbaijan, Georgia and Turkey

and to increase the level of Foreign Direct Investments (FDI) by connecting Europe and Asia. It is expected that the $600m (£389.9m) project will open later this year.

The concept of the BTK railway dates back a decade, when officials from all three countries agreed on the railway project to facilitate the transportation of passengers and goods, principally oil.

Implementation of the project began in 2007, and construction began a year later.

The project incorporates the rehabilitation and reconstruction of the 178km-long railway between Marabda and Akhalkalaki and construction of a new railway from Akhalkalaki to the Turkish border. It is

A tunnel under construction on the Georgian section of the BTK railway corridor

anticipated that the BTK railway will initially transport one million passengers and 6.5m tonnes of cargo per annum, and this will have reached 17m tonnes of cargo and 3m passengers by 2030.

Shah Deniz II secures $1bn financing The Shah Deniz II offshore natural gas field project has secured a $1bn (£649.9m) financing package from a consortium comprising the European Bank for Reconstruction and Development (EBRD), the Asian Development Bank (ADB), and the Black Sea Trade and Development Bank (BSTDB).

A consortium of companies, including BP, Türkiye Petrolleri Anonim Ortakligi (TPAO), Malaysian firm Petronas, the State Oil Company of the Azerbaijani Republic (SOCAR), Russian Lukoil, Iranian Naftiran Intertrade (Nico) and the Southern Gas Corridor consortium will develop the $47bn (£30.5bn) Shah Deniz II project.

Lukoil Overseas Shah Deniz (a Lukoil subsidiary), will gain access to these funds and Bank of China, London Branch; ING Bank; Société Générale; and Unicredit Bank Austria will participate under the ADB and EBRD B Loan structures. Michael Barrow, Deputy Director-General, ADB, commented: “This will be the largest gas field development project undertaken in Azerbaijan, generating economic opportunities and helping boost closer

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regional ties with Georgia and Europe.”

Riccardo Puliti, Managing Director: Energy and Natural Resources, EBRD, said: “This project ranks amongst the EU’s highest priorities in the energy sector. It helps cut carbon emissions by providing a ‘bridge fuel’ between hydrocarbons and renewable energy. The project will also represent a big step towards the market-based hub pricing for gas that will bring Europe closer to achieving a common gas market.”

Advise to the consortium was provided by global legal practice Norton Rose Fulbright. Charles Whitney, Partner, Norton Rose Fulbright, commented: “We are proud to have advised the lenders on another landmark financing in the Caspian oil and gas sector. Amidst the challenging oil and gas sector at the moment, Lukoil and ADB, BSTDB and EBRD deserve huge credit for pulling together a robust and bankable structure. This financing represents an important step towards realisation of the project and delivery of gas supplies to Europe.”

www.teas.eu

09 / 2015

www.teas.eu