1 January 2017

01 / 2017 www.teas.eu

AZERBAIJAN – NEW CHALLENGES AND OPPORTUNITIES FOR A NEW YEAR

01 / 2017www.teas.eu

Also in this issue: Azerbaijani IDP/refugee issue raised in the UK ParliamentCelebrating Azerbaijani religious pluralismASAN visa – destined to kickstart the tourism industryIntensive negotiations with the EU underwayThe experimental sound of DiHaj carries Eurovision hopes

Culture | Public Affairs | Business

Enter the TEAS competition and win £100 of Amazon vouchers

Photo: Aynur Badalova


Printed bywww.turquoisemedia.eu

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 opinion- formers, 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.

Welcome to the TEAS Magazine

FacebookThe 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 SponsorshipTEAS 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: [email protected].

Firstly, our congratulations go to Malek Gulieva, PA to HMA and DHM and L&D Champion, British Embassy in Baku, winner of the competition in the December 2016 edition.

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 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 [email protected] by 17.00hrs (GMT) on 6 February:

1. Who is the Chair of the Azerbaijan All-Party Parliamentary Group?2. What is the name of the new AZAL budget subsidiary?3. How much money has the Swiss State Secretariat for Economic Affairs allocated to development of the Azerbaijani

Financial Sector?4. Where did the TEAS film Young Voices, Ancient Song receive its Azerbaijani premiere?5. How much Azerbaijani Caspian oil was produced in 2016?6. Where did pianist Saida Zulfugarova and violinist Elvira Di Bona give the concert Pitture Sonore: Musica e arti visive?7. What is the title of the new Etcetera album to be released by pianist Nargiz Aliyarova?8. What is the stage name of Eurovision contestant Diana Hajiyeva?9. Can you name one of the new films that have been released by the Azerbaijani Ministry of Culture and Tourism, in

collaboration with the Azerbaijani Consulate-General in Los Angeles?10. To what date has the SOCAR/AIOC development term for the Azeri–Guneshli–Chirag (ACG) field been extended?

Win £100 of Amazon vouchers!

Upcoming Event For full details of all TEAS events, go to www.teas.eu/upcomingevents

23–28 FebruaryExhibition: Five Roads Back Home (Brussels)11.00–18.30hrsThe Art Thema Gallery, 51 Rue de la Madeleine, 1000 Brussels(Private view on 22 February: email: [email protected] for details)

This exhibition commemorates the 25th anniversary of the Khojaly Massacre, which took place on 26 February, claiming the lives of 613 Azerbaijani civilians. This was the worst single atrocity of the unresolved Armenian–Azerbaijani conflict over Nagorno-Karabakh. Taken by leading photographer Philipp Rathmer, the exhibition comprises portraits of some of the internally displaced persons (IDPs) who are the ongoing victims of the Armenian occupation. Photographed against a black backdrop, these stark portraits tell an emotional story.


03

From the TEAS Director

Lionel Zetter, Director, TEAS

Politics and News

The tragedy of the Azerbaijani internally displaced persons (IDPs) and refugees who are the ongoing victims of the Armenian–Azerbaijani conflict over Nagorno-Karabakh has been highlighted during the Christmas recess debate in the Westminster Parliament.

Speaking just prior to the Christmas adjournment, Bob Blackman MP (Conservative, Harrow East), Chair, Azerbaijan All-Party Parliamentary Group (APPG) commented: “The conflict there has been going on for far too long. It is a forgotten conflict, and unfortunately the position with Armenia, Russia and their allies has not helped the overall situation. This year, the APPG for Azerbaijan went to see one of the camps that have been set

up for these people. They are suffering very greatly through no fault of their own. It is time that human rights and shared values were restored to that part of the world.”

The statement came in the wake of a trip to Azerbaijan by the APPG members in August. The visit, supported by TEAS, was led by Mr Blackman, and comprised a cross-party delegation, including Vice-Chairs Mark Menzies MP, Baroness Manzoor, Lord Kilclooney and Group Secretary, Roger Godsiff MP. Eight members of the APPG also recently attended the Five Roads Back Home exhibition of IDP portraits by legendary photographer Philipp Rathmer, which took place at the Old Truman Brewery in London (see TEAS Magazine, December 2016, p.11).

Azerbaijani President Ilham Aliyev has stated that the resolution of the Armenian–Azerbaijani conflict over Nagorno-Karabakh will remain the top priority of his government in 2017. The announcement came even as Armenian forces refused to return the body of Chingiz Gurbanov, an Azerbaijani conscript who they had shot dead on 29 December.

During the Christmas recess debate in the Westminster Parliament, Bob Blackman MP, Chair, Azerbaijan All-Party Parliamentary Group raised the plight of Azerbaijani refugees and Internally Displaced Persons (IDPs). Meanwhile it was announced that an Azerbaijani woman, Nurana Hasanova, had been killed in the Istanbul nightclub terrorist shootings.

A new visa application system is being rolled out by the award-winning ASAN service. This will make it considerably easier for visitors to come to Azerbaijan, either as tourists or on business.

The Azerbaijan energy sector continues its recovery, as oil prices continue to strengthen. During the course of 2016, oil production in the Azerbaijani sector of the Caspian hit one million tonnes. Meanwhile, the State Oil Company of the Azerbaijani Republic (SOCAR) has agreed an extension of the Azeri–Chirag–Guneshli (ACG) field contract with the BP-led AIOC Consortium until 2050.

The burgeoning TEAS press continues to extend its catalogue of original and translated books. Its latest publication is a collection of papers presented at the Religions in the Caucasus conference, which took place at the Hallam Conference Centre in London in 2014.

Finally, we are sad to announce the death of French Senator Jean-Claude Frécon, member of the France–Caucasus Friendship Group. He was a good friend of Azerbaijan, and will be much missed.

Lionel ZetterDirector, TEAS

Bob Blackman MP (centre left) leads a delegation of Azerbaijan APPG members on a visit to the Milli Majlis (Azerbaijani Parliament)

Azerbaijani IDP/refugee issue raised in the UK Parliament

TEAS France redresses the balanceFollowing the appointment of Bruno Le Roux – the Chair of the unofficial France–Karabakh Friendship Group in the French National Assembly – as French Interior Minister, numerous French media outlets revealed the fact that he is officially persona non grata in Azerbaijan. This is due to the fact that he illegally visited the Azerbaijani region of Nagorno-Karabakh in 2015 with members of the so-called Group, without having first sought permission from the Azerbaijani authorities, amounting to an endorsement of the Armenian military occupation.

Following biased reporting and the publication of deliberate misinformation in the French media, derived from Armenian websites, Marie-Laetitia Gourdin, Director, TEAS France, sought to redress the balance in a letter. This reads: “I wish to contact you regarding an article recently published on your site, reporting information relayed from the Armenews site, in which it is stated that Minister Bruno Le Roux has been placed on the ‘black list’ in Azerbaijan.

“As stated in your article, Monsieur Le Roux de facto violated Azerbaijani law and the territorial integrity of that country. It is unfortunate that your article did not go further in its analysis of the situation. In effect, the region of Nagorno-Karabakh, internationally recognised as forming part of Azerbaijani territory, has been subject to Armenian invasion for more than 25 years, following the fall of the Soviet Union. A ferocious war between the two countries took place from 1988–94, and the subsequent ceasefire has been diplomatically maintained by the OSCE Minsk Group, a Co-Chair of which is France, alongside Russia and the US.

“I wish to remind you that Nagorno-Karabakh remains unrecognised by any state, including Armenia itself, nor is it independent, and that the Armenian armed forces also occupy seven provinces surrounding Nagorno-Karabakh. This represents around 20 per cent of Azerbaijani territory. This is despite several UN Security Council resolutions being passed, calling for the withdrawal of troops from its territories, in addition to calls by the European Parliament.”


The TEAS Press Publishing House has published a collection of papers presented at the Religions in the Caucasus conference that took place at the Hallam Conference Centre, London, in 2014. The book contains articles on the history of confessions in the Caucasus written by renowned Azerbaijani and international theologians, historians, archaeologists and ethnographers. Articles are classified under the chapter headings of Ancient Confessions: Zoroastrianism and Judaism, Christianity in the Caucasus, Islam in the Caucasus, Confessions in the Caucasus in the early Nineteenth and Twentieth Centuries and the Common Problems of Religion. The proceedings include a history of the Caucasian Albanian Church – an early Christian denomination – by Farida Mammadova, a corresponding member of the Azerbaijan National Academy of Sciences (ANAS) and Departmental Head of the National Aviation Academy; Caucasian Albanian writing by Professor Jost Gippert, University of Frankfurt, and

Bernard Outtier, Director, French National Centre for Scientific Research and Doctor of Historical and Philological studies; Liana Melikishvili, a corresponding member of the Georgian National Academy of Sciences and Doctor of Historical Sciences investigated the Georgian Apostolic Autocephalous Orthodox Church; François Teillamont, Ancient History Teacher, University of Rouen, wrote on the Evangelisation of the Caucasus; and Marcin Rzepka, Vice-Director of the Pontifical University of John Paul II outlined Christianity in the Caucasus during the first half of the nineteenth century.

In his preface, Tale Heydarov, Chairman and Founder, TEAS, writes: “The society of Azerbaijan, a South Caucasian country located between Europe and Asia, and East and West, has been home to multicultural traditions since ancient times. This tradition gradually became a lifestyle in Azerbaijan, and has become a developed system in the contemporary period. Azerbaijan’s multicultural model has survived the trials of history, and always been preserved. This model of multiculturalism is an essential

way out of problems in the light of the ongoing ethnic, confessional, and political conflicts and raging terrorism, and at a time of growing confrontation between Middle East migrants and European countries.”

04 Politics and News

Religions in the Caucasus book published

The papers are insightful and incisive, demonstrating the pivotal role of Azerbaijan in maintaining religious pluralism in the Caucasus

With great regret we report the sudden passing of Jean-Claude Frécon, President of the Congress of Local and Regional Authorities of the Council of Europe until October 2016; member of the Parliamentary Assembly of the Council of Europe (PACE); and French Senator, where he was a member of the France–Caucasus Friendship Group. He was also a firm friend of TEAS, attended many events organised by TEAS France, repeatedly voiced his opposition to any illegal visits to the Armenian-occupied Azerbaijani region of Nagorno-Karabakh by French Senators, and supported rapprochement between Caucasian countries and the EU.

Gudrun Mosler-Törnström, Congress President, conveyed the condolences of Congress members to his family and loved ones. She praised the boundless commitment of a “true activist for local democracy”, adding “we have lost not only a great President of our Assembly, but also a very dear friend who was loved by all.”

Jean-Louis Testud, Chair, French Delegation to the Congress, commented: “As soon as we had learned the sad news of the death of our colleague, Jean-Claude Frécon, we began receiving many tributes from elected representatives from all French and foreign political movements. All underlined Jean-Claude’s commitment to democracy.”

He also acknowledged that he was a tireless

advocate of local and regional self-government, a defender of fundamental European values, a local elected representative extremely attached to his own region, in particular the municipality of Pouilly-lès-Feurs, and that his political career demonstrated the qualities that best defined him – generosity, a true sense of community, passion and fairness.

TEAS considered him to be a true man of peace, who wished that all nations – including Azerbaijan and Armenia – could live alongside each other. He supported dialogue between civil society spokespersons from both nations in support of peace, and stressed the need for more confidence-building initiatives to break down intransigence between the countries.

Jean-Claude Frécon (1944–2016)

The late Senator Jean-Claude Frécon exchanges dialogue with diplomats from the Azerbaijani Embassy in Paris during the opening of the Azerbaijan: Sport in Focus exhibition, organised by TEAS France in 2015

ICRC visits Azerbaijanis held hostage by ArmeniaRepresentatives of the International Committee of the Red Cross (ICRC) have visited Dilgam Asgarov (56) and Shahbaz Guliyev (48) who are currently unlawfully imprisoned in Armenian-occupied Nagorno-Karabakh. According to Ilaha Huseynova, Head, Communications Department, ICRC Baku Office, the Azerbaijanis were delivered messages from their families, who in turn will be informed about their conditions and state of health.

Mr Huseynova mentioned that, according to its mandate, the ICRC visits detainees to monitor their treatment and conditions, and to ensure that they are able to maintain contact with their families.

In July 2014, Armenian forces took Dilgam and Shahbaz hostage, and shot dead Hasan Hasanov, another Azerbaijani citizen, whilst they visited the graves of their ancestors in the region of Kalbajar. On 19 December 2014, an illegal Armenian court sentenced Dilgam to life imprisonment and Shahbaz to 22 years in prison.


05Politics and News

Azerbaijani President Ilham Aliyev has issued a series of Strategic Road Maps that will see Azerbaijan Airlines’ (AZAL) aircraft fleet updated, airport infrastructure upgraded, and direct flights to Europe doubled. This comprehensive set of measures also paves the way for greater liberalisation and privatisation in the air sector.

Amongst the decrees is a measure to conduct negotiations over the renewal of the AZAL Airbus Industrie and Embraer fleets before 2020. At present, its

passenger fleet comprises three A319–100s, seven A320–200s, two A340–500s, one EMB–170, and four EMB–190s – with two more scheduled for delivery this year – all with an average age of 10.1 years. The carrier also operates four B757–200s, three B767–300(ER)s and two B787–8s.

The Azerbaijani government has also committed itself to developing a dedicated low-cost carrier as a facilitator for increasing tourist inflows and sector-related revenues by 50 per cent by 2020. As such, Buta Airways – an AZAL

budget subsidiary – will be launched in the autumn and will operate a fleet of Embraer aircraft.

The Azerbaijani government has already pledged that it wishes to create a favourable environment for airlines, and will ensure that the State Civil Aviation Administration (SCAA) increases the number of airlines operating to and from Azerbaijan. A main priority will be an increase in direct flights to major cities in Europe, rising from 49 to 100 destinations. According to the ch-aviation capacity module, AZAL currently controls about 50 per cent of the approximately 30,000 weekly seats available in the Azerbaijan–Europe market.

The Azerbaijani government will also seek to improve the infrastructure of domestic and international air terminals, including the expansion of Baku International Airport, potentially including the construction of new runways. This will necessitate the upgrading of air navigation systems and overall aviation safety. Azerbaijan will also look towards expanding the capabilities of its air cargo terminals. The document outlines the objective of the Azerbaijani government towards promoting the role of private companies in air, rail and sea, with an eye towards liberalisation and an increased share of privately-owned airlines in the transport sector.

Road map for AZAL

An Airbus A340–542 owned and operated by AZAL

According to the Twitter page of the Russian Embassy in Turkey, the Russian citizen Nurana Hasanova – Azerbaijani by birth – was amongst those killed in an Istanbul nightclub. An unknown man carried out an armed assault on the exclusive Reina nightclub in the Ortakoy district of Istanbul on New Year’s Eve, killing a total of 39 people. Amongst the dead were 16 foreign nationals, including Saudi, Moroccan, Lebanese, Libyan, Jordanian, and Israeli citizens.

Azerbaijani woman killed in Istanbul was Russian citizen

As part of the drive towards increasing tourism in Azerbaijan and boosting international attendance at the Islamic Solidarity Games in May and European Grand Prix, to be hosted for the second time in Baku in June, the ASAN Service has launched a new online e-visa portal. This forms part of the Strategic Road Map on the Development of Tourism in Azerbaijan, approved by Presidential Order on 6 December. The move also comes in the wake of the TripAdvisor announcement that Baku has achieved fifth position in its Travellers’ Choice awards for Destinations on the Rise 2016.

Citizens of 81 countries can now obtain their Azerbaijani visa more easily than ever at www.evisa.gov.az. The procedure comprises

just three simple steps, culminating in the despatch of the e-visa within three working days.

Over the past decade, the number of tourists visiting Azerbaijan has increased five-fold. Today, tourism accounts for 4.5 per cent of total Gross Domestic Product (GDP), and currently around 300 tourist companies are active in Azerbaijan.

Azerbaijan is already home to a host of luxury hotels, including the Excelsior, Hilton, Four Seasons, Fairmont, and JW Marriott, together with many budget hotels. Soon the country plans to increase the number of two- and three-star hotels.

ASAN visa facilitates tourist influx

Switzerland to allocate $3m to the Azerbaijani Financial SectorThe Swiss State Secretariat for Economic Affairs (SECO) is to allocate $3m (£2.5m) to Azerbaijan within the framework of the second World Bank project on the Modernisation of the Financial Sector, according to Trend News.

SECO will initially pledge $2.2m (£1.8m), following the signing of the agreement, and

will subsequently allocate an additional $400,000 (£330,296) by 30 November 2018, and the same sum by 30 November 2019.

The SECO technical support to the Azerbaijani economy is aimed at increasing financial stability via extension of the regulatory and legal frameworks in the financial sector and enhancing the monitoring

functions of the financial market supervisory authority. Supportive measures cover five issues – financial market supervision, bank liquidation, deposit insurance systems, consumer protection and non-performing loans. In 2012, SECO allocated funds to a World Bank project on Azerbaijani financial market modernisation worth $4m (£3.3m), which was finalised in June 2016.


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According to the Sputnik agency, speaking in his New Year address, Azerbaijani President Ilham Aliyev commented: “Settlement of the Armenian–Azerbaijani conflict over Nagorno-Karabakh is the main priority of our foreign policy. Last year our political and diplomatic positions were even more strengthened. The conflict must be settled in line with Azerbaijani territorial integrity. There is no other way.”

The comments came in the wake of the worst violence in Nagorno-Karabakh since the ceasefire in 1994. The so-called ‘Four Day War’ began on 2 April 2016 and led to multiple casualties. The parties to the conflict signed a Russian-brokered ceasefire on 5 April, when Armenian President Serzh Sargsyan and his Azerbaijani counterpart Ilham Aliyev met in Vienna to discuss the conflict during a meeting brokered by Russian President Vladimir Putin. The sides reiterated there could be no military solution to the conflict, and reaffirmed their commitment to the 1994 and 1995 peace agreements. The presidents also agreed to finalise the OSCE investigative mechanism as soon as possible to reduce the risk of further violence. On 20 June, the three Presidents met again in St. Petersburg, where they reaffirmed their commitment towards achieving steady progress in the political settlement of the conflict and agreed to increase the number of OSCE monitors active in the conflict zone.

Politics and News

Azerbaijani President Ilham Aliyev stands alongside members of the Azerbaijani armed forces in the unoccupied part of Aghdam, near the deadly ‘contact line’ between Azerbaijan and the Armenian-occupied territories

Azerbaijani President Aliyev: Settlement of Karabakh Conflict main 2017 priority

Elmar Mammadyarov, Azerbaijani Foreign Minister, has revealed that negotiations on the legal status of the Caspian Sea are close to finalisation. Amongst other issues, this should also serve to determine exploitation rights regarding oil and gas deposits. Speaking to AzerTac, he commented: “The current phase of negotiations on the legal status of the Caspian Sea can be regarded as the beginning of the final stage. Most articles, amounting to almost 80 per cent of the convention on the status, were agreed.”

Mr Mammadyarov recalled that the negotiations for determining the legal status of the Caspian Sea had been held

in a five-party format, at the level of the Presidents and Foreign Ministers of the Caspian littoral countries and Deputy Foreign Ministers of the Ad Hoc Working Group. Since 2002, there have been four summits of the heads of states in Ashkhabad, Tehran, Baku and Astrakhan. Most recently, several important issues were discussed at the summits in Baku and Astrakhan. Mr Mammadyarov continued: “These issues, including the distribution of the water surface; agreement on legal regimes; security; shipping; conservation and the use of biological resources, emergencies and hydrometeorology, provide and regulate the co-operation and

activities of Caspian littoral states through the draft convention and many signed agreements.”

The issue of defining the legal status of the Caspian Sea arose after the collapse of the Soviet Union, when the emergence of newly independent states, namely Azerbaijan, Kazakhstan and Turkmenistan, necessitated demarcation of the area amongst the five countries that border it. The difficulty in determining the status of the Caspian Sea is linked to its recognition as a lake or a sea – a distinction that is governed by different provisions of international law.

Negotiations on Caspian Sea near completion

Speaking to AzerTac, Elmar Mammadyarov, Azerbaijani Foreign Minister, has revealed that intensive negotiations on the strategic partnership between Azerbaijan and the EU will be launched in early 2017. Mr Mammadyarov commented: “Azerbaijan remains interested in the further development of equal and mutually beneficial co-operation with the EU. For that reason, Azerbaijan submitted a draft Agreement on the strategic partnership between the Republic of Azerbaijan and EU on the margins of the Eastern Partnership Summit in Riga on 21–22 May 2015.”

The Council of the European Union has already given a mandate to the EU Commission to launch negotiations with Azerbaijan regarding the partnership agreement (see TEAS Magazine, October

2016, p.3). Mr Mammadyarov explained: “We consider that this new document will provide a legal framework to raise the level of bilateral relations for strategic partnership and ensure the comprehensive development of co-operation with the EU. From the beginning of 2017, intensive negotiations will be launched. Azerbaijan has been part of the EU Eastern Partnership since 2009. It enjoys close economic and trade relations with the EU, has remained a main trade partner of the EU in the South Caucasus region, and EU member states are major trade partners for us.

“EU countries rank amongst the main investors in Azerbaijan. There are ample prospects for the development of co-operation in the sphere of energy security, as in all other fields between Azerbaijan

and the EU. On 13 January 2011, a Joint Declaration was signed between Azerbaijan and the EU on the Southern Gas Corridor as a result of implementing the Memorandum of Understanding.

“By starting this important project, Azerbaijan will be able to provide Europe with 10bn m3 (bcm) gas after 2018, and 25–30bcm per year from 2030. This means that Azerbaijan will contribute to the diversification of European energy supply sources and the energy security of Europe in the long-term. In a newly-adopted global strategy, the EU has also identified that the sovereignty, independence and territorial integrity of states and the inviolability of borders are key elements of the European security order. These principles apply to all states, both within and beyond EU borders.”

Intensive negotiations with the EU to be launched in early 2017


Politics and News

The Azerbaijani premiere of the TEAS documentary Young Voices, Ancient Song has taken place at the Nizami Cinema Centre in Baku, following screenings in the UK and the US. The film features Jeffrey Werbock, Chairman, Mugham Society of America, and was attended by numerous state and government officials, MPs and public figures. The documentary charts the search to find three mugham singers that he heard in 2000 amongst the railway carriages and ramshackle dwellings that housed the estimated one million Azerbaijani internally displaced persons (IDPs) and refugees who are the ongoing victims of the Armenian–Azerbaijani conflict over Nagorno-Karabakh.

Tale Heydarov, Chairman, TEAS, and Executive Producer of the documentary, commented: “Our goal is to spread the truth about the conflict by various media across the world, including releasing books in Russian, English and French; and making documentary films and programmes that will be broadcast on international television.

“Our goal is to show that mugham is alive in Azerbaijan, despite

the occupation and the consequent challenges. The IDPs from Nagorno-Karabakh are keeping this music alive. Thanks to them, as well as the care of the state, mugham continues to live in Azerbaijan. Our goal is to continue screening this film across the world.” Go to http://bit.ly/yvastrailer to see a trailer for Young Voices, Ancient Song.

07

Jeffrey Werbock (centre) presented the outstanding TEAS documentary in which he features in Baku

Youthful mugham celebrated in Baku

Azerbaijan will spend AZN585m on ICT developmentAzerbaijan is set to spend AZN585m (£267.7m) on achieving the strategic goals specified in its Strategic Road Map for the Development of the Information and Communications Technologies (ICT) sector. This will be funded through the state budget, non-budget funds, National Fund for Entrepreneurship Support, Azerbaijan Investment Company (AIC), local budgets, the resources of local agencies, enterprises and organisations, in addition to direct foreign investments, loans from the national banking system, grants, including loans from international organisations and foreign countries, technical and financial support, financial market tools and other legal sources.

The budgets will be allocated within the framework of the results-based budgeting process to ensure the efficient utilisation of such funds towards the achievement of the priority targets.

Baku International Airport – a new logistics hubA logistics hub is to be created in the territory of the Heydar Aliyev International Airport, according to the Strategic Road Map for the Development of Logistics and Trade in Azerbaijan.

According to Trend News, the prospects for creating a logistics hub in the airport during 2017–18 will be determined as part of the strategic objective for creating logistics and trade centres in Azerbaijan. It is estimated that six logistics and trade centres will be created in Azerbaijan, four of which will be ready by 2020.

Aside from being one the most technologically-advanced airports in the world, Heydar Aliyev International Airport is also set to become a regional logistics hub

Azerbaijani Caspian oil reaches 1m tonnes in 2016According to the website of the State Oil Company of the Azerbaijani Republic (SOCAR), Azerbaijani oil production reached the level of 1m tonnes in 2016 for the first time in the history of independent Azerbaijan.

Technip awarded service contract for Azerbaijan complexUK-based Technip has been awarded a service contract by SOCAR for a new gas and petrochemicals complex in Azerbaijan. The contract is for ethylene and cryomax technology licences for the petrochemicals facility and for the natural gas liquids (NGL) recovery section of a gas processing plant. Technip will also develop the process and engineering design of all the units included in the plant. The project, located in Garadagh, will be completed during the second half of 2017.

Azerbaijani Safarli wins silver at London Chess ClassicAzerbaijani grandmaster Eltaj Safarli has claimed a silver medal at the Super Rapidplay tournament of the London Chess Classic, which was eventually won by Russian Woman Grandmaster Valentina Gunina. This Super Rapidplay tournament brought together 475 chess players from 45 countries.

Mr Safarli won the Azerbaijani Chess Championship in 2010 and 2016, following two wins in the European Youth Chess Championship. He also represented his country at the 42nd Chess Olympiad, held in Baku this September.


Entries are now open for the Khojaly Peace Prize for Art 2017.

The International Justice for Khojaly campaign and TEAS are hosting the Khojaly Peace Prize for Art to commemorate the 25th anniversary of the Khojaly Massacre, the worst single atrocity of the Armenian–Azerbaijani conflict over Nagorno-Karabakh, on 26 February 1992.

A prestigious panel of judges are looking for art that is both thought-provoking and will communicate the meaning of peace in a modern world. The winners will be artists who produce the most imaginative and memorable piece of art using the media of painting, drawing, collage, prints or photographs.

All entrants will be invited to a special awards ceremony and exhibition in Parliament attended by MPs and other special guests from the artistic community. The shortlisted entries will be displayed at the awards ceremony and the winners announced on 22 February 2017.

This year, the judges for the prestigious Khojaly Peace Prize include Bob Blackman MP, Chair, All-Party Parliamentary Group

on Azerbaijan; Baroness Warsi, former Senior Minister of State for Foreign and Commonwealth Affairs, UK Government; Baroness Manzoor; and Lionel Zetter, Director, TEAS.

Entries will be judged on the power of the image to promote peaceful resolution to conflicts and their ability to empathise with the plight of refugees and internally displaced persons (IDPs). The first prizewinner will receive £500 and be the recipient of the Khojaly Peace Prize for Art 2017. The second prizewinner will receive £300 and the third prize will receive £200.

If you are interested in submitting artwork for the Khojaly Peace Prize for Art, please contact James Noble on [email protected]

This year also marks the launch of the Khojaly Peace Prize for Literature, which will be announced at the awards ceremony in Parliament on 22 February.

The deadline for registering interest in the Khojaly Peace Prize for Art is 27 January 2017 and the deadline for submitting artwork is 10 February 2017.

08 Culture

The winners of the Khojaly Art Prize – (from left) Gordon Berger, Eileen Anderson and Seungjo Jeong – stand with their representations of the Khojaly carnage alongside Lionel Zetter, Director, TEAS, following the 2016 awards ceremony

Khojaly Peace Prize for Art 2017

We are looking for great artists to submit a symbolic piece of artwork which represents and depicts peace around the world.

A prestigious team of judges are looking for entries which are thought provoking and encapsulate meaningful imagery. � e winner will be an artist who produces an imaginative and memorable

piece of art in the form of paintings, drawings, collage, prints or photographs.First prize £500 | Second prize £300 | � ird prize £200

Express your interest in entering the competition by emailing [email protected] by 27 January 2017.

� e deadline for submitting your artwork is 3 February 2017.

For more information, please contact James Noble on 020 7592 9490.

Sponsored by Justice for Khojaly and � e European Azerbaijan Society

KHOJALY PEACE PRIZE 2017art competition

25th ANNIVERSARY OF KHOJALY


09Personalities – Nurlana Ismailova

Nurlana Ismailova is the Founder and President of inKids Azerbaijan. This pioneering organisation concentrates on enabling children to maximise their potential through creating understanding and self-confidence. Neil Watson caught up with Nurlana back home in Baku:

What attracted you towards a career as a Child Development Specialist and Educational Psychologist?

My career began during my time as a student from 2001–06. I initially studied at Ganja State University, where I read for my Bachelor’s degree in Psychology. At this time, the subject of psychology was not well-developed in my country. Therefore, many people around me voiced the opinion that it would be difficult for me find a job after my education. I decided to become a professional, and during my second year of University started

my computer and English language courses.

My English teachers were native speakers who were also working at the Baku International School. When they heard that I was studying Psychology, they invited me to help with the children. I was so excited about working with children that I started my research and part-time volunteering in my spare time. As I was so young, I needed professional guidance, and I sought out experts in the sector. This proved very challenging, but I found a lady who was working at the SOS Children’s Village as a child psychologist.

She took me on as an assistant, dealing with children both individually and in groups. Baku International School subsequently hired me immediately following graduation from university. There were several disabled children at the school, with whom I began to work. I started to research and learn about different disabilities and how to work with such children. Following consultation with my old Supervisor, she advised me to work with an organisation that focuses on education with disabled children – United Aid For Azerbaijan (UAFA) – with which I began to volunteer.

After several months, I gained a part-time job there and, during my time at UAFA, I participated in training courses, workshops, and seminars by local and international specialists, focusing on child development, various disabilities, and related rehabilitation.

Thereafter I began reading for my Master’s on Educational Psychology at Azerbaijan State Pedagogical University, whilst simultaneously working part-time, initially at the Baku International School and then the British School in Baku. Following graduation, I began to work at the European Azerbaijan School, a TEAS initiative. The schools and other international organisations with which I worked, including UNICEF and the National Portage Association, exposed me to various curricula and systems. Furthermore, I organised a children’s summer club.

What are the aims and objectives of inKids Azerbaijan?I established inKids Azerbaijan to relieve children of stress and tension and facilitate relaxation. Its strategy follows five steps, comprising games on relaxation and concentration, emotional strength and self-esteem. These enable children to dissipate their stress and aggression, enabling them to calm down, gain self-confidence, become emotionally comfortable and positive, and manage their own behaviour. This serves to enhance their communication skills, and develop motor and cognitive skills.

These five techniques are specially designed to optimise children’s emotional wellbeing and self-confidence. These can be applied to schools, clinics, child development centres, and kindergartens for all types of children, aged from 0–18, including those suffering with attention deficit hyperactivity disorder (ADHD), autism, dyslexia and cerebral palsy.

What led you to establish the Azerbaijan Psychology and Psychotherapy Association (APPA)I am also the founder and organiser of APPA, which provides training and practical sessions across many spheres of psychology for international and local trainers and specialists in psychology and psychotherapists across Azerbaijan. APPA provides networking and facilitates the sharing of knowledge and experience with others, enabling young psychologists to enter the international arena.

APPA offers training across various sectors of psychology, including those for children, family and counselling, education, social work, management, and law. Throughout, students of psychology receive training from international experts in each specialisation. The main objective of this training is to improve the psycho-social status of those living in poor conditions via widespread training from theoretical and practical specialists. Well-trained specialists help those suffering with self-esteem and psychological problems and particularly parent–child relationships, mutual relationships between family members and their impact on children. There are 11 departments at APPA, each focusing on a different psychology discipline. One of these is an educational psychology department that is organising local workshops and seminars, together with an International Conference for Educational Staff in Azerbaijan. We are currently working on an International Conference that will be held from 18–19 February, and our guest professional expert will be from Finland. He will speak on Kids’ Skills – a solution-focused method of helping children and teenagers overcome problems and difficulties. During 2017, we plan to organise five International Conferences in this department within the ‘Support to Education’ project under the slogan ‘Learn. Educate. Change.’ How would you like to see inKids Azerbaijan develop? We are starting to collaborate with international and local private schools in Baku, to whom we are offering group and individual counselling services. This system is good for both schoolchildren and those in kindergartens. My vision is to train local school psychologists so they apply this in their schools. As this system increases concentration, it helps students manage their emotions, anxiety, stress and anger, improves learning and school performance, and reduces negative behaviour, aggression, bullying and peer pressure. These classes help students build self-confidence, self-esteem, emotional resilience and to become more imaginative and creative.

The organisation will soon be open to Europe. If a child specialist, teacher or psychologist wishes to learn this system and apply it to their school or centre, or start their own business, they will be trained and gain a coaching certificate. All our efforts are aimed at improving education at every stage. As Nelson Mandela said: “Education is the most powerful weapon that can be used to change the world.”

inKids Azerbaijan Facebook: http://bit.ly/inKidsFB APPA Facebook: http://bit.ly/APPAFB. Nurlana Ismailova LinkedIn: http://nurlanaismailova

Nurlana Ismailova – psychological health to the fore

Nurlana Ismailova is tackling the roots of psychological issues head-on


The Paris-based Azerbaijani pianist Saida Zulfugarova has collaborated with Italian violinist Elvira Di Bona, Polonsky Academy Fellow at the Van Leer Jerusalem Institute, for an inspired concert entitled Pitture Sonore: Musica e arti visive amongst the impressive surroundings of the Main Hall of the Gran Sasso Science Institute of L’Aquila, capital city of the Abruzzo region of Central Italy. It was organised by the Gli Archi del Cherubino. An earlier version of the concert was premiered in 2015 at the Amphithéâtre Richelieu of the Sorbonne University in Paris and thereafter performed at the Voci dalla montagna festival in Pescasseroli, also in the Abruzzo region.

The performance of music accompanying projections of artworks followed a roundtable focusing on the connection between music and art, featuring Massimo Fusillo, Professor of Comparative Literature at the University of L’Aquila; Carlo Serra, Professor of Aesthetics and the Philosophy of Music at the University of Calabria; and Francesco Zimei, Musicologist, specialising in the Medieval and Renaissance periods. Stefano Ercolino, Professor of Comparative Literature at the Yonsei University, Seoul, moderated the event.

The programme – which attracted enthusiastic applause – included world premieres of pieces by the composers Antonio Marcotullio and Carlo Ferdinando de Nardis, both from L’Aquila, inspired by the art of Antonio Ambrogio Alciati and Umberto Boccioni, alongside pieces by Marco Gatto and Turkar Gasimzada, who had interpreted the paintings of Edward Hopper and Gerhard Richter, respectively.

Zulfugarova and Di Bona musically interpret art in L’Aquila

10 Culture

Saida Zulfugarova (piano) and Elvira Di Bona (violin) captivated their audience with a range of stunning new compositions, performed against a backdrop of projections of the artworks that inspired them

Following the success of the album Nargiz Aliyarova plays Frédéric Chopin on Belgian label Etcetera, Nargiz has released an album of Azerbaijani works that are close to her heart. Entitled simply Nargiz Aliyarova plays Azerbaijani Music, the featured works include The Most Beautiful Beauty from the Seven Beauties Ballet by Kara Karayev; The Sad Waltz by Akshin Alizadeh; and March by jazz-mugham pioneer Vagif Mustafazadeh.

In his review on the Etcetera website, Azerbaijani music critic Jahangir Selimkhanov writes: “Nargiz Aliyarova discovered these pieces only gradually, over a period of years; she here takes

great delight in sharing the intriguing and self-revelatory aspects of this music.

“We naturally expect music composed in Azerbaijan to contain elements of native folklore and of traditional music. Our programme, however, is directly opposed to such preconceptions. Trois esquisses à la Watteau (Ismayil Hajibeyov) is a clear evocation of harpsichord music of the Rococo period; Faradj Karayev’s Monsieur Bee Line – Eccentric presents a humorously exaggerated version of the blues style from Debussy’s famous Prélude; and Javanshir Guliyev’s Seven Pieces with Interludes in Mugham modes is a deconstruction of traditional modal

scales down to ‘molecular’ level and creates an array of novel musical textures.” Go to http://bit.ly/nargizazerbaijanimusic to order this landmark album.

Nargiz Aliyarova brings the greats of Azerbaijani music to an international audience

The new album by Nargiz Aliyarova presents some landmark Azerbaijani works for piano to a western audience for the first time

According to Trend Life, Diana Hajiyeva, who will represent Azerbaijan in the Eurovision 2017 Song Contest, has given a fascinating concert in one of the most popular Baku clubs. Working under her stage name of DiHaj, she focused on her unique experimental immersive dream pop music style. The tickets were sold out.

DiHaj with Anar (guitar, synthesiser) and Ali (drums, percussion and effects) created a special atmosphere and their fans enthusiastically appreciated great music that had a dynamic ‘live’ sound” and drive for the entire two-and-a-half hours. During 2016, DiHaj achieved a great deal of success, participating in numerous festivals and issuing new singles and videos. DiHaj won the Début category in the Phoenix Caucasian Music Awards in Tbilisi and participated in Tbilisi Open Air Alter Vision. She will participate in the two Eurovision semi-finals on 9 and 11 May, and the final on 13 May.

Regarding her Eurovision entry, DiHaj commented: “I am open to new experiments. I think we will find a compromise. The song, staging and other issues are being discussed. There is a

preparatory process. During the next six months, we will experiment with performance and image.” Go to www.dihaj.com to experience the music of DiHaj.

Eurovision hope DiHaj – an experimental pop personality

The frontier-challenging DiHaj is set to breathe new life into Eurovision


11

Faig Ahmed is currently arguably the biggest name in Azerbaijani contemporary art, and is best-known for his innovative deconstruction of an Azerbaijani icon – the carpet. His new solo exhibition at the YARAT Contemporary Art Space in Baku takes this one stage further by exploring gender relations and cultural practices in Azerbaijan.

Entitled Nə var, Odur (It is what it is), the exhibition, curated by Björn Geldhof, Artistic and Strategic Director, YARAT Contemporary Art Space, examines gender relations and social practices within traditional Azerbaijani communities. In this latest exhibition, he approaches such cultural practices via media ranging from carpets and sculptures to film. Speaking to Harper’s Bazaar Arabia, Mr Geldhof explained: “With this exhibition, he took a jump in his artistic practice. He is complicating the media that he works in, being much more profound and researching the subjects with which he is dealing to a greater extent.”

Upon entering the exhibition, it is necessary to peel through the layers of ivory lace curtains to a work entitled Curtain In-between. The borders of fabric act as a gateway, enticing visitors into a domestic domain portraying a series of traditional Azerbaijani social practices and cultural taboos. A field of sugar cones, entitled The Biggest, confronts visitors after the entrance of curtains. The sugar cones represent the traditional gift that newlyweds receive, being subsequently consumed once the first male child is born, representing the fertility and patriarchy of Azerbaijani culture. Mr Ahmed explained: “It’s an object that can exist in reality or in our collective subconscious.”

The exhibition draws upon both existing practices and the symbolic cultural meanings derived from societal rituals to provoke discourse and potential perception transformation. Mr Ahmed continued: “For me, it’s interesting how art can influence a big part of the subconscious. It’s necessary to use these symbols to enter into the collective subconscious and show how it can be destroyed, modified or grown. That’s my goal with art.”

The works exhibited at Nə var, Odur continue to address gender dynamics whilst underscoring the rites of adulthood practised in traditional Azerbaijani communities. Suspended from the wall, a hand-woven carpet entitled Virgin progressively alters from a traditional Azerbaijani textile pattern to a singular hue of crimson red. The work is filled with symbolic importance, which Mr Ahmed addresses through the carpet. In traditional culture, a girl crafts a carpet that she will bring into her marital home, representing her rite of passage into womanhood. Mr Ahmed is interested in how the intricate craftsmanship of carpets in Azerbaijan is undertaken by women, thereby bestowing them with power in the community.

He explained: “Due to the meditative process of a woman creating a carpet, that connection is more magical and more powerful.” Similarly in Nine Nights, a pyramid of white mattresses relates to the mattresses that girls receive in their childhood, leading up to their wedding and transition into adulthood. Mr Ahmed emphasises that the mattresses represent the base of reproduction and the ability of a woman to procreate, once again

accentuating the key role that women play in patriarchal society.

One of the essential works in the exhibition is Social Anatomy, a silent film that showcases key societal rituals in an orchestrated procession. Viewers gain insights into the practices performed in traditional Azerbaijani society, ranging from a circumcision to a wedding and a funeral procession, whilst the aerial perspective evokes the symmetrical patterns utilised in carpet weaving. He explained: “You can’t change the whole of the mechanisms of society. If you want to change it, you would have to understand how the system works.”

Positioned behind a wall partition, the exhibition concludes with several drawings entitled Small Wedding. Each illustration is concealed behind a red curtain, representing the various ritualistic practices of male circumcision.

Throughout the exhibition, the artist showcases societal practices and cultural taboos with the aim of provoking discourse about the existing fabric of traditional Azerbaijani society. When asked why gender dynamics are of interest, Mr Ahmed reflects: “Everything was quite secular in my family. At the same time, it gave me an objective point of understanding the [traditional] social structure, especially as I was a rule-breaker. This exhibition has created a reaction in society. For now that’s enough.” He has stated that he hopes to inspire other artists to produce works addressing the themes explored in Nə var, Odur. Go to http://bit.ly/faigyarat to see more of this provocative exhibition.

Culture

A field of sugar cones, entitled The Biggest, representing a traditional gift for newlyweds, stands alongside one of Faig Ahmed’s trademark symbolic dissected and distressed carpets, entitled Virgin.

Faig Ahmed – new concepts, new works

Five facets of Azerbaijani culture showcased in new filmsThe Azerbaijani Ministry of Culture and Tourism, in collaboration with the Azerbaijani Consulate-General in Los Angeles, have issued five new short documentary films. These are entitled Azerbaijan: Land of Hope and Inspiration; Cultural and Natural

History of Azerbaijan; Baku: Jewel of the Caspian; Jews of Azerbaijan: A Model for Muslim–Jewish Coexistence; and Christian and Muslim Villages of Azerbaijan.

The films have now been broadcast on

over 50 US television stations, reaching an estimated 19m homes, and were all hosted by Econews anchor Nancy Pearlman. A trailer may be viewed at http://bit.ly/econewsaz and from there are links to all the films.


The Gilan Hospitality Group is one of the largest indigenous hotelling chains and tour operators in Azerbaijan, boasting a superb range of top-quality three- to five-star hotels across the country. It is now spearheading development of the burgeoning tourism industry in the wake of the passing of a Presidential Decree on diversification of the economy, which identified tourism as one of the eight priority areas requiring development, and a Presidential Executive Order, passed in September 2016.

This has paved the way for establishment of a Tourism Council, the determination of new air routes, expansion of seaside and budget tourism, and the development of tourism educational centres. On 9 December, a new draft law on tourism was passed by the Milli Majlis (Azerbaijani Parliament), whereby the government would support research related to importing expertise into the tourism sector and provide financial and technical assistance to NGOs involved in the sphere. During the first nine months of 2016, a record-breaking 1.7m tourists visited the Land of Fire. As part of the drive to attract tourism operators, Gilan attended the World Travel Market at the Excel Central in London – the largest business-to-business fair for tourism professionals in the UK. Neil Watson caught up with Elshan Mirzayev, Group Director: Sales and Marketing, Gilan Hospitality Group, to find out more:

Which resorts and facilities does the Gilan Hospitality Group offer? Altogether there are 13 hotels under the brand of Qafqaz Hotels and Resorts, plus

the Badamar Hotel and the Gabala Chenot Palace.

In which regions of the country is the Gilan Hospitality Group active?Gilan is active in Baku, Gabala, Lankaran, Goygol and Khizi.

Since the relaxation of the visa regime with the Gulf Co-operation Council (GCC) nations, more than 30,000 Arab tourists visited Azerbaijan during the Summer/Eid al-Adha holiday season. Is this having any impact on the type of facilities offered by the Gilan Hospitality Group? During 2016, more than 30,000 tourists stayed in Qafqaz Hotels and Resorts. Naturally, the Gilan Hospitality Group has upgraded its hotels with new facilities, particularly the entertainment services installed in its Gabala region accommodation. This serves to further satisfy the guests. Upgraded facilities include innovative restaurants and fresh hotel and restaurant concepts.

We are also seeing a range of budget carriers, such as WizzAir and Buta Air, a new budget option from Azerbaijan Airlines (AZAL), coming to Baku for the first time. Is this resulting in the construction of new two- and three-star hotels?The introduction of such budget airlines is playing an essential role in developing tourism in the country. The Azerbaijani Ministry of Culture and Tourism has invited international investors and local companies to build two- and three-star hotels in Azerbaijan. Gilan Holding is also undertaking a project in Gabala.

Such countries as Nomade Aventure are bringing intrepid tourists to the regions of Azerbaijan for the first time. Currently, such tourists are residing in homestays. Is Gilan planning to construct facilities in the regions? To date, we have only constructed hotelling facilities in Gabala.

The renowned Belgian travel journalist Robrecht Willaert recently said at the Azerbaijan Tourism Forum organised by TEAS in Brussels that: “A concerted programme of promotion using existing and new media is necessary. Travellers want a new experience – Azerbaijan must focus on the unique strengths of its country, culture and the people, above all else.” What is Gilan doing to promote the country? We are organising a number of media tours to promote the Gilan Hospitality Group. We are collaborating with TEAS Istanbul to undertake a Turkish media tour in April–May 2017, focusing on tourism. Each year, many international festivals are held in the Gabala region, attracting international media representatives, including the Gabala International Music Festival and Gabala Jam Festival. Furthermore, the Gabala Hospitality Group always supports major international travel agencies, tour operators and Azerbaijani Ministry of Culture and Tourism familiarisation trips. We also provide accommodation and meals at hotels in Baku and the regions in order to promote Gilan hotels and Azerbaijani tourism as a whole.

To date, we have received media tours from the Republic of South Africa, Israel,

12 Personalities – Elshan Mirzayev

Gilan Hospitality Group – looking towards the intrepid traveller

The magnificent Qafqaz Riverside Resort Hotel, located on the banks of the Damiraparan River in the Gabala region, is blessed with views of the snowcapped mountains and emerald forest


13Personalities – Elshan Mirzayev

Poland, GCC countries, Iran and Iraq.

What training is Gilan undertaking to increase service quality in its hotels and resorts? We have a training department, and during 2017 the scope of our training courses will further develop. We are also planning to outsource some of our training to overseas companies.

How is the Azerbaijani Ministry of Culture and Tourism supporting development of the tourism industry? This year, the Azerbaijani government designated a tourism day and allocated AZN1m (£441,400) to the Azerbaijani

Ministry of Culture and Tourism to facilitate their participation in all the big international exhibitions. There are more than 300 travel agencies in Azerbaijan, most of which have been opened in the wake of the abolition of paid licences for such companies. Furthermore, the Ministry is bringing groups of overseas media representatives and tour operators. It is also organising workshops in collaboration with foreign tour operators.

How has the hosting of the Eurovision Song Contest, European Grand Prix and the Baku2015 European Games etc. led tourists to visit the country for the first time and increased awareness of its tourism potential?

The organisation of sports events has undeniably enhanced awareness of Azerbaijan. Firstly, all European countries now know about Azerbaijan, and it has also attracted tourists from the GCC countries. We are now seeing greater numbers of tourists from France, Germany, Italy and the US coming to our country.

To what extent will further relaxation of the visa regime via the ASAN visa system benefit the tourism industry? It will have an undeniably beneficial impact.

Go to http://gilanholding.com/tourism for more information on the range of facilities operated by the Gilan Hospitality Group.

The 103-room four-star Qafqaz Baku Sport Hotel

is replete with outstanding contemporary architecture

The four-star Qafqaz Thermal and Spa Hotel, situated in the spa village of Yengija in the Gabala region


The State Oil Company of the Azerbaijani Republic (SOCAR) and BP-led Azerbaijan International Operating Co. (AIOC) have signed a letter of intent (LoI) regarding future development of the Azeri–Chirag–Guneshli (ACG) field in the Caspian Sea. This covers development of the field in the Azeri sector until 2050, and determines the commercial terms that should lead to finalised full-term agreements over the next few months. ACG currently produces from six platforms. The other AIOC shareholders are Chevron, INPEX, Statoil, ExxonMobil, TPAO, ITOCHU, and ONGC Videsh.

Gordon Birrell, Regional President: Azerbaijan, Georgia and Turkey, BP, commented: “Today’s signing allows us to look ahead towards the next chapter in ACG’s success and, indeed, in Azerbaijan’s energy story. We believe

that, together, we will be able to build on this success by continuing to combine the potential of the country and experience with leading technology. This agreement will enable future investments and projects, and will bring many thousands of jobs in the years ahead.”

The ACG field, located 62 miles east of Baku in water depths of 120–170m, is the

largest producing oil field in the Caspian Sea, covering an area of more than 432km2, with a reservoir depth of 2000–3500m. The existing ACG production-sharing agreement (PSA), signed in September 1994, was for 30 years. Oil production started in November 1997 and, to date, the field has produced more than 3bn barrels of oil, necessitating around $33bn (£27.3bn) of investment.

14 Business News

SOCAR and BP-led AIOC extend development term

International law firm Dentons – a TEAS member company – has launched the latest edition of its Global Energy Game Changers publication, entitled Focus on Europe (see http://bit.ly/dentonsglobal). Produced by its Global Energy Team, this is a compendium of insightful analysis into the most important issues facing the energy industry.

This invaluable publication covers continent-wide regulatory reform, the regulation of new cross-border power flows, the challenges facing the oil and gas industry, infrastructure sharing, disputes under investment treaties and the impact of Brexit. It also takes an in-depth look into the issues shaping the business environment in one of most important energy regions. Topics include:

• Quantum viewpoints – trends and projections for the energy industry

• EU Energy Union – a progress report• Making the single EU electricity market work – ACER and

cross-border capacity allocation• Smart Grids – prospects and challenges• Stormy weather in the UK North Sea

• “Help! I’m in a bad contract, get me out of here!” Disputes after the oil price crash

• Energy and communications infrastructure sharing: an idea whose time has come

• Solar suits against Western European governments• Brexit and the energy sector: initial thoughts

Dentons has also issued a Client Alert on New Amendments to the Tax Code, following an Azerbaijani Presidential Decree on 16 December. This includes the definition of income; transfer pricing provisions; advance assessment of taxation liabilities; reduced scope of permitted cash transactions; tightening of the regulation of cash transactions; the issuance of electronic invoices; income tax exemptions; the depreciation rate of machines and equipment; new withholding taxes; and the VAT status of electronic trade. Go to http://bit.ly/dentonstax to read the full alert.

Following another Decree on 16 December, Dentons has issued a further Client Alert on non-cash settlements, including situations where this payment form is now mandatory. Visit http://bit.ly/dentonsnoncash for this essential information.

Dentons on Game Changers, Tax Code alerts and Non-Cash Settlements

The European Bank for Reconstruction and Development (EBRD) is ready to consider investment in implementation of the Trans-Adriatic Pipeline (TAP) project with other partners. An official source stated: “It is premature to go into any further details at this stage.”

Earlier, Suma Chakrabarti, President, EBRD, explained: “In the energy sector, the EBRD is well aware of the need for European energy security that is affordable and acceptable from the point of view of climate change. In this context, we are positive about TAP, a project that develops the three characteristics of energy – security, energy access and environmental sustainability.”

TAP is central to the Southern Energy Corridor, which is one of the priority EU energy projects. This $45bn, 3,500km project will see transportation of gas from the Shah Deniz 2 gas field through the extension to the South Caucasus Pipeline (SCP), TAP and the Trans-Adriatic Pipeline (TANAP), eventually providing up to 30bn m3 (bcm) of gas to Europe per annum.

EBRD to consider investing in TAP

The World Bank has agreed to make two loans of $400m (£331.5m) to both Turkey and Azerbaijan to help finance the TANAP project, which is one of the three pipelines comprising the Southern Energy Corridor. According to the Anadolu Agency, the loans

will be supplied through a subsidiary of the World Bank – the International Bank for Reconstruction and Development (IBRD).

In Turkey, the State Petroleum Pipeline Corporation (BOTAS) will receive a loan

guaranteed by Turkey with a maturity of 24 years, whereas in Azerbaijan, the Southern Gas Corridor (SGC) closed Joint Stock Company will obtain the loan with a guarantee from Azerbaijan, based on a 30-year maturity period.

World Bank approves $800m loan

The new album by Nargiz Aliyarova presents some landmark Azerbaijani works for piano to a western audience for the first time


According to the Azerbaijani State Commission on Prisoners of War, Hostages and Missing Persons, the Armenian authorities are refusing to respond to the persistent appeals of international organisations regarding the return of the body of Azerbaijani soldier Chingiz Gurbanov. He was killed by the Armenian Armed Forces on 29 December, and this

refusal flouts the Geneva Convention. To date, condemnations has been received from various organisations, including the OSCE Minsk Group, tasked with establishing a negotiated peace to the conflict.

A Commission spokesperson said: “Armenia, without giving any specific

reasons, is deliberately delaying – under various pretexts – the start of the procedure for returning the body. Unfortunately, even the international mediators are unable to currently place pressure on Armenia for such an inhumane action. At the same time, we, for our part, are continuing efforts in this direction, together with the state agencies and international organisations.”

15Business News 13Personalities – Javid Shahmaliyev 15Nagorno-Karabakh Conflict

According to Ali Hasanov, Azerbaijani Deputy Prime Minister and Chairman of the State Committee for Refugees and Internally Displaced Persons (IDPs), $7bn (£5.5bn) has been spent on building 95 settlements to house the estimated one million Azerbaijani refugees and IDPs during the past 20 years. The comments were made during a meeting with a delegation from the Council of the EU Working Party on Eastern Europe and Central Asia.

After outlining the work undertaken by the Azerbaijani government to improve the living conditions of these ongoing victims, Mr Hasanov provided an insight into the history of the unresolved Armenian–Azerbaijani conflict over Nagorno-Karabakh. He explained that Armenians started moving to ancient Azerbaijani lands around 200 years ago, stating: “This is evidenced by a monument called Maraga-150, erected by the Armenian population in 1978 to mark the 150th anniversary of their resettlement on

Azerbaijani territory, which is a fact also substantiated in numerous archive documents.”

An Armenian drone, following its interception by

the Azerbaijani armed forces

Some of the new IDP/refugee housing constructed by the Azerbaijani government

Azerbaijan downs Armenian dronesAccording to the Azerbaijani Defence Ministry, an Armenian drone was intercepted on 29 December as it flew over Azerbaijani army positions. This followed the destruction of two other Armenian drones earlier in the month that flew at low altitude over the ‘contact line’ between the Azerbaijani and Armenian troops in the Talish village of the Fuzuli region.

In November, the Azerbaijani Armed Forces also destroyed two Armenian drones – one in the Fuzuli region, and the second over the ‘contact line’ in the direction of the Terter region. All the drones were undertaking provocative reconnaissance flights over the positions of the Azerbaijani Armed Forces.

Armenia ignores appeals to return soldier’s body

Deputy PM: $7bn spent on building 95 settlements for IDPs and refugees

World Bank to assist with refugees/IDP living conditionsThe World Bank (WB) is continuing to assist with the provision of better livelihoods, the improvement of living conditions and increasing the economic self-reliance of some of the estimated one million internally displaced persons (IDPs) and refugees in Azerbaijan.

The $15m (£12.4bn) WB loan is aimed at enhancing the living conditions of some 371,000 IDPs and refugees in Azerbaijan. As of 15 October 2016, the WB assisted some 239,997 IDPs and refugees within its IDP Living Standards and Livelihoods Project. The 307 completed microprojects focused on access to electricity, drinking water, sanitation, and social infrastructure, and also for the inhabitants of the 103 collective centres that have been renovated under the project.

The economic self-reliance of almost 1,650 youths has been improved; they received vocational training and equipment. Some 6,134 IDPs found jobs, although the objective of the project is to get 9,600 people back into employment.

This is the third successive WB project aimed at improving the living standards of IDPs. The total value of the project is $78.5m (£65m), with some $28.5m (£23.6m) being allocated by the Azerbaijani government. In mid-2016, the Bank issued an additional loan worth $66.7m (£55.3m). Since 2001, the WB has issued loans worth $153.2m (£127m) to improve the living conditions and raise the income of more than 500,000 Azerbaijani IDPs. Altogether, Azerbaijan has spent AZN6.1bn ($3.47bn) over the past 23 years, aimed at alleviating the challenges faced by IDPs and refugees.

1 January 2017

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