# ![](media/image1.jpeg){width="0.7409722222222223in" height="0.7798611111111111in"}Doing Business In Azerbaijan: A Country Commercial Guide for U.S. Companies

# INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, 2008. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

-   [Chapter 1: Doing Business In
    ...](#chapter-1-doing-business-in-azerbaijan)

-   [Chapter 2: Political and Economic
    Environment](#chapter-2-political-and-economic-environment)

-   [Chapter 3: Selling U.S. Products and Services](#ch3)

-   [Chapter 4: Leading Sectors for U.S. Export and Investment](#ch4)

-   [Chapter 5: Trade Regulations and Standards](#ch5)

-   [Chapter 6: Investment Climate](#ch6)

-   [Chapter 7: Trade and Project Financing](#ch7)

-   [Chapter 8: Business Travel](#ch8)

-   [Chapter 9: Contacts, Market Research and Trade
    Events](#chapter-9-contacts-market-research-and-trade-events)

-   [Chapter 10: Guide to Our Services](#ch10)

#   {#section .unnumbered}

# Chapter 1: Doing Business In Azerbaijan

-   [Market Overview](#market-overview-return-to-top)

-   [Market Challenges](#market-challenges-return-to-top)

-   [Market Opportunities](#market-opportunities-return-to-top)

-   [Market Entry Strategy](#market-entry-strategy-return-to-top)

## Market Overview [**Return to top**](#chapter-1-doing-business-in-azerbaijan)

Azerbaijan\'s continued efforts to modernize and reform its economy into
a market economy presents both significant prospects and challenges.
Many outdated laws have been replaced with modern legislation to
encourage foreign investment, to protect intellectual property, to
permit bankruptcies, and to rationalize the Government\'s revenue
collection policies. Since the mid-1990s, Azerbaijan has successfully
executed a strategy to develop its oil and gas resources and has begun
to receive energy revenue inflows. The 2008 World Bank/IFC \"Doing
Business\" report ranks Azerbaijan at 96 (out of 178), an improvement of
five positions compared to the previous ranking when taking into account
that two countries were added to the ranking in 2008. Azerbaijan\'s
improvement is primarily due to the creation of a one-stop-shop for
business registration at the Ministry of Taxation.

Much work remains to be done, however, to produce prosperity for the
country\'s population of eight and a half million. This includes
improving governance and curbing corruption, diversifying the economy
through domestic and foreign investment, and creating jobs. A long
running and unresolved conflict with Armenia over Nagorno-Karabakh has
left Azerbaijan with approximately 800,000 refugees and internally
displaced persons (IDPs) for more than a decade and constitutes an
enormous burden on economic and democratic development. The World Bank
estimated in 2005 that 24 percent of the population lived in poverty,
with slightly more than nine percent in extreme poverty. Poverty remains
particularly acute in Azerbaijan\'s regions, and developing an
environment in which private investors can help create employment
opportunities in the regions remains an imperative for Azerbaijani
policymakers.

Cooperation with the international financial institutions has been a key
element in Azerbaijan\'s reforms efforts. Azerbaijan is a member of the
International Bank for Reconstruction and Development (IBRD), the
European Bank for Reconstruction and Development, the International
Monetary Fund (IMF) and the Asian Development Bank. Azerbaijan is not
yet a member of the World Trade Organization, but the Government has
recently accelerated its WTO accession efforts, hoped to have a WTO
Working Party meeting in Geneva by early spring, and wants to complete
the accession process by late 2009. Azerbaijan\'s macroeconomic
situation continued to improve in 2007. According to the National Bank
of Azerbaijan, compared to the first 11 months of 2006, GDP increased
25.4 percent and reached USD 24.6 billion. Developments in the oil and
gas sector continued to be the primary force behind this growth. Oil and
gas production increased 30 and 61 percent respectively. Inflationary
pressures increased in 2007 with estimates ranging from 18 to 27 percent
through November 2007.

The national currency, the manat, appreciated approximately 3.1 percent
in real terms against the U.S. dollar in 2007. The nominal exchange rate
was approximately 1 USD = 0.845 AZN as of January 1, 2008. The National
Bank\'s currency reserves grew 75.6 percent and reached USD 3.5 billion
in December 2007. The State Oil Fund continued to play a critical role
in promoting macroeconomic stability and in sterilizing massive energy
revenues. As of September 30, 2007, the Oil Fund had more than USD 2
billion in assets. In 2008, the Government of Azerbaijan is expected to
receive approximately USD 5 billion in additional energy revenues. Over
the next 15 years, Azerbaijan is expected to receive more than USD 200
billion in energy revenues.

With completion of the Baku-Tbilisi-Ceyhan oil pipeline and the South
Caucasus gas pipelines in 2006, the nature of business activity within
the energy sector is shifting from infrastructure construction to
services provision. In 2007 the BTC pipeline transported approximately
750,000 barrels of oil a day from Azerbaijan\'s offshore
Azeri-Chirag-Gunashli (ACG) field. In addition, the South Caucasus
Pipeline (SCP) transported natural gas from Azerbaijan\'s offshore Shah
Deniz field to Turkey and Georgia. Azerbaijan has taken significant
steps to implement the Extractive Industries Transparency Initiative
(EITI), which promotes oil revenue transparency. Azerbaijan remains an
active participant in the Extractive Industries Transparency Initiative
(EITI). In June 2007, the United Nations awarded Azerbaijan and its
State Oil Fund a public service award for its work to improve
transparency, accountability and responsiveness in public service.

Corruption is a significant deterrent to investment in Azerbaijan,
especially in the non-energy sector. Laws and regulations that exist to
combat corruption are not effectively enforced, with corruption in the
regulatory, tax, and dispute settlement systems most pervasive. Problems
in the quality, reliability, and transparency of governance, as well as
abuse of the regulatory system and poor contract enforcement,
significantly impede the ability of many companies to do business in
Azerbaijan. These problems have driven many companies, including some
major Western firms, from the market. In the summer of 2007, the
government took several positive steps aimed at tackling the problem of
corruption by adopting a new National Strategy on Increasing
Transparency and Combating Corruption and an ethics code for civil
servants.

The New Anti-Corruption National Strategy, set to run from 2007 to 2011,
replaces and expands upon Azerbaijan\'s previous State Program on
Combating Corruption. The new National Strategy commits the GOAJ to
undertake a number of important reforms in a wide range of areas,
including adopting a comprehensive anti-money laundering/counter
terrorist financing law, increasing accountability in government
purchasing, improvement in the operations of the anti-corruption
commission, streamlining government licensing and regulation, and
increasing transparency throughout government operations. Shortcomings
in its intellectual property rights laws and enforcement of such laws
resulted in Azerbaijan being placed on the U.S. Special 301 Watch List
from 2000 to 2005; however, Azerbaijan was removed from the Watch List
in 2006 due to steps taken to enforce intellectual property rights
enforcement. Azerbaijan remained off the Watch List in 2007.

**Azerbaijan continues to demonstrate strong economic growth:**

  ----------------------- ----------------------- -----------------------
                          2006                    2007

  GDP growth:             33%                     25%

  Inflation:              8%                      16.7%
  ----------------------- ----------------------- -----------------------

Source: Official Government of Azerbaijan data.

Azerbaijan relies heavily on export oil and oil products, which made up
more than 57% Azerbaijan\'s GDP in 2007. Record-high world oil prices
will likely continue this situation in 2008.

Turkey, Russia, Italy, Iran, Georgia, Ukraine, Germany and Great Britain
are main trading partners of Azerbaijan.

Top markets for exports from Azerbaijan (Jan-Nov 2007): Turkey, Italy,
Russia, Iran, and Georgia;

\- U.S. share of exports from Azerbaijan was 4.13%

Top markets for imports to Azerbaijan (Jan-Nov 2007): Russia, Turkey,
Ukraine, Germany, and the United Kingdom;

\- U.S. share of imports to Azerbaijan was 4.73%

## Market Challenges [**Return to top**](#chapter-1-doing-business-in-azerbaijan) 

**Rule of law:**

-   Weak respect for contracts;

-   Court system is weak and often corrupt;

-   Enforcement of judgments is extremely difficult;

-   Alternative dispute resolution (arbitration) is a new and
    undeveloped concept.

**Public and private sector corruption:**

-   Azerbaijan ranked 157 of 180 countries in the 2007 Transparency
    International Corruption Perceptions Index;

-   Due diligence as part of any deal is extremely important;

-   Competition in some sectors is not tolerated if interests of
    well-connected elites are threatened.

**Government services:**

-   Bureaucracy is often difficult to navigate and at times arbitrary;

-   Working through this bureaucracy can take significant time;

-   Many firms experience problems with the Tax Ministry or Customs
    Service;

-   Persistence and transparency is critical to success.

**Competition from other foreign firms:**

-   Turkish, Russian, Chinese, Korean, and European firms are very
    active in the market and provide a low-cost alternative to U.S.
    products;

## Market Opportunities [**Return to top**](#chapter-1-doing-business-in-azerbaijan)

**Telecommunications:**

-   Telecommunications sector is a growth area for Azerbaijan; the
    Government has finished a feasibility study to create a Regional
    Innovation Zone (RIZ) to boost telecommunications development in
    Azerbaijan and with the goal of becoming a regional
    telecommunications hub.

-   Mobile telephone market is presently the most active sub-sector of
    the industry, and has received considerable foreign investment since
    1994;

-   There are three GSM and one CDMA mobile operators in Azerbaijan;

-   Ministry of Communications and Information Technologies retains a
    51% share in most telecommunications enterprises;

-   Continued tight control by the Ministry will slow overall
    development of the sector and decrease some opportunities for U.S.
    telecom equipment providers;

-   U.S. firms looking for opportunities in Azerbaijan should focus on
    medium-sized, private Azerbaijani firms with a minimum two or
    three-year track record;

**Health care and medicine**

-   Medical sector is poised for significant growth driven by oil
    revenue inflows;

-   Sector is dominated by state-run clinics and hospitals, and has
    historically been an extremely corrupt sector of the economy;

-   Azerbaijan does not produce medical equipment domestically and
    consequently there is a demand for high quality U.S. or European
    equipment;

-   Private clinics, catering mainly to wealthy Azerbaijanis and
    expatriates, provide a market for top-quality U.S. sourced
    equipment;

**Construction**

-   Construction sector is booming, with opportunity to increase U.S.
    exports;

-   Virtually all high-quality building materials are imported;

-   Potential opportunities: flooring, tile, paints, drywall, plumbing
    fixtures, doors and windows, and heating and cooling systems;

-   U.S. imports have a reputation for better quality than Turkish,
    Chinese, or Russian competitors, and there are Azerbaijani consumers
    in a position to pay;

-   Sector still operates largely on a "cash and carry" basis;

-   Distributor arrangements with experienced local firms are a good way
    to enter the market,

-   Small- and medium-sized production is on the rise with a potential
    for U.S. equipment;

**Agriculture:**

-   Agriculture sector is Azerbaijan's second-largest sector and largest
    employer;

-   Agriculture sector is slowly recovering following a near collapse
    after the fall of the Soviet Union;

-   Rural development is a top priority for Azerbaijan's government and
    continued growth and demand for agricultural inputs is expected;

-   Substantial infrastructure investments are needed to sustain growth;

-   Agricultural processing is a growth area, with many processed foods
    exported;

-   Tractors, fertilizers, and other implements present opportunities
    for U.S. firms;

## Market Entry Strategy [**Return to top**](#chapter-1-doing-business-in-azerbaijan)

For companies interested in establishing a presence in the Azerbaijani
market:

-   Relationships are key. Plan to spend a significant amount of time,
    perhaps over several visits, building trust and understanding with
    your partner;

-   Relationships are essential when making sales as well. Establishing
    trust with a client can take some time, but is critical to seal the
    deal;

-   Establish trust, but properly document the legal responsibilities of
    all parties.

-   There are important advantages in having a local presence in
    Azerbaijan, particularly in terms of building relationships;

-   A local presence can also manage important relationships with
    government, minimizing risk from government interference or delays;

-   Persistence and transparency are valued highly in certain economic
    sectors and within the government.

[Return to table of contents](#toc)

#   {#section-1 .unnumbered}

# Chapter 2: Political and Economic Environment

For background information on the political and economic environment of
the country, please click on the link below to the U.S. Department of
State Background Notes.

<http://www.state.gov/r/pa/ei/bgn/2909.htm>

[Return to table of contents](#toc)

[[]{#ch3 .anchor}Return to table of contents](#toc)

# Chapter 3: Selling U.S. Products and Services 

-   [Using an Agent or
    Distributor](#using-an-agent-or-distributor-return-to-top)

-   [Establishing an Office](#establishing-an-office-return-to-top)

-   [Franchising](#franchising)

-   [Direct Marketing](#direct-marketing-return-to-top)

-   [Joint Ventures/Licensing](#joint-ventureslicensing-return-to-top)

-   [Selling to the
    Government](#selling-to-the-government-return-to-top)

-   [Distribution and Sales
    Channels](#distribution-and-sales-channels-return-to-top)

-   [Selling
    Factors/Techniques](#selling-factorstechniques-return-to-top)

-   [Electronic Commerce](#electronic-commerce-return-to-top)

-   [Trade Promotion and
    Advertising](#trade-promotion-and-advertising-return-to-top)

-   [Pricing](#pricing-return-to-top)

-   [Sales Service/Customer
    Support](#sales-servicecustomer-support-return-to-top)

-   [Protecting Your Intellectual
    Property](#protecting-your-intellectual-property-return-to-top)

-   [Due Diligence](#due-diligence-return-to-top)

-   [Local Professional
    Services](#local-professional-services-return-to-top)

## Using an Agent or Distributor [**Return to top**](#ch3)

Western entrepreneurs act as agents for U.S. companies in Azerbaijan,
and an increasing number of Azerbaijani trading firms have established
solid track records as partners with Western firms. For U.S. firms not
willing to commit resources to the relatively small market of
Azerbaijan, an agent or representative may be the best initial approach.
In many instances, using a local agent is better especially if the U.S.
good/service is new to the market. For more competitive and developed
market segments, a distributor provides the best option for business
development. Verifying the financial bona fides of prospective partners
can be difficult. Given this challenge, potential exporters should plan
to visit Azerbaijan to build personal relationships, set up local sales
networks, or establish partnerships with local agents or distributors.
Non-for-profit trade chambers, such as the American Chamber of Commerce
in Azerbaijan (Baku), the U.S. -- Azerbaijan Chamber of Commerce
(Washington, DC), and AZPROMO (Azerbaijan Trade and Investment Promotion
Foundation in Baku) may provide good market insights and help locate
well-established local partners.

## Establishing an Office [**Return to top**](#ch3)

[]{#franchising .anchor}According to the Law on Protection of Foreign
Investments, foreign investors may establish the following legal
entities:

-   Enterprise with participation of foreign investors on a shared basis
    (joint ventures);

```{=html}
<!-- -->
```
-   Wholly foreign-owned enterprise (foreign enterprises);

```{=html}
<!-- -->
```
-   Representative office.

Once a U.S. firm has decided to open an office in Azerbaijan, it needs
to choose between establishment of a limited presence, a joint venture
or a wholly foreign-owned enterprise for entrepreneurial activity. A
limited presence is possible in the form of a representative office or a
branch. A representative office and a branch that are subdivisions of a
foreign legal entity are not considered to be an Azerbaijani legal
entity, but both are still subject to taxation. A full legal presence as
an Azerbaijani legal entity may be achieved through establishing the
following forms of legal entities:

-   Joint Stock Company

-   General Partnership

-   Limited Partnership

-   Limited Liability Company

-   Additional Liability Company

Under the new "single window" principle, the Ministry of Taxes of the
Azerbaijan Republic is authorized to register all types of commercial
legal entities and must do it with three business days. The following
documents should be submitted to the Ministry of Taxes to register a
branch or a representative office:

1.  Application for registration as a commercial (for-profit) legal
    entity

2.  Charter of the legal entity (2 notarized copies);

3.  Original or a notarized copy of the company letter establishing the
    local entity and appointing the head of the local legal entity or
    their legal representative.

4.  Notarized copies of the original incorporation papers from the
    United States. The documents must be certified by the consular
    section of the Azerbaijani Embassy in the United States and then
    presented to the Ministry of Taxes;

5.  A copy of a lease agreement or other document certifying the
    entity's legal address in Azerbaijan;

6.  other documents depending on the type of business and/or the tax
    regime.

To register a commercial entity with foreign capital, the foreign legal
entity (further referred to as "FLE"), in addition to items 1, 2, 4, 5,
and 6 mentioned above, needs also to submit the following documents:

1.  A resolution from the FLE's authorized body stating its intent to
    open an office in Azerbaijan and approving the charter of the local
    entity;

2.  Additional information and identification information on all
    shareholders with copies of identification documents for individual
    shareholders;

3.  If a shareholder is a foreigner or a person without citizenship,
    they must submit appropriate documents from the U.S. verifying the
    person's character and entrepreneurial activity,

4.  Resolution by the founders identifying the Supervisory Board, the
    Executive Board and other company principals, as well as their
    identification information and copies of documents,

5.  If required by type of business, copies of documents indicating
    contributions towards charter capital.

The registration fee for a branch office is 220 Azerbaijani mantas
(approximately USD 260) to the accounts noted here:
http://taxes.gov.az/1/info/rusum.shtml.

U.S. firms should remember that all documents from the FLE must be
notarized and legalized in the United States. It is also important to
know that according to the constitution and the Law on the State
Language, Azerbaijani is the official language of administration,
legislation, record keeping in all state bodies, enterprises and
organizations in Azerbaijan. Therefore it is compulsory to accompany any
document written in English with its notarized translation into the
Azerbaijani language.

The above information is provided solely as general advice. Laws and
regulations including registration are subject to change. For detailed
registration, legal, and tax counseling, U.S. firms are advised to
contact tax and legal professionals resident in Azerbaijan to receive
expert advice (see Chapter 11 below). U.S. firms that experience
registration problems should contact the U.S. Embassy in Baku (see
contact information in Chapter 9).

## Franchising [**Return to top**](#ch3)

Franchising is turning into a leading retail model in Azerbaijan.
McDonalds has directly owned and operated a growing network of
restaurants in Baku since November 1999. The supermarket chain Ramstore
(Turkey) has several outlets in Baku. In recent years, franchises of
leading Turkish and European brands have flourished in Azerbaijan, and
U.S. brands are encouraged to consider this opportunity as well.

## Direct Marketing [**Return to top**](#ch3)

In Baku, business to business fax and e-marketing to potential customers
is common but not necessarily effective. By contrast, person-to-person
direct marketing works well (e.g., with health and beauty products).
Other direct marketing channels (catalogs, e-commerce and regular mail)
are still in their infancy. Many shippers are reluctant to send goods
without prepayment. The number of plastic card transactions is steadily
on the rise, but e-commerce is still almost non-existent due to a lack
of relevant legislation.

## Joint Ventures/Licensing [**Return to top**](#ch3)

Given weak shareholder rights, an underdeveloped legal system, and poor
understanding of Western business practices, U.S. firms considering
joint ventures (JVs) should consider the deal structure very carefully
before committing to a JV. This is particularly true in the non-energy
sector, which is unprotected by the PSAs that shield the longer-term oil
and gas sector investments. While U.S. firms will be encouraged to take
on a local partner on the front end of the deal, experience has shown
that a number of these transactions find problems later in the life of
the JV. Should a JV be considered optimal in its proposed deal
structure, U.S. firms should ensure tight management control, clear
capital increase and cash call provisions, iron-clad confirmation of
share increases and decreases, clear procedures for calling shareholder
meetings, and an exit strategy should that become necessary.

Licensing presents obstacles for some firms in Azerbaijan. However, a
September 2002 Presidential decree, \"Activities Requiring Special
Permission (Licenses),\" reduced the number of activities subject to
licensing from 270 to 30 with the term of all licenses increased to five
years. This step was welcomed by the business community, and led to some
improvements in the process of entering the market.

The following is a non-exhaustive list of activities subject to
licensing (current as of January 2008) based on the authority
responsible for issuing the license:

###### Chamber of Auditors

-   Auditing activities

*City and region executive organs (with the exception of city
districts)*

-   Sale of ethyl alcohol and strong drinks

-   Sale of tobacco goods

###### Ministry of Agriculture

-   Production and import of ethyl alcohol and strong drinks

-   Production and import of tobacco goods

###### Ministry of Communications and Information Technology

-   Communication services (telephone, cellular, paging, radio relay,
    installation and operation of cable television, express postal
    service)

###### Ministry of Ecology and Natural Resources

-   Storage and disposal of radioactive and ionized waste

-   Utilization and neutralization of toxic waste

###### Ministry of Economic Development

-   Purchase, processing and sale of non-ferrous metals and industrial
    waste including precious metals and stones

-   Activities of labor exchange

###### Ministry of Education

-   Activities of educational institutions (secondary, vocational, and
    academies)

###### Ministry of Emergency Situations

###### 

-   Engineering and inspection works at buildings and structures of the
    Responsibility Level I and II

###### Ministry of Energy and Industry

-   Sale of oil products

-   Sale of gas products

###### Ministry of Finance

-   Activities of non-governmental social funds

-   Insurance activities

-   Production of controlled accounting forms

###### Ministry of Health 

-   Medical activities

-   Pharmaceutical activities

###### Ministry of Internal Affairs

-   Production of various seals and stamps

###### Ministry of Labor and Social Protection of People

-   Assistance for Azerbaijani citizens to identify employment in
    foreign countries

###### Ministry of National Security

-   The use, production, sale, purchase, import and export of technical
    means for illegal intercepts of information by juridical and natural
    persons not authorized for the execution of investigatory
    activities;

-   Activities in the field of design and production of data protection
    facilities

###### Ministry of Transportation

-   Transportation of passengers and goods by sea

-   Transportation of passengers and goods by air

###### Ministry of Tourism and Culture

-   Tourist activities

###### Ministry of Emergency Situations

###### 

-   XXX

###### National Bank of Azerbaijan

-   Banking activities

###### National TV and Radio Broadcasting Council

###### 

-   TV and radio broadcasting

###### 

###### State Committee for Construction and Architecture

-   Design of buildings and structures of the Responsibility Level I and
    II

###### State Committee for Land and Cartography

-   Cartographic activities

###### State Committee for Securities under the President

-   Activities of stock exchanges

-   Activities of investment funds

-   Activities of professional participants in the equity market
    (brokerage, dealer, securities management, determination of mutual
    obligations (clearing), deposit, registration of holders of
    securities, organization of trades in the equity market)

-   Activities on production and sale of all types of security forms

###### Nakhchivan Autonomous Republic

-   Medical activities

-   Pharmaceutical activities

-   Assistance for Azerbaijani citizens to identify employment in
    foreign countries

-   Production of various seals and stamps

-   Tourist activities

## Selling to the Government [**Return to top**](#ch3)

Selling directly to the central Government or to state enterprises is
difficult because of non-transparent government procurement processes.
Major infrastructure projects are often funded through World Bank or
other multilateral development bank financing and are thus more
transparent. Going forward, the Government is expected to invest more
into public infrastructure projects, as outlined in the 2007-2011 State
Public Investment Program. Companies selling to the Azerbaijani
Government should be particularly careful to specify beforehand how the
18 percent VAT will be levied. In short, absent external financing such
as tenders backed by development bank financing, selling to the
Government should be approached with extreme caution and transparency.

## Distribution and Sales Channels [**Return to top**](#ch3)

In many cases, local companies are distributors for products of
different brands. Chinese, Turkish, Iranian, and Russian products tend
to dominate this price-sensitive market. Several well-established
Azerbaijani firms have successfully sold and represented U.S. and
European brands in Azerbaijan. Due diligence should be done on any
potential Azerbaijani distributor before concluding an agreement or
shipment given the risks inherent in doing business in Azerbaijan.

U.S. firms looking for opportunities in Azerbaijan should focus on
private Azerbaijani firms with a proven track record and good financial
standing. State enterprises are unlikely candidates for performing
distribution and sales activities on behalf of U.S. firms; these
enterprises lack the resources to cover the costs of maintaining U.S.
product inventory for the local market. Azerbaijani firms generally have
poor cash flow, given the lack of affordable credit and other structural
disincentives. Training and flexible stock/inventory options will help
U.S. goods and services penetrate the Azerbaijani market. Given Baku's
dominance of the market, it is best to work with a Baku-based firm for
onward distribution throughout the country.

## Selling Factors/Techniques [**Return to top**](#ch3)

Azerbaijan is primarily a trading country with retail business becoming
increasingly regulated and moving off the "street" into shops and retail
outlets. There are three primary market segments: (1) the largest share
of the population earning the average monthly wage of \$350 or less; (2)
a small but growing middle class with occasional disposable income; and
(3) "new Azerbaijanis" noted for conspicuous consumption of top-priced
items. The first two segments primarily focus on the large and
relatively unregulated markets (bazaars) such as the Bina Airport bazaar
for cheap Chinese, Turkish, Iranian, and Russian goods. U.S. consumer
products firms should focus on the higher end of the market through
retail outlets in Baku given the relatively small but growing number of
consumers with money to spend and interest in higher quality goods and
services. Azerbaijani shoppers are price-sensitive but extremely brand
conscious. U.S. goods and services are lesser known than their Turkish
or European competitors but are generally well regarded and thought to
be reliable -- a key factor in the Azerbaijani shopping mentality.
Counterfeiting of consumer goods is a problem. Well-heeled Azerbaijani
shoppers are known for their impatience and desire to buy immediately
and in cash rather than wait weeks for shipments from warehouses in
nearby countries.

## Electronic Commerce [**Return to top**](#ch3)

Electronic commerce is in its infancy in Azerbaijan. Wide availability
of ATMs has introduced some measure of e-commerce to the market, but
even the use of plastic card payments is limited. A 2005 presidential
decree mandated the rolling introduction of point of sale (POS)
terminals in all shops beginning January 1, 2006 over a two-year period.
While the Ministry of Taxes has pushed retail businesses to install POS
devices, the economy is predominantly cash-based. Until relevant
legislation and infrastructure is more developed, e-commerce will be a
limited market for U.S. firms.

## Trade Promotion and Advertising [**Return to top**](#ch3)

Advertising is growing in sophistication in Azerbaijan, but is still
largely confined to television, radio, newspapers, and billboards.
Outdoor billboards are widely used in Baku for advertising and trade
promotions, though outdoor advertising for tobacco and alcohol products
is prohibited. Newspapers in Azerbaijani and Russian are published
daily, except Sunday. English-language papers are published weekly.
Newspapers are widely sold and read and represent a good channel to
reach Azerbaijani consumers who have disposable income. Television
advertising is possible on state-run and private national TV networks.
There are a number of popular private FM radio stations as well. A
number of Baku-based trade shows also provide an excellent opportunity
to market U.S. goods and services. Please see Chapters 11 and 12 for a
listing of major Azerbaijani newspapers, business journals, TV and FM
programs, and trade events.

## Pricing [**Return to top**](#ch3)

Prices in Azerbaijan must be quoted in Azerbaijani manats. Azerbaijanis
expect to bargain over prices. With the exception of goods such as
gasoline and certain other products, the government does not set retail
prices. Prices include the 18 percent value added tax (VAT).

## Sales Service/Customer Support [**Return to top**](#ch3)

While systemized customer service is still only developing, more local
firms are developing a Western-style customer service approach. Cellular
operators and information technologies firms in Azerbaijan are known for
their high-quality service and customer support. Product guarantees are
generally still rare, but are becoming more common. That said,
implementation is still a problem as local distributors do not always
uphold parent company guarantees.

## Protecting Your Intellectual Property [**Return to top**](#ch3)

Azerbaijani law protects copyrights, patents, trademarks, and industrial
designs. The U.S.-Azerbaijan bilateral trade treaty also covers
intellectual property rights (IPR). Azerbaijan belongs to the World
Intellectual Property Organization (WIPO) and a number of international
treaties on the protection of intellectual property. In reality,
government enforcement of IPR laws has been weak, though improving, and
copyrighted products are often sold in markets and stores with no
provision to pay royalties to copyright holders. CDs and Western videos,
dubbed in Russian or Azerbaijani, are sold at less than 15 percent of
their market value in the West. Firms with IPR concerns are urged to
contact the Embassy's Commercial Section, as Embassy support can be
crucial in forcing action to protect copyright and trademark
infringement.

## Due Diligence [**Return to top**](#ch3)

As accurate financial documentation and credit history is difficult to
obtain on potential customers and partners, it is imperative to conduct
adequate due diligence prior to entering into any commercial deal or
venture. Failure to perform adequate checks can jeopardize an investment
or sideline a commercial deal. Recourse in such instances is limited. In
some areas, such as the oil and gas sector, some firms have a proven
track record with international firms. In other areas, firms may be
well-known or regarded locally, which may become apparent early on in
the process. Interested companies may contact the Embassy to discuss
their plans in Azerbaijan.

## Local Professional Services [**Return to top**](#ch3)

Given the challenges of doing business in Azerbaijan, U.S. clients are
advised to retain strong, in-country legal counsel. This especially
includes at the outset of any transaction involving investment,
structuring of joint ventures, and the like. The Azerbaijani legal
system does not yet contain a transparent body of commercial law, and
implementation of court decisions is haphazard at best. A new civil code
was adopted in September 2000 and has, to a certain extent, improved the
legal environment for commercial activity. Please see Chapter 11 for a
list of law firms and consulting companies with offices in Azerbaijan.

[Return to table of contents](#toc)

[]{#ch4 .anchor}

# Chapter 4: Leading Sectors for U.S. Export and Investment 

-   [Agricultural Sector](#agsectors)

**Commercial Sectors**

-   [Oil and Gas Sector](#oil-and-gas-sector)

-   [Banking and Financial Sector](#banking-and-financial-sector)

-   [Telecommunications Sector](#telecommunications-sector)

-   [Healthcare Sector](#healthcare-sector)

-   [Construction Sector](#contacts-return-to-top-1)

## Oil and Gas Sector

### Overview [**Return to top**](#ch4)

+---------------------+-------+----------+-------+-------------------+
|                     | 2004  | 2005     | 2006  | 2007              |
+---------------------+-------+----------+-------+-------------------+
| Local Oil           | 8,808 | 8,868    | 8,889 | 8,702             |
| Production          |       |          |       |                   |
|                     |       |          |       |                   |
| (mln. tons)         |       |          |       |                   |
+---------------------+-------+----------+-------+-------------------+
| Local Gas           | 4,236 | 4,998    | 5,944 | 9,132             |
| Production (mln.    |       |          |       |                   |
| m^3^)               |       |          |       |                   |
+---------------------+-------+----------+-------+-------------------+
| Oil Exports (1000   | N/A   | 6,345    | 9,215 | 26,905            |
| tons)               |       |          |       |                   |
|                     |       |          |       | (through Nov      |
|                     |       |          |       | 2007)             |
+---------------------+-------+----------+-------+-------------------+
| Total               | N/A   | N/A      | 7,671 | 28,288            |
| Baku-Tbilisi-Ceyhan |       |          |       |                   |
| oil exports (1000   |       |          |       |                   |
| barrels)            |       |          |       |                   |
+---------------------+-------+----------+-------+-------------------+
| Oil Imports to the  | 484   | 563      | 1     | 18,524            |
| U.S.                |       |          | 0,091 |                   |
|                     |       |          |       | (through Nov      |
| (1000 barrels)      |       |          |       | 2007)             |
+---------------------+-------+----------+-------+-------------------+

Source: [http://www.eia.doe.gov](http://www.eia.doe.gov/),
[http://www.azstat.org](http://www.azstat.org/), and
http://az-customs.net/

Since the mid 1990's the oil and gas sector has been the engine driving
Azerbaijan's economy forward. Through a series of Production Sharing
Agreements (PSAs), Azerbaijan succeeded in attracting significant
foreign direct investment from international oil companies. This
investment has led to a rapid increase in production, enriching the
country and creating opportunities for U.S. businesses.

Azerbaijan is the beginning of an East-West energy corridor built on two
major pipelines. The first, the Baku-Tbilisi-Ceyhan (BTC) oil pipeline,
stretches from Baku in Azerbaijan, through Tbilisi, Georgia, to a
terminus at Ceyhan in Turkey. The second, the South Caucasus Gas
Pipeline (SCP), roughly parallels the BTC project route. Development of
the two pipelines, as well as the Azerbaijani-Chirag-Guneshli (ACG) oil
field and Shah Deniz gas field, resulted in more than \$400 million in
contracts for U.S. firms. Significant oil revenues have amplified the
State Oil Company's (SOCAR) ambitions to become a world-class energy
company. This may present more opportunities for a wide range of U.S.
companies: from management consulting to engineering and project
management.

### Best Products/Services [**Return to top**](#ch4)

Due to extensive onshore and offshore development, this sector remains
at the top of the Best Sectors List that includes most types of
equipment related to the exploration, extraction and transportation of
oil and gas. Project management and engineering services, petroleum
products, drilling and oilfield equipment also hold large potential for
US. firms in this area

### Opportunities [**Return to top**](#ch4)

The oil and gas sector in Azerbaijan is expected to remain a lucrative
market for U.S. businesses for years to come. However, as production
increases and then plateaus, the major opportunities in the market have
shifted toward support and service of the oil industry, rather than
exploration and construction.

### Resources [**Return to top**](#ch4)

State Oil Company of Azerbaijan: http://www.socar.az/

BP Caspian: http://www.bp.com/caspian

Caspian World:
[http://www.caspianworld.com](http://www.caspianworld.com/)

U. S. Energy Information Administration:
[http://www.eia.doe.gov](http://www.eia.doe.gov/)

State Statistics Committee of Azerbaijan:
[http://www.azstat.org](http://www.azstat.org/)

State Oil Fund of Azerbaijan:
[http://www.oilfund.az](http://www.oilfund.az/)

## Banking and Financial Sector

### Overview [**Return to top**](#ch4)

  ------------------------------------------- ---------------------------
                                              2007

  Number of banks                             46

  Number of non-bank credit organizations     96

  Total bank assets                           6,725,700,000 AZN

  Total bank deposits                         3,437,900,000 AZN

  Number of insurance companies               30

  Total insurance premiums                    147,200,000 AZN
  ------------------------------------------- ---------------------------

Source: National Bank of Azerbaijan ([www.nba.az](http://www.nba.az/)),
Ministry of Finance

Azerbaijan has seen considerable consolidation in the banking sector
over the past few years, going from over 240 banks to 46, though many
experts believe that further consolidation is still needed. The minimum
capital requirement for existing and startup banking institutions was
increased to approximately \$18 million. However, the majority of
private Azerbaijani banks is underdeveloped, lack capital, and plays a
small role in financing local businesses. Measures to increase the role
of banks in enterpreneurship , especially small and medium size
enterprise development continue. The International Bank of Azerbaijan
(IBA) remains the single leading bank in Azerbaijan with the Government
remaining its largest shareholder and supporting much of the bank's
business and growth.

Although most banks offer short-term trade financing, long-term project
financing, mortgage products, and other modern banking products are
becoming increasingly available. Overall lack of medium to long-term
capital is a major constraint to financing private business in
Azerbaijan. The existing credit supply is far too small to provide a
suitable environment for the development of SME's in the country. In
fact, many SME's have no access to affordable credit lines given
collateral requirements, loan terms, etc. Long-term trade and project
financing are at their infancy.

### Best Prospects/Services [**Return to top**](#ch4)

Trade finance, working capital, manufacturing equipment, construction,
telecommunications, food processing, agribusiness, and tourism.

Leasing in Azerbaijan is in its infancy but is a promising vehicle for
business financing in this developing market. Best prospects in leasing
include manufacturing equipment, medical equipment, and transportation.

### Opportunities [**Return to top**](#ch4)

As Azerbaijan continues to experience significant economic growth and
inflow of oil revenue, development in the banking and financial sector
will continue. Many Azerbaijani banks have expressed interest in
pursuing correspondent relationships with U.S. banks. In addition, an
increasing number of private banks have become interested in attracting
foreign equity investors, and EBRD, IFC, and German financial
institutions have taken an equity stake in several such institutions.

### Resources [**Return to top**](#ch4)

National Bank of Azerbaijan (NBA):
[www.nba.az/eng/](http://www.nba.az/eng/)

International Bank of Azerbaijan: [www.ibar.az](http://www.ibar.az/)

Bank Standard: www.bankstandard.com

Unibank: [www.unibank.az](http://www.unibank.az/)

Technika Bank: www.texnikabank.com/

Bank Respublika: www.bankrespublika.az

Azerbaijanigazbank: www.Azerbaijanigazbank.com

IFC in Azerbaijan:
<http://www.ifc.org/ifcext/eca.nsf/Content/Azerbaijan_Home>

World Bank: [www.worldbank.org](http://www.worldbank.org/)

EBRD: [www.ebrd.gov](http://www.ebrd.gov/)

## Telecommunications Sector

### Overview [**Return to top**](#ch4)

  ----------------------------------------- --------- --------- ---------
                                            2005      2006      2007

  Total Market Size (million AZN)           461.1     571.8     719.9

  Number of cellular phone numbers          2242      3325.6    N/A
  (thousands)                                                   

  Number of Internet subscribers                                1000
  (thousands)                                                   

  Imports of computer and electronic        9,791     33,796    18,773
  products from the U.S. (thousands USD,                        
  through Nov 2007)                                             
  ----------------------------------------- --------- --------- ---------

Source: [http://www.census.gov](http://www.census.gov/) and
[http://www.azstat.org](http://www.azstat.org/), http://www.day.az

The telecommunications sector continues to attract increasing foreign
investor interest. Its share of overall GDP, however, remains low and
was only 1.8% in 2007. The continued liberalization lead by the
Government's vision to turn Azerbaijan into a regional information
technologies hub has created opportunities for U.S. telecom equipment
providers. Accelerating development has created opportunities for U.S.
telecommunications equipment suppliers, operators, and system
integrators. The Ministry of Communications and Information Technology
(MCIT) has been championing the idea of creating a Regional Innovation
Zone in Azerbaijan, a concept developed by the U.S.-based firm Booz
Allen Hamilton. The concept is currently being reviewed by the
Government to determine the next steps of implementation.

The Law on Communications is the main legislative act regulating the
industry. The MCIT is required to keep а register of telecommunication
licenses that have been issued, registered, suspended, or renewed. Of
the telecommunications services, retail internet service provision (ISP)
is not licensed, which has led to a growth and competition among local
ISPs. However, low computer penetration and high cost of high-speed
access has limited growth in this consumer segment.

Generally, foreign legal entities and individuals must obtain a license
to provide express courier services or telecommunications services on an
equal footing with Azerbaijani nationals. Licenses are issued for a
period of five years. However, this requirement may be waved on the
basis of certain international agreements. Under the Communications Law,
the state has exclusive ownership of all radio frequencies. The State
Radio Frequencies Commission is authorized to issue radio frequency use
permits to telecommunications businesses. This Commission also
prescribes the rules and procedures for obtaining such permits and for
operating at various frequencies.

The Communications Law also recognizes the right of foreign individuals
and legal entities to own and operate networks and devices in
Azerbaijan. Such devices must be jointly certified by the MCIT and the
Azerbaijani State Standards Agency and their subordinate bodies, as well
as accredited test laboratories (please see contact information in
Chapter 11).

Currently, Azercell Telecom JV, a joint venture of Turkcell and the
Ministry of Communications and Information Technologies for cellular
service is the largest mobile communications operator with more than
3,000,000 subscribers, most on the popular, pre-pay Sim Sim program.
Bakcell, the second licensed GSM provider, has positioned itself is a
low-cost provider and has enjoyed a strong growth reaching more than
1,000,000 subscribers. The new mobile operator Azerfon started operating
in 2007 and currently holds a very small share of the market -- 300,000
subscribers. Overall, Azerbaijan is the leader among the former Soviet
states in the mobile connectivity penetration.

The country's land-line subscriber base reached 1,421,492 users in 2007.

Companies interested in Azerbaijan's telecommunications sector are urged
to contact the U.S. Embassy in Baku's Commercial Section for additional
information.

### Best Prospects/Services [**Return to top**](#ch4)

The mobile telephony market is presently the most active sub-sector of
the telecom industry in Azerbaijan. It has continued to receive
considerable foreign investment since 1994, when the GSM900 network was
initiated. There are three mobile operators in Azerbaijan -- Azercell
(GSM 900/1800), Bakcell (GSM 900/1800) and Azerfon (GSM 900/1800).
.Mobile communications operators have a key competitive advantage since
they do not have to adhere to the low telecom tariffs dictated by the
government.

Since telephone density in Azerbaijan varies from region to region, \--
reaching as high as 50% in Baku, the national capital, and as low as
10-15% in small towns, \-- wireless mobile and wireless local loop are
often the only alternatives to underfunded wireline networks. With
recent investments into the mobile communications sector, international
telecom equipment manufacturers and service providers indicate that some
market players are ready to invest based on expectations of long term
future dividends.

U.S. suppliers should monitor developments in mobile communications for
future sales opportunities. Prepaid mobile communications services,
mobile banking, Internet, SMS and other value-added services have
allowed mobile communications operators to attract customers from other
telecom sectors, such as paging and trunking.

### Opportunities [**Return to top**](#ch4)

Western entrepreneurs and several Azerbaijani telecom firms act as
agents for U.S. telecom companies in Azerbaijan, and an increasing
number of Azerbaijani trading firms have established solid track records
as partners with Western firms. For U.S. firms not willing to commit
resources to the relatively small market of Azerbaijan, an agent or
representative may be the best initial approach. An agent will work
better if the U.S. telecommunication products/services are relatively
unknown or untested in the market, as the agent will have limited
overhead and inventory to test a new product in the market. For more
competitive, developed market segments, a distributor provides the best
option for business development. Verifying the financial bona fides of
prospective partners is difficult. Given this challenge, potential
exporters should plan to visit Azerbaijan to build personal
relationships, set up local sales networks, or establish partnerships
with local agents or distributors.

In many cases, local companies are distributors for telecommunication
products and services of different brands. Turkish, European (German,
French), U.S., Chinese, and Russian products tend to dominate this
price-sensitive market. Due diligence should be done on any potential
Azerbaijani distributor before concluding an agreement or shipment given
the risks inherent in doing business in Azerbaijan.

U.S. firms looking for opportunities in Azerbaijan should focus on
medium-sized, private Azerbaijani firms with a minimum two or three-year
track record and audited financial statements. State enterprises are
unlikely candidates for performing distribution and sales activities on
behalf of U.S. firms; these enterprises lack the resources to cover the
costs of maintaining U.S. product inventory for the local market.
Training and flexible stock/inventory options will help U.S.
telecommunication products and services penetrate the Azerbaijani
market. Given Baku's dominance of the market, it is best to work with a
Baku-based firm for onward distribution throughout the country.

### Resources [**Return to top**](#ch4)

#### Ministry of Communications and Information Technologies

Address: 33 Azerbaijan Avenue

Baku AZ1016, Azerbaijan

Tel: (994 12) 4930004, 4934327

Fax: (994 12) 4987912, 4984285

E-mail: international@mincom.gov.az

Web: [www.mincom.gov.az](http://www.mincom.gov.az/)

Contact: Mr. Ali Abbasov, Minister

Mr. Ayaz Bayramov, Head of Foreign Relations and Investment Dept

## Healthcare Sector

### Overview [**Return to top**](#ch4)

+------------------------+--------------+--------------+--------------+
|                        | 2006         | 2007         | 2008         |
+------------------------+--------------+--------------+--------------+
| National Healthcare    | 180          | 331          | 393          |
| Budget                 |              |              |              |
|                        |              |              |              |
| (million USD)          |              |              |              |
+------------------------+--------------+--------------+--------------+
| Number of healthcare   | 2324         | 2424         | N/A          |
| facilities             |              |              |              |
+------------------------+--------------+--------------+--------------+

Source: [http://www.census.gov](http://www.census.gov/) and
[http://www.azstat.org](http://www.azstat.org/)

The medical equipment market, while small, has been experiencing steady
growth given growing public healthcare investment and growth of private
healthcare facilities.

After the collapse of the Soviet Union, the previous cradle-to-grave
medical care, disappeared almost overnight. The Government has since
tried to keep the system afloat, but both providers and consumers of
public healthcare admit in private conversations that the limited public
financing for healthcare nowadays does not nearly cover the basic needs
of the Azerbaijani population in healthcare services. The sector is also
historically embedded with corruption and bribery, given unrealistically
low salaries of medical professionals and poorly managed healthcare

Dealing with state authorities on document preparation, customs
clearances, and certification may prove to be a very challenging process
in Azerbaijan. We strongly recommend U.S. companies work through local
importers, as their experience can help cut the red tape.

### Best Prospects/Services [**Return to top**](#ch4)

There is a strong market demand for the following U.S.
healthcare/medical products and services in Azerbaijan:

-   Medical testing equipment used in industrial relations;

```{=html}
<!-- -->
```
-   Ultrasound scanners;

-   Electrocardiographs;

-   X-ray equipment;

-   Laboratory analyzers;

-   Electronic surgery devices;

-   Endoscopes;

-   Gynecologic instruments and appliances;

-   Catheters, drains, and other expendable materials

### Opportunities [**Return to top**](#ch4)

Following the collapse of the Soviet Union, reforms in the Azerbaijani
healthcare industry led to restructuring in public and private sectors.
In 2007, the Government has announced plans to privatize some of the
unprofitable and ineffective medical establishments. In addition, the
Government has been consistently announcing plans to spend part of the
oil wealth in improving public healthcare. The 2008 state budget saw a
18.5 percent increase in healthcare expenditures. The Ministry of Health
has been actively conducting pharmaceutical and equipment tenders for
its wide network of city and regional hospitals.

U.S. firms are advised to work with both the Ministry of Health and
well-established private companies with proven track records. Baku is
ideally situated as a business development hub throughout the Caspian
region, with air, rail, sea, and road links for market projection into
the Caucasus and Central Asia. Azerbaijani firms are interested in
establishing long-term relations with U.S. suppliers.

Advertising is also an important issue. There are only a few medical
magazines in Azerbaijan and their circulation is limited. During Soviet
times, the vast majority of Azerbaijani medical specialists received
their advanced medical degrees in Russia. As many Azerbaijanis are still
bilingual, Russian medical periodicals are very popular and are
considered informative in all aspects. American companies can leverage
this by using their offices in Russia to help them enter the Azerbaijani
market. Familiarity with the Russian language and short shipment times
from Russia to Azerbaijan will also speed up the deal. The Internet is
also a very good source of information for importing companies and for
the procurement divisions of city hospitals and clinics.

### Resources [**Return to top**](#ch4)

Ministry of Health

Address: 4 Kichik Deniz Street

Baku AZ1014, Azerbaijan

Tel: (994 12) 4933175

Fax: (994 12) 4933175

Website: http://www.health.gov.az

E-mail: health@health.gov.az

Contact: Mr. Oktay Shiraliyev, Minister

Mr. Samir Abdullayev, Head of International Relations

BIHE (Baku International Healthcare Exhibition) is the largest
specialized and multi-profiled event in the field of medicine held
annually. BIHE has been held since 1995 and annually features more than
70 domestic and international companies. Every year the exhibition
receives about 10,000 visitors. The Ministry of Health officially
supports BIHE.

For more information on BIHE 2006, please contact
[http://www.ite-exhibitions.com/health/](http://www.iteca.az/)

## Construction Sector

### Overview [**Return to top**](#ch4)

Azerbaijan has been going through a major residential, commercial,
industrial, and public infrastructure construction boom, overwhelmingly
concentrated in its capital, Baku.

The regulatory framework has been lagging behind the local construction
boom. The government restructured state entities in charge of
construction licensing and inspection, by moving all inspection
functions to the State Construction Safety Agency within the
newly-created Ministry of Emergency Situations. Much work remains to be
done, however, to update Soviet-era construction rules and guidelines.

The construction market in Azerbaijan has rapidly evolved from a
state-controlled monolith to one rich with private architectural, design
and building firms with a thirst for the latest Western technologies and
building materials. The lack of acceptable financing (i.e., bank loans
and working capital on reasonable terms) forces Azerbaijani construction
companies to rely on private capital. However, for targeted proposals
backed by trade financing, there is a potential business growth for U.S.
firms with interest in this challenging market.

Public infrastructure construction, residential and commercial real
estate development, and related demand for modern construction equipment
and materials are key areas of growth.

Public infrastructure construction projects have been historically
financed by international lending. However, the Government of Azerbaijan
has been shifting from such projects to those funded directly from the
budget. For example, to help the capital deal with massive urbanization
of the general population, the Government approved a special
state-funded program to construct 11 bridges throughout Baku. Three of
them have been completed and commissioning of some is planned for 2008.
Large highway and railroad upgrade projects are still funded jointly
with major international financial institutions, such as the World Bank,
the European Bank for Reconstruction and Development, and the Asian
Development Bank, as well as other major financial groups. U.S.
companies are advised to work both directly with the Ministry of
Transportation, as well as leading local construction companies with
proven track records and audited reports.

Residential construction, whether multi-story, multiple dwelling units,
or detached houses, are being built throughout the capital \-- almost
exclusively with private money. U.S. suppliers are advised to create
medium-term buying relationships with leading Azerbaijani construction
firms, particularly in the area of modern construction solutions,
production of construction materials, security/CCTV systems, automatic
gates/garages, windows/doors systems, and others.

For industrial construction, main opportunities cover mainly
subcontracting to energy and infrastructure companies in construction,
engineering, and telecommunication sectors, as well as operational
support and supplies.

### Best Prospects/Services [**Return to top**](#ch4)

The Government of Azerbaijan has announced major infrastructure
projects, such as relocation of the Baku International Port and three
Independent Power Plants (IPPs). The government is also working closely
with multilateral financial institutions to upgrade the country's
highway infrastructure, which is in need of major investments.

Today's market is more results-oriented, time-sensitive, and is growing
to appreciate quality materials and workmanship. Stock is also a key
element for Azerbaijani firms because clients want timely delivery of
building materials and services. Inventory requirements are a financial
challenge and risk for construction firms operating in this country.

Building materials on the Azerbaijani market are mostly sourced out of
China, Turkey, Dubai and Russia and perceived to be of lesser quality.
U.S. and European materials enjoy a stronger reputation for quality and,
while more expensive, are preferred by Azerbaijani consumers that are in
a position to pay. Sales are often dependent on product availability in
Baku. Azerbaijani consumers are often the \"cash-and-carry\" type and
might refrain from waiting for long supply lines from the United States.

Long-term leasing of construction equipment also presents opportunities
for U.S. construction equipment firms. Leasing of earthmovers,
bulldozers, small forklifts, etc. \-- particularly in support of
hydrocarbon production, oil and gas pipelines, and public infrastructure
projects \-- can be a commercially viable business. Leasing is expected
to become increasingly prevalent in the future, when more design and
construction sub-contractor tenders are expected to be announced.

### Opportunities [**Return to top**](#ch4)

::: Definition-Term
Following the collapse of the Soviet Union, reforms in the Azerbaijani
construction industry led to major restructuring in public and private
sectors. The U.S. Export-Import Bank (Ex-Im --
[www.exim.gov](http://www.exim.gov/)) and the Overseas Private
Investment Corporation (OPIC -- [www.opic.gov](http://www.opic.gov/))
are interested in developing commercially-viable projects in Azerbaijan
when a U.S. equity investor is present, and U.S. investors should keep
this in mind during project planning.
:::

::: Definition-Term
The Government of Azerbaijan has been lending internationally and
increasing budget spending for infrastructure projects. The World Bank,
the Asian Development Bank, and other international institutions have
highway and railroad projects under way in Azerbaijan. The Ministry of
Transportation recently announced plans to build 10 transportation hubs
and bridges, 11 pedestrian passages and 13 underground and multi-story
parking lots.
:::

::: Definition-Term
Azerbaijani government and private groups have expressed interest in the
booming real estate market. The Government's goal is to build low-cost
housing units for the large refugee and IDP population. Private groups
are interested in the long money for high-end real estate development in
Azerbaijan. Real estate development and project management companies
should consider visiting Azerbaijan to meet with both government and
leading private entities to learn of opportunities in the real estate
sector. U.S. companies are reminded to carry out proper due diligence
and obtain professional legal and tax advice before committing to do
business in Azerbaijan.
:::

::: Definition-Term
Azerbaijani firms are interested in establishing long-term relations
with U.S. suppliers. For U.S. firms not willing to commit resources to a
relatively small market of Azerbaijan, an agent or representative may be
the best initial approach. An agent will work better if the U.S.
construction products/services are relatively unknown or untested in the
market, as the agent will have limited overhead and inventory to test a
new product in the market. For more competitive, developed market
segments, a distributor provides the best option for business
development. Verifying the financial bona fides of prospective partners
is difficult. Given this challenge, potential exporters should plan to
visit Azerbaijan to build personal relationships, set up local sales
networks, or establish partnerships with local agents or distributors.
:::

In many cases, local companies are distributors for construction
materials of different brands. Chinese, Turkish, and Russian products
tend to dominate this price-sensitive market. Several well-established
Azerbaijani construction firms have successfully sold U.S. and European
equipment and services in Azerbaijan. Due diligence should be done on
any potential Azerbaijani distributor before concluding an agreement or
shipment given the risks inherent in doing business in Azerbaijan.

U.S. firms looking for opportunities in Azerbaijan should focus on
medium-sized, private Azerbaijani firms with a proven track record.
Training and flexible stock/inventory options will help U.S.
construction materials and services penetrate the Azerbaijani market.
Given Baku's dominance of the market, it is best to work with a
Baku-based firm for onward distribution throughout the country.

### Resources [**Return to top**](#ch4)

######### Ministry of Transportation

Tbilisi Avenue

Baku, Azerbaijan

Tel: (994 12) 4990546

Fax: (994 12) 4990546

Web: http://www.mintrans.az/

E-mail: office@mintrans.az

Contacts: Ziya Mammadov, Minister

Mr. Musa Panahov, Deputy Minister

Mr. Elmar Farajov, Head of International Projects and TRACECA Unit

Ministry of Emergency Situations

Address: 4 Kichik Deniz Street

Baku AZ1014, Azerbaijan

Tel: (994 12) 512 0013

Fax: (994 12) 512 0039

E-mail: arguge@gmail.com

Contact: Col-Gen Kemaleddin Heydarov, Minister

Lt-Gen Rafail Mirzayev, 1^st^ Deputy Minister

Mr. Arguge Kalantarli, Chief of International Cooperation Division

Ministry of Health

4 Kichik Deniz Street

Baku AZ1014, Azerbaijan

Tel: (994 12) 4930711, 4933175

Fax: (994 12) 4970560

E-mail: health@health.gov.az

Web: http://www.health.gov.az

####### Contacts: Ogtay Shiraliyev, Minister

Mr. Samir Abdullayev, Foreign Relations Department

BAKUBUILD 2006: [www.bakubuild.az](http://www.bakubuild.az/)

BAKUBUILD (Baku International Construction and Interiors, Heating and
Ventilation Exhibition) is held annually and is the only specialized
construction exhibition in the country. For more information on
BAKUBUILD 2006, please see [www.bakubuild.az](http://www.bakubuild.az/)

## Agricultural Sectors [**Return to top**](#ch4)

### Overview [**Return to top**](#ch4)

Selected agricultural figures for 2006:

Land area 8.6 million hectares

Agricultural land 4.5 million hectares

Farm area 1.8 million hectares

Number of farmers 2,600

Irrigated farm land 1.2 million hectares

Forests 1 million hectares

+----------------------------------------+---------+---------+---------+
| []{.mark}                              | 2004    | 2006    | 2007    |
+----------------------------------------+---------+---------+---------+
| Total agricultural output (million     | 1476.6  | 1732.1  | 1893.8  |
| AZN)                                   |         |         |         |
+----------------------------------------+---------+---------+---------+
| U.S. Imports from Azerbaijan           | \-      | 8       | 1,844   |
|                                        |         |         |         |
| In thousands of dollars                |         |         |         |
+----------------------------------------+---------+---------+---------+
| U.S. Exports to Azerbaijan             | 150     | \-      | 39      |
|                                        |         |         |         |
| (In thousands of dollars, through      |         |         |         |
| 2008)                                  |         |         |         |
+----------------------------------------+---------+---------+---------+

Source: Ministry of Agriculture,
[www.census.gov](http://www.census.gov/) and
[http://www.azstat.org](http://www.azstat.org/)

Agriculture is a traditional industry in Azerbaijan. The Soviet system
of collective farms and state-run planned economy had allowed for a more
planned development of agricultural cultivation and processing.
Azerbaijan became a leading agricultural producer, exporting produce and
products through both state and private channels to many destinations
throughout the Soviet Union. However, the collapse of the Soviet Union
led to a collapse of the economic system and stagnation in the entire
agricultural industry. Agricultural production had diminished down to
small individual farming and basic processing.

With the collapse of the Soviet Union, traditional markets dried up,
forcing enterprises to seek new trade linkages. Azerbaijan inherited
outdated food processing equipment, and the packaging in many cases was
rudimentary -- all requiring imported equipment. There is a great
potential for the development of the food processing industry, however
large-scale U.S. exports will remain limited and niche deals will be
more prevalent. Given the challenges of doing business in Azerbaijan,
U.S. firms are best advised to work with well-established firms with a
proven market track record.

Today, more than 95 percent of the nation\'s agricultural land is in
private hands, an important achievement in Azerbaijan's privatization
program. Rural populations have benefited from privatization, but cash
flow and access to affordable credit are major obstacles to business
development for Azerbaijani agribusiness.

There is great potential for development of the food processing industry
supported by a wide variety of Azerbaijani crops and excellent climatic
conditions and extended growing seasons. Fruits (apples, cherries,
grapes, olives, lemons, persimmons, melons, watermelons, raspberries,
strawberries, currants, plums, peaches, pears, quince, and
pomegranates); vegetables (potatoes, carrots, beets, cabbage, tomatoes,
cucumbers, onions and greens), grains (wheat, maize, barley), tea
leaves, and nuts are of high quality, have minimal unit production
costs, and have strong brand recognition in post-Soviet markets. Several
start-up Azerbaijani private firms including the Azersun Holding, MKT,
CTS Agro, Guba Tinning Factory (based in Guba), M-Pro, the Azerbaijan
Dairy Corporation, and Gilan Holding have already made the move to
European equipment and are interested in further sourcing of U.S.
equipment.

Azerbaijan requires import licenses for food products of animal origin.
The State Veterinary Committee (SVC) issues these licenses. Azerbaijani
legislation imposes special rules on labeling of food and agricultural
products. The labels must be in Azerbaijani. English labels are
acceptable if information in Azerbaijani is also provided, although
compliance, as seen on supermarket shelves, is spotty at best.

### Best Products/Services [**Return to top**](#ch4)

Currently, the relative weakness of the U.S. dollar compared to the Euro
and Azerbaijani manat, combined with U.S. export credits, make products
made in the U.S. and sold in dollars, such as processing lines,
extremely competitive in Azerbaijan. There is great demand for food
processing and packaging equipment, especially for mid-size meat, dairy,
and fruits and vegetables processing production. There is also a need
for production of packaging materials for different market segments.

### Opportunities [**Return to top**](#ch4)

Agriculture in Azerbaijan, despite being the largest employer, currently
makes up only six percent of the country's GDP. The Government of
Azerbaijan needs to invest heavily in rural public utilities and rural
transportation infrastructure. In addition, tight quality control and
international certification is key to realizing the export potential of
Azerbaijani produce and products.

U.S. agricultural equipment manufacturers and used equipment dealers
should consider traveling to the region to meet with large private
holding companies active in agricultural processing. The Government is
also interested in promoting small-scale dairy processing in rural
areas.

There is demand for agricultural consulting in such areas as
international certification and distribution. Azerbaijani exporters are
eager to export into the more lucrative Western markets, including the
United States.

### Resources [**Return to top**](#ch4)

####### Ministry of Agriculture and Food Supplies

Azadlig Meydani / Government House, 3^rd^ floor

Baku AZ1016, Azerbaijan

####### Tel: (994 12) 4930884, 4933745

Fax: (994 12) 4945390

E-mail: Tarana.Bashirova@fao.org

Contacts: Ismet Abbasov, Minister

Ms. Tarana Bashirova, International Relations

State Veterinary Service

7a, Nadjaf Narimanov street

Baku AZ1006, Azerbaijan

E-mail: vet_depktn@yahoo.com

Tel: (+994 12) 5627613, 4626632

Fax: (+994 12) 4626606

Contact: Mr. Ismayil Gasanov

Job Title: Head of Service

U.S. Department of State: <http://www.state.gov/p/eur/rls/fs/51702.htm>

USFCS / BISNIS:
[http://www.bisnis.doc.gov/bisnis/bisdoc/Agribusiness%202004.htm](http://www.bisnis.doc.gov/bisnis/bisdoc/Agribusiness 2004.htm)

U.S. Department of Agriculture: [www.usda.gov](http://www.usda.gov/)

Caspian World / Iteca:
[http://www.caspianworld.com](http://www.caspianworld.com/)

State Statistics Committee of Azerbaijan:
[http://www.azstat.org](http://www.azstat.org/)

[Return to table of contents](#toc)

[[]{#ch5 .anchor}Return to table of contents](#toc)

# Chapter 5: Trade Regulations and Standards

-   [Import Tariffs](#import-tariffs-return-to-top)

-   [Trade Barriers](#trade-barriers-return-to-top)

-   [Import Requirements and
    Documentation](#import-requirements-and-documentation-return-to-top)

-   [Temporary Entry](#temporary-entry-return-to-top)

-   [Labeling and Marking
    Requirements](#labeling-and-marking-requirements-return-to-top)

-   [Prohibited and Restricted Imports](#twentythree)

-   [Customs Regulations and Contact
    Information](#customs-regulations-and-contact-information-return-to-top)

-   [Standards](#standards-return-to-top)

-   [Trade Agreements](#trade-agreements-return-to-top)

## Import Tariffs [**Return to top**](#ch5)

The following customs duties are applied in the Republic of Azerbaijan:

a\) ad valorem - to be calculated by percent of commodities for their
customs value;

b\) specific - to be calculated by a determined value for a commodity
unit;

c\) combined - to be calculated by joining of both types.

In 2001, Azerbaijan introduced a new tariff schedule, replacing the
previous streamlined tariff regime that was established in 1997 and
updated in 1999. All imports are subject to duties at uniform rates of
15, 10, 5, or 0.5 percent of the declared customs value, or are duty
free.

In addition to customs duties, an 18 percent VAT was introduced in 2001.
Goods from CIS countries (except Kazakhstan) are assessed VAT in their
country of origin, not in Azerbaijan. In January 2008, the Cabinet of
Ministers introduced changes to the existing list of goods exempt from
VAT. Details are available at <http://az-customs.net/en/news(2).htm> .

## Trade Barriers [**Return to top**](#ch5)

There are several barriers to trade with Azerbaijan that make doing
business here difficult. Non-tariff barriers include a weak and
unpredictable legal regime, arbitrary customs administration, clear
conflicts of interest in regulatory/commercial matters often leading to
export/import monopolies, and corruption. The Azerbaijani government\'s
inadequate enforcement of IPR protections also amount to a trade
barrier.

## Import Requirements and Documentation [**Return to top**](#ch5)

Azerbaijan requires import licenses for food products of animal origin.
The State Veterinary Committee (SVC) issues these licenses (contact
numbers are provided in Chapter 9, Appendix E). Large-scale satellite
dishes and other communications equipment must receive the permission of
the Ministry of Communications and Information Technologies.

Importers are required to provide the State Customs Committee with:

1.  Signed import contract (and contract number);

2.  Customs declaration;

3.  Permission(s) from the relevant state entity(ies) when applicable

4.  Bill of lading;

5.  Sales invoice and packing list;

6.  Certificate of origin; and

7.  Certificate of quality of the imported merchandise.

Exporters are required to provide the State Customs Committee with:

1.  Document verifying the legal status of the business entity;

2.  Legal entity's code determined by the State Statistics Committee;

3.  Copy of the contract (and contract number);

4.  Certificate of origin of the product being exported;

5.  Document issued by an authorized bank on the pre-payment or opening
    of a letter of credit for the exported product;

6.  Permission(s) from the relevant state entity(ies) when applicable;

7.  Sales invoice and packing list; and

8.  Customs declaration.

Imported goods may be kept in a Customs warehouse for up to three years
duty-free. Once the goods are released from the warehouse, they are
subject to all applicable duties and taxes. The Customs warehouse will
also assess charges for demurrage. The rate for this charge should be
negotiated with the Customs warehouse prior to consignment to the
warehouse to avoid any costly misunderstandings.

Goods imported into Azerbaijan for processing and then re-exported are
subject to normal duties and taxes at the time of importation. As soon
as processing has been completed and the goods are re-exported, a
draw-back procedure can be initiated to recover the taxes and duty paid.
There is no formal procedure for submitting an application, and this
process is cumbersome to use. Customs establishes the time for the
processing and re-export of the goods, usually within two years. In
addition, Customs may also stipulate a minimum amount of finished
product to assure that the imported goods are utilized for the purpose
intended.

Provisions for the importation of goods and equipment are an integral
part of production sharing agreements (PSAs). Goods, tools, equipment,
supplies, and services necessary for successfully carrying out the
objectives of the PSA are generally exempt from import duties and taxes.
By extension, foreign firms registered to do business in Azerbaijan and
who provide services for contractor parties (CP) or foreign
subcontractors (FSC) participating in PSAs may also be exempt from
duties and VAT on imported goods and equipment relevant to their work.

The following is a non-exhaustive list of items exempt from import
duties:

-   Goods and property for official use by diplomatic missions and
    equivalent missions in Azerbaijan and for private use by diplomatic
    and administrative employees of these missions and their resident
    family members.

-   Goods imported on the basis of financial aid, loans and technical
    grants of international organizations, foreign entities, and foreign
    persons in accordance with inter-governmental and international
    treaties of Azerbaijan.

-   Goods delivered to Azerbaijan for a limited term and to be returned
    unchanged to the country of origin under pre-defined conditions (VAT
    shall be paid at entrance and reimbursed at exit).

-   Property of foreign employees of enterprises with foreign investment
    in Azerbaijan for private use.

Customs duties do not apply to goods imported under bilateral free trade
treaties between Azerbaijan and foreign states. Importers are subject to
the payment of a customs processing fee in the following amounts:

\- if declared value of goods is less than 1000 Azerbaijani manats (AZN)
-- 10 AZN,

\- from 1000 AZN to 10000 AZN -- 50 AZN,

\- from 10000 AZN to 100000 AZN -- 100 AZN,

\- over 100001 AZN -- 275 AZN,

\- PSA goods, air transportation vehicles purchased under state
guarantees, passport and personal identification templates, equipment
and materials for the exporting oil and gas industry -- 275 AZN,
regardless of the total value of imported goods, plus 10 AZN for each
additional sheet of customs declaration,

\- transit transportation through Azerbaijan -- 10 AZN, plus 10 AZN for
each additional sheet of customs declaration,

\- to obtain a registration certificate for passenger vehicles, cargo
vehicles, and buses -- 20 AZN, for other vehicles -- 15 AZN.

U.S. firms should be forewarned that customs clearances can be
problematic, time-consuming, and bribes are often sought by Customs
officers.

## Temporary Entry [**Return to top**](#ch5)

Personal items, tools of trade, and business samples may be imported
with little problem. Goods to be displayed or exhibited may be brought
in as temporarily imported goods for a period of time, but must be
re-exported within the time stipulated to avoid paying import duties and
taxes. U.S. firms planning to exhibit at major trade exhibitions in
Azerbaijan need to work closely with the show organizer well in advance
to ensure timely and proper temporary declaration of goods to be
exhibited. If sending samples via express mail, firms should contact the
local office of the courier service to get advice on declared customs
value to avoid protracted and costly problems with Customs officials.
Business representatives traveling with laptops must declare them at
time of entry, but have generally not encountered problems bringing in
or taking out cellular phones or laptops. Temporary entry forms covering
laptops must be surrendered on departure.

## Labeling and Marking Requirements [**Return to top**](#ch5)

[]{#twentythree .anchor}Azerbaijani legislation imposes special rules on
labeling of food and agricultural products. The labels must be in
Azerbaijani. English labels are also acceptable if information in
Azerbaijani is also provided, although compliance, as seen on store
shelves, is spotty at best.

Azerbaijani legislation requires the following product information to
appear on the label, however compliance is poor:

-   Name and brand of the product

-   Name and address of producing company

-   Country of origin

-   Expiration date/shelf life

-   Nutrition and caloric values

-   Net weight (grams or kilos)

-   Usage instructions

-   Name and type of packing material

-   Storage instructions

-   Licensing and certification information etc.

-   Special warnings, if applicable.

If the product has a shelf life of under three months, it must include
the day, month, and year of expiration. If the shelf life is more than
three months but less than eighteen months, the month and year are
required. Products with a shelf life of more than three years are
technically not allowed for sale in Azerbaijan, however compliance is
weak. Fruit products must be labeled. Another regulation requires that
labels for fruit "juices" specify whether the product contains fruit
juice (90-100% concentrate), nectar (25-50% concentrate), or fruit
drinks (up to 10% concentrate).

## Prohibited and Restricted Imports [**Return to top**](#ch5)

Government of Azerbaijan must approve, certify or license export/import
of weapons, military equipment, explosives, special types of scientific
and technical information for production of weapons, nuclear and
radioactive materials and technologies, narcotic and psychotropic
substances, blood and blood components, export of unprocessed diamonds.
In addition, it regulates the export of strategic commodities produced
in Azerbaijan.

Export/import of the following goods also require government approval:
wild animals and plants and raw materials from such; information on the
local of natural resources and thermal energy; works of art and
antiques; results of scientific and research work, inventions;
controlled psychotropic substances, medical equipment; insecticides and
veterinary drugs and stances.

Prohibited and restricted imports and exports are subject to change.
Please consult with industry professionals for most up-to-date
information on restrictions and regulations.

## Customs Regulations and Contact Information [**Return to top**](#ch5)

Valuation of goods imported into Azerbaijan is based on the declared
value that appears on the invoice. Import duties of 0.5, 5, 10 and 15%
are then assessed accordingly, based on the Customs Tariff schedule of
the Azerbaijan Republic.

The maximum term for which goods may be stored in a customs warehouse is
three years, after which they must either be declared or placed into
storage facilities owned by the customs authorities.

Contact information:

State Customs Committee

Inshaatchilar Pr. 2

Baku AZ1073

Azerbaijan

Tel: (99412) 438-80-80

Fax: (99412) 498-18-36

E-mail: External@customs.gov.az

## Standards [**Return to top**](#ch5)

-   [Overview](#overview-return-to-top-6)

-   [Contacts](#contacts-return-to-top)

###  Overview [**Return to top**](#standards-return-to-top)

Azerbaijan uses the metric system for weights and measures. Small
appliances use European standard plugs and electric connectors. The
State Veterinary Committee (SVC) is responsible for ensuring basic
health standards on imported food and animal products. State plant
quarantine inspection laws ensure standards on products that may carry
diseases, pests and/or weeds that have quarantine significance for
Azerbaijan. Goods subject to inspection include plants, certain
foodstuffs, wood, and leather.

A State Agency on Standards, Patenting and Metrology exercises authority
over functions such as patenting and other standards areas. Over the
course of several years, Azerbaijan has moved from defunct Soviet
standards to new Azerbaijani standards and international standards,
though this process is not yet complete. The Azerbaijani government is
also moving to the adoption of many European Union standards in
agricultural products.

### Contacts [**Return to top**](#standards-return-to-top)

For questions on standards, firms should contact the State Agency for
Standards, Metrology, and Patents (see Chapter 11).

## Trade Agreements [**Return to top**](#ch5)

Azerbaijan has signed bilateral free trade agreements with seven states
of the former Soviet Union, although the trade liberalizing provisions
of most of the agreements have not yet taken effect. Azerbaijan signed
agreements with:

the Russian Federation (September 30, 1992); Moldova (May 26, 1995);
Ukraine (July 28, 1995); Turkmenistan (March 18, 1996); Uzbekistan (May
27, 1996); Georgia (June 10, 1996); Kazakhstan (June 10, 1997), and
Tajikistan (July 13, 2007).

In 1999, Azerbaijan entered into a Partnership and Cooperation Agreement
with the European Union. Among its goals is making legislation in
Azerbaijan compatible with the EU body of law. This includes the
protection of intellectual property rights, assets and investments, and
corporate and personal belongings against abuse. It also awarded
Azerbaijan most favored nation (MFN) status with the EU. Azerbaijan has
also requested treatment under the U.S. Generalized System of
Preferences (GSP). This request is under consideration by the U.S.
Government. In addition, Azerbaijan is making positive progress in its
efforts to accede to the World Trade Organization. The Government has
recently accelerated its WTO accession efforts, hoped to have a WTO
Working Party meeting in Geneva by early spring, and wants to complete
the accession process by late 2009.

### Resources [**Return to top**](#ch4)

State Customs Committee: http://az-customs.net/en/index.htm

[Return to table of contents](#toc)

[[]{#ch6 .anchor}Return to table of contents](#toc)

# Chapter 6: Investment Climate

-   [Openness to Foreign
    Investment](#openness-to-foreign-investment-return-to-top)

-   [Conversion and Transfer Policies](#thirtytwo)

-   [Expropriation and
    Compensation](#expropriation-and-compensation-return-to-top)

-   [Dispute Settlement](#dispute-settlement-return-to-top)

-   [Performance Requirements and
    Incentives](#performance-requirements-and-incentives-return-to-top)

-   [Right to Private Ownership and
    Establishment](#right-to-private-ownership-and-establishment-return-to-top)

-   [Protection of Property
    Rights](#protection-of-property-rights-return-to-top)

-   [Transparency of Regulatory
    System](#transparency-of-regulatory-system-return-to-top)

-   [Efficient Capital Markets and Portfolio
    Investment](#efficient-capital-markets-and-portfolio-investment-return-to-top)

-   [Political Violence](#political-violence-return-to-top)

-   [Corruption](#corruption-return-to-top)

-   [Bilateral Investment
    Agreements](#bilateral-investment-agreements-return-to-top)

-   [OPIC and Other Investment Insurance
    Programs](#opic-and-other-investment-insurance-programs-return-to-top)

-   [Labor](#labor-return-to-top)

-   [Foreign-Trade Zones/Free
    Ports](#foreign-trade-zonesfree-ports-return-to-top)

-   [Foreign Direct Investment
    Statistics](#foreign-direct-investment-statistics-return-to-top)

## Openness to Foreign Investment [**Return to top**](#ch6)

The Government of Azerbaijan officially welcomes foreign direct
investment, recognizing that it plays a vital role in development of the
country\'s economy. Since 1994, Azerbaijan has attracted significant
amounts of foreign investment to develop further its energy sector.
However, government bureaucracy, weak legal institutions and predatory
behavior by politically connected monopoly interests have severely
hindered investment outside of the energy sector. The 2008 World
Bank/IFC \"Doing Business\" report ranks Azerbaijan at 96 (out of 178),
an improvement of five positions compared to the previous ranking when
taking into account that two countries were added to the ranking in
2008. Azerbaijan\'s improvement is primarily due to the creation of a
one-stop-shop for business registration at the Ministry of Taxation.

The Law on Protection of Foreign Investments permits foreign direct
investment (FDI) in any activity open to a national investor unless
prohibited by law. Prohibited areas include those relating to national
security and defense. The government carefully controls other key
sectors, such as energy and communications. In the past, the process of
investment in the oil and gas sector has been to conclude a Production
Sharing Agreement (PSA) with the State Oil Company of Azerbaijan
(SOCAR), which is subsequently ratified by parliament. The establishment
of a Ministry of Fuel and Energy, renamed the Ministry of Energy and
Industry (MEI) in 2004, has not meaningfully changed this procedure,
although the MEI has been given nominal responsibility for conclusion of
PSAs. A limitation on FDI in the banking sector was reduced when the
National Bank of Azerbaijan (NBA) increased the limit on participation
of banks with foreign ownership from 30 to 50 percent of the commercial
banking market.

Azerbaijan is not yet a member of the World Trade Organization, but the
Government, with U.S. and international technical assistance, has been
working to draft new legislation. The Ministry of Economic Development
has been tasked to lead the WTO accession process. The Government
expects to start WTO negotiations in 2009. Creating a stable and
predictable business environment is especially crucial for attracting
investment to the non-energy sector. At present, however, Azerbaijan
remains a challenging market in which to do business. Following
international recommendations, the Government of Azerbaijan established
a new business registration mechanism on principles of a one-stop-shop
at the Ministry of Taxation. The time to register new businesses has
dropped from several weeks to three days.

While the Azerbaijani government employs no formal screening mechanisms
for general foreign investment, the Ministry of Tax oversees the process
of registering an enterprise. Under Azerbaijani law, foreign investors
may participate in the Azerbaijani market through joint ventures with
local companies, establishment of subsidiaries wholly owned by foreign
investors, and representative offices and branches of foreign legal
entities. The Law on Protection of Foreign Investments provides that the
Azerbaijani government will treat foreign investors in a manner \"not
less favored\" than the treatment accorded to local investors. This law
provides for repatriation of profits, revenues, and other
investment-related funds so long as applicable Azerbaijani taxes have
been paid. The law also provides a 10-year grandfather clause in the
event new legislation less favorable to the foreign investor is adopted.
However, this provision does not apply to changes in tax legislation.

In September 2005, a presidential decree transferred control of
privatization from the Ministry of Economic Development to an autonomous
State Agency for Privatization. Implementation of a second stage
privatization program, which began in 2001 and could include some of
Azerbaijan\'s largest state-owned enterprises, has been slow. Foreign
investors may participate, though it is not clear what role vouchers and
options purchased previously by foreigners will play in these and other
privatizations. Several attempted privatizations or placements of large
state enterprises under private management failed for lack of qualified
bidders. In general, participation in the privatization program
continues to be hindered by a lack of resources to properly prepare
assets for privatization, as well as insufficient information about the
assets of enterprises to be privatized. The Government of Azerbaijan
announced at the end of 2007 that the validity of privatization vouchers
had been extended until 2010.

The Ministry of Economic Development maintains a web site with
information about investment opportunities available in English,
Azerbaijani and Russian (www.economy.gov.az). The Azerbaijani Export &
Investment Promotion Foundation (AZPROMO) (http://www.azpromo.az/) is a
joint Public Private Initiative established by the Government of
Azerbaijan in 2003. AZPROMO is empowered to play a key role in
public-private dialogue serving as a bridge between investors, local
producers and the Government. AZPROMO is an independent organization
with the key objective to contribute to achieving balanced development
of the economy of the country and to implement measures necessary for
the attraction and promotion of inflow of investments for creation of
new jobs, particularly in its rural regions within the poverty reduction
strategy framework. In August 2005, AZPROMO was also empowered with the
mandate to promote export of local non-energy sector products.

The Azerbaijan Investment Company (AIC) is a state-owned joint-stock
company, established by presidential decree in 2006, in order to promote
investment in the non-oil sector. Key priorities of AIC are to
participate in joint-venture projects (especially export-oriented and
import substitute) of Azerbaijani enterprises and to promote local and
foreign investments in the non-oil sector. AIC\'s investment decisions
are based on the analysis of business plans, description of
effectiveness of organization\'s commercial activity, experience and
achievements of shareholders of potential partners. AIC invests in both
existing and newly-established joint-ventures.

## Expropriation and Compensation [**Return to top**](#ch6)

The Law on Protection of Foreign Investments protects foreign investors
against nationalization and requisition except under certain specified
circumstances. Nationalization of property to prevent harm to the
population or damage to state interests of Azerbaijan is possible by
parliamentary resolution. Requisition by a decision of the Cabinet of
Ministers is possible in the event of natural disaster, epidemic, or
other extraordinary situation. In the event of nationalization or
requisition, foreign investors are entitled by law to prompt, effective,
and adequate compensation. There have been no cases of nationalization
or requisition against foreign firms in Azerbaijan.

## Dispute Settlement [**Return to top**](#ch6)

Dispute settlement mechanisms are improving in Azerbaijan, but effective
means of protecting and enforcing property and contractual rights are by
no means assured. While the Azerbaijani government does not officially
interfere in the court system, in practice courts are weak, judges often
inexperienced, and progressive new tax and other economic legislation
poorly understood. The Economic Court, which has jurisdiction over
commercial disputes, is weak, widely regarded as corruptible, and its
decisions are often inconsistent. The Civil Procedure Code of September
2000 sets forth basic civil legislation.

Since 2000, the Law On International Arbitration provides for the
possibility of local arbitration in international commercial matters.
However, in practice arbitration is seldom used to resolve disputes. A
Bilateral Investment Treaty between the U.S. and Azerbaijan, which came
into effect in 2001, provides U.S. investors with recourse to the
International Center for the Settlement of Investment Disputes.
Azerbaijan is a party to the World Bank Convention on the Settlement of
Investment Disputes between States and Nationals of Other States and is
also a member of the Multilateral Investment Guarantee Agency (MIGA).
Azerbaijan is also a party to the 1958 New York Convention on the
Recognition and Enforcement of Foreign Arbitral Awards, which provides
for binding international arbitration of investment disputes between
foreign investors and the state. The Civil Procedure Code provides that
foreign arbitral awards may be enforced in Azerbaijan so long as they do
not contravene legislation or public policy, and if reciprocity exists.
Azerbaijan\'s bankruptcy law does not function effectively and is rarely
used.

## Performance Requirements and Incentives [**Return to top**](#ch6)

Azerbaijan has not yet developed effective incentives to attract foreign
investment, other than the incentives provided by Production Sharing
Agreements in the oil and gas sector. Performance requirements are not
imposed on new investment, but investors who participate in the
privatization process of enterprises often assume specific obligations
regarding future investment and employment. Foreign investors are not
required to purchase from local sources or export a certain percentage
of output. Except for those state monopolies identified above, there is
no requirement that nationals own shares in enterprises. Investors in
PSAs assume obligations and requirements as provided within the PSA.

There are no legal requirements for employment of host country
nationals. Employers wishing to hire foreign workers in Azerbaijan must
obtain a license from the Ministry of Labor. Foreigners who wish to work
in Azerbaijan must register with local authorities at their place of
residence and obtain work permits from the Ministry of Labor. Foreign
workers in Azerbaijan are subject to income taxes and Social Protection
Fund contributions. Heads of representative offices and branches of
foreign legal entities and their deputies do not require work permits.
In 2008, the Government expects to introduce a work visa for all
immigrant employees.

## Right to Private Ownership and Establishment [**Return to top**](#ch6)

Under Azerbaijani law, foreign investors may engage in investment
activities not prohibited by law. Private entities may freely establish,
acquire, and dispose of interests in business enterprises. In practice,
access to markets, credit and other business operations is often impeded
by licensing and other regulatory requirements and by politically
connected business interests that can mobilize the powers of the state
to their advantage. In sectors of interest to certain senior government
and political figures, competition is not tolerated.

Legislation regulating real property rights include the Law on Mortgage
(2005), Land Code of the Republic of Azerbaijan (1999), the Law on Land
Reform (1996), the Law on Land Leasing (1999), and the Law on Land
Market (1999). Azerbaijani citizens and Azerbaijani legal entities,
including enterprises with foreign investment, can legally own, buy,
sell, and trade property. Foreign citizens and enterprises may lease,
but cannot own, land.

## Protection of Property Rights [**Return to top**](#ch6)

Secured interests in property, both movable and real, are technically
recognized. While the Government, together with World Bank, has been
working to improve the property registration system, the system is
filled with bureaucratic requirements and is generally seen as corrupt
and inefficient. In 2006, the Government centralized processing of
residential real estate transactions through a network of notary offices
under the Ministry of Justice.

In the mid-1990s, Azerbaijan began implementing a national system for
registering and protecting intellectual property rights with the
assistance of the World Intellectual Property Organization (WIPO), of
which it is a member. Azerbaijan enacted modern copyright legislation
(Law on Copyright and Related Rights) in 1996, patent legislation (Law
on Patents) in 1997, and trademark protection legislation (Law on
Trademarks and Geographic Names) in 1998. Azerbaijan is a party to the
Convention Establishing the World Intellectual Property Organization,
the Paris Convention for Protection of Industrial Property, and the
Berne Convention for the Protection of Literary and Artistic Works.
Azerbaijan is also a party to the Geneva Phonograms Convention, and
acceded to the two WIPO Internet treaties in 2005.

The State Copyright Agency has formed an anti-piracy commission, with
representatives from various ministries. While the Agency has made some
progress by conducting raids and initiating civil court proceedings for
violation of copyrights, in practice, there is limited enforcement of
intellectual property rights. Pirated software and movies, as well as
knock-off clothing and luxury items, are widely available in Azerbaijan.
Shortcomings in its intellectual property rights laws and enforcement of
such laws resulted in Azerbaijan being placed on the U.S. Special 301
Watch List every year from 2000 to 2005. Improvements in IPR
enforcement, however, resulted in Azerbaijan\'s removal from the Watch
List in 2006. Azerbaijan remained off the Watch List in 2007. Azerbaijan
became a member of the World Intellectual Property Organization (WIPO)
Performances and Phonograms Treaties (WPPT) and Copyright Treaty (WCT)
in April 2006.

## Transparency of Regulatory System [**Return to top**](#ch6)

Although the Azerbaijani government has improved its regulatory system
in the past several years, lack of transparency and allegations of
corruption remain key problems in this area. The lack of transparent
policies and effective laws to establish clear rules and foster
competition are particularly serious impediments to investment. Informal
bureaucratic control mechanisms often impede with application of laws
and regulations and hinder competition.

While laws and decrees are usually published in one of the country\'s
official newspapers, implementation is often delayed while regulations
are developed. Those regulations in many cases are not published or
distributed. Despite some improvement in recent years, many persons
doing business in Azerbaijan continue to complain that bureaucratic
procedures contribute to long delays in gaining necessary permits and
licenses.

Azerbaijan has announced plans to adopt 29 national accounting standards
to be in-line with International Financial Reporting Standards (IFRS) by
2009. Audited financial statements have only been adopted in banking and
finance, where foreign ownership is most advanced.

## Efficient Capital Markets and Portfolio Investment [**Return to top**](#ch6)

As of December 2007, there were 46 banks and 94 non-bank credit
organizations in Azerbaijan. Two more banks have been granted banking
licenses and are expected to start operations soon. The banking sector
is dominated by the International Bank of Azerbaijan (IBA), which
controls more than 50 percent of the banking sector. Foreign ownership
in the banking sector is limited to 50 percent on an aggregate basis.
There are 18 banks with foreign capital. As of November 2007, Moody\'s
Weighted Average Bank Financial Strength Rating for Azerbaijan was \"E
\".

According to the National Bank of Azerbaijan (NBA), as of September
2007, total assets of Azerbaijan banks grew 54 percent and reached AZN
5821.4 million. Total capital of banks grew by 77 percent and reached
AZN 1 billion as of December 1, 2007. Deposits grew by 39 percent and
reached AZN 3100 million. Azerbaijan in 2007 established the National
Depository Insurance Fund, which, as of December 2007, has 37 banking
members.

The NBA has taken steps to improve bank supervision and raise capital
requirements. The capital requirement for banks is currently set at AZN
10 million (roughly USD 11.7 million). A presidential decree requires
installation of point of sale (POS) terminals in all shops within two
years beginning in January 2006. Despite some progress in installation
of POS terminals, the vast majority of stores and restaurants do not
carry POS terminals or, if they do, avoid running card transactions to
minimize taxation. The Baku Interbank Currency Exchange (BICEX) carries
out interbank auctions of foreign exchange. Treasury bill auctions are
conducted by the Baku Stock Exchange, which was established in 2000.
Since then, the number of participants and volume of transactions have
increased, but this is not yet a truly competitive market.

In February 2007, Fitch Ratings upgraded Azerbaijan\'s long-term issuer
default rating to BB with a stable outlook. Moody\'s issuer rating for
Azerbaijan is Ba1.

## Political Violence [**Return to top**](#ch6)

There have been no acts of political violence against U.S. businesses or
assets, nor against any foreign-owned entity. The risk of political
violence affecting foreign investors remains minimal. In 2006 and 2007,
the Azerbaijani authorities arrested two separate groups that were
accused of plotting terrorist acts against Western interests. Police
periodically uses force to disperse unauthorized demonstrations or
spontaneous acts of public discontent; police also used force to break
up a peaceful protest following parliamentary elections in 2005.

## Corruption [**Return to top**](#ch6)

Corruption is a significant deterrent to investment in Azerbaijan,
especially in the non-energy sector. Corruption is a significant
deterrent to investment in Azerbaijan, especially in the non-energy
sector. Laws and regulations that exist to combat corruption are not
effectively enforced, with corruption in the regulatory, tax, and
dispute settlement systems most pervasive. Problems in the quality,
reliability, and transparency of governance, as well as abuse of the
regulatory system and poor contract enforcement, significantly impede
the ability of many companies to do business in Azerbaijan. These
problems have driven many companies, including some major Western firms,
from the market. In the summer of 2007, the government took several
positive steps aimed at tackling the problem of corruption by adopting a
new National Strategy on Increasing Transparency and Combating
Corruption and an ethics code for civil servants. The New
Anti-Corruption National Strategy, set to run from 2007 to 2011,
replaces and expands upon Azerbaijan\'s previous State Program on
Combating Corruption. The new National Strategy commits the GOAJ to
undertake a number of important reforms in a wide range or areas,
including adopting a comprehensive anti-money laundering/counter
terrorist financing law, increasing accountability in government
purchasing, improvement in the operations of the anti-corruption
commission, streamlining government licensing and regulation, and
increasing transparency throughout government operations.

According to Transparency International, the situation in Azerbaijan
worsened in 2007 and the country ranked 157 out of 180 countries,
compared to 130 of 163 in 2006. Corruption appears most pervasive in the
regulatory, tax, and dispute settlement systems; business officials
indicate that their dealings with the State Customs Committee and
Ministry of Taxation pose the greatest concern. Throughout the country,
problems in the quality, reliability and transparency of governance, as
well as abuse of the regulatory system and poor contract enforcement,
significantly impede the ability of many companies to do business in
Azerbaijan and have driven many companies, including some major Western
firms, from the market.

In the past several years, politically connected businesses appear to
have benefited from government regulatory and other decisions to achieve
effective control over several lucrative sectors of the economy, and
U.S. investors have been among those victimized. Currently, powerful
state-owned enterprises, such as the Azerbaijan State Caspian Shipping
Company (CASPAR) and the State Airlines (AZAL), have protected their
commercial interests by blocking entrance of new entrants into the
market through the exercise of their regulatory authority \-- a clear
conflict of interest. A focus of current international community work in
Azerbaijan is combating corruption and improving governance. In 2004,
Azerbaijan joined the Council of Europe\'s Group of States against
Corruption (GRECO), but Azerbaijan is not a signatory to the OECD
Convention on Combating Bribery.

In 2004, Azerbaijan adopted an implementation plan for the Extractive
Industries Transparency Initiative (EITI) to promote more transparent
management of oil revenues. See Introduction, above.

## Bilateral Investment Agreements [**Return to top**](#ch6)

On October 18, 2000, the U.S. Senate ratified the Treaty between the
Government of the United States of America and the Government of the
Republic of Azerbaijan Concerning the Encouragement and Reciprocal
Protection of Investment (commonly known as a \"Bilateral Investment
Treaty\" (BIT). Azerbaijan and the U.S. exchanged instruments of
ratification on July 3, 2001, and the treaty entered into force on
August 2, 2001.

In addition to the above agreement, Azerbaijan has bilateral investment
protection agreements with the following countries: Austria, Belgium,
Bulgaria, China, Egypt, Finland, France, Georgia, Germany, Greece, Iran,
Italy, Kazakhstan, Kyrgyzstan, Latvia, Libya, Moldova, Pakistan, Poland,
Saudi Arabia, Switzerland, Turkey, UAE, Ukraine, and the United Kingdom.

## OPIC and Other Investment Insurance Programs [**Return to top**](#ch6)

OPIC provided USD 100 million in political risk insurance to U.S.-based
financial institutions and U.S. equity partners in the
Baku-Tbilisi-Ceyhan oil pipeline. In 2002, OPIC invested USD 50 million
in Soros Investment Capital for projects targeted to all three Caucasus
countries. OPIC also disbursed a USD 4.6 million loan to Caucasus
Airlines, a regional air carrier based in Tbilisi. Caucasus Airlines
ceased operations in late 2004 after a dispute arose with Azerbaijan\'s
state air carrier AZAL over terms on the Baku-Tbilisi route. In 2005,
OPIC provided financing to Baku Oil Tools for a joint venture with the
State Oil Company, SOCAR. In 2006, OPIC provided USD 7.5 million to
ShoreBank International Ltd for SME and mortgage loan portfolio
expansion in Azerbaijan.

In March 2004, the Export-Import Bank of the United States (Ex-Im Bank)
provided a USD 19.3 million loan guarantee to Saba, Inc., a mid-sized
U.S. company, for engineering, design, and construction services to
build a business and residential center in Baku.

## Labor [**Return to top**](#ch6)

Azerbaijan has an abundant supply of qualified, trained technicians and
skilled and unskilled laborers at attractive rates to employers. At the
same time, companies cite increasing problems with hiring skilled
professional staff, which could be result of a decline in quality
education and labor emigration. The collapse of the old Soviet
industrial sector in this country during the 1990s resulted in large
numbers of Azerbaijanis becoming unemployed or underemployed. Government
sources estimate the rate of unemployment at seven percent, but other
sources quote up to twenty percent or more, with underemployment much
higher. The Government has announced plans to increase the minimum
monthly wage increased from AZN 40 to AZN 60 in 2008. A Labor Code that
took effect in 1999 regulates labor relations. The workweek is generally
forty hours, the right to strike exists, and industrial strikes occur
occasionally. Azerbaijan is a member of the International Labor
Organization and has ratified more than 50 ILO Conventions. Azerbaijan
is currently engaged with the World Bank in a program to reform the
state pension system.

## Foreign-Trade Zones/Free Ports [**Return to top**](#ch6)

Although the government announced in 2003 its intention to create
special economic zones, there are currently no foreign trade zones or
free ports operating. The Ministry of Economic Development has announced
plans to create a special economic zone near the new port to be
completed in 2012. The Ministry of Communication and Information
Technologies has conducted a feasibility study to create Regional
Innovation Zones with an aim to boost development of the sector and to
turn Azerbaijan into a regional information and communication technology
hub.

## Foreign Direct Investment Statistics [**Return to top**](#ch6)

Below numbers are provided by the State Statistical

Committee of Azerbaijan.

Investments (million USD)

2004 2005 2006 2007

Total investments: 5922.7 6669.6 8137.8 N/A

Foreign investments: 4575.5 4444.3 5052.8 5160.0

Domestic investments: 1347.2 2225.3 3085.0 N/A

+-----------------------------+---------+---------+---------+---------+
| FDI (million USD)           | 2004    | 2005    | 2006    | 2007\*  |
+-----------------------------+---------+---------+---------+---------+
| Total                       | 4575.5  | 4444.3  | 5052.8  | 5160.0  |
+-----------------------------+---------+---------+---------+---------+
| Foreign companies           | 104.2   | 30.5    | 368.4   | 276.9   |
|                             |         |         |         |         |
| and joint ventures          |         |         |         |         |
+-----------------------------+---------+---------+---------+---------+
| Turkey                      | 80.1    | 96.2    | 136.6   | 78.8    |
+-----------------------------+---------+---------+---------+---------+
| USA                         | 8.4     | 24.8    | 70.0    | 48.1    |
+-----------------------------+---------+---------+---------+---------+
| Iran                        | N/A     | 1.2     | 17.5    | 2.8     |
+-----------------------------+---------+---------+---------+---------+
| Germany                     | 2.1     | 21.5    | 17.4    | 19.5    |
+-----------------------------+---------+---------+---------+---------+
| Russia                      | 1.8     | 5.1     | 4.6     | 9.6     |
+-----------------------------+---------+---------+---------+---------+
| UnitedKingdom               | 4.2     | 39.5    | 39.1    | 70.5    |
+-----------------------------+---------+---------+---------+---------+
| UAE                         | 4.4     | 5.7     | 18.3    | 10.2    |
+-----------------------------+---------+---------+---------+---------+
| France                      | 2.2     | 2.6     | 11.1    | 4.0     |
+-----------------------------+---------+---------+---------+---------+
| China                       | N/A     | 0.2     | 1.3     | N/A     |
+-----------------------------+---------+---------+---------+---------+
| Italy                       | N/A     | 4.6     | 2.8     | 7.0     |
+-----------------------------+---------+---------+---------+---------+

NOTE: 2007 data is January-September 2007.

Source: State Statistics Committee

Major Foreign Investors:

Significant foreign investors in the energy sector include BP, Unocal,
ExxonMobil, Devon Energy (Pennzoil), TPAO, Statoil, Lukoil, Itochu,
Agip, ChevronTexaco, ENI, Halliburton, Schlumberger, Kvaerner, and Aker
Maritime (Technip-Coflexip). Significant non-energy investments include
Garadagh Cement, Castel (brewery), Coca Cola, Pepsi Cola, Azercell
(mobile telephony), Bakcell (mobile telephony), Azerfon (mobile
telephony), and Hyatt Hotels Baku.

[[]{#ch7 .anchor}Return to table of contents](#toc)

# Chapter 7: Trade and Project Financing

-   [How Do I Get Paid (Methods of
    Payment)](#how-do-i-get-paid-methods-of-payment-return-to-top)

-   [How Does the Banking System
    Operate](#how-does-the-banking-system-operate-return-to-top)

-   [Foreign-Exchange
    Controls](#foreign-exchange-controls-return-to-top)

-   [U.S. Banks and Local Correspondent
    Banks](#u.s.-banks-and-local-correspondent-banks-return-to-top)

-   [Project Financing](#project-financing-return-to-top)

-   [Web Resources](#web-resources-return-to-top)

## How Do I Get Paid (Methods of Payment) [**Return to top**](#ch7)

In many areas of the economy, the vast majority of retail transactions
are still done on a "cash and carry" basis. However, dependence on a
cash economy is decreasing, and ATMs and plastic card payment machines
are increasingly available in the retail market. Large transactions are
accomplished through inter-bank wire. Personal checks are not accepted
anywhere.

## How Does the Banking System Operate [**Return to top**](#ch7)

The banking system in Azerbaijan is undergoing dramatic positive changes
in light of increased foreign investments and National Bank's
progressive policies and attitude. Although many banks offer short-term
trade financing, long-term loans and project financing, as well as
mortgages are only slowing becoming available and nearly always at steep
interest rates. The National Bank's Mortgage Fund quickly ran out of
cash in light of the very low mortgage financing rates, and the
Government has announced plans to discontinue offering low-rate mortgage
and instead work on developing private mortgage lending.

It is estimated that significant amounts of cash are held outside the
banking sector, representing a key challenge for the Azerbaijani
government to bring this capital into the formal banking system.
Azerbaijan\'s bankruptcy law does not function effectively. Although
lending is becoming more and more long-term and the quality of the loan
book is improving, the sector plays a small role in financing the real
economy and there is generally a small, albeit growing, deposit base.

Overall, lack of credit and stringent collateral requirements are key
constraints to the development of private business in Azerbaijan. The
existing credit supply is too expensive to provide a suitable
environment for the development of small- and medium-sized enterprises
in Azerbaijan. Many international private and public institutions have
built successful lending relationships with leading state-owned and
private banks. Long-term trade and project finance is growing in
availability.

Outside of the donor-backed credit lines, there is essentially no bank
credit exceeding 12-18 months. Azerbaijani banks offer difficult lending
terms, usually 15-25% interest in dollar-denominated loans with a
maximum two-year term. Many Azerbaijani firms simply cannot afford such
loans and turn to private sources for finance. Some Azerbaijani banks
have begun lending into the nascent private sector, however, including
construction, telecoms, and food processing and packaging. U.S. firms
are advised to consult external sources of finance, including U.S.
Export-Import Bank and other development banks that can often offer
trade and project finance that is either unavailable or too expensive
from commercial banks.

Western businesses use a handful of local banks for their local business
dealings. The state-owned International Bank of Azerbaijan (IBA), the
private Bank Standard, Unibank, Technika Bank, Bank Respublika, and
AzeriGasBank are among the most popular and reputable. HSBC, the British
Bank of the Middle East and once a widely used bank by expats and the
Azerbaijani business community, closed its doors in 2003. The IBA has
correspondent relationships with U.S. banks. IBA is the only Azerbaijani
bank so far that has been accredited for the U.S. Department of
Agriculture GSM-102 program.

## Foreign-Exchange Controls [**Return to top**](#ch7)

Azerbaijan has a liberal exchange system, and, in general, there are no
restrictions on converting or transferring funds into freely usable
currency and at a legal, market-clearing rate. Conversion is carried out
through the Baku Interbank Currency Exchange Market and the Organized
Interbank Currency Market. The Baku Electronic Currency Exchange System
(BEST) was launched in 2002. Some requirements relating to the
disclosure of the source of currency transfers have been imposed in an
attempt to reduce illicit transactions. There have been no recent
changes in, nor are there plans to change, remittance policies that
would tighten access to foreign exchange for investment remittances. In
June 2002, the National Bank of Azerbaijan liberalized some overseas
transfer provisions for Azerbaijani legal residents, including an
increase of advance payments for import transactions from \$10,000 to
\$25,000 and waiver of all restrictions for withdrawing foreign currency
in cash.

## U.S. Banks and Local Correspondent Banks [**Return to top**](#ch7)

+-----------------------------------+-----------------------------------+
| **Name of Azerbaijani bank**      | **Name of U.S.                    |
|                                   | bank-correspondent**              |
+-----------------------------------+-----------------------------------+
| International Bank of Azerbaijan  | American Express Bank Ltd         |
|                                   |                                   |
|                                   | Deutsche Bank Trust Company       |
|                                   |                                   |
|                                   | JP Morgan Chase Bank              |
|                                   |                                   |
|                                   | Citibank N.A.                     |
|                                   |                                   |
|                                   | HSBC Bank USA                     |
|                                   |                                   |
|                                   | Wachovia Bank N.A.                |
+-----------------------------------+-----------------------------------+
| TechnikaBank                      | Citibank N.A.                     |
|                                   |                                   |
|                                   | Wachovia Bank N.A.                |
|                                   |                                   |
|                                   | American Express Ltd              |
+-----------------------------------+-----------------------------------+
| UniBank                           | e-mail                            |
+-----------------------------------+-----------------------------------+
| Bank Respublika                   | American Express Bank Ltd         |
|                                   |                                   |
|                                   | Wachovia Bank N.A.                |
+-----------------------------------+-----------------------------------+
| AzeriGasBank                      | American Express Bank Ltd         |
|                                   |                                   |
|                                   | Deutsche Bank Trust Company       |
|                                   |                                   |
|                                   | Bank of New York                  |
|                                   |                                   |
|                                   | Citibank                          |
+-----------------------------------+-----------------------------------+
| AzerDemirYolBank                  | American Express Bank Ltd         |
|                                   |                                   |
|                                   | Deutsche Bank Trust Company       |
+-----------------------------------+-----------------------------------+

## Project Financing [**Return to top**](#ch7)

#### [How to Finance Exports?]{.underline}

Letters of credit, confirmed by Western banks, are the usual method for
small to medium transactions in Azerbaijan. Several Azerbaijani banks
have long-standing relationships with Western banks (see Correspondent
Accounts above) that can provide confirmation of L/C's opened by the
Azerbaijani importer.

U.S. Exim Bank provides finance and insurance products for overseas
sales of U.S. goods and services. To qualify for Ex-Im Bank support, the
product or service must have at least 50 percent U.S. content. Ex-Im
Bank has co-financed projects with the U.S. Agency for International
Development, the World Bank, and Regional Development Banks. Its
programs often help U.S. exporters participate in development projects.
Other non-traditional Exim products, such as insurance, can also bring
down fees for letters of credit and thus improve transaction terms.

TDA is involved in the initial phases of the project lifecycle,
providing grants to assist in planning of infrastructure and industrial
projects in emerging markets. In doing so, TDA facilitates partnerships
between U.S. firms and local public and private sector project sponsors.
Activities funded by TDA include: full or partial financing of
feasibility studies, orientation visits, training grants and various
forms of technical assistance. TDA has provided grants for the creation
of a high-altitude air traffic control system in the Caucasus; an
upgrade of the Baku refineries, the Port of Dubendi, a WTO Accession
Advisor to the Azerbaijani government, and a feasibility study on the
development of an American MBA program at the Azerbaijan University of
Construction and Architecture. TDA has also provided grants to fund
consultants at the State Oil Fund, the State Oil Company (SOCAR) and
Ministry of Communications and Information Technology.

OPIC\'s mission is to mobilize and facilitate the participation of U.S.
private capital and skills in economic and social development. OPIC
assists American investors through four principal activities designed to
promote overseas investment and reduce associated risks:

-   Financing of businesses through loans and loan guarantees;

-   Supporting private investment funds which provide equity for U.S.
    companies investing in projects overseas;

-   Insuring investments against a broad range of political risks; and

-   Engaging in outreach activities designed to inform the American
    business community of investment opportunities overseas.

######## Project Finance 

**Asian Development Bank**

Azerbaijan became a member of the Asian Development Bank (ADB), Asia's
premier non-profit financial institution, in 1999. Since joining ADB in
1999, Azerbaijan has received \$104 million in loans. ADB\'s operations
in Azerbaijan focus on two major areas for assistance: direct help to
the poor, narrowly focused on internally displaced persons and poverty
reduction through non-oil sector development. To learn more, please
contact the ADB's Baku office.

**World Bank and International Finance Corporation**

The World Bank is working with the Azerbaijani government to strengthen
the government\'s institutional capacity to manage its petroleum
resources and formulate key policy changes to accelerate reform. The
World Bank maintains a local representative office in Baku, Azerbaijan.
International Finance Corporation (IFC), the private sector arm of the
World Bank, maintains an active business development portfolio. U.S.
firms should also review opportunities for World Bank consultancies and
other tenders as an excellent method to establish a business presence in
Azerbaijan. Contacts for the U.S. Liaison Office to the World Bank are
listed in Chapter 11.

**European Bank for Reconstruction and Development**

EBRD has extensive involvement in the development of Azerbaijan's oil,
transportation, banking and power distribution sectors. Although the
Bank will continue to assist Azerbaijan\'s oil and gas sector in order
to realize the long-awaited economic recovery and the fair distribution
of the wealth created by this sector, it will pay special attention to a
greater diversification of Azerbaijan\'s economy. To date, the EBRD\'s
activities in Azerbaijan have focused on investments in the private
sector, in particular in the banking sector, and on the financing of
critical infrastructure projects. Contacts for the U.S. Liaison Office
to the EBRD are listed in Chapter 11.

## Web Resources [**Return to top**](#ch7)

Export-Import Bank of the United States:
[http://www.exim.gov](http://www.exim.gov/)

Country Limitation Schedule:
<http://www.exim.gov/tools/country/country_limits.html>

OPIC: [http://www.opic.gov](http://www.opic.gov/)

Trade and Development Agency: <http://www.tda.gov/>

SBA\'s Office of International Trade: <http://www.sba.gov/oit/>

USDA Commodity Credit Corporation:
<http://www.fsa.usda.gov/ccc/default.htm>

U.S. Agency for International Development:
[http://www.usaid.gov](http://www.usaid.gov/)

[Return to table of contents](#toc)

[[]{#ch8 .anchor}Return to table of contents](#toc)

# Chapter 8: Business Travel

-   [Business Customs](#business-customs-return-to-top)

-   [Travel Advisory](#travel-advisory-return-to-top)

-   [Visa Requirements](#visa-requirements-return-to-top)

-   [Telecommunications](#telecommunications-return-to-top)

-   [Transportation](#transportation-return-to-top)

-   [Language](#language-return-to-top)

-   [Health](#health-return-to-top)

-   [Local Time, Business Hours and
    Holidays](#local-time-business-hours-and-holidays-return-to-top)

-   [Temporary Entry of Materials and Personal
    Belongings](#temporary-entry-of-materials-and-personal-belongings-return-to-top)

-   [Web Resources](#web-resources-return-to-top-1)

## Business Customs [**Return to top**](#ch8)

Azerbaijan is a mix of Eastern, Western, and post-Soviet business
cultures. It is advised to send a one-page letter of introduction of you
and your U.S. firm in Azerbaijani or Russian to allow your potential
Azerbaijani business partner to know more about you in advance. Meetings
usually start with a firm handshake and general platitudes about your
voyage, first impressions of Azerbaijan, etc. Business cards are
generally exchanged during initial meetings, with one side of the card
in Azerbaijani and the other in English (or Russian). Azerbaijani
business people almost always offer visitors tea and sweets as a form of
hospitality. Azerbaijanis tend to be very polite, but may appear to
foreigners as vague and noncommittal about specifics in business
transactions. Business takes time and patience in Azerbaijan, and much
depends on the personal relationship you build with your Azerbaijani
counterpart. A post-meeting follow-up letter capturing initial oral
agreements and thanking your Azerbaijani counterpart can help build
trust and friendship. Requests for meetings with government officials
can take several days to confirm.

## Travel Advisory [**Return to top**](#ch8)

As of January 2008, there is no U.S. State Department travel advisory in
place for Azerbaijan. However, worldwide announcements for U.S. citizens
to exercise caution overseas are just as applicable in Azerbaijan as in
other countries.

While crime in the city of Baku has generally not been a major problem,
criminal attacks on foreigners have slightly increased. There is a
widespread perception that all foreigners carry large amounts of cash
and make ideal targets. Accordingly, the Embassy advises Americans not
to go out alone at night, especially in the early hours of the morning.
Business visitors should arrange to be met at the airport when they
arrive in Baku. In general, visiting U.S. businesspeople should take the
same security precautions that they would take in any major American
city. U.S. passport holders taking up permanent residence in Azerbaijan
should register with the U.S. Embassy's Consular Section in order to
facilitate timely dissemination of security related information
(contacts below). U.S. citizens can register on line at
<http://azerbaijan.usembassy.gov/>.

The Embassy, working closely with the American Chamber of Commerce in
Azerbaijan, participates in the Overseas Security Advisory Council
(OSAC), an informal group of U.S. businesses that meets to discuss
security issues in Azerbaijan. Before leaving the U.S., travelers are
encouraged to consult the OSAC web page at http://www.osac.gov/ for the
most current travel advisories. Any incidents involving U.S. citizens
should be reported immediately to the Embassy's Consular Section (tel.
498-0335, a 24-hour number) and the local police (tel. 102).

## Visa Requirements [**Return to top**](#ch8)

A valid passport and visa are required to enter Azerbaijan. All visitors
to Azerbaijan are strongly urged to obtain a visa prior to arrival. The
fee for processing the visa ranges from USD 131 to USD 250, depending on
the validity of the visa (i.e. single or multiple entry) and the time in
which it is processed. Visa applications must include a letter of
invitation from an individual or organization in Azerbaijan when
applying for a visa.

Visas are also available at the Baku airport; however, the Embassy
advises all U.S. passport holders to obtain a visa prior to arrival if
possible. For an airport visa, the visitor needs to submit two
photographs, pay USD 131 in cash, and fill out an application (which is
available at the web site listed below). The visa will be issued
immediately and will be valid for thirty days for U.S. passport holders
(note: visas are generally valid for seven days for other
nationalities). Visitors needing to stay longer than one week must apply
to the consular department of the Ministry of Foreign Affairs (Address:
4 Shihali Kurbanov Street, Baku, Azerbaijan, tel. (994 12) 493-5940,
493-9919) before the temporary visa expires. An additional fee to extend
the visa will be required.

Outside the U.S., visas may be obtained from Azerbaijani embassies in
Germany, Turkey, the Russian Federation, the United Kingdom, and other
locations. For additional information on visa requirements, contact the
Embassy of the Azerbaijan Republic, 2741 34^th^ Street NW, Washington,
DC 20008; Telephone (202) 337-5912; Fax (202) 337-5913; Website:
www.azembassy.com.

U.S. Companies that require travel of foreign businesspersons to the
United States should be advised that security opinions are handled via
an interagency process. U.S. visa information is available online at
http://azerbaijan.usembassy.gov/visa_services.html

## Telecommunications [**Return to top**](#ch8)

The telephone system in Baku is generally reliable. International calls
can be completed but may be expensive. Cellular communication services
are widely available. E-mail and full Internet service are available via
local Internet providers. For start-up U.S. businesses that require
reliable Internet contacts, it is best to order a dedicated ISDN or DSL
line to ensure smooth communications. The Azerbaijani postal system is
functional but not secure and it is not recommended to use this system
for outgoing or incoming international correspondence. U.S. courier
firms, such as UPS, FedEx, and PXPost are resident in Baku and should be
used to ensure delivery of business and/or personal correspondence.

## Transportation [**Return to top**](#ch8)

There is a functioning subway system in Baku. However, due to severe
maintenance problems, the Embassy discourages American citizens from
using it. Buses and streetcars are cheap and available, but are crowded
and not recommended. Taxis are inexpensive, readily available and 5 AZN
(6.00 USD) will get you to most places around Baku. Taxis do not have
meters, but the Government has announced plans to import Mercedes taxi
cabs that would have official meters. Both Hertz and Avis offer rental
vehicles with or without drivers. If you are considering bringing a
vehicle with you from overseas, a 4X4 is recommended given the poor road
conditions throughout the country and in parts of Baku.

## Language [**Return to top**](#ch8)

Business can be conducted in Azerbaijani, Turkish, English, or Russian.
English is increasingly used in business, however be prepared to hire an
interpreter for USD100-150 per day, depending on experience. Within
business circles, English is widely spoken in Baku, but outside of Baku,
Azerbaijani is the easiest method to communicate. Azerbaijani and
Russian lessons can be obtained readily through classified
advertisements in the Caspian Business News, Baku Sun and other
English-language newspapers listed below.

## Health [**Return to top**](#ch8)

The health care system in Azerbaijan is far below Western-standards,
under funded, and often unable to provide even basic medical care common
in the U.S. American businesspeople should ensure that all immunizations
and vaccinations are up to date before arriving in Azerbaijan. A handful
of clinics offer Western-standard medical care, including International
SOS, the Turkish-American Medical Clinic, and MediClub. An
American-Azerbaijani joint venture provides Western standard dental
care. Major medical emergencies generally require a medical evacuation
to a European destination. All U.S. travelers should ensure that they
have up-to-date medical evacuation insurance to cover potential
evacuation costs that can exceed \$70,000 for transportation alone.

## Local Time, Business Hours, and Holidays [**Return to top**](#ch8)

The Government of Azerbaijan does not restrict business hours. In
general, businesses are open from 9:00 a.m. to 6:00 p.m. Monday through
Friday. Many business and government offices also keep Saturday hours.
Hours may vary considerably depending on the preference of the
individual businessperson. Business appointments are rarely made before
10:00 a.m. Lunch is generally taken from 1:00 p.m. to 2:00 p.m.

The U.S. Embassy is closed on all U.S. holidays as well as the
below-mentioned Azerbaijani holidays:

  --------------------------------------------- -------------------------
  New Year's Day                                January 1

  Mourning Day                                  January 20

  International Women's Day                     March 8

  Novruz Bayram                                 March 20

  Victory Day                                   May 9

  Day of the Republic                           May 28

  Universal Azerbaijani Solidarity Day          December 31
  --------------------------------------------- -------------------------

Other holidays with dates determined by the Lunar calendar:

Gourban Bayram

Ramazan Holiday

NOTE: Complete list of Azerbaijani holidays is available at
<http://www.president.az/browse.php?sec_id=55&lang=en> .

## Temporary Entry of Materials and Personal Belongings [**Return to top**](#ch8)

Personal items, tools of trade, and business samples may be imported
with little problem. Goods to be displayed or exhibited may be brought
in as temporarily imported goods for a period of time, but must be
re-exported within the time stipulated to avoid paying import duties and
taxes. U.S. firms planning to exhibit at major trade exhibitions in
Azerbaijan need to work closely with the show organizer well in advance
to ensure timely and proper temporary declaration of goods to be
exhibited. If sending samples via express mail, firms should contact the
local office of the courier service to get advice on declared customs
value to avoid protracted and costly problems with Customs officials.
Business representatives traveling with laptops must declare them at
time of entry, but have generally not encountered problems bringing in
or taking out cellular phones or laptops. Temporary entry forms covering
laptops must be surrendered on departure.

## Web Resources [**Return to top**](#ch8)

Types of Visa to Azerbaijan:
http://www.mfa.gov.az/eng/consular/visa_types.shtml

Consular Section of the Embassy of Azerbaijan in the U.S.:
http://www.azembassy.com/new/pages.php?name=Consular

U.S. Embassy Baku:
[http://azerbaijan.usembassy.gov](http://baku.usembassy.gov/cons/consmain.html)

Overseas Security Advisory Council: http://www.osac.gov/

[Return to table of contents](#toc)

[Return to table of contents](#toc)

# Chapter 9: Contacts, Market Research, and Trade Events

-   [Contacts](#contacts-return-to-top-1)

-   [Market Research](#market-research-return-to-top)

-   [Trade Events](#trade-events-return-to-top)

## Contacts [**Return to top**](#chapter-9-contacts-market-research-and-trade-events)

### U.S. AND AZERBAIJANI CONTACTS

> **Embassy of the United States of America**

Address: 83 Azadliq Avenue

> Baku AZ1007, Azerbaijan

Embassy Tel: (994 12) 4980335, 4980336

> Embassy Fax: (994 12) 4656671

Web: http://azerbaijan.usembassy.gov/

Contacts: Anne E. Derse, U.S. Ambassador to Azerbaijan

> Donald Lu, Deputy Chief of Mission
>
> Joan Polaschik, Pol - Econ Counselor
>
> Alan Eyre, Deputy Pol - Econ Chief & Regional Energy Officer
>
> David McCormick, Economic/Commercial Officer
>
> Scott Taylor, USAID Country Coordinator
>
> Carolina Hidea, Economic Officer
>
> James Hine, Regional Security Officer
>
> Jonathan Henick, Public Affairs Officer
>
> Vlad Lipschutz, Consular Officer
>
> Sanan Nasibli, Economic/Commercial Assistant
>
> Farida Akhundova, Economic/Commercial Assistant

U.S. Mailing Address:

7050 Baku Place

Washington DC 20521-7050

Due to severe budget cuts and global restructuring of operations, the
U.S. Foreign Commercial Service closed its Baku office in 2003. A State
Department - funded commercial representative office was opened in 2004.

American companies seeking business opportunities in Azerbaijan should
contact us at (994 12) 4980335 or e-mail <BakuCommercial@state.gov>. For
more information, please visit: http://www.buyusa.gov/azerbaijan.

**[AMERICAN CHAMBER/BILATERAL BUSINESS COUNCILS]{.underline}**

> **American Chamber Of Commerce in Azerbaijan**

Address: 96 Nizami Street,

> Landmark II, 2nd floor
>
> Baku AZ1000, Azerbaijan

Tel: (994 12) 4971333

Fax: (994 12) 4971091

Email: <info@amchamaz.org>

Web: [www.amchamaz.org](http://www.amchamaz.org/)

Contacts: Maksud Mirzoyev, President

Narqiz Nasrullayeva-Muduroglu, Executive Director

> **United States-Azerbaijan Chamber of Commerce (USACC)**

Address: 1212 Potomac Street, NW,

> Washington, DC 20007

Tel: (202) 333-8702

Fax: (202) 333-8703

Email: <Chamber@usacc.org>

Web: [www.usacc.org](http://www.usacc.org/)

Contact: Mr. Mahir Iskender, Executive Director

**[TRADE AND INDUSTRY ASSOCIATIONS IN AZERBAIJAN]{.underline}**

> **Azerbaijan Turkey Business Association**

Address: 21 Istiglaliyat St, 5^th^ floor

> Baku AZ1066, Azerbaijan

Tel: (994 12) 4498882, 4498883

Fax: (994 12) 4498884

E-mail: lragusa67@mac.com

Contact: Louette Ragusa, International Projects Advisor

> **National Confederation of Entrepreneurs (Employers)**
>
> Address: 85 Salatin Askerova Street, 9^th^ floor
>
> Baku AZ1001, Azerbaijan
>
> Tel: (994 12) 4949976, 4920705
>
> Fax: (994 12) 4949976
>
> E-mail: <azerenterprise@lidercard.com>
>
> Web: [www.ask.org.az](http://www.ask.org.az/)
>
> Contacts: Dr. Alekper Mammadov, President
>
> **[AZERBAIJANI GOVERNMENT OFFICES AND KEY STATE
> ENTERPRISES]{.underline}**

Note: If dialing from overseas, please use the (994 12) dialing protocol
for all Baku numbers.

> Office of the President of the Azerbaijan Republic

Address: 19 Istiqlaliyyat Street

Baku AZ1066, Azerbaijan

Tel: (994 12) 4923154, 4927906

Fax: (994 12) 4983328, 4980822

Web: [www.president.az](http://www.president.az/)

Contact: Ilham Aliyev, President

Vahid Akhundov, Economic Advisor

**The Cabinet of Ministers**

Address: 68 Lermontov Street

Baku AZ1066, Azerbaijan

Tel: (994 12) 4980008, 4927528

Fax: (994 12) 4926388, 4989786

Contacts: Artur Rasi-zade, Prime Minister

> Mr. Agadayi Agayev, Chief of Foreign Economic\
> Relations Department

####### **Ministry of Agriculture and Food Supplies**

Address: Azadlig Meydani / Government House, 3^rd^ floor

> Baku AZ1016, Azerbaijan

####### Tel: (994 12) 4930884, 4933745

Fax: (994 12) 4945390

Teletype: 142216 Dask Su

E-mail: Tarana.Bashirova@fao.org

Contacts: Ismet Abbasov, Minister

Tarana Bashirova, International Relations

> **Ministry of Communications and Information Technologies**

Address: 33 Azerbaijan Avenue

> Baku AZ1139, Azerbaijan

Tel: (994 12) 4930004, 4934327

> Fax: (994 12) 4987912, 4984285

####### Telex: 142492 Sahil Su

E-mail: <international@mincom.gov.az>

Web: [www.mincom.gov.az](http://www.mincom.gov.az/)

Contacts: Ali Abbasov, Minister

> Ayaz Bayramov, Head of Foreign Investment Department
>
> **Ministry of Ecology and Mineral Resources**

Address: 100a Bahram Agayev Street

> Baku AZ1073, Azerbaijan

Tel: (994 12) 4388130,

Fax: (994 12) 4925907,

E-mail: aliyev_isa@eco.gov.az

Web: [www.eco.gov.az](http://www.eco.gov.az/)

####### Contacts: Husein Bagirov, Minister

Isa Aliyev, International Relations

> **Ministry of Economic Development**

Address: The Cabinet of Ministers / 23 Niyazi Street

> Baku AZ1001, Azerbaijan

Tel: (994 12) 4902430 / Switchboard: (994 12) 4924110

Fax: (994 12) 4902408, 4902404

E-mail: <office@economy.gov.az>

Web: [www.economy.gov.az](http://www.economy.gov.az/)

Contacts: Heydar Babayev, Minister

Mikayil Jabbarov, Deputy Minister

**Azerbaijan Investment Promotion & Advisory Foundation**

Address: 11, Hasan Abdullayev street

> Baku AZ 1001, Azerbaijan

Tel: (994 12) 598 0147 /48

Fax: (994 12) 4990152

E-mail: office@azpromo.org

Web: www.azpromo.org

Contacts: Emil Majidov, President

Anar Guliyev, Investment Promotion Director

> **Ministry of Emergency Situations**

Address: 83 Tbilisi Avenue

> Baku AZ1022, Azerbaijan

Tel: (994 12) 512 0013

Fax: (994 12) 512 0039

E-mail: arguge@gmail.com

####### Contacts: Kemaleddin Heydarov, Minister

> Mr. Rafail Mirzoyev, First Deputy Minister
>
> Mr. Arguge Kalantarli, International Relations Division
>
> **Ministry of Finance**

Address: 83 Samad Vurgun Street

> Baku AZ1022, Azerbaijan

Tel: (994 12) 4933012, 4930562, 4934941, 4939398

Fax: (994 12) 4987969

E-mail: info@maliyye.gov.az

Web: [www.](http://www.minfin-az.com/)finance.gov.az

####### Contacts: Samir Sharifov, Minister

> Ilham Kerimov, Foreign Relations Department
>
> **Ministry of Health**

Address: 4 Kichik Deniz Street

Baku AZ1014, Azerbaijan

Tel: (994 12) 4930711, 4933175

Fax: (994 12) 4970560

E-mail: health@health.gov.az

Web: http://www.health.gov.az

####### Contacts: Ogtay Shiraliyev, Minister

Samir Abdullayev, Foreign Relations Department

> **Ministry of Industry and Energy**

Address: 88 Hasanbey Zardabi Avenue

> Baku AZ1000, Azerbaijan

Tel: (994 12) 4318012

Fax: (994 12) 4319005

Contacts: Natik Aliyev, Minister

> **Ministry of Justice**

Address: 1 Inshaatchilar Avenue

> Baku AZ1000, Azerbaijan

Tel: (994 12) 4939785, 4300167

Fax: (994 12) 498-5931

E-mail: <contact@justice.gov.az>

Web: [www.justice.gov.az](http://www.justice.gov.az/)

Contacts: Fikret Mamedov, Minister

Fazil Mamedov, Chief of Registration Department

> Faig Gurbanov, Foreign Relations Department
>
> **Ministry of Taxes**
>
> Address: 16 Landau Street
>
> Baku AZ1073, Azerbaijan

Tel: (994 12) 4301656, 4970668

Fax: (994 12) 4985407

E-mail: <info@taxes.gov.az>

Web: [www.taxes.gov.az](http://www.taxes.gov.az/)

Contacts: Fazil Mamedov, Minister

> Ilgar Akbarli, International Relations

######### Ministry of Transportation

> Address: Tbilisi Avenue
>
> Baku, Azerbaijan

Tel: (994 12) 4990546

Fax: (994 12) 4990546

Web: http://www.mintrans.az/

E-mail: office@mintrans.az

Contacts: Mr. Ziya Mammadov, Minister

Mr. Musa Panahov, Deputy Minister

> Mr. Elmar Farajov, Head of International Projects and TRACECA Unit

**Ministry of Culture and Tourism**

Address: 4 Olympia Street

> Baku AZ1072, Azerbaijan

Tel: (994 12) 493 4398

Fax: (994 12) 4906438

Contacts: Alulfaz Garayev, Minister

> Mr. Nazim Samedov, International Relations
>
> **State Customs Committee**
>
> Address: 2 Inshaatchilar Avenue
>
> Baku AZ1073, Azerbaijan

Tel: (994 12) 4388080

Fax: (994 12) 4934067

Web: [www.az-customs.net](http://www.az-customs.net/)

E-mail: <external@az-customs.net>

Contacts: Aydin Aliyev, Chairman

> Dilavar Farzaliyev, International Relations
>
> **State Oil Company of Azerbaijan Republic (SOCAR)**

Address: 73 Neftchilar Avenue

> Baku AZ1004, Azerbaijan

Tel: (994 12) 4920685, 4922312, 4921789

Fax: (994 12) 4923204, 4936492, 4971167

Web: http://www.socar/az

####### E-mail: info@socar.az

####### Contacts: Rovnag Abdullayev, President

> Mr. Elshad Nasirov, VP of Investments and Marketing
>
> **State Oil Fund of Azerbaijan Republic**

Address: 20 Bul-Bul Avenue

> Baku AZ1014, Azerbaijan
>
> Switchboard: (994 12) 4987753, ext: 132
>
> Fax: (994 12) 4987653
>
> E-mail: <office@oilfund.az>\
> Web [www.oilfund.az](http://www.oilfund.az/)\
> Contacts: Shahmar Movsumov, Executive Director
>
> **State Statistics Committee**

Address: Inshaatchilar Avenue

####### Baku AZ1136, Azerbaijan

Tel: (994 12) 4381171, 4386498, 4389376

> Fax: (994 12) 4382442, 4380577
>
> Web: [www.azstat.org](http://www.azstat.org/)

E-mail: <ssc@azstat.org>

> Contacts: Arif Veliyev, Chairman
>
> Azer Ahmadov, Foreign Relations Department
>
> **Azerbaijan Airlines State Concern (AZAL)**

Address: 66/68 28 May Street

> Baku AZ1010, Azerbaijan

Tel: (994 12) 4983471, 4985388

Fax: (994 12) 4985237

####### Web: <http://nac-azal.com/en/index.php> 

E-mail: [azal_gda@Azerbaijanin.com](mailto:azal_gda@azerin.com)

Contacts: Jahangir Askerov, General Director

> Sabir Ilyasov, First Deputy Director
>
> **Azerenergy Joint Stock Company**

Address: 10 A. Alizade Street

> Baku AZ1601, Azerbaijan

Tel: (994 12) 4937358

Fax: (994 12) 4985523

Web: [www.azerenerji.com](http://www.azerenerji.com/)

E-mail: <azerenerji@azerenerji.com>

Contacts: Etibar Pirverdiyev, President

> Polad Guliyev, Foreign Relations Department
>
> **Azerigaz Joint Stock Company**

Address: 23 Yusif Safarov Street,

> Baku AZ1025, Azerbaijan

Tel: (994 12) 4904252

####### Fax: (994 12) 4904255

Contacts: Alihan Melikov, Chairman

> Azer Bayramov, Foreign Economic Relations Department

**Azerbaijan State Railway Road Administration**

Address: 230 Dilara Aliyeva Street

Baku, Azerbaijan

Tel: (994 12) 4994522, 4981664

Fax: (994 12) 4985712

Contacts: Arif Askerov, Head

Igbal A. Huseynov, Deputy Head

######### Baku Sea Port - International Sea Trade Port of Baku

Address: 72 Uzeyir Hajibeyov Street

> Baku AZ1010, Azerbaijan

Tel: (994 12) 936092

Fax: (994 12) 936092

####### Contact: Elchin Mirzayev, General Director

Vahid Aliyev, First Deputy Director

> Elman Aliyev, Chief of Commercial Department
>
> **Caspian State Shipping Company**

Address: 5 M. A. Rasulzade Street

> Baku AZ1601, Azerbaijan

Tel: (994 12) 4932058, 4935181

Fax: (994 12) 4935339

Web: [www.caspar.baku.az](http://www.caspar.baku.az/)

E-mail: <gkmp@caspar.baku.az>

Contacts: Aydin Bashirov, Chief

> Ilham Mamedov, Foreign Econ Relations Department
>
> **National Bank of Azerbaijan**

Address: 32 Rashid Behbudov Street

> Baku AZ1014, Azerbaijan

Tel: (994 12) 4931122

Fax: (994 12) 4935541

Web: [www.nba.az](http://www.nba.az/)

E-mail: <mail@nba.az>

Contacts: Elman Rustamov, Chairman of the Board

###### **SELECT COMMERCIAL BANKS IN AZERBAIJAN**

####### 

####### **International Bank of Azerbaijan** 

Address: 67 Nizami Street

####### Baku AZ1005, Azerbaijan

Tel: (994 12) 4930091, 4930307, 4934159, 4933964

Fax: (994 12) 4934091

Web: [www.ibar.az](http://www.ibar.az/) or
[www.ibaraz.com](http://www.ibaraz.com/)

E-mail: [ibar@ibar.az](mailto:ibar@ibar.azv), <emil.mustafayev@ibar.az>

Contacts: Jahangir Hajiyev, Chairman of the Board

> Emil Mustafayev, Deputy Chairman
>
> **Bank Standard**

Address: 4 H. Hajiyev Street

> Baku AZ1005, Azerbaijan

Tel: (994 12) 4971071

Fax: (994 12) 4980778

E-mail: <bank@bankstandard.com>

Web: [www.bankstandard.com](http://www.bankstandard.com/)

Contacts: Emin Babayev, Chairman of the Board

> **Bank Respublika**

Address: 21 Khagani Street

> Baku AZ1000, Azerbaijan

Tel: (994 12) 598 0800

Fax: (994 12) 598 0880

E-mail: info@bankrespublika.az

Web: http://www.bankrespublika.az

Contacts: Ms. Khadija Hasanova

> Chairperson of the Executive Board
>
> **Unibank**

Address: 57 Rashid Behbudov Street

> Baku AZ1022, Azerbaijan

Tel: (994 12) 982244, 982245

Fax: (994 12) 980953

E-mail: Faig.Huseynov@unibank.az

Web: [www.unibank.az](http://www.unibank.az/)

Contacts: Faig Huseynov, Chairman of the Executive Board

> **Azerigazbank**

Address: 16 Landau Street

> Baku AZ1073, Azerbaijan

Tel: (994 12) 4975017, 4330650

Fax: (994 12) 4989615

Web: [www.azeriAzerbaijanigazbank.com](http://www.azerigazbank.com/)

E-mail: [agbbank@azeriAzerbaijani.com](mailto:agbbank@azeri.com)

Contacts: Azer Movsumov, Chairman of the Board

> **Azerdemiryolbank**

Address: 31 Garabag Street

> Baku 370608, Azerbaijan
>
> Tel: (994 12) 402722, 402429

Fax: (994 12) 960933

E-mail: <damir@azerdemiryolbank.com>

Web: [www.azerdemiryolbank.com](http://www.azerdemiryolbank.com/)

Contacts: Roman Amirdjanov, Chairman of the Board

###### **MULTILATERAL DEVELOPMENT BANKS** 

###### **AND TRADE AND PROJECT FINANCE CONTACTS** 

> **Asian Development Bank (ADB)**
>
> **Azerbaijan Resident Mission**

Address: 44 J. Jabbarly Street,

> Caspian Plaza, 1st Floor
>
> Baku AZ1065, Azerbaijan

Tel: (994 12) 437 3477

Fax: (994 12) 437 3475

E-mail: adbazrm@adb.org

Web: http://www.adb.org/Azerbaijan/

Contacts: Mr. Faraj Huseynbeyov, OIC/Head of Team

> For consultations and development of U.S.-sponsored projects with the
> ADB, please also contact:
>
> **Asian Development Bank (ADB)**
>
> Address: The U.S. Commercial Service Liaison Office to the ADB
>
> 25th Floor, Ayala Life-FGU Building
>
> 6811 Ayala Avenue, Makati City
>
> Metro Manila 1226, Philippines
>
> Tel: (63-2) 887-1345 to 46

Fax: (63-2) 887-1164

E-mail: manila.adb.office.box@N0SPAM.mail.doc.gov1

Web: <http://www.buyusa.gov/adb/>

**European Bank of Reconstruction and Development (EBRD)**

Address: The Landmark, 4^th^ floor / 96 Nizami Street

> Baku AZ1010, Azerbaijan

Tel: (994 12) 4971014

Fax: (994 12) 4971019

E-mail: delaeyf@ebrd.com

Web: http://www.ebrd.org/country/country/azer/index.htm

Contact: Francis Delaey, Head of Office

> For consultations and development of U.S.-sponsored projects with the
> EBRD, please also contact:
>
> **U.S. Commercial Liaison Office for the EBRD**
>
> Address: EBRD, Office of the U.S. Director
>
> One Exchange Square
>
> London EC2A 2JN, United Kingdom

Tel: (+44 20) 7338 6000, 7894 0154, 7588 4027, 7338 7490

Fax: (+44 20) 7338 6100, 7588 4026

Web: http://www.buyusa.gov/ebrd/

E-mail: Sanford.Owens@N0SPAM.mail.doc.gov1

Contacts Sanford Owens, Senior Commercial Officer

> U.S Commercial Liaison Office
>
> **World Bank**

Address: Icheri Sheher, 91/95 Mirza Mansur Street

> Baku AZ1004, Azerbaijan
>
> Tel: (994 12) 4921941, 4922807

Fax: (994 12) 4934766, 4921479

E-mail: sbagirli@worldbank.org

Web: [www.worldbank.org](http://www.worldbank.org/)/az

Contacts: Mr. Gregory Jedrzejczak, Country Manager

Ms. Saida Bagirli, External Affairs Officer:

> For consultations and development of U.S.-sponsored projects with the
> World Bank, please also contact:
>
> **U.S. Commercial Liaison Office for the World Bank**

Address: 1818 H Street, NW

> Washington, DC 20433

Tel: 202-473-6168, 202-458-0120

Fax: 202-522-2630, 202-477-2967

Telex: Rca 248423

Email: blopp@worldbank.org

Web: [www.worldbank.org](http://www.worldbank.org/)

Contacts Mr. Brian Lopp, Commercial Liaison

> Office of the U.S. Executive Director
>
> **International Monetary Fund (IMF)**

Address: 83 Samed Vurgun Street

> Baku AZ1601, Azerbaijan

Tel: (994 12) 4970188, 4970189

Fax: (994 12) 4970187

E-mail: AZEContact@imf.org

Web: <http://www.imf.org/external/country/AZE/index.htm>

Contacts Koba Gvenetadze, Resident Representative

> **International Finance Corporation (IFC)**

Description: ember of the World Bank Group

> Address: Icheri Sheher, 91/95 Mirza Mansur St
>
> Baku AZ1004, Azerbaijan

Tel: (994 12) 4921941

Fax: (994 12) 4921479

E-mail: <anuriyeva@ifc.org>

Web: http://www.ifc.org/ifcext/eca.nsf/Content/Azerbaijan_Home

Contacts: Aliya Azimova, Country Officer

**AUDITING, LAW & CONSULTING FIRMS**

> **Baker & McKenzie**

Address: The Landmark Bldg, 5^th^ fl / 96 Nizami St

> Baku AZ1010, Azerbaijan

Tel: (994 12) 4971801/02/03, 4982480

Fax: (994 12) 971805

E-mail: <baku.info@bakernet.com> & <daniel.matthews@bakernet.com>

Web: [www.bakernet.com](http://www.bakernet.com/)

Contact: Daniel Matthews, Partner

> **Chadbourne & Parke LLP / in affiliation with BM Intl LLP**

Address: Caspian Plaza, 44 Jafar Jabbarli St, 12^th^ fl

> Baku AZ1065, Azerbaijan

Tel: (994 12) 4971914, 4971915

Fax: (994 (12) 4971913

E-mail: <Info@bmlawaz.com>

Web: [www.chadbourne.com](http://www.chadbourne.com/)

Contact: Jamal Bagirov, Senior Partner, BM Intl

> **Deloitte & Touche**

Address: The Landmark Building, 4^th^ fl, 96 Nizami St

> Baku AZ1010, Azerbaijan

Tel: (994 12) 4982970, 4982971, 4982972

Fax: (994 12) 4989805

E-mail: <egurbanov@deloitte.az>

Web: [www.deloitte.ru](http://www.deloitte.ru/)

Contact: Elnur Gurbanov, Audit Manager

> **ERA Marketing Research & Consultancy**

Address: 16/2, M. Ibrahimov St

> Baku, Azerbaijan

Tel: (994 12) 4990680, 4473488

Fax: (994 12) 4990680

E-mail: [emil@era-az.com]{.underline}

Web: [www.era-az.com](http://www.bakerbotts.com/)

Contact: Emil Mammadov, Business Development Mgr

> **Ernst & Young (CIS) Limited**

Address: Hyatt Intl Center - Tower III, 1^st^ fl, 1033 Izmir St

> Baku AZ1065, Azerbaijan

Tel: (994 12) 4907020

Fax: (994 12) 4907017

E-mail: <baku@az.ey.com> <Jody.Campbell@az.ey.com>

Web: [www.ey.com/Azerbaijan](http://www.ey.com/Azerbaijan)

Contact: Mr. Ilgar Veliyev, Managing Partner

> **KPMG**

Address: ISR Plaza, 4^th^ floor - 340 Nizami Street

> Baku AZ1000, Azerbaijan

Tel: (994 12) 4971905, 4971906, 4971907

Fax: (994 12) 4971909

E-mail: <baku@kmpg.az>

Web: [www.kpmg.com](http://www.kpmg.com/)

Contacts: David Meier, Director

> **MGB Law Offices**

Address: 340 Nizami Street

> ISR Plaza, 3rd floor
>
> AZ1000, Baku, Azerbaijan
>
> Tel: (994 12) 4936669, 4932939\
> Fax: (994 12) 4987132

E-mail: office@mgb-law.com

Web: [www.mgb-law.com]{.underline}

Contact: [Mr. Ismail Askerov]{.underline}, Director

> **Michael Wilson & Partners, Ltd**

Address: 340 Nizami St - ISR Plaza, 4th fl

> Baku AZ1000, Azerbaijan

Tel: (994 12) 4978948, 4371183/84/85

Facsimile: (994 12) 4978947

E-mail: <mehriban.efendiyeva@mwp-az.com>

Web: [www.mwp.kz](http://www.mwp.kz/)

Contact: Mehriban Efendiyeva, Lawyer

> **Moore Stephens Azerbaijan Ltd - Baku**
>
> Address: 153 Vidadi Street\
> Baku, Azerbaijan

Tel: (994 12) 4973042

Fax: (994 12) 4973493

E-mail: [rb@bennett.Azerbaijani.com](mailto:rb@bennett.azeri.com)

Web [www.moorestephens.com](http://www.moorestephens.com/)

Contact: Robin Bennett, General Manager

> **OMNI Consultants**

Address: CBC, 5th fl - 67 Fizuli St

> Baku, Azerbaijan

Tel: (994 12) 4480812

> Fax: (994 12) 4991256\
> E-mail: <jbayramov@omniconsultants.net>

Contact: Jeyhun Bayramov, Managing Partner

> **PricewaterHouseCoopers**

Address: The Landmark, 5^th^ floor, 96 Nizami Street

> Baku, Azerbaijan

Tel: (994 12) 4972515

Fax: (994 12) 4977413, 4977411

E-mail:
[movlan.pashayev@az.pwc.com](mailto:movlan.pashayev@az.pwcglobal.com)

Web: [www.pwcglobal.com](http://www.pwcglobal.com/)

Contact: Movlan Pashayev, Tax Manager

> **Salans**

Address: Hyatt Intl Center, 1^st^ fl, 1033 Ismir St

> Baku AZ1065, Azerbaijan

Tel: (994 12) 4907565, 4971057

Fax: (994 12) 4971057

E-mail: <baku@salans.com>

Web: [www.salans.com](http://www.salan.com/)

Contact: James Hogan, Managing Partner

> **Shield Bearer L.L.C.**

Address: Ganjlik, 74 Teymour Aliyev St

> Baku, Azerbaijan

Tel: (994 12) 4906406

Fax: (994 12) 4906324

E-mail: <shieldbearer1@msn.com>

Contact: Stanley Escudero, President

**KEY U.S GOVERNMENT CONTACTS**

**U.S. Department of Commerce**

Address: [Office of the
Secretary](http://www2.osec.doc.gov/public.nsf/docs/about-the-secretary)

> 14th & Constitution Ave, NW\
> Washington, DC 20230
>
> Tel: (202) 482-2000, 482-4883
>
> Web: [www.commerce.gov](http://www.commerce.gov/)
>
> E-mail: <devans@doc.gov>
>
> Contacts: Carlos M. Gutierrez, Secretary of Commerce
>
> **Office of Market Access and Compliance**

Address: 14th Street & Constitution Avenue NW

Washington, DC 20230

Tel: (202) 482-2902

Fax: (202) 482-2456

Web: [www.mac.doc.gov](http://www.mac.doc.gov/)

E-mail: Danica.Starks@mail.doc.gov

> Contact: Ms. Danica Starks, Senior Desk Officer/Policy Advisor,
> Caucasus and Central Asia
>
> (Market access and regulatory issues)
>
> **BISNIS**
>
> U.S. Department of Commerce

Address: Ronald Reagan Building

> USA Trade Center
>
> Stop R\*BISNIS
>
> 1401 Constitution Avenue, NW
>
> Washington, DC 20230

Tel: (202) 482-4655

Fax: (202) 482-2293

Web: [www.bisnis.doc.gov](http://www.bisnis.doc.gov/)

Russian language website:
[www.bisnis.doc.gov/nis](http://www.bisnis.doc.gov/nis),
[www.bisnis-eurasia.org](http://www.bisnis-eurasia.org/)

E-mail: <bisnis@ita.doc.gov>

Contacts: Mr. Philip De Leon, Director <Philip_De_Leon@ita.doc.gov>

> Ms. Chris Christov, International Trade Specialist
> <Chris_Christov@ita.doc.gov>

**SABIT (Special American Business Internship Training)**

Address: U.S. Department of Commerce

14th and Constitution Avenue, NW

Washington D.C. 20230

Tel: (202) 482-0073

Fax: (202) 482-2443

> Web: [www.sabitprogram.org](http://www.sabitprogram.org/)
> [www.mac.doc.gov/sabit/sabit.html](http://www.mac.doc.gov/sabit/sabit.html)

E-mail: SABITApply@ita.doc.gov

Contacts: Ms. Tracy Rollins, Director <Tracy_Rollins@ita.doc.gov>

> Mrs. Lisa Sobol, Deputy Director <Lisa_Sobol@ita.doc.gov>
>
> Mr. Sergei Sviderski, Coordinator, SABIT West NIS and Caucasus

U.S. Embassy Commercial Service, Kiev, Ukraine

E-mail: <Sergei.Sviderski@mail.doc.gov>

> **International Trade Administration**
>
> **Trade Advocacy Center**

Address: Room 3814 A, U.S. Department of Commerce

> 14^th^ Street & Constitution Avenue, NW

Washington, DC 20230

Tel: (202) 482-3896

Fax: (202) 482-3508

Web: [www.trade.gov/advocacy](http://www.trade.gov/advocacy) and
[www.ita.doc.gov](http://www.ita.doc.gov/)

E-mail: ddilyn.Chams-Eddine@mail.doc.gov

Contacts: Ms. Addilyn Chams-Eddine

> Regional Manager - Russia, Turkey & Central Asia

**U.S. Department of State**

Office of Commercial and Business Affairs

Address: 2201 C Street, NW

> Washington, DC 20520

Tel: (202) 647-1625

Main Switchboard Hotline: (202) 647-4000\
for American Travelers: (202) 647-5225\
Fax: (202) 647-3953

Contact: Mr. Timothy Gilman, Foreign Affairs Officer

Tel: (202) 647-4103

Web: [www.state.gov](http://www.state.gov/)

> E-mail: GilmanTG@state.gov
>
> **U.S. Department of Agriculture**
>
> Foreign Agriculture Service
>
> Trade Assistance and Promotion Office

Address: 1400 Independence Avenue, SW

> Washington, DC 20250-1052

Tel: (202) 720-0732

Fax: (202) 690-4374

Web: [www.usda.gov](http://www.usda.gov/)

E-mail: <FayM@fas.usda.gov>

Contact: Michael Fay, Agriculture Specialist

> The U.S. Embassy in Baku also works closely with the U.S. Embassy\'s
> Foreign Agricultural Service in Ankara, Turkey:

Tel: (90 312) 455 5555 x7383

Fax: (90 312) 467 0056

Web: [www.usda.gov](http://www.usda.gov/)

E-mail: Ralph.Gifford@fas.usda.gov

Contact: Mr. Ralph Gifford, Agricultural Counselor

Foreign Agricultural Service (FAS)

U.S. Embassy Ankara, Turkey

> **Overseas Private Investment Corporation (OPIC)**

Address: 1100 New York Avenue, NW, Twelfth Floor

Washington, DC 20527

> Tel: (202) 336-8480, (202) 336-8485

Fax: (202) 408-9866, (202) 408-9866

Web: [www.opic.gov](http://www.opic.gov/)

E-mail: <jgale@opic.gov>

Contact: James Gale, Business Development Officer

**U.S. Trade and Development Agency (TDA)**

Address: 1000 Wilson Boulevard, Suite 1600

> Arlington, VA 22209-3901

Tel: (703) 875-4357

Fax: (703) 875-4009

Web: [www.tda.gov](http://www.tda.gov/)

> E-mail: <dstein@tda.gov>
>
> Contact: Daniel Stein, Regional Director
>
> **Export-Import Bank of the United States (Ex-Im Bank)**
>
> International Business Development

Address: 811 Vermont Avenue, NW

> Washington, DC 20571
>
> Tel: (202) 565 3484
>
> Fax: (202) 565 3677
>
> Web: [www.exim.gov](http://www.exim.gov/)

E-mail: Brian.SantAngelo@exim.gov

Contact: Brian Sant Angelo

> International Business Development - Europe & Eurasia

## Market Research [**Return to top**](#chapter-9-contacts-market-research-and-trade-events)

To view market research reports produced by the U.S. Commercial Service
please go to the following website:
http://www.export.gov/mrktresearch/index.asp.

Please note that these reports are only available to U.S. citizens and
U.S. companies. Registration to the site is required, but free of
charge.

Please consult
[www.buyusa.gov/azerbaijan](http://www.buyusa.gov/azerbaijan),
www.export.gov and www.bisnis.doc.gov for the latest market research on
Azerbaijan, including industry sector overviews, spot market updates,
and commercial newsbriefs.

## Trade Events [Return to top](#chapter-9-contacts-market-research-and-trade-events)

Please click on the link below for information on upcoming trade events.

http://www.export.gov/tradeevents/index.asp

Iteca Caspian is the leading organizer of industry fairs and trade shows
in Azerbaijan. Please check out their website for the most up-to-date
information on industry events.

> **Iteca Caspian LTD**

Address: 1107 Ataturk Avenue

> Baku AZ1069, Azerbaijan

Tel: (994 12) 4474774

Fax: (994 12) 4478998

Web: [www.iteca.az](http://www.iteca.az/)
[www.caspianworld.com](http://www.caspianworld.com/)

E-mail: <office@iteca.baku.az>

Contacts: Farid Mammadov, Executive Director

[Return to table of contents](#toc)

[[]{#ch10 .anchor}Return to table of contents](#toc)

# Chapter 10: Guide to Our Services

The Commercial Section of the U.S. Embassy Baku took over the commercial
functions of the U.S. Commercial Service Baku (FCS), after it closed
down in 2003 due to budgetary constraints.

While the Commercial Section of the U.S. Embassy Baku partners closely
with FCS Turkey, we do not provide partner search and other customized
services available in every market FCS operates. Nevertheless, you are
strongly encouraged to contact the Commercial Section of the U.S.
Embassy Baku to discuss your export to Azerbaijan. We can be reached at:

Commercial Section

U.S. Embassy Baku

83 Azadlig Prospekti

Baku AZ1007

Azerbaijan

Phone: (+994 12) 498 0335

Fax: (+994 12) 465 6671

E-mail: BakuCommercial@state.gov

Web: http://www.buyusa.gov/azerbaijan

[Return to table of contents](#toc)

# 

U.S. exporters seeking general export information/assistance or
country-specific commercial information should consult with their
nearest **Export Assistance Center** or the **U.S. Department of
Commerce\'s Trade Information Center** at **(800) USA-TRADE**, or go to
the following website: [http://www.export.gov]()\
\
To the best of our knowledge, the information contained in this report
is accurate as of the date published. However, **the Department of
State** does not take responsibility for actions readers may take based
on the information contained herein. Readers should always conduct their
own due diligence before entering into business ventures or other
commercial arrangements. **The Department of State** may assist
companies in these endeavors.