Azerbaijan
Development in Eastern Europe and the South Caucasus was prepared as a joint effort between the Development Centre’s Black Sea and Central Asia Initiative and the OECD Eurasia Competitiveness Programme (DAF/PSD), supported by regional correspondents located in each of the countries.
This pilot report assesses Azerbaijan’s anti-corruption framework and practices based on the criteria to test the new methodology for the 5th round of monitoring under the Istanbul Anti-Corruption Action Plan. The report examines Azerbaijan's anti-corruption policy documents, the investigation and prosecution of corruption offences and the overall enforcement framework. The report also identifies areas for improvement and provides recommendations.
Russia’s war against Ukraine is causing a humanitarian, social and economic crisis for the Ukrainian people. The consequences of this full-scale military invasion are disrupting the global supply of commodities, sharply increasing food and energy prices, and threating the recovery from the COVID-19 pandemic. Countries with established commercial and financial ties with the economies of Russia and Ukraine appear to be particularly vulnerable.
Assessing the Impact of Russia’s War against Ukraine on Eastern Partner Countries investigates the exposure of Eastern Partner countries (Armenia, Azerbaijan, Georgia, Republic of Moldova and Ukraine) to the economic shocks caused by the war, and in particular through the impact that the conflict is having on inflation, migration, remittances, investment and trade.
This report is published as part of the multi-country project “EU4Business: From Policies to Action – phase 2”, implemented in the Eastern Partnership with the financial support of the European Union within the EU4Business initiative.
Azerbaijan is a country with rich deposits of oil and natural gas and has, over the last decade, become a major energy producer. As of 2019, the total proven oil reserves of oil and natural gas amount to 7 000 million barrels and 2.6 trillion m3, respectively. Oil production stood at 36.5 ktoe in 2021, roughly 31% less than the peak of 52.8 ktoe in 2010.
Azerbaijan’s legal framework implementing the AEOI Standard is in place but needs improvement in order to be consistent with the requirements of the AEOI Terms of Reference. While Azerbaijan’s international legal framework to exchange the information with all of Azerbaijan’s Interested Appropriate Partners (CR2) is consistent with the requirements, its domestic legislative framework requiring Reporting Financial Institutions to conduct the due diligence and reporting procedures (CR1) has deficiencies significant to the proper functioning of the AEOI Standard. More specifically, a deficiency has been identified with respect to Azerbaijan’s enforcement framework.
Azerbaijan is a rising provider of development co-operation, leveraging and sharing its transformation from a transition economy to an upper middle-income country. Over the past decade, Azerbaijan has significantly reduced its dependence on foreign assistance while increasing its development co-operation with key partners. Azerbaijan’s total official development assistance (ODA) (USD 49.2 million, preliminary data) stayed the same in 2022, representing 0.09% of gross national income (GNI).
This report analyses the implementation of the AEOI Standard in Azerbaijan with respect to the requirements of the AEOI Terms of Reference. It assesses both the legal frameworks put in place to implement the AEOI Standard and the effectiveness of the implementation of the AEOI Standard in practice.
Azerbaijan’s legal framework implementing the AEOI Standard is in place but needs improvement in order to be consistent with the requirements of the AEOI Terms of Reference. While Azerbaijan’s international legal framework to exchange the information with all of Azerbaijan’s Interested Appropriate Partners (CR2) is consistent with the requirements, its domestic legislative framework requiring Reporting Financial Institutions to conduct the due diligence and reporting procedures (CR1) has deficiencies significant to the proper functioning of the AEOI Standard. More specifically, Azerbaijan does not fully incorporate some of the due diligence procedures and there is a deficiency relating to the enforcement framework.
The Constitution of Azerbaijan guarantees equality and rights for all citizens. Article 25 specifically prohibits any restriction of these rights on the grounds of gender. Principles contained in the Employment Code, the Penal Code and the Marriage and Family Code all stem from the Constitution, thereby further sanctioning equal rights and freedoms for men and women.
This chapter identifies, documents and provides estimates of the various subsidies in Azerbaijan that relate to the production or use of coal, oil and related petroleum products, natural gas, and electricity and heat generated on the basis of these fossil fuels. The chapter also briefly looks at the subsidies benefiting energy-efficiency measures and renewable energy sources. An overview of the country's energy sector is first given to place the measures listed into context. In addition, the chapter discusses pricing and tax policies in the energy sector in Azerbaijan. The analysis summarises the context, the state of play, and the mechanics of the complex and evolving landscape of energy subsidies in the country.
The global economic boom of 2000-08 and the steep rises in petroleum prices resulted in very rapid growth for Azerbaijan.
Azerbaijan has been proactive in reforming its business environment, including the introduction of one-stop-shop company registration and a best practice e-government portal. Financial and institutional support measures for innovation and SME capacity building have been launched since 2012, although a strategic framework for these measures is still lacking. The government is also in the process of drafting legislation to address remaining challenges in bankruptcy procedures, business licencing, access to finance and regulatory impact assessment.