20TH ANNIVERSARY OF THE KHOJALY TRAGEDY REMEMBERED IN LONDONAlso in this issue:TEAS France launched in ParisProtests over Council of the EU double-standards Armenian ‘genocide’ bill overturned in FranceAzerbaijan’s energy future outlined in the House of LordsCaucasus expert Professor Tadeusz Swietochowski – a voice of hope

MAGAZINECulture • Business • Politicswww.teas.euNews • Views • Interviews

March 2012

P 3Politics and News

P 5Culture

P 7Personalities

P 11Nagorno-Karabakh

P 13BusinessNews

P 15ITECA Caspian Diary

P 16Facts and Figures

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2 MayTEAS Business Forum 2012Azerbaijan and Turkey – Diverse Investment OpportunitiesNo.4 Hamilton Place, London, W1J 7BQ08.30–20.00hrs. Admission FreeThe second annual TEAS Business Forum is taking place in London on 2 May 2012. This event brings together investors, policy-makers, bankers, journalists, analysts, NGO representatives and government executives for an extensive programme designed to:

• Outline the opportunities and risks when undertaking business and trade in Azerbaijan• Provide updates on Azerbaijan’s investment climate and investors’ concerns• Discuss recommendations for new policies and governance practices to further promote investments by

international and domestic businesses• Raise awareness of the non-oil growth sectors in the country to assist with achieving economic diversification• Contextualise developments with examples from the Turkish experience.

To see a draft programme and register online, go to https://teas.eu/event/teas-business-forum-2012

TEAS EVENTS

The TEAS France office was formally opened on 7 March at the 18th Century Maison des Polytechniciens, located near the diplomatic district of Paris, during an event attended by nearly 300 delegates.

Attendees initially viewed a photographic exhibition entitled Azerbaijan – Land of Fire, depicting the culture, landscape and nature of the country. Following this, Eliza Pieter, Head, TEAS France, outlined TEAS’ activities and the objectives of the French office, stressing that it had been launched to bring Azerbaijan closer to the hearts of the French people. She also made a reference to the common principles of secularism and the rule of law shared by France and Azerbaijan.

Tale Heydarov, Chairman and Founder, TEAS, continued by reminding the audience about the links uniting France and Azerbaijan, making a reference to the visit by the Three Musketeers’ author Alexandre Dumas to Nagorno-Karabakh during his journey through the Caucasus in the mid-19th century. He highlighted the fact that, if he were travelling today, Dumas would be unable to visit and experience the heritage of that region, as it remains under Armenian occupation.

Jean-Louis Dumont, French Deputy, Chairman, France–Azerbaijan Friendship Group, French National Assembly, outlined the importance of TEAS’ activities in France. He commented that these would help to further strengthen the sociopolitical ties between the two countries. Mr Dumont recalled that France is a Co-Chair of the OSCE Minsk Group that has been tasked with negotiating peace in the Armenian-Azerbaijani conflict over Nagorno-Karabakh, and that it was important to attract understanding and support from all elements of French society. Coming from the Lorraine region, which has known occupation and the displacement of people, he indicated his empathy with the 875,000 internally-displaced persons (IDPs) in Azerbaijan, who are a casualty of the Armenian occupation.

TEAS France office launched and Asim Mollazade and Sevinj Fataliyeva, Members of the Milli Majlis (Azerbaijani Parliament).

H.E. Elin Suleymanov, Azerbaijani Ambassador to the US, outlined the development of US–Azerbaijani relations into a robust partnership, based on a common understanding of strategic regional issues. He highlighted successful co-operation in the sectors of energy development, international security and humanitarian affairs. Philip Gordon, US Assistant Secretary-of-State, emphasised the importance that President Obama and Secretary Clinton place on the relationship with Azerbaijan as a friend and partner.

French OSCE Minsk Group Co-Chair status queriedIn the wake of the French Senate’s move to criminalise denial of the Armenian ‘genocide’, the role of the French Co-Chair of the OSCE Minsk Group has been further questioned, according to Bahar Muradova, Deputy Chair, Milli Majlis. The comments were made at the 11th session of the OSCE Parliamentary Assembly in Vienna.

Muradova explained: “We are particularly calling into question the extent to which it is possible to believe in the impartiality of France as an OSCE Minsk Group Co-Chair, taking into account that it almost adopted a law criminalising denial of the so-called Armenian ‘genocide’. How does the OSCE assess this law against the terms of freedom of speech and opinion? In particular, we wish to take advantage of the existing format of the OSCE Minsk Group, to look to the future and identify suitable targets for resolving the problem.”

Azerbaijani–NATO IPAP reaches third stageAzerbaijan has agreed with NATO on the third stage of the Individual Partnership Action Plan (IPAP), to be implemented during 2012–13. This covers politics, security, defence and military topics; public information and civil emergency planning; information security, science and environment; and administrative resources and legal issues.

IPAPs are open to countries that have the political will and ability to deepen their relationship with NATO. Developed on a two-year basis, they are designed to coalesce the various co-operation mechanisms through which a partner country interacts with NATO.

Senator Nathalie Goulet, Vice-President, France–Caucasus Friendship Group, French Senate, who recently led a delegation of six French Senators on a familiarisation trip to Baku, then took the floor. She commented on the courage that Azerbaijan was showing in facing the current situation, where there is a rapidly developing economy, despite 10 per cent of the Azerbaijani population being evicted from their homeland. She appealed to TEAS to support the youth of Azerbaijan, so as to move towards the future, whilst respecting the past.

Following this, Saida Zulfugarova, the leading Azerbaijani classical pianist, resident in Paris, together with percussionist Nicolas Vrancken, accompanied mezzo-soprano Djamila Babayeva in a programme of Azerbaijani and Western classical compositions. To contact TEAS France, go to www.teas.eu/content/teas-france.

20 years of US–Azerbaijani diplomatic partnership commemoratedOn 27 February, the US State Department and Embassy of Azerbaijan to the US organised a reception at the Cosmos Club in Washington D.C. to mark two decades of successful bilateral diplomatic relations. The guests included John Sununu, Former Chief-of-Staff, White House; Brent Scowcroft, Former National Security Advisor; Commander-General Duncan McNabb, formerly of the US Transport Command (USTRANSCOM);

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Eliza Pieter, Head, TEAS France, introduced the aims and objectives of TEAS to the assembled guests

Jean-Louis Dumont, Chairman, France–Azerbaijan Friendship Group, explained the impact of the ongoing conflict with Armenia

A succinct outline of Azerbaijan’s current positionMurad Ismayilov, Doctoral Student, University of London, and Research Fellow, Azerbaijan Diplomatic Academy, has delivered a swift delineation of Azerbaijan’s current role during a presentation to a packed lecture theatre at the School for Oriental and African Studies (SOAS) in London. Speaking at an event entitled Turks in the Global World: New Challenges at the Beginning of the 21st Century, he explained the background to the ethnic mix of the country, going on to outline the democratic successes of the Azerbaijan Democratic Republic (1918–20). Ismayilov then covered such topics as secularisation, female emancipation, literacy, industrialisation and urbanisation, all of which benefited the country during the 20th Century.

Ismayilov then explained the country’s achievements since regaining independence in 1991, and how it has responded to a range of western influences, particularly following the signing of the Contract of the Century in 1994. He also gave his view on the impact of the Nagorno-Karabakh conflict, taking into account the human and economic cost and how the situation has affected Azerbaijani nationalism and regional cultural awareness.

Azerbaijani contribution to WWII victory discussedAccording to Patrick Desbois, head of the French Yahad-In Unum organisation, Baku will host a symposium in October regarding the contribution of Azerbaijanis towards achieving victory in World War II. The symposium will be dedicated to the half a million Azerbaijanis who were killed; the contribution of Azerbaijani oil workers towards achieving victory; and the granting of asylum by Azerbaijan to thousands of Jews from Ukraine, Belarus and Moldova. The event will be attended by historians from the US and Europe.

The Yahad-In Unum delegation to Azerbaijan will also discuss the Jewish Holocaust during the Second World War and the Khojaly tragedy in 1992. During a press conference, organised by TEAS, Desbois noted the importance of joint research in raising awareness of Azerbaijan’s essential role during the war. He also noted the excellent relations between Muslims and Jews that he witnessed during his visit to Guba.

EU–Azerbaijani visa negotiations further developAccording to the EU Mission in Baku, the EU organised the first round of negotiations with Azerbaijan on visa facilitation and readmission agreements during early March. These follow the political commitments decided during the Prague Eastern Partnership Summit in May 2009.

Following the negotiations, Ambassador Roland Kobia, Head of the EU Delegation to Azerbaijan, commented: “This is an important moment in EU–Azerbaijani co-operation. We have undertaken two very fruitful days of negotiations, where Azerbaijan demonstrated full and deep commitment, together with a constructive attitude.”

The agreements under discussion include reduced visa fees for all citizens; the issuance of visas for a maximum of 90 days during a 180-day period; fee waivers for certain visitor categories; a maximum processing time of ten calendar days; simplified supporting document requirements; the wider issuance of multiple-entry visas; and enhanced mobility in a secure, well-managed environment.

Baku raises its game as an Olympic host applicantAccording to the Azerbaijani Youth and Sports Ministry, Baku is currently preparing for the next stage of its bid to host the Olympic and Paralympic Games in 2020. Azad Rahimov, Azerbaijani Youth and Sports Minister, reported that agreements with various companies are being concluded as part of these preparations.

He explained: “We have concluded contracts with the PMP Legacy company, and completed the Azerbaijani application to host the Olympic Games. Agreements have also been signed with the Burson Marstellers public relations company, and the Adore Creative Company, which specialises in video commercials. This has accounted for our initial expenditure regarding the Olympic bid. In May, the decision will be made as to whether Baku progresses from being a ‘contender’ city to the ‘applicant’ city category. If Baku achieves this selection, it will have to provide further information on stadia design and equipment.”

Rahimov went on to reveal that the International Olympic Committee (IOC) had positively received the Azerbaijani application as a ‘contender’ country. He continued: “In the recent speech by Jacques Rogge, President, IOC, we stated that all five countries submitting applications are regarded as strong contenders. We are glad that Baku is considered to have the same standing as Madrid, Tokyo, and Istanbul. The IOC has stated its confidence, and has reiterated its belief that Baku will cope with hosting the games.”

Strength of Azerbaijani–NATO relations discussedAzerbaijani President Ilham Aliyev and Anders Fogh Rasmussen, Secretary-General, NATO, held a joint press conference in the NATO Headquarters in Brussels. Rasmussen stated his appreciation of the Azerbaijani-NATO partnership and congratulated the President on the election of Azerbaijan as a non-permanent member of the UN Security Council. President Aliyev replied: “We were, from the very beginning, in Afghanistan, and as the Secretary-General mentioned, we provide flights and land transportation for non-lethal supplies. I’m very glad that the importance of Azerbaijan as a transit country for cargoes to Afghanistan is growing. Today, we discussed our future activity in this respect, and we are ready to consider new proposals in order to expand our co-operation in this area.

“At the same time, we provide our military servicemen to serve in Afghanistan, which forms part of our commitment to International Security Assistance Force (ISAF) operations. Today, I also informed the Secretary-General that we are seriously considering contributions to the Afghan National Army Trust Fund, and will consider future continuation of this financial contribution. At the same time, we will provide training for Afghan diplomats in our Diplomatic Academy and in our Border Security Academy. We also we work on demining and other humanitarian issues, and are ready to expand our co-operation.

“Today, we also discussed regional security issues, particularly with respect to negotiations over the Nagorno-Karabakh settlement. I informed the Secretary-General of the current status of these negotiations, and reiterated our hope that the conflict will be resolved as soon as possible, and that the territorial integrity of Azerbaijan would be restored. There is a very good legal basis for that. The UN Security Council adopted four resolutions demanding an unconditional and immediate withdrawal of the Armenian troops from the occupied territories, and we expect Armenia to comply with these.”

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Murad Ismayilov, Azerbaijan Diplomatic Academy, outlined Azerbaijan’s successes and challenges to a capacity audience

all that is possible to bring about resolution to this conflict, which has continued for over 20 years.”

Lord Ahmad, also a Member of the Azerbaijan APPG, echoed these sentiments: “Today, we remember the 613 men, women and children who were the victims of the Khojaly Massacre. We cannot and will not forget that so many innocent lives were lost. Their memory will never die, and we hope that the conflict that is impacting the country will be resolved. We appeal to the Armenian government to conform with international law, and return Azerbaijani territory.”

Tale Heydarov, Chairman and Founder, TEAS, concluded: “The Khojaly Massacre was a terrible crime, and the violence continues to this day. The perpetrators of the crime were never brought to justice. The occupied region of Nagorno-Karabakh was central to Azerbaijani culture, and many of the composers featured in tonight’s concert were born there. Now, the people from the region are internally-displaced persons (IDPs) within their own country and the culture is at risk of being lost. It is hoped that tonight’s concert will draw attention to the Khojaly Massacre and stop any future recurrence of such tragedies.”

Following this, there was the screening of a TEAS-produced short documentary film, entitled Khojaly – A Massacre Ignored, including moving testimony from survivors of the Khojaly Massacre, Western scholars and UK journalists, who explained why the West generally failed to recognise and report this tragic event.

Following the film, a concert by the Orion Orchestra, conducted by Nicholas Collon and the television celebrity Sue Perkins, featured a range of reflective Western and Azerbaijani classical compositions, including Samuel

A stark reminder of one of the most terrible crimes of the ongoing Armenian-Azerbaijani conflict over Nagorno-Karabakh took place close to the Palace of Westminster at St. John’s, Smith Square, on 22 February. Organised by TEAS, the event was attended by around 300 people – from the UK and elsewhere.

The Khojaly Massacre ranks amongst the worst incidents of the conflict. On the night of 25–26 February 1992, 613 civilian inhabitants of Khojaly, the second largest city in Nagorno-Karabakh, were brutally murdered by Armenian and Soviet forces. The death toll included 106 women, 63 children and 70 elderly people.

Preceding the concert, Sabina Rakcheyeva, Arts and Cultural Advisor, TEAS, and Member of the European Cultural Parliament, commented: “This event, in the heart of London, is to commemorate the victims of the Khojaly Massacre; a terrible tragedy in modern Azerbaijani history of a magnitude that should not be experienced by any country.”

Chris Heaton-Harris MP, Member of the All-Party Parliamentary Group (APPG) for Azerbaijan, continued: “I have visited Azerbaijan twice, and can confirm that Baku is a beautiful city, bustling with energy. The UK has very strong links with the country, dating back to World War I. My colleagues in the APPG for Azerbaijan and myself want to do

Khojaly Massacre commemorated in London – 20 years on

Barber’s Adagio for Strings, Sir Edward Elgar’s Nimrod (from the Enigma Variations) and Gara Garayev’s Adagio (from the Seven Beauties Ballet). A particularly moving moment occurred when Sabina Rakcheyeva, the first Azerbaijani graduate from the Juilliard School in New York, performed the main theme to the Steven Spielberg film Schindler’s List by John Williams, preceded by her improvised piece entitled Dua (A Prayer).

The concert formed part of a series of commemorative events organised by TEAS, including the dedication of a new bench in Battersea Park and the planting of 613 trees in North-West London – one for each of the victims.

This event was an emotionally intense meditation on the enormity of the Khojaly Massacre. It served as a graphic reminder of this tragedy and the urgent need for international governmental pressure to be exerted to bring about a peaceful resolution to the Nagorno-Karabakh conflict. To view Khojaly – A Massacre Ignored and a short video of the evening, please visit www.teas.eu/teas-tv.

French Khojaly photojournalism exhibited in BakuIn Baku, TEAS organised an exhibition of photographs depicting the aftermath of the Khojaly tragedy, taken by the French photojournalist Frédérique Lengaigne. The event was held at the Museum Centre in Baku as part of the commemorations to mark the 20th anniversary of the Khojaly Massacre. During his opening address, Tale Heydarov, Chairman and Founder, TEAS, commented: “The main goal of TEAS is to inform the world about the realities of the Khojaly tragedy and the Nagorno-Karabakh conflict as a whole. This exhibition serves to showcase the unique photos of Lengaigne. She witnessed the events at Aghdam, and these are being presented to the Azerbaijani public for the first time, 20 years after they were photographed. This exhibition will also travel to Brussels, Strasbourg and Paris.”

In 1992, Lengaigne was Head, Photographic Department, Reuters. She commented: “First you try just doing your job, but then you think about the tragedy, and even feel guilt because that is all you can do. You take a photograph of the suffering, but it is impossible to help the people. We shot these images for a foreign audience in 1992 but, 20 years later, these photos returned for your history.”

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Sue Perkins conducted Elgar’s sublime Nimrod as part of the moving tribute to the Khojaly victims

The photographic exhibition served to raise awareness of the ongoing Armenian invasion

Contemporary carpet subversive featured in Art DubaiWorks by the Azerbaijani artist Faig Ahmed are set to feature in the showcase organised by the Moscow-based Aidan Gallery at Art Dubai 2012 from 21–24 March. Coming hot on the heels of Ahmed’s successful inclusion of works in the Fly to Baku exhibition at the Phillips de Pury Gallery in London, the three pieces serve to simultaneously pay homage to, yet subvert, the concept of Azerbaijani carpets.

Each artwork comprises a handmade 1×1.5m wool carpet. However, these are extraordinary carpets, featuring warped, distorted, almost psychedelic patterns, transforming the traditional Azerbaijani carpet language into the universal vocabulary of contemporary art. In this instance, the carpet functions as a time structure, rather than graphically. In the past, the carpet was always regarded as a sophisticated form of writing, rather than being merely decorative. By separating those signs and symbols, the artist switches the carpet from the two-dimensional plane to inhabiting a three-dimensional space, where it comes to life.

New life for Sheki bathsAs part of an events programme to commemorate the 20th anniversary of establishing the International Bank of Azerbaijan (IBA), finance has been provided to restore one of the most important historical monuments in Sheki – the Abdul Salam Hamami Baths, built in the late 19th Century by the eponymous patron of the arts.

An IBA statement explained: “The project includes restoration of two transparent gyumbazs (domes), and

been screened at the Cannes Film Festival. Entitled Sahe (The Precinct), the plot concerns a young Azerbaijani photographer forced to choose between a prestigious job abroad and his relationship with his girlfriend. In 2011, the first Azerbaijani pavilion was opened in Cannes, and this will continue this year. To date, Azerbaijani productions have been screened more than 80 times in various international film festivals.

Adalat Veliyev, Azerbaijani Deputy Minister of Culture and Tourism, commented: “Music, theatre, and cinema can open the doors that politics cannot. We want to prove what the Mayor of Vienna once said – that Azerbaijan is not just a country of oil and caviar, but of rich cultural traditions.” He recalled that the country’s first film was shot in 1898, a mere three years after the pioneering French Lumière brothers invented the medium. Veliyev went on to explain that the total amount spent on Azerbaijani film funding remains difficult to estimate, as it comes from so many sources, whether from the national government, state-owned companies, or the country’s 74 administrative regions.

rotundas of ceiling lights, together with the restoration of the load-bearing elements of the bath roofs and the old ceramic tiles, which feature a patina. The original ornaments and small architectural details will be retained on the external façade. Traditional ‘shebeke’ patterns will be featured on the windows, which will be designed to optimise heat insulation. All new windows and doors will incorporate designs derived from the original fittings. Hard components and accessories will be retained, and interior plans will reflect the original form.”

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One of Faig Ahmed’s distorted carpet visions

It is hoped that the critical success of The Precinct will mark an Azerbaijani cinematic renaissance

The reawakening of Azerbaijani cinemaDespite having been renowned for its quality and production values during the Soviet period, Azerbaijani cinema has been somewhat overlooked since the regaining of independence. However, in the wake of the successful development of the Turkish film industry, this looks set to change. Following the establishment of the Azerbaijan State Film Foundation in 2010, the first Azerbaijani film has

Alert for AzerbaijanisAn English-language section is currently being developed for the Russkiy Mir Foundation’s monthly newsletter. This provides an opportunity for Azerbaijani poets, authors and dramatists, writing in English, to publish their work. The printed newsletter will have a circulation of 1000, whereas the e-newsletter will be distributed to 3400 subscribers. To find out how to submit your work, contact David Parry on dparry777@hotmail.com.

No Armenian entry for Eurovision 2012Despite Azerbaijani government assurances to the European Broadcasting Union regarding contestants’ safety at the Eurovision Song Contest in Baku in May, Armenia has decided against any participation in the competition. Previously, 43 countries, including Armenia, had submitted applications for the contest. The Arnenian judging panel will also not submit its votes.

NEWS IN BRIEF

Resident in New York for over 40 years, the Polish-American scholar Professor Tadeusz Swietochowski ranks as one of the foremost authorities on the modern history of Azerbaijan. During the Soviet period in 1986, he wrote Russian Azerbaijan 1905–20: The Shaping of a National Identity in a Muslim Community, being one of the first Western books on the country to be published. Following the regaining of Azerbaijani independence, he was involved with three other leading texts – Russia and Azerbaijan – A Borderland in Transition (1995); An Historical Dictionary of Azerbaijan (co-author, 1999); and Azerbejdżan, published in Professor Swietochowski’s home city of Warsaw.

His work has served to significantly enhance understanding of Azerbaijani history and culture across the West, particularly between academics. Amongst other positions, he is currently a Visiting Professor at the University of Warsaw, and an Honorary Doctor at Khazar University and Baku State University. TEAS caught up with Professor Swietochowski when he made a rare visit to London to speak at the launch of its new triple-volume set of books entitled The Armenian Question: Russian Archive Documents and Publications.

What initially prompted your interest in Azerbaijan and the Caucasus?I was studying Turkology at Warsaw University and graduated from the

programme of Turkological studies. I then came to the US to read for my Ph.D and, whilst undertaking research around suitable topics, came across the history and culture of Azerbaijan. At this time – in 1985 – the country was completely unknown. It was still a Soviet republic, although there were already indications that this epoch was coming to an end. I wrote my Ph.D, which I thereafter wanted to publish, but most publishing houses were disinterested in a country of which they had not previously heard.

I then contacted Cambridge University Press, who said they would publish the book, but advised that I should not expect any profits. The eventual book was entitled Russian Azerbaijan 1905–20: The Shaping of National Identity in a Muslim Community, covering crucial years in the history of the country. This was the era of the revolutionary age, during which Tsardom was irrevocably shaken to its foundations. Thereafter, the Azerbaijan Democratic Republic (ADR) was established, which lasted for nearly two years from 1918–20. Azerbaijan was thus the first democratic Islamic republic in the world. The ADR included a constitutional system, parliamentary legislation, and multi-party structure. In comparison with other Tsarist Russian republics, Azerbaijan had always been advanced and financially stable, due to its natural resources. However, this changed in 1920

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when the Soviet Union conquered Azerbaijan.

How did you undertake the research for your book?I initially undertook as much research as possible in archives outside of the Soviet Union. During its final stages, I received an invitation to Azerbaijan SSR and spent around two months in libraries and archives, where I gained access to masses of material. This was sufficient for another book, which I was then able to write and publish. I regarded this as a success, as it made Azerbaijan known to a limited, scholarly public.

You are in London to speak at the launch of The Armenian Question, published by TEAS. When you received these books, what was your reaction to the documents?This is a triple-volume set of books, comprising facsimile documents from the period 1724–1914. I read each book very carefully several times, and I received different impressions of the same situation on each occasion. Some parts of the books are very comprehensive, whereas others are less so, but the volumes undeniably contain a great deal of very interesting material, particularly regarding relations between the Tsarist officials, Azerbaijanis and Armenians. The official reports are remarkable in delineating the state of the Armenian-Azerbaijani relationship. On the whole, the publication of such books is an extremely positive development.

Professor Swietochowski – a voice of reason gives his perspective

Professor Swietochowski contextualised the importance of the documents collected in The Armenian Question: Russian Archive Documents and Publications

Professor Swietochowski signs Russian Azerbaijan 1905–20, his own seminal text, for Dr Ali Tekin Atalar, Chair, Azerbaijan House, published in 1986

To what extent were these documents unknown and unpublished?It was difficult to assess exactly which proportion of the documents were previously unpublished. However, it was apparent that some documents had not previously been printed, especially those reports by high-ranking Tsarist officials regarding the administrative units in Baku. They were not actually secret documents, but certainly very bureaucratic.

Do you believe their publication serves to contextualise the Azerbaijani position regarding the Nagorno-Karabakh issue?The most interesting period is the second volume, which covers 1905–06, as this was a time of revolution. This deals with the riots in Baku, and the fighting between the Armenians and Azerbaijanis. There were simultaneously developments by the Azerbaijani intelligentsia and a general political awakening. This was a period when Baku became the centre of the Turkic press, predating the developments of the Young Turk revolution.

There were also high-level discussions between the Armenian and Azerbaijani intellectuals. They decided that the future should be peaceful, within a democratic Russian Empire, with a federal structure. This all came to an end around 1906, but this was a time of hope, co-operation and co-existence, and it passed. In 1908, the Young Turk revolution occurred, and

suddenly the centre of intellectual life moved from Baku to Istanbul, and that capital because central to Turkic nationalism, which began to reassert itself. Turkey was much less reconciled regarding the easing of relations with the Armenians and the potential for co-existence.

Do you believe that Azerbaijan and Armenia are coming any closer towards achieving conflict resolution?It is very difficult to predict the future regarding the Armenian–Azerbaijani conflict over Nagorno-Karabakh and the seven surrounding regions. Without solving this problem, development in the South Caucasus is stifled on many levels. On the other hand, young people from Turkey, Azerbaijan and Armenia seem willing to discuss the situation through talks and conferences. Regular contacts are being made on the topic of common Caucasian harmony, and they make me a little more optimistic. I don’t think there are immediate prospects for peace, but the younger generation has a growing conviction that they have to coexist and overcome the longstanding difficulties between their countries. I have attended such discussions between young people from the three countries in Poland, Germany and the US. The post-Soviet generation is now having a considerable impact, and this fills me with hope.

Will the change in Russian leadership have a negative or positive effect on the impact of the peace talks?

I regard the Russian system – even today – as colonial, and such nations always play the game of divide-and-rule. Effectively, this means pitting Christians against Muslims, with Christians always forming the minority. It will thus always be necessary for the Russians to make a deal with the Azerbaijanis, particularly as the population of Azerbaijan is more than double that of Armenia.

Do you feel that, given the French Senate’s move towards making it illegal to deny the ‘Armenian Genocide’, France should be removed as a Co-Chair by the OSCE Minsk Group and be replaced by the EU?The French Constitutional Council eventually decided this development was ‘unconstitutional’. I’m unsure that France should be removed, although I think it should be more cautious and consolatory. The question is – should France be punished? They tried to pass this motion because of the Armenian lobby, as there are about 400,000 persons of Armenian descent in the country. This represents a large number of votes, and the decision was purely attributable to Sarkozy’s desire to succeed in the forthcoming presidential election.

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To view Professor Swietochowski’s interview for TEAS TV, visit www.teas.eu/teas-tv.

Copies of The Armenian Question: Russian Archive Documents and Publications are available from http://amzn.to/xZ8bGD.

The 2000 pages of documents provide evidence of systematic, organised migration of Armenians to the Caucasus during the time of the Tsarist Russian Empire

Born in Northamptonshire, UK, Tom Young’s art is gradually becoming known across the world. Having initially gained a Foundation Course in Art and Design, he studied for a BA (Hons) in Architectural Studies at Newcastle University, and spent time studying in both Istanbul and Prague. Since then he has painted, exhibited and taught in several cities, including Valencia, New York, Barcelona, Milan, and Fez, and spent a three-year period in Beirut. Tom is interested in the practical applications of art in developing understanding and mutual respect between peoples, and has taught in Palestinian refugee camps and Beirut prisons; exhibited in Gaza to commemorate the 2008–09 war; and painted a representation of the Western Wall in Jerusalem for a Jewish patron. At the end of 2011, Tom visited Azerbaijan for the first time to exhibit at the Second Gabala International Art Exhibition, entitled Art! Life! Earth! TEAS caught up with him to find out more about his artistic preoccupations and experiences in the country:

What led you to particularly focus on landscapes and cityscapes?I am predominantly interested in capturing the mood and spirit of different locations. I originally trained as an architect, and am fascinated by buildings and the changing urban environment, particularly regarding the contrast between old and new. My first artworks were painted alongside my grandmother, and we focused on landscapes. I am very interested in expressing the soul of different locations, and my preferred approach is to go out into the countryside and paint from life. I would like to produce paintings in which viewers can lose themselves. The elemental forces of nature fascinate me – land, water, and, of course, the fire from the earth’s core that escapes as burning gases from the ground in Azerbaijan. In the future, I would like to consider the contrast between fire and ice, and the

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representation of such elemental forces in Azerbaijani folklore and legends. I am interested in the way that the Azerbaijani flag – the eight-pointed star, containing the fire symbol – plays a role in representing Azerbaijani identity. I would like to concentrate on the local character of the place. My art concentrates on crossing cultural boundaries and hopefully brings people together.

Your work is redolent of the approach by such impressionists as Pissarro. Which other painters particularly influence your work?The impressionists certainly had a great impact on me and continue to be my inspiration, and I have also worked in the South of France, which was very familiar to them. Camille Pissarro was an undeniable influence on my work. However, I also like the work of Pierre Bonnard and his expression of light and space, achieved through colour. J.M.W. Turner also achieved mastery of light and space. The American artist James Whistler inspires me, whose works included misty, spectral visions of London and the River Thames. I also like some contemporary painters, such as Peter Doig and Gillian Carnegie, who adhere to the romantic notion of light and space, but also manage to infuse this with something more contemporary and suggest a mysterious element and storyline. I like to suggest narratives that can be interpreted by the viewer, rather than dictate exactly what the painting is about.

Where have you exhibited?I have exhibited in various galleries across London; twice in New York; Philadelphia and the South of France, amongst other international locations. I’ve also done a

Tom Young – inspired by Gabala

lot of work in the Middle-East, particularly in Lebanon, where I lived for three years. During my time there, I undertook many commissions, and my interest in the region emanates from that time. I have also painted in Israel, Palestine, Syria and Turkey, in particular, where I studied at the School of Architecture. I developed a taste for Islamic design when I was in Istanbul, and painted many pictures of the city, actually using water from the Bosphorus and Golden Horn to mix my water-colours so the paintings contain some real substance of the place.

What prompted you to participate in the Second Gabala International Art Exhibition, entitled Art! Life! Earth!?It seemed like a great chance to visit this country that I had read about in the novel Ali and Nino by Kurban Said. Also, during my time in Beirut, I had heard about Baku being a wonderful city to visit. I was invited to show my works there because my London agent put me in touch with Sabina Rakcheyeva, Arts and Cultural Advisor, TEAS. She saw my landscape paintings at an exhibition in London, and thought my work would be suitable for the exhibition, as the theme was land and the earth.

How many works did you take? Which paintings did you select, and why?I took four paintings, one of which was painted in Spain, when I worked in Andalucia two years ago; another was a painting from my home village in Northamptonshire, as I felt it was important to show where I’m from. I also exhibited two paintings from the Beqaa Valley in Lebanon, which is a stunningly beautiful place.

Tom’s atmospheric picture of the Caucasian mountains was painted in Gabala

Tom Young (seated) was inspired to paint by the scenery in Gabala, where he forged a friendship with Azerbaijani artist Orkhan Mammadov

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You also painted some artworks in Gabala. Can you describe these?When I was in Gabala, the weather was beautiful and the light was breathtaking, so I took my paints and canvases to the streets and into the mountains. This resulted in some new paintings, two of which were exhibited at the exhibition, even whilst the oil paint remained wet. The idea of responding to the surrounding landscape is essential to my work, and is a type of communication to the local people, as they are always interested to see foreigners interpret their landscape. We were in the mountain resort of Gabala, and there were several snow-capped mountains surrounding the resort. I went out with the assistance of Orkhan Mammadov, the Azerbaijani artist, and it must have been interesting for him to see me paint. This was one of the most positive elements of the exhibition, as there was considerable sharing of artistic techniques, and a mutual exchange of ideas.

I chose a spot from which to paint, and focused on a view that captured the concept of fire and ice. Many of the trees at that time of year were glowing with reddish ochre. It was just after autumn, and there were many reds, purples and ochres in the landscape. These contrasted with the white, blues and purples in the snow. I tried to represent this contrast, and would like to make further attempts at achieving this in the future. This painting includes a road that leads the viewer. This provides a sense of narrative; a metaphor for the journey; a representation of life that goes around the corner into the unknown.

Whilst I was undertaking the painting, a local security guard and some other people gathered around. I was delighted to have such an exchange with the local people, who had no connection to the exhibition and were fascinated by what I was doing. One of the security guards then noted that a fly had flown into the oil paint of my sky. Without asking, he took a toothpick, knelt down to the painting and picked off the fly. I was quite touched by that, and I transformed the scratch he made in the paint into a flying

bird. The locals saw this, laughed, and it was a beautiful moment.

The security guard went on to show me pictures of spectacular sunsets in the mountains he had taken on his mobile phone. This was a great insight into what he loved about the landscape, and this was inspirational to me. As he was showing me these pictures of sunsets, I realised that the sun was setting behind my easel. I was partly inspired by him, and by the landscape itself. I went on to turn my palette into an impressionistic painting of the sunset. To my knowledge, I was the only artist who actually undertook some painting in Gabala during the exhibition.

Did you meet any interesting artists at the event? Did you discuss techniques and inspirations?I met Andrew Evans, a Welsh artist, who is an excellent landscape painter, and it was great to exchange techniques and ideas with him. I also met Silvia Krupinska, the Slovak sculptor, who was very inspiring, being full of ideas and buzzing with energy. There

were also some artists from France and Germany, and I was interested to meet some local Azerbaijani artists, particularly Orkhan Mammadov. I was fascinated by his use of different media, and the way he uses the real essence of rope and textiles from carpets in his work, mixing these with more traditional landscape techniques. His conceptual approach to painting inspired me greatly. There were also some brave and enthusiastic local artists of whom I would have previously been unaware. We were led on various tours and taken to museums, factories and places of local interest. Those excursions gave us an opportunity to meet and talk.

Do you plan to paint more depictions of Azerbaijan?I’d certainly appreciate the chance to see and paint more regions in Azerbaijan, and am currently examining various ideas and proposals for an exhibition in Baku. If I have the opportunity to return, I would like to have a good look around the country, accompanied by my canvases, paints and sketchbooks. I have heard about some extraordinary towns that cling to the rocks; I’d like to follow the rivers; and also travel up the Caspian coast. I’d particularly like to witness the burning fires that emanate from the rocks. I am fascinated by the sheer number of climatic conditions, and would like to do some work about each of those. However, it would be good to have a studio in Baku to which I could return in order to work up those ideas and sketches. I’d also welcome the chance to explore and paint the city of Baku itself.

For more information on Tom Young’s artwork, go to www.tomyoung.com.

To see an interview with Tom, go to https://teas.eu/teas-tv.

Water from the Bosphorus was used to mix the watercolours used in this painting of the Topkapi Palace

This impressionistic painting of a sunset in Gabala was executed on Tom’s palette

TEAS protests over Council of the EU double standardsOn 27 February, the Council of the EU adopted 25 conclusions that represent an updated framework for the future EU relationship with the three South Caucasus countries (see http://bit.ly/AzZFmR). The EU explicitly welcomed the significant progress made by Azerbaijan with regard to the framework of the EU Eastern Partnership, and its intensified co-operation over energy issues. It also reiterated its intention to support the peaceful settlement of regional conflicts, yet unfortunately solely underlined the principle of territorial integrity in relation to Georgia. At no point did it remind Armenia of its obligation to abide by the four unimplemented UN Security Council resolutions (822, 853, 874, 884) instructing Armenian forces to leave all the occupied territories of Azerbaijan.

Although TEAS welcomes the Council’s attention to the “principles of international law” in fully respecting the principles of “sovereignty and territorial integrity” within “internationally-recognised borders”, it considers it necessary for the Council to be equitable in its support for the territorial integrity of both Georgia and Azerbaijan. Whilst the Council is acting appropriately in reiterating its commitment to helping improve the situation of the internally-displaced persons (IDPs) in Georgia (around 128,000, according to Amnesty International), around 875,000 Azerbaijani IDPs and refugees remain displaced as a result of the Nagorno-Karabakh conflict. TEAS thus calls upon the Council to reflect this in future conclusions. TEAS also comments on the EU’s stated intention of pursuing a policy to ensure “unconditional access, for representatives of the EU, to Nagorno-Karabakh and the surrounding regions.” It reminds the Council of the EU that any

visit to Nagorno-Karabakh and the seven occupied adjacent Azerbaijani territories should be made from Azerbaijan across the ‘contact line’. TEAS concludes that EU engagement in the peace process is to be welcomed, but normal protocols must be observed and entry to the occupied territories should be made through the appropriate channels.

Azerbaijan applauds Armenian ‘genocide’ bill cancellationAzerbaijan has welcomed the decision by the French Constitutional Council to veto the bill criminalising denial of the Armenian ‘genocide’ in 1915, which allegedly occurred during the final days of the Ottoman Empire. This had previously been ratified in the French Senate. Ali Hasanov, Head of Department, Social Policy Issues, Azerbaijani Presidential Administration, commented that work to overturn the bill had been undertaken by Azerbaijani and Turkish diplomats in various foreign countries; representative offices in the Council of Europe, OSCE and other structures; and diaspora organisations. He explained: “From this perspective, we congratulate Turkey and Azerbaijan. I believe that this is the first joint success of these states.”

Hasanov also voiced hope that the future evaluation of historical occurrences would not be assessed by politicians, but by historians, following impartial research. He explained: “This will stop such events being appropriated for political capital. The Armenian side sought to justify anti-Turkic activity on the basis of this fictional history.” He revealed that a group of French Deputies, who eventually vetoed the bill and joined the France-Azerbaijan Friendship Group in the French National Assembly, had recently visited Azerbaijan at the invitation of the Azerbaijani government.

CDU/CSU Bundestagsfraktion issues position paperThe Foreign policy working group of Germany’s CDU/CSU Bundestagsfraktion has issued a position paper on the Nagorno-Karabakh conflict. Entitled 20 years of conflict over Nagorno-Karabakh: a new impulse for a peaceful conflict resolution, this explains the facts behind the conflict, and goes on to comment: “The international community sees Nagorno-Karabakh as an integral part of the Republic of Azerbaijan. In this context, both Germany and the EU support a permanent and peaceful resolution of the conflict. Neither Germany, nor the EU, has recognised the 2010 parliamentary elections in Nagorno-Karabakh.

“By now, the conflict is so serious that the German Ministry of Foreign Affairs advises against any travel to Nagorno-Karabakh, and cannot give consular help or support to travellers visiting the region. An arms race is at work in the South Caucasus, and military expenses in Armenia and Azerbaijan have constantly increased during the past few years. In Azerbaijan, defence expenditure accounts for about 20 per cent of the entire state budget. In August 2010, Armenia signed an agreement with Russia regarding increased military co-operation, and Russia continues to run several military bases in Armenia.”

The paper concludes by making several recommendations to the German Federal Government, including:

• increased awareness of the conflict over Nagorno-Karabakh, in conjunction with greater attention from the OSCE, NATO and the UN

• a stronger role for the EU in the conflict resolution process, eventually serving to replace France in the OSCE Minsk Group and providing the EU Special Representative for the South Caucasus with a clear mediation mandate

• Russian motivation to engage in a more constructive role in order to overcome the status quo, stop the arms race, and achieve permanent conflict resolution

• support for Turkey in playing a greater role in conflict resolution that is commensurate with its regional responsibilities.

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The unbalanced report by the Council of the EU has caused dismay

Belgian parliament hosts Nagorno-Karabakh hearingThe Federal Parliament of Belgium has hosted a hearing entitled Occupied territory, forgotten territory – humanitarian and legal aspects of the Armenian–Azerbaijani Nagorno-Karabakh conflict. The meeting, organised by Elkhan Suleymanov MP, Head, Azerbaijani-Belgian Interparliamentary Working Group, was also attended by Ali Hasanov, Azerbaijani Deputy Prime Minister and Chairman of the State Committee for Refugees and internally-displaced persons (IDPs); Sevinj Hasanova, Azerbaijani Deputy Minister for Economic Development; Claude Moniquet, Director, European Centre for Security and Strategic Studies; and Pierre Legros, Founder, Borderless Lawyers Organisation.

The meeting was opened by Philippe Blanchard, Deputy, Belgian Parliament and Head, Belgian-Azerbaijani Working Group, followed by a screening of the Euronews report entitled Nagorno-Karabakh: a visit to a refugee. Hasanov provided background on the Nagorno-Karabakh conflict, which has led to the Armenian occupation of nearly 20 per cent of Azerbaijani territory, and commented that the total cost to the Azerbaijani economy has now exceeded $60bn (£38.4bn). He also explained the facts behind the Khojaly Massacre, which claimed the lives of 613 men, women and children 20 years ago.

Moniquet replied that Europe should become more involved in resolving the Nagorno-Karabakh conflict, and urged the EU to implement political sanctions against Armenia.

Legros stated that the international community must be educated on this issue, enabling Europe to make a positive contribution. He also acknowledged the failure of the OSCE Minsk Group, which

has been attempting to broker a negotiated peace for 20 years.

Gudrat Gasanguliyev, Azerbaijani MP, expressed the view that the Nagorno-Karabakh conflict remains dependent on Russia, noting that: “This conflict is often referred to as frozen, but it is not. One ceasefire violation at the contact line may result in a fully-fledged war.” Following the discussions, David Geerts, Belgian MP, stressed the need to intensify efforts regarding a peaceful settlement over the Nagorno-Karabakh conflict, and said that a resolution should be submitted to the Belgian Parliament.

OSCE Minsk Group Co-Chairs issue statementIn early March, the OSCE Minsk Group Co-Chairs – Robert Bradtke, USA; Igor Popov, Russian Federation; and Jacques Fauré, France – travelled with Ambassador Andrzej Kasprzyk, Personal Representative of the OSCE Chairperson-in-Office, to Yerevan, Nagorno-Karabakh, and Baku. The Co-Chairs met Azerbaijani President Aliyev, Armenian President Sargsyan, and the de facto authorities in Nagorno-Karabakh.

The Co-Chairs presented a plan for implementation of the recommendations contained in the statement made by the former Russian President Medvedev, alongside President Aliyev and President Sargsyan, during their Summit Meeting in Sochi in January. Building on the two Presidents’ joint commitment towards expediting an agreement on the Basic Principles, the Co-Chairs proposed steps aimed at finalising the framework for a comprehensive peace settlement. In particular, they discussed the development of a mechanism to investigate incidents along the ‘contact line’. The Co-Chairs reported that they had requested, through the OSCE Chairperson-in-Office, that the OSCE High-Level Planning Group should

further develop this mechanism as an important method for enhancing stability and improving trust.

IDP plight highlightedThe latest briefing from the International Crisis Group (ICG) is entitled Tackling Azerbaijan’s IDP Burden, which examines the impact of the continuing Armenian occupation on the 875,000 IDPs who are casualties from the conflict. The researchers report that, since 2004, the Azerbaijani government has intensified efforts to deal with the IDP situation. It has achieved a considerable reduction in poverty rates, and the state is constructing better housing and enhancing health care.

Lawrence Sheets, Caucasus Project Director, ICG, commented: “The Azerbaijani government…has moved towards a new approach of dealing with the painful reality of trying to cope with the economic and social needs of its extremely large displaced population.” However, the report acknowledges that 400,000 people still live in sub-standard dwellings and approximately 128,000 IDPs and permanent residents live in close proximity to the 180km-long ‘contact line’. They are exposed to the immediate threat of ongoing frontline skirmishes that claim the lives of around 30 people each year.

Sabine Freizer, Europe Programme Director, ICG, concluded: “Whilst the Azerbaijani government has taken important steps to improve living conditions for IDPs, it is shocking that, a generation on, displacement and occupation continue to mar regional development and security. The lack of sustainable solutions is an important reason why a negotiated settlement is essential, if eventual resumption of all-out war is to be avoided.”

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Two Azerbaijani soldiers shot near ‘contact line’The AFP agency has reported that Armenian snipers claimed the lives of two Azerbaijani soldiers near the ‘contact line’ in the Gazakh region on 3 March. Teymur Abdullayev, Spokesperson, Azerbaijani Defence Ministry, commented: “An investigation is currently being undertaken by the Republic Military Prosecutor’s Office, following the death of Dibirov Vugar Bakhtiyar and Seyidaliyev Seyidali Shikhislam. The results will be made public.”

NEWS IN BRIEF

Members of the Belgian-Azerbaijani Working Group visited the Baku-based Azerbaijani State Committee for Refugees and IDPs in January

Turkey – Diverse Investment Opportunities, which will take place at No. 4, Hamilton Place, London, W1J 7BQ on 2 May. This will bring together investors, policy-makers, bankers, journalists, analysts, NGO representatives and government executives, amongst many others. The list of proposed speakers currently includes H.E. Fakhraddin Gurbanov, Azerbaijani Ambassador to the UK; Tale Heydarov, Chairman and Founder, TEAS; Adil Mammadov, President, Azerbaijan Export and Investment Promotion Foundation (AZPROMO); and Paul-Henri Forestier, Director: Caucasus, Moldova and Belarus, European Bank for Reconstruction and Development (EBRD).

Delegates can register free of charge at www.teas.eu/event/teas-business-forum-2012, where a provisional programme and more details of the event may be seen.

Azerbaijani–UK relations celebratedThe Azerbaijani Embassy in the UK organised an event at the Embassy in London to recognise the 20th anniversary of re-establishing Azerbaijani–UK relations. The event was attended by Andrew Tucker, former UK Ambassador to Azerbaijan; Lord Fraser, Co-Chair, Anglo-Azerbaijani Society; and Tale Heydarov, Chairman and Founder, TEAS, amongst many others.

H.E. Ambassador Fakhraddin Gurbanov, Azerbaijani Ambassador to the UK, explained the important role of UK-based companies in the successful development of the country, particularly regarding the effective exploitation of energy resources. He revealed that around 170 British companies are currently functioning in the country, employing around 5,000 UK expatriates. The Ambassador also outlined the role of UK companies in the non-oil sector, particularly in the spheres of education, culture and civil society. He stated that Azerbaijan, as a non-permanent member of the UN Security Council, would co-operate with the UK on an international level during the next two years.

Lord Fraser commented that co-operation between Azerbaijan and the UK over the past two decades was established on firm foundations, initially concentrating on the oil and gas industry in the early years, although these relations had now expanded to other sectors.

Azerbaijani role in future EU energy highlighted in LordsStanding room only was available in Committee Room G in the House of Lords on 16 February when energy expert Professor Alan Riley, City University, delivered an inspiring lecture, hosted by Lord Laird, on Post-Nabucco? The Options for the Southern Gas Corridor. The lecture, organised by TEAS, was delivered before an audience of over 70 guests, including Harold Formstone, Former UK Ambassador to Azerbaijan; Dr Ali Tekin Atalar, Chair, Azerbaijan House; Dr Shirin Akiner, Research Associate, School for Oriental and African Studies (SOAS); Nigar Gahramanova, Performance Manager, Full Field Development of the Shah Deniz Stage 2 Project; Mehmet Ögütçü, Chairman, Global Resources Corporation; Craig Oliphant, Senior Advisor, Europe and Central Asia, SaferWorld; and Angus Miller, Senior Energy Advisor, Foreign and Commonwealth Office.

Professor Riley outlined current and future Azerbaijani gas production, which will increase by 16bn m3 (bcm) per annum when the Shah Deniz 2 field comes on stream in 2017, much of which will be supplied to European customers. He commented: “This will be significant to European energy security, away from over-reliance on Russian Gazprom. Azerbaijan also has the potential to become a major gas transit hub, supplying to the EU from resources across the Caspian region, particularly Turkmenistan.” He went on to outline the changing dynamics of world gas supply and Russia’s realisation of the evolving relationship between Europe and the Caspian and Central Asia region.

He continued: “Gas will increasingly become the energy of choice for the EU. The cost of renewable energy generation remains very high, and coal has a significant environmental impact and is no longer favoured by governments. Azerbaijani gas will play an essential role in the future. The Panama Canal is

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currently being widened in order that tankers may transport liquefied natural gas (LNG). The EU needs to find other resources from more diverse suppliers. Although extraction remains expensive, shale gas could be used widely in the future.

“However, it is unlikely that the Nabucco pipeline, in its originally proposed form, will be constructed, despite gaining considerable political support across the EU. A major issue is the astronomic cost of €14–20bn (£11.6–16.6bn), and the other is that Azerbaijan could only fill one-third of its 31bcm capacity. In addition, the proposed Nabucco project was of concern to Gazprom, which derives two-thirds of its revenue from EU customers.”

Professor Riley then went on to outline the issues impacting other competing pipeline projects, including the Interconnector Turkey–Greece–Italy (ITGI), which has been cast into doubt by the Greek and Italian financial meltdown. However, he acknowledged that the Trans-Anatolian Pipeline (TAP) is viable, particularly following the recent transit agreements signed by Turkey and Azerbaijan, as is the South-East European Pipeline, both of which have estimated costs of a relatively modest €4bn (£3.3bn). These would use many of the permits and agreements agreed for Nabucco.

In conclusion, Professor Riley commented: “There needs to be a significant Azerbaijani gas supply to Europe, and that will enhance European energy security and position Azerbaijan as a major player in the international arena.” He said it would be better if Gazprom accepted the competition, rather than opposing it, as doing so could lead to a negative reaction from customers.

Register now for TEAS Business ForumAn exciting roster of speakers is currently being finalised for the second TEAS Business Forum, subtitled Azerbaijan and

Lord Laird (left) congratulates Professor Alan Riley on his enlightening speech on Azerbaijan’s energy future

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PwC’s Academy offerings in Azerbaijan currently include the following three internationally-recognised qualifications – Chartered Institute of Management Accountants (CIMA) P1/P2 Diploma (in Russian); Association of Chartered Certified Accountants Diploma (ACCA) on IFRS (DipIFRS in Russian and English); and the Certified Internal Auditor (CIA) Diploma (in Russian and English).

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In June–December 2011, PwC’s Academy successfully delivered training courses to 45 senior- and management-level professionals in finance, banking, construction, telecommunications and other industrial sectors.

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BP increases Azerbaijani investmentsThe BP-led Azerbaijan International Operating Consortium (AIOC) has revealed, in a statement, that it plans to invest $3.2bn (£2bn) in the Azeri-Chirag-Guneshli (ACG) oilfields in the Caspian Sea in 2012, increasing from $2.6bn (£1.7bn) in 2011. Furthermore, investments in the major Shah Deniz gas field, which BP operates with Statoil and SOCAR, will amount to $1.6bn (£1bn) this year, compared to $870m (£556.4m) last year. BP said that operating expenses for the ACG project, with estimated recoverable reserves of about 1bn tonnes of oil, would reach $708m (£452.8m) in 2012, whilst $2.5bn (£1.6bn) would be directed towards the drilling of at least 12 new wells.

SOCAR expects that ACG 2012 oil output will amount to 37m tonnes. Operating expenses on the Shah Deniz project in 2012 are estimated at $211.5m (£135.3m), whilst capital expenditure of $1.3bn (£831m) will be mainly used for drilling two new wells and preparing works for the Shah Deniz 2 project, which will also provide a secure energy source for Western Europe. This may require $40bn (£25.6bn) of investment, according to a SOCAR source. SOCAR estimates that Azerbaijan will produce 45.5m tonnes of oil and 28.3bcm of gas in 2012.

Azerbaijani–Kazakh nickel factories to be openedAzerbaijan is set to invest in the construction of a new nickel factory in the Aktyubin region of Kazakhstan. During a visit to Baku, Arkhimed Mukhambetov, Mayor of Aktyubin, commented that the region presents great opportunities for Azerbaijan. He explained: “Today, we are presenting plans for 20 large projects regarding the construction of nickel, glass and other factories, and are seeking Azerbaijani partners for joint construction proposals.”

He stated that the joint work of Azerbaijani and Kazakh entrepreneurs on these plants would create the necessary conditions for third countries to also invest. Mayor Mukhambetov continued: “Since 1 January, the 16m population of Kazakhstan entered the Common Economic Space (CES), which also includes Russia and Belarus, now covering 180m people. Kyrgyzstan and Ukraine have also indicated an interest in joining the CES. We have been members of the United Customs Union for three years, which ensures single tariffs and the negation of excise duties, creating a favourable investment climate.”

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AZERBAIJAN: QUICK FACTS Official name: The Republic of AzerbaijanCapital: BakuArea: 86,600km2

Population: 9.2mDensity: 104 inhab./km2

Urban population: 51.8 per centPopulation of main cities, excluding suburbs: Baku (2,500,000); Gandja (300,000); Sumgait (270,000); Mingacevir (95,000)Religions: Religions: Muslim (93.4 per cent), Christian (4.8 per cent), Others (1.8 per cent)Principal exports: Oil, gas, aluminium, carpetsOfficial language: AzerbaijaniBusiness languages: English and Russian

Monetary indicators 2007 2008 2009 2010 2011

Average annual exchange rate for US$1 0.86 0.82 0.81 0.80 0.79

Exchange rates as of 11.3.12: AZN1=US$1.27; US$1=AZN0.79; AZN1=£0.81; £1=AZN1.23; AZN1=€0.97; €1=AZN1.03

TEAS Corporate Members