Tag Archives: Azerbaijan

Azerbaijan’s SOCAR buys oil tankers

MARCH 10 2017 (The Conway Bulletin) — Socar, Azerbaijan’s state oil and gas company, bought seven large oil tankers from Turkey-based Palmali last month to boost trade capacity in the Caspian Sea and the Mediterranean. In an interview with Reuters, Arzu Azimov, head of the Geneva-based Socar Trading, said the company wanted to boost its shipping capacity. Socar Trading now owns 37 tankers, although most of these are significantly smaller than the large tankers it has just bought.

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(News report from Issue No. 320, published on March 13 2017)

Azerbaijani court sends blogger to prison

MARCH 3 2017 (The Conway Bulletin) — The authorities in Azerbaijan imprisoned a blogger known for criticising the government, drawing fresh criticism from media and human rights activists who have complained of a crackdown on the dwindling band of dissenters (March 3).

Mehman Huseynov, known for blogs that exposed official corruption, was convicted of libel, a tactic that his supporters say has been used by the Azerbaijani authorities to silence journalists, lawyers, opposition activists and NGO workers.

A group of 24 human rights organisations signed a joint letter calling for Huseynov to be released.

“Today’s sentencing and jailing of Mehman Huseynov is outrageous – another example of Azerbaijan’s best and brightest being targeted for expressing opinions critical of the ruling Aliyev regime,” Rebecca Vincent, UK Bureau Director for Reporters Without Borders, said in a statement.

“It also shows that nothing has changed since the release of a number of high-profile political prisoners last year.”

Members of the European Parliament have clashed with Azerbaijan’s President Ilham Aliyev over his treatment of dissenters, although the European Union has dodged taking any official action. It needs to keep relations with Azerbaijan strong as it plans to buy most of its gas from the Azerbaijani section of the Caspian Sea.

Huseynov said on Jan. 9 that police had detained him for verbally abusing a passerby. He said that the police had then beaten him for resisting arrest.

The next day, on Jan. 10, police arrested Huseynov for slander linked to, what they said, were his false allegations that they had beaten him.

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(News report from Issue No. 319, published on March 3 2017)

Azerbaijan’s Socar fails to buy Turkish petrol stations

MARCH 3 2017 (The Conway Bulletin) — Azerbaijan’s state-owned oil and gas company Socar failed in its high-pro- file bid to buy up the chain of petrol stations in Turkey owned by Austria’s OMV.

Instead, OMV said it had sold the group of 1,785 petrol stations, called Petrol Ofisi, to Vitol Investment Partnership, a subsidiary of commodities company Vitol for $1.45b. Petrol Ofisi is the biggest petrol retailer in Turkey with a 23% market share.

The failure to secure a petrol station group will be a disappointment to Socar, Last month, in an interview with a Turkish newspaper, the general director of Socar Turkey Energy, Zaur Gahramanov, said that if its bid to buy the OMV petrol stations in Turkey failed, it would pursue alternative options.

Socar owns the Star oil refinery in Turkey and has said that it wants to expand its downstream operations.

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(News report from Issue No. 319, published on March 3 2017)

Clashes take place in between Armenia and Azerbaijan

MARCH 1 2017 (The Conway Bulletin) — A series of clashes in the disputed region of Nagorno-Karabakh between Armenia-backed rebels and Azerbaijani forces were being dubbed the worst since April 2016. On Feb. 27 Azerbaijan said that five of its soldiers had been killed in a firefight with Armenia- backed rebels who control the region under a 1994 UN-negotiated ceasefire which ended a war that killed 30,000 people. Two days later, the Armenia-backed rebels said one of their soldiers had been killed.

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(News report from Issue No. 319, published on March 3 2017)

Comment: The Aliyev dynasty just got stronger, says Kilner

FEB. 24 2017 (The Conway Bulletin) — Azerbaijan, under Ilham Aliyev, has lead the way in creating a regional royal family, a dynasty that rules the country unimpeded. By appointing his wife, Mehriban Aliyeva, as his First Vice-President, Aliyev reinforces this impression.

He must, though, have been prepared for the cries of nepotism hurled at him after he made the announcement. Prepared and not particularly bothered, was probably his attitude.

Aliyev has always done things his own way, waving a proverbial two fingers at critics, including large parts of the European Parliament. He virtually inherited the presidency himself from his ailing father in 2003. Of course, there was an election to garnish his rise to the top but in essence it was a coronation job.

Since then Aliyev has crushed dissent, imprisoning most of the country’s opposition activists and independent journalists. Those who haven’t been imprisoned or fled into exile, keep their heads down or are pliant. And that’s why reaction to Aliyeva’s promotion to First Vice-President has been muted in Azerbaijan.

As for the international community, there have been the predictable accusations of foul play from human rights groups and others but, in general, this has been glossed over. Azerbaijan is now an important partner for Europe. It

wants to source its gas from the Azerbaijani sector of the Caspian Sea and has built a pipeline across the South Caucasus and Turkey to pump gas to its people. It needs a stable Azerbaijan. Aliyev appointing his wife as his deputy is not a big enough issue for EU countries to complain about.

What exactly Aliyeva’s roles are likely to be, remains to be seen. Perhaps, though, they are less important than the impression her promotion has created of the omni-powerful Aliyev clan, ably supported by the Pashayevs, Aliyeva’s family. The Pashayevs have business interests stretching across the spectrum, from banking to insurance, mining to luxury car dealerships.

The Aliyevs also have a string of business interests. Protecting these interests and the interests of his wife’s family, will have been a major concern of Aliyev before he handed his wife the of First Vice-President. These interests are now a little more secure and Azerbaijan’s reputation
as a partner to do business with is a little more tarnished.

By James Kilner, Editor, The Conway Bulletin.

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(News report from Issue No. 318, published on Feb.24 2017)

BP cuts costs in Azerbaijan

FEB. 21 2017 (The Conway Bulletin) — BP cut its costs in Azerbaijan by 17.8% in 2016, Azerbaijani media reported by quoting the British company. The cut in expenditure is probably a reflection of the drop in the price of oil and the need for energy companies to cut costs. Azerbaijan has been hard hit by the drop in oil prices, forcing it to reduce its budget and various social development programmes. BP is the biggest foreign investor in Azerbaijan and has helped to build up its energy sector since the 1991 collapse of the Soviet Union.

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(News report from Issue No. 318, published on Feb.24 2017)

Italy moves olive trees for Azerbaijani gas pipeline

FEB. 23 2017 (The Conway Bulletin) — The authorities in Italy have started moving 200 olive trees that stood in the way of the TAPI pipeline which is slated to pump gas from the Caspian Sea to Europe. Environmentalists had wanted the pipeline re-routed to save the trees but the pipeline’s backers said that this would delay Azerbaijani gas reaching Europe and also add millions of dollars to the cost. The authorities, in the end, decided it was simplest just to move the trees.

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(News report from Issue No. 318, published on Feb.24 2017)

 

Azerbaijani president appoints his wife as Vice-President

FEB. 21 2017 (The Conway Bulletin) — Azerbaijani President Ilham Aliyev appointed his wife, Mehriban Aliyeva, as his First Vice-President, drawing allegations of nepotism.

The position of Vice-President was only created in September after a referendum.

It’s still unclear exactly what role Mrs Aliyeva will play as First Vice- President. Under the constitutional amendments passed last year, the First Vice-President will take over running the country if the President dies or becomes ill.

Mr Aliyev took over as Azerbaijan’s President in 2003 from his father, Heydar. He has since tinkered with the constitution, strengthening his own power and cracking down on opposition activists and the media.

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(News report from Issue No. 318, published on Feb.24 2017)

Azerbaijan-Russia-Iran to hold talks on energy corridor

FEB. 21 2017 (The Conway Bulletin) — Russia, Azerbaijan and Iran plan to meet up next month to discuss setting up a North-South energy corridor, Russian energy minister Alexander Novak was quoted by media as saying. This is important as regional governments have been talking about trying to build a North-South energy corridor for years. It would give gas and oil produced in Russia, Central Asia and the South Caucasus access to the Persian Gulf, and Iran much- needed energy supplies in the north of the country.

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(News report from Issue No. 318, published on Feb.24 2017)

Currencies: Azerbaijani manat, Kazakh tenge

FEB. 24 2017 (The Conway Bulletin) — The Kazakh tenge added another 1% on to its value this week, bolstered by a rise in oil prices, and the Georgian lari added 2%, a rise that analysts attributed to a general improvement in global economic sentiment.

It was a different story, though, across the South Caucasus, where the Azerbaijani manat lost another 0.8% to fall to 1.7925/$1. This is frustrating for the Central Bank as the manat had looked good to break 1.7445/$1, the level it reached at the start of February – its strongest since November.

In any case, the manat has recovered since the end of January when it bottomed out at 1.95/$1.

But the Chairman of Board of Directors of Financial Markets Supervision Authority, Rufat Aslanli, told media that the manat couldn’t rely on oil prices to pull it out of its negative spiral. “Oil price has impact on sustainability of our economy, but not on the exchange rate of dollar,” he said.

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(News report from Issue No. 318, published on Feb.24 2017)