There's some more meat to add to the ...

There's some more meat to add to the investment climate prognosis in Azerbaijan

Posted in the Energy Forum



#1 Nov 21, 2012
There's some more meat to add to the investment climate prognosis in Azerbaijan. In a nutshell, it's far from being a paradise so far and so you shouldn't delude yourself! That's my personal vision. I'm an investment expert for the BP now active on the Azeri energy market. A year or so ago many European investors had really great expectations related to possibility of super profits in Azerbaijan mainly due to cheap labor force. Sadly enough, real state of things there makes it impossible for those hopes to be realized now! I guess some investment challenges were underestimated just..... well....corruption, lack of transparency, politically connected economic monopolies, cronyism and other.
Absence of standard inverstor-friendly practices is a big hurdle too. Let's put it plain. Can you imagine that Baku is trying to manipulate the major BP? They are just openly imposing on BP some beneficial for the Azeri side decisions including quotas to employ exclusively Azeri human resources and make purchases of the Azeri equipment far from the relevant requirements. Needless to say these things inevitably lead to higher prime costs of the energy resources production in Azerbaijan and lower expected profits of BP in Azerbaijan.

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