U.S. Department of State 
Azerbaijan Country Commercial Guide 
Office of the Coordinator for Business Affairs 
 
 
                   COUNTRY COMMERCIAL GUIDE FOR AZERBAIJAN
                                    FY-96 
 
This Country Commercial Guide (CCG) presents a comprehensive look at 
Azerbaijan's commercial environment through economic, political and 
market analyses.   
 
The CCGs were established by recommendation of the Trade Promotion 
Coordinating Committee (TPCC), a multi-agency task force, to consolidate 
various reporting documents prepared for the U.S. business community.  
Country Commercial Guides are prepared annualy at U.S. Embassies through 
the combined efforts of several U.S. governement agencies.   
 
 
TABLE OF CONTENTS 
 
CHAPTER I.  COMMERCIAL OVERVIEW 
 
CHAPTER II.  ECONOMIC TRENDS AND OUTLOOK 
 
CHAPTER III.  POLITICAL ENVIRONMENT 
 
CHAPTER IV.  MARKETING U.S. PRODUCTS ANDS SERVICES 
 
CHAPTER V.  LEADING SECTOR FOR U.S. EXPORTS 
 
CHAPTER VI.  TRADE REGULATIONS AND STANDARDS 
 
CHAPTER VII.  INVESTMENT CLIMATE 
 
CHAPTER VIII.  TRADE AND PROJECT FINANCING 
 
CHAPTER IX.  BUSINESS TRAVEL 
 
CHAPTER X.  APPENDICES 
 
APPENDIX A:  COUNTRY DATA 
 
APPENDIX B:  DOMESTIC ECONOMY  
 
APPENDIX C:  TRADE 
 
APPENDIX D:  U.S. AND AZERI CONTACTS 
 


 
CHAPTER I.  COMMERCIAL OVERVIEW (EXECUTIVE SUMMARY) 
 
THIS COUNTRY COMMERCIAL GUIDE PRESENTS A SUMMARY OF PRACTICAL 
INFORMATION USEFUL FOR COMPANIES DOING PRELIMINARY COMPARISONS AMONG 
POTENTIAL EXPORT MARKETS.  AZERBAIJAN HAS ENORMOUS ECONOMIC POTENTIAL, 
PARTICULARLY IN THE ENERGY SECTOR.  AZERBAIJAN BECAME AN ATTRACTIVE 
EXPORT MARKET AFTER   AN $8 BILLION OIL PRODUCTION SHARING AGREEMENT 
(PSA) BETWEEN THE GOVERNMENT OF AZERBAIJAN (GOAZ) AND A CONSORTIUM OF 
WESTERN OIL COMPANIES WAS SIGNED IN SEPTEMBER 1994.  THE FIVE AMERICAN 
COMPANIES IN THE CONSORTIUM ARE AMOCO, EXXON, PENNZOIL, MCDERMOTT AND 
UNOCAL.  TOGETHER THEY HAVE ALMOST 44% OF SHARES IN THE OIL CONSORTIUM, 
KNOWN AS THE AZERBAIJAN INTERNATIONAL OPERATING COMPANY (AIOC.)  AIOC'S 
THIRTY YEAR CONTRACT TO EXPLOIT THE GUNESHLI-CHIRAG-AZERI OFFSHORE 
FIELDS WILL PROVIDE A SOLID FOUNDATION FOR FOREIGN INVESTMENT IN OIL-
RELATED SECTORS OF THE ECONOMY.  OIL REVENUES ARE PROJECTED TO BE 
ROUGHLY $80 BILLION OVER THE THIRTY YEAR LIFE OF THE PSA AND THE GOAZ 
WILL RECEIVE 80% OF THESE FUNDS -- ABOUT $64 BILLION -- FROM THIS 
PROJECT ALONE.  THE COUNTRY HAS HUGE ADDITIONAL RESERVES OF OIL AND GAS 
AND MORE PSAS WITH INTERNATIONAL OIL MAJORS TO DEVELOP NEW FIELDS ARE 
LIKELY OVER THE NEXT FEW YEARS.  OIL REVENUE FROM THE AIOC PSA MAY BEGIN 
AS EARLY AS OCTOBER 1996.   AMERICAN COMPANIES SHOULD ESTABLISH 
COMMERCIAL RELATIONSHIPS TODAY WHICH WILL EXPAND AS AZERI CUSTOMERS GROW 
MORE AFFLUENT OVER THE NEXT THIRTY YEARS. 
 
IN 1994 TOTAL AZERI IMPORTS WERE $814 MILLION, WITH  ONLY $10 MILLION 
FROM THE UNITED STATES.  LEADING U.S. EXPORTS TO AZERBAIJAN IN 1994 WERE 
MILK PRODUCTS, OIL FIELD EQUIPMENT AND PARTS, SULFATES, OIL PROCESSING 
EQUIPMENT, PRINTING EQUIPMENT, TOBACCO PRODUCTS AND TEXTILE MACHINERY.  
AZERI EXPORTS TO THE UNITED STATES WERE NIL.  THIRTY-THREE AMERICAN 
COMPANIES ARE RESIDENT IN BAKU.  TWO HUNDRED INTERNATIONAL COMPANIES 
PARTICIPATED IN THE SECOND CASPIAN OIL AND GAS SHOW, HELD IN BAKU MAY 
23-26, 1995, AND EXPRESSED A STRONG INTEREST IN THE AZERI MARKET.  
ALTHOUGH THE UNITED STATES IS NOT AMONG AZERBAIJAN'S LEADING TRADING 
PARTNERS, IT HAS A 12% MARKET SHARE OF AZERBAIJAN'S MARKET FOR IMPORTED 
MANUFACTURED GOODS.  DIPLOMATIC RELATIONS WERE ESTABLISHED IN EARLY 
1992.  IN APRIL 1995 A BILATERAL TRADE TREATY BETWEEN AZERBAIJAN AND THE 
UNITED STATES WENT INTO EFFECT, WHICH SHOULD FACILITATE ADDITIONAL U.S. 
EXPORTS.  
 
HOW EFFECTIVELY THE GOAZ USES AZERBAIJAN'S ENERGY RESOURCES AND REFORMS 
THE ECONOMY WILL DETERMINE THE FUTURE STANDARD OF LIVING IN AZERBAIJAN.  
TRANSITION TO A MARKET ECONOMY IS PROCEEDING SLOWLY IN AZERBAIJAN, 
DESPITE A FLOURISHING TRADING SECTOR.  THE GOAZ, WORKING CLOSELY WITH 
THE INTERNATIONAL MONETARY FUND (IMF) HAS CONTAINED INFLATION OVER THE 
LAST SIX MONTHS.  FURTHER PROGRESS ON STRUCTURAL REFORMS, PARTICULARLY 
PRIVATIZATION, IS NECESSARY.  SUCCESSFUL PRIVATIZATION OF STATE 
ENTERPRISES OVER THE NEXT THREE YEARS COULD REVERSE AZERBAIJAN'S 
ECONOMIC DECLINE AND IMPROVE POTENTIAL ECONOMIC GROWTH.  DISRUPTION OF 
THE TRADING PATTERNS OF THE FORMER SOVIET UNION AND OFFICIAL CLOSURE OF 
THE RUSSIAN BORDER HAVE SHIFTED AZERI TRADE FROM THE NORTH (RUSSIA AND 
UKRAINE) TO THE SOUTH (IRAN AND TURKEY.)  MORE IMPORTED CONSUMER GOODS 
ARE AVAILABLE AS AZERBAIJAN BEGINS TO INTEGRATE INTO THE GLOBAL TRADING 
SYSTEM.  THE EDUCATION LEVEL OF THE LOCAL WORK FORCE IS QUITE HIGH.  THE 
COUNTRY HAS ABUNDANT ARABLE LAND AND A WIDE RANGE OF CLIMATIC ZONES.  
AGRICULTURAL OUTPUT COULD BE EXPANDED DRAMATICALLY WITH THE RIGHT 
INCENTIVES (PARTICULARLY PRIVATIZATION OF LAND.)  IMPROVING AGRICULTURAL 
INCOMES IS IMPORTANT IN AZERBAIJAN BECAUSE 46% OF THE TOTAL POPULATION 
LIVES IN RURAL AREAS.  THE CENTER OF THE COUNTRY IS FLAT AND DRY, ITS 
NORTHERN AND SOUTHERN AREAS ARE MOUNTAINOUS AND DENSELY FORESTED.  OVER 
90% OF POPULATION ARE ETHNIC AZERIS.  SIGNIFICANT MINORITIES INCLUDE  
RUSSIANS, JEWS, LEZGINES (IN THE NORTH) AND TALYSH (IN THE SOUTH.)  BAKU 
IS THE LARGEST CITY (POPULATION 3 MILLION).  IT HAS THE POTENTIAL TO 
BECOME THE HUB OF A REGIONAL TRANSPORTATION AND COMMUNICATION SYSTEMS AS 
THE VAST OIL POTENTIAL OF THE CASPIAN BASIN IS DEVELOPED.  AZERBAIJAN 
WILL BE AN IMPORTANT EXPORT MARKET FOR OIL FIELD MACHINERY, ELECTRIC 
POWER GENERATORS AND TELECOMMUNICATIONS SYSTEMS.    
 
COUNTRY COMMERCIAL GUIDES ARE AVAILABLE IN THE NATIONAL TRADE DATA BANK 
ON CD-ROM OR THROUGH THE INTERNET.  PLEASE CONTACT STAT-USA AT 1-800-
STAT-USA FOR MORE INFORMATION.  TO LOCATE COUNTRY COMMERCIAL GUIDES VIA 
THE INTERNET, PLEASE USE THE FOLLOWING WORLD WIDE WEB ADDRESS: WWW.STST-
USA.GOV.  CCGS CAN ALSO BE ORDERED IN HARD COPY OR ON DISKETTE FROM THE 
NATIONAL TECHNICAL INFORMATION SERVICE (NTIS) AT 1-800-553-NTIS.  
 

 
CHAPTER II.  ECONOMIC TRENDS AND OUTLOOK 
 
A.  MAJOR TRENDS AND OUTLOOK:  THE ECONOMY DECLINED SIGNIFICANTLY AFTER 
AZERBAIJAN BECAME INDEPENDENT IN 1991.  FACTORS CAUSING THIS DECLINE 
WERE:  THE WAR WITH ARMENIA, THE DISRUPTION OF TRADE TIES WITHIN THE 
FORMER SOVIET UNION (FSU) AND THE COLLAPSE OF LARGE PARTS OF THE STATE 
MANUFACTURING SECTOR.  REAL GDP FELL BY 23% IN 1993 AND BY 22% IN 1994.  
1994 GDP WAS ROUGHLY $2.6 BILLION, OR $360 PER CAPITA.  OFFICIAL FIGURES 
DO NOT FULLY REFLECT THE GROWTH OF THE INFORMAL TRADING SECTOR OF THE 
ECONOMY, SO REAL PER CAPITA INCOME MAY BE SOMEWHAT HIGHER.  DURING THE 
LAST HALF OF 1994, AZERBAIJAN WAS TEETERING ON THE BRINK OF HYPER-
INFLATION.  DURING NOVEMBER AND DECEMBER OF 1994, MONTHLY RETAIL PRICE 
INCREASES EXCEEDED  50%.  DURING THE LAST QUARTER OF 1994, THE GOAZ 
BEGAN WORKING CLOSELY WITH THE IMF ON A STRUCTURAL TRANSFORMATION 
FACILITY (STF) PROGRAM.  THE CENTRAL BANK TIGHTENED UP CREDIT POLICIES 
OF STATE-OWNED BANKS AND PREVENTED MORIBUND STATE ENTERPRISES FROM 
RECEIVING INTEREST FREE LOANS.  THE MINISTRY OF FINANCE PUT TOGETHER A 
RESTRICTIVE BUDGET FOR 1995 WHICH THE PARLIAMENT PASSED.  THE GOVERNMENT 
ALSO ELIMINATED HUGE CONSUMER SUBSIDIES ON GASOLINE AND BREAD.  THE RATE 
OF RETAIL PRICE INFLATION HAS FALLEN DRAMATICALLY -- RETAIL PRICES 
ACTUALLY DECLINED BY .6% IN JUNE 1995.  THE EXCHANGE RATE OF THE MANAT 
HAS BEEN STEADY AT ABOUT 4500 PER U.S. DOLLAR FOR THE LAST SIX MONTHS. 
 
B.  PRINCIPAL GROWTH SECTORS:  AZERBAIJAN HAS ENORMOUS ENERGY RESOURCES.  
THE EXACT EXTENT OF AZERBAIJAN'S ENERGY RESERVES IS UNKNOWN.  PROVEN 
RESERVES ARE ABOUT 3 BILLION BARRELS.  SOME EXPERTS PUT ULTIMATE 
POTENTIAL AS HIGH AS 40 BILLION BARRELS.  MOST OF THE WORLD'S MAJOR OIL 
COMPANIES ARE INTERESTED IN WHETHER AND ON WHAT TERMS THE GOAZ WILL 
TENDER ADDITIONAL OFFSHORE FIELDS.  AIOC'S INVESTMENT IS ALREADY LEADING 
FOREIGN INVESTORS INTO THE OIL SERVICE SECTOR.  THE MAJOR SPIN-OFF 
STIMULATED BY THE OIL INVESTMENT WITHIN THE NEXT FEW YEARS WILL BE 
CONSTRUCTION OF OIL PIPELINES TO BRING CASPIAN OIL TO WORLD MARKETS.  
AGRICULTURE, WITH ABOUT 37% OF THE LABOR FORCE, IS A CRITICALLY 
IMPORTANT SECTOR FOR AZERBAIJAN.  THE COUNTRY HAS PRODUCTIVE 
AGRICULTURAL LAND AND A DIVERSIFIED CLIMATE.  IN THE PAST AGRICULTURE 
HAS ACCOUNTED FOR MORE THAN 30% OF NET MATERIAL PRODUCT.  THE COUNTRY 
WAS THE MAIN SUPPLIER OF FRUITS TO THE FSU.  PRIVATIZATION COULD 
STIMULATE RAPID GROWTH IN THIS SECTOR.   
 
C.  GOVERNMENT ROLE IN THE ECONOMY:  THE GOAZ PROCLAIMS ITSELF TO BE IN 
THE TRANSITION PERIOD FROM THE SOCIALIST PLANNED ECONOMY TO A FREE 
MARKET ECONOMY.  AS PART OF THE SOVIET UNION FOR SEVENTY YEARS, 
AZERBAIJAN WAS LEFT WITH A LEGACY OF PERVASIVE STATE CONTROL.  DURING 
THE FOUR YEARS SINCE INDEPENDENCE PRIVATE TRADING HAS SPRUNG UP AROUND 
THE COUNTRY.  SMALL SCALE TRADERS REQUIRING MINIMAL CAPITAL INVESTMENT 
OPERATE OUT OF SMALL SHOPS ALONG BAKU'S MAIN THOROUGHFARES AND HANDLE 
ALMOST ALL RETAIL TRADE EXCEPT FOR BREAD SALES.  SMALL FIRMS ALSO 
OPERATE IN THE SERVICE SECTOR.  HOWEVER, LARGE SCALE MANUFACTURING 
ENTERPRISES, SUCH AS THE OIL EQUIPMENT INDUSTRY AND THE PETROCHEMICAL 
INDUSTRY, REMAIN IN STATE HANDS AND ARE DETERIORATING RAPIDLY.  THE GOAZ 
PLANS TO LAUNCH ITS PRIVATIZATION PROGRAM IN THE NEAR FUTURE.  WITH 
TECHNICAL ASSISTANCE FROM THE WORLD BANK, THE GOAZ IS DEVELOPING A 
SPECIFIC PROGRAM.  PRIVATIZATION WILL CAUSE A TEMPORARY INCREASE IN THE 
UNEMPLOYMENT RATE, AS INEFFICIENT STATE ENTERPRISES BECOME MORE 
EFFICIENT.  HOWEVER, MOST INTERNATIONAL EXPERTS BELIEVE THAT A RAPID 
PRODUCTION RESPONSE FROM NEWLY PRIVATIZED ENTERPRISES, PARTICULARLY IN 
AGRICULTURE, COULD REVERSE RECENT ECONOMIC DECLINES.  
 
D.  BALANCE OF PAYMENTS:  AZERI IMPORTS IN 1994 WERE ABOUT $814 MILLION 
(ROUGHLY 31% OF GDP) AND EXPORTS WERE $637 MILLION.  IN 1994 
AZERBAIJAN'S IMPORTS CAME FROM RUSSIA, TURKMENISTAN (NATURAL GAS), 
UKRAINE, IRAN, KAZAKHSTAN, TURKEY AND GERMANY.  THE PROPORTION OF TRADE 
WITH THE FSU HAS DECLINED SINCE INDEPENDENCE, WHILE TURKEY AND IRAN ARE 
EMERGING AS MAJOR TRADING PARTNERS.  SINCE SEPTEMBER 1994, THE CLOSURE 
OF THE RAIL LINK TO RUSSIA HAS EXACERBATED THIS TREND.  AZERBAIJAN'S 
DEBT SERVICE RATIO (RATIO OF PRINCIPAL AND INTEREST ON FOREIGN DEBT TO 
FOREIGN INCOME) IS ONLY ABOUT 10%.   AZERBAIJAN'S NET INTERNATIONAL 
RESERVE POSITION HAS IMPROVED SIGNIFICANTLY FROM ABOUT $2 MILLION AT THE 
END OF 1994 AND IS EXPECTED TO REACH ABOUT $200 MILLION BY THE END OF 
1995.    
 
E.  INFRASTRUCTURE SITUATION:  AZERBAIJAN'S BASIC INFRASTRUCTURE IS 
CRUMBLING.  SOVIET BUILT FACTORIES AND RESIDENTIAL BUILDINGS ARE IN A 
STATE OF GROSS DISREPAIR.  FOREIGN BUSINESSES INVESTING IN BAKU REPORT 
THAT MAJOR UPGRADES OF OFFICE SPACE AND RESIDENCES ARE NECESSARY TO 
BRING THEM UP TO WESTERN STANDARDS. UTILITIES ARE SUBSTANDARD.  
ELECTRICITY AND NATURAL GAS ARE GENERALLY AVAILABLE, BUT THE LEVEL 
SUPPLIED OFTEN FLUCTUATES AND CAN DAMAGE SENSITIVE EQUIPMENT.  THE BAKU 
WATER SUPPLY SYSTEM REQUIRES MAJOR IMPROVEMENTS.  THESE ARE PLANNED 
USING A $50 MILLION WORLD BANK LOAN AND A $35 MILLION EUROPEAN BANK FOR 
RECONSTRUCTION AND DEVELOPMENT BANK (EBRD) LOAN.  THE SUBWAY CONTINUES 
TO OPERATE, ROADS ARE PASSABLE AND CROWED PUBLIC BUSES AND TROLLEYS MOVE 
THROUGH THE STREETS OF BAKU.  A MAJOR UPGRADE OF THE BAKU AIRPORT WITH 
GERMAN ASSISTANCE (LUFTHANSA FLIES HERE) IS PLANNED.  AZERBAIJAN HAS NO 
FOUR LANE HIGHWAYS IN THE WESTERN SENSE.  PAVED ROADS CAPABLE OF 
HANDLING TRUCK TRAFFIC EXTEND NORTH TO RUSSIA AND SOUTH TO IRAN ALONG 
THE CASPIAN COAST.  TWO PAVED ROADS RUN EAST-WEST BETWEEN BAKU AND 
TBILISI, GEORGIA.  EXTENSIVE DOCKING FACILITIES EXIST IN BAKU FOR TRANS-
CASPIAN SHIPPING, BUT ARE NOT YET UP TO WESTERN STANDARDS.  IN SOVIET 
TIMES, THE RAILROAD TO RUSSIA WAS AZERBAIJAN'S MAIN IMPORT ROUTE.  AFTER 
RUSSIA SEVERED THE RAIL LINK LAST YEAR, AZERBAIJAN HAS RELIED ON THE 
RAILROAD TO TBILISI FOR IMPORTS FROM GEORGIAN PORTS ON THE BLACK SEA 
(POTI AND BATUMI); OR ON TRUCK TRANSPORTATION TO IRAN.  THESE IMPORTS 
VIA GEORGIA, PARTICULARLY WHEAT, ARE CRITICALLY IMPORTANT TO THE GOAZ.  
WESTERN DONORS, WORKING THROUGH THE WORLD FOOD PROGRAM (WFP) HAVE WORKED 
TO MAINTAIN THE BASIC RAILROAD INFRASTRUCTURE IN GEORGIA AND AZERBAIJAN.   
 
CHAPTER III.  POLITICAL ENVIRONMENT 
 
A.  NATURE OF BILATERAL RELATIONSHIP WITH THE UNITED STATES:  AZERBAIJAN 
DECLARED ITS INDEPENDENCE IN DECEMBER 1991.  THE UNITED STATES AND 
AZERBAIJAN ESTABLISHED DIPLOMATIC RELATIONS IN 1992, AND EMBASSIES HAVE 
BEEN SET UP IN BOTH COUNTRIES.   A BILATERAL TRADE TREATY AND AN 
OVERSEAS PRIVATE INVESTMENT CORPORATION (OPIC) TREATY ARE IN FORCE.  A 
BILATERAL INVESTMENT TREATY BETWEEN THE TWO COUNTRIES IS CURRENTLY BEING 
NEGOTIATED.  THE GOAZ ARGUES THAT INTERNATIONAL AGREEMENTS AND LAWS OF 
THE FSU APPLY TO AZERBAIJAN ONLY WITH ITS FORMAL APPROVAL.  ACCORDING TO 
THE GOAZ, THE FSU BILATERAL TAX TREATY WITH THE UNITED STATE HAS NOT 
BEEN APPROVED AND IS NOT IN EFFECT.  THE UNITED STATES DOES NOT AGREE 
BECAUSE THE GOAZ HAS NOT FORMALLY ABROGATED THE FSU TAX TREATY.  NOTE:  
THEAZERI PARLIAMENT HAS NOT YET RATIFIED TAX  TREATIES NEGOTIATED WITH 
TURKEY AND THE UNITED KINGDOM.  OVERALL THE UNITED STATES AND AZERBAIJAN 
SHARE MANY NATIONAL INTERESTS AND RELATIONS BETWEEN THE TWO COUNTRIES 
ARE GOOD. 
 
B.  MAJOR POLITICAL ISSUES AFFECTING BUSINESS CLIMATE:  THE GOAZ 
ENCOURAGES FOREIGN INVESTMENT, PARTICULARLY AMERICAN INVESTMENT, IN 
AZERBAIJAN.  HOWEVER, POLITICAL INSTABILITY HAS DISCOURAGED FOREIGN 
INVESTMENT.  GOVERNMENTS WERE REPLACED BY FORCE IN 1992 AND 1993, AND 
THE SIX-YEAR OLD KARABAKH WAR REMAINS UNRESOLVED, DESPITE A CEASE-FIRE 
THAT HAS HELD SINCE MAY 1994.  FORCES LOYAL TO PRESIDENT ALIYEV PUT DOWN 
ATTEMPTED COUPS IN OCTOBER 1994 AND MARCH 1995.  THE GOAZ HAS COMMITTED 
ITSELF TO HOLD THE FIRST POST-INDEPENDENCE PARLIAMENTARY ELECTIONS ON 
NOVEMBER 12.  IF THE GOAZ ALLOWS FREE AND FAIR PARTICIPATION BY 
AZERBAIJAN'S VARIOUS INDEPENDENT POLITICAL PARTIES, A MORE STABLE 
POLITICAL SYSTEM COULD WELL RESULT.  ALL MAJOR POLITICAL PARTIES ARE ON 
RECORD AS FAVORING MARKET-ORIENTED ECONOMIC REFORM, FOREIGN INVESTMENT 
AND A COOPERATIVE RELATIONSHIP WITH THE UNITED STATES. 
 
C.  BRIEF SYNOPSIS OF THE POLITICAL SYSTEM, SCHEDULE OF ELECTIONS, AND 
ORIENTATION OF MAJOR POLITICAL PARTIES:  AZERBAIJAN IS MOVING FROM 
CENTRALIZED, SOVIET STATE STRUCTURES.  THE CURRENT PARLIAMENT (MILLI 
MACLIS) WAS SELECTED FROM THE SUPREME SOVIET DEPUTIES WHO WERE ELECTED 
IN 1990, BEFORE INDEPENDENCE.  THE FIRST PRESIDENT,  ABULFAZ ELCHIBEY, 
WAS ELECTED IN 1992 AND FORCED TO RESIGN IN 1993 BY INSURGENT MILITARY 
UNITS.  THE CURRENT PRESIDENT IS HEYDAR ALIYEV, WHO SUCCEEDED ELCHIBEY, 
AND WON A FIVE YEAR TERM IN A REFERENDUM IN SEPTEMBER 1993.  SUPPRESSION 
OF THE OCTOBER 1994 AND MARCH 1995 COUP ATTEMPTS, BY ELIMINATING SEMI-
INDEPENDENT MILITARY FORCES, MAY HAVE AT LEAST SET THE STAGE FOR A MORE 
STABLE POLITICAL PROCESS.  THE MILLI MACLIS HAS SET A NOVEMBER 12 DATE 
FOR ELECTIONS FOR A NEW PARLIAMENT.  A REFERENDUM ON A NEW CONSTITUTION 
WILL ALSO BE HELD ON THAT DATE.  PROVISIONS OF THE NEW CONSTITUTION 
SHOULD BE PUBLISHED BY JULY 31 AND ARE EXPECTED TO HAVE A MAJOR IMPACT 
ON THE BUSINESS CLIMATE IN AZERBAIJAN.  THE ABSENCE OF REGULAR 
PARLIAMENTARY ELECTIONS MAKE IT DIFFICULT TO GAUGE THE POPULARITY OF 
AZERBAIJAN'S FORTY-PLUS POLITICAL PARTIES.  LEADING PARTIES INCLUDE THE 
AZERBAIJAN POPULAR FRONT (ASSOCIATED WITH FORMER PRESIDENT ELCHIBEY), 
THE NEW AZERBAIJAN PARTY (ASSOCIATED WITH PRESIDENT ALIYEV), THE MUSAVAT 
PARTY, AND THE NATIONAL INDEPENDENCE PARTY.  THE GOVERNMENT HAS WELCOMED 
INTERNATIONAL OBSERVERS TO OBSERVE THE ELECTIONS PROCESS. 
 
CHAPTER IV.  MARKETING U.S. PRODUCTS AND SERVICES 
 
DISTRIBUTION AND SALES CHANNELS:  AZERBAIJAN HAS ONLY BEEN INDEPENDENT 
FOR FOUR YEARS AND ITS PRIVATE MARKETING SYSTEM IS JUST BEGINNING TO 
DEVELOP.  THE OLD SYSTEM OF CENTRALIZED STATE PURCHASES IS WITHERING 
AWAY.  STATE ENTERPRISES OUTSIDE THE ENERGY SECTOR ARE UNLIKELY PROVIDE 
MARKETS FOR MOST U.S. GOODS.  PRIVATE TRADERS AND SMALL SHOPS SELLING 
IMPORTED GOODS ARE THRIVING.  
 
USE OF AGENTS AND DISTRIBUTORS; FINDING A PARTNER:  AT PRESENT THIRTY-
THREE U.S. FIRMS ARE RESIDENT IN BAKU, SIX OF WHICH ARE INVOLVED IN 
TRADE (SEE CHAPTER X, APPENDIX D.)  THE CHAMBER OF COMMERCE AND INDUSTRY 
OF AZERBAIJAN CAN PROVIDE U.S. BUSINESSES WITH THE NAMES OF ADDITIONAL 
COMPANIES WHICH MAY SERVE AS AGENTS OR DISTRIBUTORS.  HOWEVER, AZERI 
TRADING FIRMS DO NOT HAVE A LONG TRACK RECORD AS PARTNERS WITH WESTERN 
FIRMS.  UNDER PRESENT CIRCUMSTANCES, POTENTIAL EXPORTERS SHOULD VISIT 
THE COUNTRY IN PERSON TO BUILD PERSONAL RELATIONSHIPS, SET UP LOCAL SALE 
NETWORKS, OR ESTABLISH PARTNERSHIPS WITH LOCAL AGENTS OR DISTRIBUTORS.  
 
FRANCHISING:  WE ARE NOT AWARE OF ANY FRANCHISE OPERATION IN AZERBAIJAN.    
 
DIRECT MARKETING:  U.S. FIRMS SEEKING TO DEVELOP AN EXPORT MARKET IN 
AZERBAIJAN CAN SET UP THEIR OWN REPRESENTATIVE OFFICES USING EXPATRIATE 
OR LOCAL SALES STAFF. 
 
JOINT VENTURES/LICENSING: THE GOAZ ENCOURAGES FOREIGN PARTICIPATION IN 
THE ECONOMY.  FOREIGN INVESTORS CAN FORM JOINT VENTURES WITH LOCAL 
COMPANIES OR OTHER FOREIGN INVESTORS.  TAX CONCESSIONS MAY BE AVAILABLE 
TO JOINT VENTURES WHICH HAVE AT LEAST 30% FOREIGN PARTICIPATION. 
HOWEVER, PERMISSION TO SET UP A QUALIFYING JOINT VENTURE MAY INVOLVE 
HAVING A STATE ENTERPRISE AS A PARTNER.  CONTRACTS MUST BE REGISTERED 
WITH THE MINISTRY OF FOREIGN ECONOMIC RELATIONS.   
 
STEPS TO ESTABLISHING AN OFFICE:  FOREIGN INVESTORS IN AZERBAIJAN MUST 
DECIDE WHETHER TO ESTABLISH A WHOLLY FOREIGN OWNED ENTERPRISE, A JOINT 
VENTURE OR SIMPLY A REPRESENTATIVE OFFICE.  INVESTORS MUST APPLY TO THE 
MINISTRY OF ECONOMIC RELATIONS AND THE MINISTRY OF FINANCE.   
 
SELLING FACTORS/TECHNIQUES:  THERE IS NO SUBSTITUTE FOR THE PERSONAL 
TOUCH IN AZERBAIJAN.  FACE TO FACE SALES PRESENTATIONS ARE MUCH MORE 
EFFECTIVE THAN LONG DISTANCE COMMUNICATION.  BUSINESS PEOPLE ARE 
COMPLETELY BI-LINGUAL IN RUSSIAN AND AZERI (VERY CLOSE TO TURKISH).  
HOWEVER, THE OFFICIAL LANGUAGE IS AZERI AND IT MAY BE NECESSARY TO 
TRANSLATE OFFICIAL DOCUMENTS INTO AZERI, RATHER THAN RUSSIAN. BUSINESS 
CAN BE CONDUCTED WITH TRANSLATORS OR BY RUSSIAN OR TURKISH SALES REPS.  
CONSUMER CREDIT MECHANISMS ARE RUDIMENTARY, CREDIT CARDS ARE NOT YET 
USED.  MOST BUSINESS IS DONE ON A CASH BASIS.  PRIVATE BANKS DO EXIST, 
BUT ACCOUNT FOR ONLY ABOUT 15% OF DEPOSITS IN THE COMMERCIAL BANKING 
SECTOR.       
 
ADVERTISING AND TRADE PROMOTION:  SEVERAL NEWSPAPERS IN AZERI AND 
RUSSIAN ARE PUBLISHED DAILY.  THE MAJOR NEWSPAPERS WHICH ACCEPT 
ADVERTISEMENTS (WITH CIRCULATION FIGURES IN PARENTHESES) ARE: AVRASIYA 
(20,000); AYDIN SABAH (10,000); AYDINLIQ (10,000); AYNA (20,000); 
AZADLIQ (26,000); AZERBAIJAN (26,000); AZERBAIJAN MUALLIMI (29,000); 
BAKINETS (15,000); CEYLA (10,000); EKONOMIKA I BANKI (3,000); EKRAN-EFIR 
(120,000); GUNAY (66,000); MILLAT (17,000); MOZALAN (11,000); MUXALIFAT 
(19,000); SAHAR (11,000); SUPER REKLAM (13,000); 7 GUN (15,000); 525-CI 
QAZET (18,000).  RELATIVELY INEXPENSIVE ADVERTISEMENTS CAN EASILY BE 
PLACED IN THESE PAPERS.  TELEVISION ADVERTISING IS POSSIBLE ON THE TWO 
AZERI STATE TV STATIONS (AZTV1 AND AZTV2) AND ON THE COUNTRY'S SOLE 
PRIVATE TV STATION (AZERBAIJAN NEWS SERVICE) WHICH ONLY OPERATES 19:00 
TO 24:00 LOCAL TIME. IN ADDITION, BAKU RECEIVES TWO RUSSIAN TV STATIONS 
WITH ADVERTISEMENTS INTENDED FOR THE RUSSIAN MARKET.   
 
PRICING PRODUCT: THERE ARE NO GOAZ PRICE CONTROLS IN PLACE (EXCEPT FOR 
BREAD AND GASOLINE WHICH ARE NO LONGER SUBSIDIZED.)  PRICES ARE 
GENERALLY QUOTED IN US DOLLARS FOR IMPORTED GOODS.  AZERIS ARE USED TO 
BARGAINING  OVER PRICES.  STORAGE FACILITIES ARE LIMITED AND PRICES MAY 
VARY CONSIDERABLY DEPENDING ON SHIPMENT SCHEDULES. 
 
SALES SERVICE/CUSTOMER SUPPORT:  THE FSU WAS NOT KNOWN FOR HIGH-CALIBER 
CONSUMER SERVICE.  AZERI CUSTOMERS ARE NOT USED TO SALES SERVICE OR 
CUSTOMER SUPPORT ONCE A SALE HAS BEEN MADE.  PRODUCT GUARANTEES ARE 
VIRTUALLY UNKNOWN.  A U.S. FIRM OPERATING IN THIS MARKET AND ABLE TO 
PROVIDE A STRONG CUSTOMER SERVICE CENTER, E.G., FOR COMPUTERS OR CARS, 
COULD HAVE A STRONG COMPETITIVE ADVANTAGE.   
 
SELLING TO THE GOVERNMENT:  SELLING TO THE CENTRAL GOVERNMENT OR TO 
STATE ENTERPRISES IS DIFFICULT, PARTICULARLY OUTSIDE THE ENERGY SECTOR.  
MAJOR OIL REVENUES ARE NOT EXPECTED TO FLOW TO THE GOAZ BEFORE OCTOBER 
1996.  AT PRESENT THE GOAZ IS RUNNING ARREARS IN PAYMENTS TO DOMESTIC 
SUPPLIERS.  STATE ENTERPRISES ARE OFTEN TWO TO THREE MONTHS LATE IN 
PAYING THEIR OWN EMPLOYEES.  FIRMS SELLING TO THE GOAZ SHOULD BE 
PARTICULARLY CAREFUL TO SPECIFY BEFOREHAND HOW THE VALUE ADDED TAX (VAT) 
WILL BE HANDLED. 
 
PROTECTING YOUR PRODUCT FROM IPR INFRINGEMENT:  IN THEORY, COPYRIGHTS, 
PATENTS, TRADEMARKS AND INDUSTRIAL DESIGNS ARE PROTECTED UNDER A LAW 
INHERITED FROM THE FSU.  AT PRESENT A NEW AZERI LAW TO PROTECT 
INTELLECTUAL PROPERTY RIGHTS (IPR) IS BEING DRAFTED.  IPR ARE ALSO 
COVERED BY THE U.S.-AZERBAIJAN BILATERAL TRADE TREATY.  AZERBAIJAN 
SUBSCRIBES TO INTERNATIONAL INTELLECTUAL PROPERTY RIGHTS CONVENTIONS. 
 
NEED FOR A LOCAL ATTORNEY:  THE AZERI LEGAL SYSTEM IS IN A STATE OF FLUX 
AND IS NOT TRANSPARENT.  THE EMBASSY MAINTAINS A LIST OF COMMERCIAL 
LAWYERS IN AZERBAIJAN AND ADVISES U.S. FIRMS TO SEEK LEGAL ADVICE BEFORE 
SIGNING BUSINESS CONTRACTS.  AT PRESENT THERE ARE TWO MAJOR 
INTERNATIONAL ACCOUNTING FIRMS IN BAKU WHICH MAY PROVIDE LEGAL AS WELL 
AS ACCOUNTING ASSISTANCE.  ERNST & YOUNG SET UP SHOP IN FEBRUARY 1994 
AND PRICE WATERHOUSE ARRIVED IN MARCH 1995. 
 
CHAPTER V.  LEADING SECTORS FOR U.S. EXPORTS  
 
A.  BEST PROSPECT SECTORS FOR NON-AGRICULTURAL GOODS AND SERVICES 
(RANKED BY POTENTIAL IN 1996): 
 
1 - OIL/GAS FIELD MACHINERY (OGM):  THE AZERBAIJANI INTERNATIONAL 
OPERATING COMPANY (AIOC) WILL INVEST $8 BILLION TO DEVELOP THE OFFSHORE 
GUNESHLI-CHIRAG-AZERI FIELD. 
 
2 - OIL, GAS, MINERAL PROD/ EXPLORATION SERVICES (OGS):  IN ADDITIONAL 
TO THE AIOC INVESTMENT MENTIONED ABOVE, SUBSTANTIAL OIL AND GAS RESERVES 
ARE BELIEVED TO EXIST IN AZERBAIJAN.  INTERNATIONAL INTEREST IN FINDING 
AND DEVELOPING THESE RESERVES IS GROWING. 
 
3 - ELECTRICAL POWER SYSTEMS (ELP):  THE GOAZ MUST  REPLACE MOST OF THE 
ELECTRICAL GENERATION SYSTEM WITHIN THE NEXT FEW YEARS.  THIS PROJECT 
WILL COST ABOUT $500 MILLION AND REQUIRE IMPORTED EQUIPMENT. 
 
4 - TELECOMMUNICATIONS EQUIPMENT (TEL):  THE BAKU TELEPHONE SYSTEM IS 
WOEFULLY INADEQUATE AND IS BEING REFURBISHED.   
 
5 - TELECOMMUNICATIONS SERVICES (TES):  AS NOTED ABOVE, THE BAKU 
TELECOMMUNICATIONS SYSTEM IS BEING UPGRADED.  U.S. FIRMS WILL HAVE AN 
OPPORTUNITY TO SELL TELECOMMUNICATIONS SERVICES. 
  
6 - PUMPS, VALVES/COMPRESSORS (PVC):  THE WORLD BANK AND EBRD WILL SPEND 
$85 MILLION IN 1996 TO UPGRADE THE BAKU WATER SUPPLY SYSTEM.  IN 
ADDITION, WORK ON BUILDING OR REFURBISHING REFURBISHING AN EARLY OIL 
PIPELINE WILL BEGIN IN 1996. 
  
7 - COMPUTERS/PERIPHERALS (CPT):  IN 1994 AZERBAIJAN IMPORTED $3.7 
MILLION IN COMPUTERS AND PARTS FROM RUSSIA.  U.S. COMPUTERS AND PARTS 
WOULD BE COMPETITIVE IN THIS MARKET. 
 
8 - AIRCRAFT AND PARTS (AIR):  THE AZERBAIJAN NATIONAL AIRLINE IS IN THE 
MARKET FOR BOEING AIRCRAFT. 
  
9 - AGRICULTURAL MACHINERY AND EQUIPMENT (AGM):  THE GOAZ HAS ANNOUNCED 
PLANS TO PRIVATIZE AGRICULTURE.  EQUIPMENT IN THIS FIELD IS ANTIQUATED 
AND NEW PURCHASES WILL BE MADE AS THIS PROCESS GETS UNDERWAY. 
 
10 - DRUGS/PHARMACEUTICALS (DRG):  AZERBAIJAN FACES A CHRONIC SHORTAGE 
OF BASIC DRUGS.  IN 1994 MORE THAN $10 MILLION IN PHARMACEUTICALS WERE 
IMPORTED FROM TURKEY.  IMPORTS BY HUMANITARIAN ORGANIZATIONS, THE GOAZ 
AND PRIVATE INDIVIDUALS ARE EXPECTED TO INCREASE IN 1996.    
 
11 - AUTOMOTIVE PARTS AND SERVICE EQUIPMENT (APS):  AZERBAIJAN IMPORTED 
MORE THAN $12 MILLION IN AUTOMOTIVE PARTS AND TIRES FROM RUSSIA AND 
TURKEY IN 1994.   
 
12 - WATER RESOURCE EQUIPMENT (WRE):  AS MENTIONED ABOVE, THE WORLD BANK 
AND EBRD WILL UPGRADE THE BAKU WATER SUPPLY SYSTEM.  THE MARKET FOR 
WATER PURIFYING EQUIPMENT IS EXPECTED TO CONTINUE TO GROW.  THE NEED FOR 
WATER RESOURCE EQUIPMENT WILL BE EXACERBATED BY THE EFFECTS OF THE 
RISING CASPIAN SEA.    
 
13 - POLLUTION CONTROL EQUIPMENT (POL):  AZERBAIJAN FACES EXTREMELY 
SERIOUS POLLUTION PROBLEMS ON THE APSHERON PENINSULA.  AIOC IS EXPECTED 
TO PURCHASE STATE OF THE ART POLLUTION ABATEMENT EQUIPMENT FOR ITS 
OPERATIONS.  SMALLER OIL COMPANIES MAY INVEST IN POLLUTION CONTROL 
EQUIPMENT UNDER THE TERMS OF THEIR CONTRACTS.   
  
14 - HEALTHCARE SERVICES (HCS):  THE AZERI PUBLIC HEALTH CARE SYSTEM HAS 
ESSENTIALLY COLLAPSED.  PRIVATE HEALTH CARE SERVICES ARE NECESSARY TO 
SERVE A GROWING COMMUNITY OF EXPATRIATES AND AFFLUENT AZERBAIJANIS.  
 
B.  BEST PROSPECTS FOR U.S. AGRICULTURAL EXPORTS:  AZERBAIJAN FACES AN 
ANNUAL WHEAT DEFICIT OF ONE MILLION MT.  AZERBAIJAN HAS TRADITIONALLY 
IMPORTED THIS WHEAT FROM RUSSIA AND UKRAINE.  AT PRESENT MOST OF 
AZERBAIJAN'S WHEAT IMPORTS ARE FROM THE EUROPEAN UNION, BUT U.S. WHEAT 
COULD BE COMPETITIVE UNDER THE RIGHT TERMS. 
 
SECTION VI.  TRADE REGULATIONS AND STANDARDS 
 
A. TRADE BARRIERS: 
 
B. CUSTOMS VALUATION AS OF JULY 1995:  IMPORT DUTIES ON MOST ITEMS RANGE 
FROM 10% TO 50% AD VALOREM.  
 
THE FOLLOWING ARE ITEMS ARE EXEMPT FROM IMPORT DUTIES:  
 
-- PROPERTY IMPORTED FOREIGN EMPLOYEES OF COMPANIES WITH FOREIGN 
INVESTMENT FOR THEIR PERSONAL USE. 
 
-- COMMODITIES, MATERIALS AND TECHNOLOGY DELIVERED UNDER 
INTERGOVERNMENTAL AGREEMENTS.  
 
--  ASSETS AND MATERIALS IMPORTED AS A FOREIGN INVESTOR'S EQUITY 
CONTRIBUTION TO A JOINT VENTURE.  
 
-- RAW MATERIALS, SPARE PARTS, AND EQUIPMENT IMPORTED BY ENTERPRISES FOR 
USE IN THEIR OWN PRODUCTION. 
 
-- IMPORTED HUMANITARIAN AND TECHNICAL AID WHICH WILL BE DISTRIBUTED 
FREE OF CHARGE. 
 
AT PRESENT IMPORT DUTIES FOR U.S. GOODS ARE: 
 
AIRCRAFT                   0% 
CARPETS                   50% 
COSMETICS               0-10% 
ELECTRIC APPLIANCES     0-25% 
GARMENTS                0-10% 
FOOD PRODUCTS           0-65% 
LEATHER                 0-10% 
MARINE CRAFT               0% 
RAILROAD EQUIPMENT         0% 
 
IN ADDITION TO CUSTOMS DUTIES, A 20% VALUE ADDED TAX (VAT) IS CHARGED ON 
CERTAIN IMPORTS.  THE FOLLOWING GROUPS OF COMMODITIES ARE EXEMPT FROM 
VAT WHEN IMPORTED INTO AZERBAIJAN: CERTAIN FOODSTUFFS; SALTS; CRUDE OIL; 
NON-ORGANIC CHEMICALS; PHARMACEUTICALS; FERTILIZERS; DETERGENTS; RUBBER-
BASED TECHNICAL AND SURGICAL PRODUCTS; TANNERY RAW MATERIALS; PAPER 
RELATED RAW MATERIALS; CHILDREN'S CLOTHES; CERAMIC ITEMS; CERTAIN 
FERROUS AND NON-FERROUS METAL ARTICLES AND CERTAIN INDUSTRIAL MACHINERY.  
IN ADDITION CAPITAL EQUIPMENT FOR FOREIGN DIRECT INVESTMENT IS GENERALLY 
EXEMPT FROM THE VAT.  INFORMATION REGARDING APPLICATION OF THE CURRENT 
RULES CAN BE OBTAINED FROM THE GOAZ'S CUSTOMS SERVICE (CONTACT NUMBERS 
PROVIDED IN CHAPTER X, APPENDIX D.)   
 
EXPORT DUTIES: 
 
EXPORT TARIFFS ARE LEVIED ON MOST GOODS. 
 
AN EXPORT DUTY OF 70% IS LEVIED ON OIL AND OIL PRODUCTS, HIGH PRESSURE 
POLYETHYLENE, SULFONYL, CAUSTIC SOAP, ALUMINUM, STEEL PIPE, IRON 
CONCENTRATE, BRONZE PRODUCTS, RAW COTTON AND CAVIAR.  HOWEVER, ACCORDING 
TO ARTICLE 3 OF THE FOREIGN INVESTMENT LAW GOODS PRODUCED FROM FOREIGN 
MATERIALS AS WELL AS GOODS PRODUCED BY FOREIGN INVESTORS IN AZERBAIJAN, 
ARE EXEMPT FROM THE DUTY.  
 
THE FOLLOWING COMMODITIES/TRANSACTIONS ARE EXEMPT FROM THE EXPORT DUTY: 
 
-- COMMODITIES EXPORTED UNDER INTERGOVERNMENTAL AGREEMENTS.  
 
-- EXPORT OF PROCESSED PRODUCTS MADE FROM IMPORTED RAW MATERIALS (RE-
EXPORT OPERATIONS.) 
 
-- EXPORT OF RAW MATERIALS FOR PROCESSING ABROAD AND SUBSEQUENT RE-
IMPORT INTO AZERBAIJAN. 
 
C.  IMPORT LICENSES:  AT PRESENT THE GOAZ DOES NOT REQUIRE IMPORT 
LICENSES 
 
D.  EXPORT CONTROLS:  GOAZ REGULATIONS PROHIBIT THE EXPORT OF WEAPONS, 
EXPLOSIVES, RADIOACTIVE MATERIALS AND WASTES, NARCOTICS AND PSYCHOTROPIC 
DRUGS.  IN THEORY ONLY THE EXPORT OF OLD, TRADITIONAL CARPETS IS 
RESTRICTED.  IN PRACTICE THERE HAVE BEEN REPORTS OF PROBLEMS EXPORTING 
MODERN CARPETS.  THE GOVERNMENT REGULATES THE EXPORT OF "STRATEGIC 
COMMODITIES" PRODUCED IN AZERBAIJAN.  THESE INCLUDE THE MAIN HARD 
CURRENCY EARNERS, SUCH AS OIL PRODUCTS, COTTON, AND WINE.  POTENTIAL 
BUYERS OF SUCH COMMODITIES MUST PAY FOR AN EXPORT LICENSE OR COOPERATE 
WITH AN AZERBAIJANI PARTNER THAT HAS OBTAINED A GENERAL LICENSE FOR THAT 
COMMODITY.  THE GOAZ RECENTLY ELIMINATED A FOREIGN CURRENCY SURRENDER 
REQUIREMENT FOR EXPORTERS.  AT PRESENT EXPORTERS ARE REQUIRED TO SELL 
30% OF THEIR HARD CURRENCY EXPORT EARNINGS ON AN INTERBANK CURRENCY 
MARKET.  WITH THE PRESENT MARKET-DETERMINED EXCHANGE RATE, THIS IS NOT 
AN ONEROUS REQUIREMENT.   
 
E.  IMPORT/EXPORT DOCUMENTATION:  IMPORTERS ARE REQUIRED TO PROVIDE 
CUSTOMS AUTHORITIES WITH: 1) A SIGNED IMPORT CONTRACT; 2) A CUSTOMS 
DECLARATION SPECIFYING WHAT IS BEING IMPORTED; 3) AN INVOICE FOR THE 
GOODS IMPORTED; 4) PERMISSION FROM THE RELEVANT MINISTRY IF IMPORTS 
INCLUDE PESTICIDES, MEDICINES, OR WEAPONS AND AMMUNITION;  5) THE BILL 
OF LADING; 6) A CERTIFICATE OF ORIGIN; AND 7) A CERTIFICATE OF QUALITY 
OF THE IMPORTED MERCHANDISE. 
 
F:  TEMPORARY ENTRY: COMMODITIES TEMPORARILY IMPORTED FOR A SPECIFIED 
PERIOD WHICH WILL BE REEXPORTED OR USED FOR PROCESSING, ARE EXEMPT FROM 
IMPORT DUTIES. 
 
G:  LABELING, MARKING REQUIREMENTS:  AT PRESENT THERE ARE NO LABELING OR 
MARKING REQUIREMENTS IN AZERBAIJAN. 
 
H.  PROHIBITED IMPORTS:  THE GOAZ PROHIBITS THE IMPORT OF RADIOACTIVE 
MATERIALS AND WASTES, NARCOTICS AND PSYCHOTROPIC DRUGS.  SPECIAL 
PERMISSION IS REQUIRED TO IMPORT WEAPONS, EXPLOSIVES AND CERTAIN 
RADIOACTIVE EQUIPMENT USED IN THE OIL INDUSTRY. 
 
I.  STANDARDS:  IN THEORY THE CHAMBER OF COMMERCE AND INDUSTRY OF 
AZERBAIJAN IS RESPONSIBLE FOR ENSURING BASIC HEALTH STANDARDS ON 
IMPORTED FOOD.  WE ARE NOT AWARE OF ANY OTHER GOAZ STANDARDS ESTABLISHED 
FOR IMPORTS. 
 
J.  FREE TRADE ZONES/WAREHOUSES:  THERE ARE NO FREE TRADE ZONES OR 
BONDED WAREHOUSES IN AZERBAIJAN.  
 
K.  SPECIAL IMPORT PROVISIONS:  THE GOAZ STILL USES  GOVERNMENT TO 
GOVERNMENT AGREEMENTS TO MANAGE SOME TRADE. 
 
L.  MEMBERSHIP IN FREE TRADE ARRANGEMENTS:  AZERBAIJAN IS A SIGNATORY OF 
THE GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT.)  VARIOUS TRADE 
LIBERALIZATION AGREEMENTS WITH THE COMMONWEALTH OF INDEPENDENT STATES 
(CIS) HAVE BEEN DISCUSSED BUT ARE NOT YET IN PLACE.   
 
 
CHAPTER VII.  INVESTMENT CLIMATE 
 
OPENNESS TO FOREIGN INVESTMENT: IN THEORY, THE GOAZ WELCOMES FOREIGN 
INVESTMENT.  HOWEVER, CONSIDERABLE AMBIGUITIES EXIST CONCERNING TAX 
RATES AND "EXCLUSIVITY" AGREEMENTS.  AIOC OPERATIONS ARE COVERED BY A 
SEPARATE PSA WITH THE GOAZ.  THIS PSA HAS THE FORCE LAW AND EXEMPTS AIOC 
FROM THE PROVISIONS OF OTHER LEGISLATION. 
 
CONVERSION AND TRANSFER POLICIES:  THE MANAT IS FREELY CONVERTIBLE AT 
TWO HUNDRED DIFFERENT FOREIGN EXCHANGE SHOPS THROUGHOUT BAKU. 
 
EXPROPRIATION AND COMPENSATION:  DURING THE FIRST FOUR YEARS OF 
INDEPENDENCE THERE HAVE BEEN NO EXPROPRIATIONS OR MAJOR INVESTMENT 
DISPUTES INVOLVING FOREIGN COMPANIES.   
 
DISPUTE SETTLEMENT: THERE IS NO INTERNATIONAL ARBITRATION MECHANISM IN 
PLACE TO RESOLVE DISPUTES BETWEEN THE GOAZ AND PRIVATE COMPANIES.  THE 
LACK OF A WESTERN-STYLE COMMERCIAL LEGAL FRAMEWORK REMAINS A MAJOR 
PROBLEM.  THE IMPARTIALITY OF THE AZERI LEGAL SYSTEM IN DISPUTES BETWEEN 
FOREIGN AND AZERI FIRMS HAS YET TO BE ESTABLISHED.  AZERBAIJAN IS NOT A 
MEMBER OF THE INTERNATIONAL CENTER FOR THE SETTLEMENT OF INVESTMENT 
DISPUTES. 
 
POLITICAL VIOLENCE: WHILE POLITICAL INSTABILITY HAS BEEN A FACTOR SINCE 
INDEPENDENCE, THE POLITICAL SITUATION HAS BEEN RELATIVELY STABLE SINCE 
THE MARCH 17, 1995 COUP ATTEMPT WAS SUPPRESSED. 
 
PERFORMANCE REQUIREMENTS/INCENTIVES: COMPANIES OPERATING IN AZERBAIJAN 
MUST REGISTER AS REPRESENTATIVE OFFICES,  JOINT VENTURES OR WHOLLY 
FOREIGN OWNED ENTERPRISES WITH THE MINISTRY OF FINANCE AND THE MINISTRY 
OF ECONOMIC RELATIONS.  REPRESENTATIVE OFFICES MAY OR MAY NOT BE SUBJECT 
TO TAX DEPENDING ON THEIR ACTIVITIES.  COMPANIES MUST MAKE BASIC 
FINANCIAL STATEMENTS AND SUBMIT ANNUAL TAX RETURNS BY APRIL 15.  WHOLLY 
FOREIGN-OWNED COMPANIES MAY BE REQUIRED TO TURN IN FINANCIAL STATEMENTS 
BY MARCH 15 AND MAKE QUARTERLY PAYMENTS THROUGHOUT THE YEAR.  THE GOAZ 
MAY OFFER THE FOLLOWING TAX CONCESSIONS TO FOREIGN INVESTORS:  A TWO 
YEAR TAX HOLIDAY FOR CERTAIN JOINT VENTURES INVOLVED IN MANUFACTURING 
AND REFINING; AND TAX DEDUCTIONS FOR INVESTMENT IN PRODUCTIVE CAPACITY, 
R&D, ENVIRONMENTAL PROTECTION OR INTEREST ON LONG-TERM LOANS. 
 
RIGHT TO PRIVATE OWNERSHIP AND ESTABLISHMENT:  PRESENTLY FOREIGNERS 
CANNOT BUY REAL ESTATE.  HOWEVER, FOREIGNERS PARTICIPATING IN JOINT 
VENTURES WITH AZERI PARTNERS CAN PURCHASE REAL ESTATE JOINTLY.  IN BAKU 
AZERI CITIZENS BUY, SELL AND TRADE APARTMENTS.  ALTHOUGH INDIVIDUALS 
HAVE TITLE TO THE APARTMENTS, RESPONSIBILITY FOR COMMON AREAS WITHIN THE 
BUILDINGS IN NOT CLEARLY ESTABLISHED.   
 
PRIVATIZATION OF INDUSTRY IS SCHEDULED TO BEGIN SEPTEMBER 1, 1995.  THE 
GOAZ IS DISCUSSING PRIVATIZATION OF AGRICULTURE BUT NO SPECIFIC 
TIMETABLE EXISTS. 
  
PROTECTION OF PROPERTY RIGHTS:  IN THEORY SOVIET LAW INHERITED BY 
AZERBAIJAN PROTECTS FOREIGN PATENTS, TRADEMARKS, AND DESIGNS.  THE STATE 
COMMITTEE OF SCIENCE AND TECHNOLOGY IS DRAFTING A NEW PATENT PROTECTION 
LAW.  AZERBAIJAN IS A MEMBER OF THE WORLD INTELLECTUAL PROPERTY 
ORGANIZATION, THE PARIS CONVENTION FOR THE PROTECTION OF INDUSTRIAL 
PROPERTY, THE BERN CONVENTION FOR THE PROCESSION OF LITERARY AND 
ARTISTIC WORKS, AND THE UNIVERSAL COPYRIGHT CONVENTION.  THE BILATERAL 
TRADE TREATY BETWEEN THE UNITED STATES AND AZERBAIJAN CONTAINS 
INTELLECTUAL PROPERTY PROTECTION PROVISIONS. 
 
REGULATORY SYSTEM, LAWS AND PROCEDURES:  AZERBAIJAN IS A NEW REPUBLIC 
MAKING THE TRANSITION TO A MARKET ECONOMY.  THE LEGAL FRAMEWORK OF THE 
FSU IS COLLAPSING AND NEW RULES AND PROCEDURES ARE BEING DEVELOPED.  THE 
BAKU CITY TAX AUTHORITY REGULATES TAX PAYMENTS BY FOREIGN INVESTORS.      
 
BILATERAL INVESTMENT AGREEMENTS:  A DRAFT BILATERAL INVESTMENT TREATY IS 
BEING NEGOTIATED BETWEEN AZERBAIJAN AND THE UNITED STATES.  AZERBAIJAN 
ALREADY HAS BILATERAL INVESTMENT TREATIES IN PLACE WITH TURKEY AND THE 
PEOPLE'S REPUBLIC OF CHINA. 
 
OPIC AND OTHER INVESTMENT INSURANCE PROGRAMS:  AN OPIC TREATY IS IN 
EFFECT BETWEEN THE UNITED STATES AND AZERBAIJAN.  HOWEVER, DUE TO 
SECTION 907 OF THE FREEDOM SUPPORT ACT, OPIC HAS NOT YET WRITTEN 
INSURANCE POLICIES FOR, NOR PROVIDED FINANCE TO U.S. COMPANIES IN 
AZERBAIJAN.  OPIC WOULD BE INTERESTED IN A STRICTLY PRIVATE INVESTMENT 
INVOLVING PROJECTS TO IMPROVE THE ENVIRONMENT.  U.S. FIRMS INTERESTED IN 
OPIC FINANCING OR INSURANCE PROGRAMS IN AZERBAIJAN SHOULD CONTACT OPIC 
DIRECTLY (CONTACT INFORMATION IN CHAPTER X, APPENDIX D.)  THE WORLD 
BANK'S MULTILATERAL INVESTMENT GUARANTEE AGENCY (MIGA) MAY ISSUE CERTAIN 
TYPES OF INSURANCE TO PRIVATE COMPANIES INVESTING IN AZERBAIJAN.  
INTERESTED U.S. FIRMS SHOULD CONTACT MIGA IN WASHINGTON, D.C. DIRECTLY 
(CONTACT INFORMATION IN CHAPTER X, APPENDIX D.) 
 
LABOR: MOST AZERBAIJANI LABOR UNIONS DEPEND ON THE GOAZ.  HOWEVER, THERE 
IS AN INDEPENDENT OIL WORKERS UNION.  THE RIGHT TO STRIKE EXISTS AND 
STRIKES HAVE OCCURRED SPORADICALLY IN THE OIL SECTOR.  AT PRESENT THE 
STATE OIL COMPANY IS ABOUT FOUR MONTHS BEHIND IN PAYING OIL WORKERS 
WAGES.  AZERBAIJAN IS A MEMBER OF THE INTERNATIONAL LABOR ORGANIZATION. 
A NATIONWIDE MINIMUM WAGE EXISTS, BUT IS CURRENTLY LESS THAN $2 PER 
MONTH (ALTHOUGH HIGHER MINIMUM WAGES MAY EXIST IN CERTAIN INDUSTRIES.)  
THE LEGAL WORK WEEK IS 41 HOURS.  HEALTH AND SAFETY STANDARDS EXIST BUT 
ARE NOT ENFORCED.  LOCAL EMPLOYEES OF U.S. COMPANIES IN THE ENERGY 
SECTOR ENJOY SIGNIFICANTLY BETTER WORKING CONDITIONS THAN EXIST 
ELSEWHERE IN THE ECONOMY.  U.S. EMPLOYERS REPORT THAT THE AZERI LABOR 
FORCE IS WELL EDUCATED AND MOTIVATED, BUT -- AS A RESULT OF THEIR SOVIET 
TRAINING -- MAY BE RELUCTANT TO TAKE RESPONSIBILITY AND INITIATIVE.   
 
FOREIGN TRADE ZONES/FREE PORTS:  AT PRESENT THERE ARE NO FOREIGN TRADE 
ZONES OR FREE PORTS IN AZERBAIJAN.   
 
CAPITAL OUTFLOW POLICY:  AT PRESENT THE MANAT IS FREELY CONVERTIBLE.  
FOREIGN INVESTORS MAY BE REQUIRED TO PUT 15-25% OF THEIR OPERATING 
CAPITAL INTO A "RESERVE FUND" WHICH CANNOT BE WITHDRAWN FROM THE COUNTRY 
WHILE OPERATIONS ARE ONGOING IN AZERBAIJAN.  THE GOAZ HAS FROZEN BANK 
ACCOUNTS OF COMPANIES WHICH HAVE NOT MET ALL THEIR TAX OBLIGATIONS. 
 
MAJOR FOREIGN INVESTORS:  AT PRESENT THE MAJOR FOREIGN INVESTORS IN 
AZERBAIJAN ARE THE MEMBERS OF AIOC.  90% OF AIOC SHARES ARE HELD BY 
FOREIGN INVESTORS (SHARES OF AIOC IN PARENTHESES):  BRITISH PETROLEUM 
(U.K. 17.1%), AMOCO (U.S 17.0%), LUKOIL (RUSSIA 10.0%), PENNZOIL (U.S. 
9.8%), UNOCAL (U.S. 9.5%), STATOIL (NORWAY 8.6%), MCDERMOTT (U.S. 2.4%), 
RAMCO (U.K. 2.1%), TPAO (TURKISH 6.7%), EXXON (U.S. 5.0%), DELTA-NIMIR 
(SAUDI 1.7%).  PENNZOIL HAS ALSO INVESTED IN A MAJOR NATURAL GAS 
UTILIZATION PLANT.  HYATT-REGENCY HAS INVESTED IN A FIRST CLASS HOTEL IN 
BAKU.   
 
SECTION VIII.  TRADE AND PROJECT FINANCING 
 
A.  BRIEF DESCRIPTION OF THE AZERI BANKING SYSTEM 
 
THE NATIONAL BANK OF AZERBAIJAN (NBA) IS THE COUNTRY'S CENTRAL BANK.  IT 
IS RESPONSIBLE FOR REGULATING THE COMMERCIAL BANKING SECTOR.  GOVERNMENT 
BANKS ACCOUNT FOR ABOUT 85% OF DEPOSITS IN THE COMMERCIAL BANKING 
SECTOR.  IN THE PAST LOOSE CREDIT POLICIES HAVE PLAGUED THE FINANCIAL 
SYSTEM.  OVER THE LAST SIX MONTHS, THE CENTRAL BANK HAS REESTABLISHED 
CONTROL OVER GROWTH OF THE MONEY SUPPLY.  THE GOAZ HAS ALSO DEALT WITH 
THE COLLAPSE OF SEVERAL UNREGULATED "CHARITABLE INSTITUTIONS."  THESE 
SPRANG UP IN THE POST INDEPENDENCE PERIOD AND OPERATED AS INFORMAL 
BANKS.  AT PRESENT THE ONLY FOREIGN BANKS OPERATING IN BAKU ARE THE 
IRANIAN NATIONAL BANK AND A PRIVATE RUSSIAN BANK KNOWN AS HERMES 
FINANCE.  HOWEVER, ZIRAYET, THE LARGEST STATE BANK IN TURKEY WITH 
BRANCHES IN NEW YORK AND LONDON, PLANS TO OPEN A BRANCH IN BAKU BY THE 
END OF JULY 1995.  MAJOR AZERI BANKS INCLUDE:  AZAKBANK (PRIVATE), 
AZERBAIJAN AGRICULTURAL INDUSTRIAL BANK, AZKOMBANK (PRIVATE), BAKOBANK 
(PRIVATE), INTERNATIONAL BANK, RENAISSANCE BANK (PRIVATE), INPATBANK 
(PRIVATE), AND GUNAY (PRIVATE). 
 
B.  FOREIGN EXCHANGE CONTROLS AFFECTING TRADING: FOREIGN COMPANIES 
CANNOT OPEN BANK ACCOUNTS IN BAKU UNTIL THEY ARE OFFICIALLY REGISTERED.  
THIS PROCESS CAN TAKE 30 DAYS.  HOWEVER, BUSINESS PEOPLE CAN SET UP 
ACCOUNTS AS INDIVIDUALS WITHOUT REGISTRATION. USING MANATS IS CUMBERSOME 
BECAUSE THE ONLY BANKNOTES IN CIRCULATION ARE: 50, 100, 250, 500, 1,000, 
AND 10,000 MANATS.  US DOLLARS ARE WIDELY USED.  FOREIGNERS CAN EXCHANGE 
UNLIMITED AMOUNTS OF FOREIGN CURRENCY, ALTHOUGH THEY MAY BE REQUIRED TO 
DECLARE THE AMOUNTS THEY ARE CARRYING AS THEY ENTER OR LEAVE THE 
COUNTRY.  IN THEORY, AZERI CITIZENS ARE NOT PERMITTED TO TAKE MORE THAN 
$5,000 OUT OF THE COUNTRY. 
 
C.  GENERAL FINANCING AVAILABILITY: LOCAL SOURCES OF EXPORT FINANCING 
AVAILABLE TO U.S. FIRMS ARE LIMITED.  THE AZERI BANKING SYSTEM IS FAIRLY 
RUDIMENTARY AT PRESENT AND WE ARE NOT AWARE OF ANY U.S. EXPORTERS WHO 
HAVE RECEIVED LOCAL FINANCING.  TURKISH GOVERNMENT FINANCING MAY BE 
AVAILABLE FOR CERTAIN EXPORTS UNDERTAKEN VIA JOINT VENTURES WITH TURKISH 
FIRMS.     
 
D.  HOW TO FINANCE EXPORTS/ METHOD OF PAYMENT:  U.S. EXPORTS TO 
AZERBAIJAN SHOULD BE PAID FOR ON A CASH OR LETTER OF CREDIT BASIS.     
 
E.  TYPES OF AVAILABLE EXPORT FINANCING AND INSURANCE:  AS OF JULY 1995 
U.S. EXIMBANK WAS NOT OPERATING IN AZERBAIJAN DUE TO RESTRICTIONS OF 
SECTION 907 OF THE FREEDOM SUPPORT ACT.  HOWEVER, FOR THE LATEST 
INFORMATION  U.S. FIRMS SHOULD CONTACT EXIMBANK DIRECTLY (SEE CHAPTER X, 
APPENDIX D.)  
 
F.  PROJECT FINANCING AVAILABLE, INCLUDING LENDING FROM MULTILATERAL 
INSTITUTIONS AND TYPES OF PROJECTS SUPPORTED:  THE OVERSEAS PRIVATE 
INVESTMENT CORPORATION (OPIC) HAS EXPRESSED INTEREST IN FINANCING 
STRICTLY PRIVATE INVESTMENTS IN PROJECTS TO UPGRADE THE ENVIRONMENT.  
THE WORLD BANK AND THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT 
(EBRD) ARE INVOLVED IN WATER REHABILITATION AND ENERGY SECTOR PROJECTS, 
AND MAY BECOME INVOLVED IN A MAJOR OIL PIPELINE PROJECT. 
 
G.  LIST OF BANKS WITH CORRESPONDENT U.S. BANKING ARRANGEMENTS: 
 
1.  AZAKBANK (PRIVATE)  
25 XAGANI STREET, 370070 
TEL: 93-65-35; 93-89-26 
FAX: 93-20-85 
TELEX: 142130 AZAK SU 
 
2.  AZCOMBANK (PRIVATE) 
1 INSHAATCHILAR AVENUE, 370073 
TEL: 38-83-23; 38-72-06 
 
3.  AZERBAIJAN AGRICULTURAL INDUSTRIAL BANK 
125 QADIRLI STREET, 370006 
TEL: 38-93-13; 38-91-65; 38-93-12 
 
4.  AZERBAIJAN COMMERCIAL SAVINGS BANK 
71  FIZULI STREET, 370014 
TEL: 93-05-61; 93-18-26 
 
5.  AZERBAIJAN INDUSTRIAL INVESTMENT BANK 
71 FIZULI STREET, 370014 
TEL: 93-17-01; 93-32-07; 93-17-05 
 
6.  AZERDEMIRYOLBANK 
31 QARABAGH STREET, 370008 
TEL: 67-23-80; 67-53-21 
FAX: 98-09-33 
 
7.  AZERIGAZBANK 
37 TBILISI AVENUE, 370065 
TEL: 38-50-21; 39-02-43; 39-68-84 
FAX: 38-50-21 
 
8.  BAKOBANK (PRIVATE) 
12 YUSIF SAFAROV STREET, 370025 
TEL: 66-65-49; 66-92-37 
FAX: 66-65-49 
 
9.  GUNAYBANK (PRIVATE) 
4/6 RASUL RZA STREET, 370000 
TEL: 98-09-96; 98-14-29; 98-14-39 
 
10.  INPATBANK (PRIVATE) 
9 INJASANAT STREET, 370005 
TEL: 98-48-37 
FAX: 93-05-81 
 
11.  INTERNATIONAL BANK OF AZERBAIJAN 
3 ZEINALABDIN TAGIYEV STREET, 370005 
TEL: 98-91-22; 93-03-07 
FAX: 93-40-91 
TELEX: 142159 DOST SU 
 
12.  M BANK (PRIVATE) 
BLOCK 529, 18 MATBUAT AVENUE, 370146 
TEL: 39-00-49; 38-75-70 
 
13.  RABITABANK 
1 BUNIAT SARDAROV AVENUE, 370101 
TEL: 92-60-99; 92-61-48 
FAX: 92-61-57 
 
14.  RENAISSANCE BANK (PRIVATE) 
7 RASUL RZA STREET, 370095 
TEL: 93-51-52; 98-71-41; 93-52-75 
FAX: 96-50-41 
 
15.  T.I.S. BANK (PRIVATE) 
11 BULBUL AVENUE, 370000 
TEL: 98-94-26 
FAX: 98-81-73 
 
SECTION IX.  BUSINESS TRAVEL 
 
A: BUSINESS CUSTOMS:  BUSINESS CARDS ARE OFTEN EXCHANGED DURING INITIAL 
MEETINGS, WITH ONE SIDE OF THE CARD IS IN AZERI AND THE OTHER IN ENGLISH 
(OR RUSSIAN).  AZERI BUSINESS PEOPLE ALMOST ALWAYS OFFER VISITORS TEA 
AND SWEETS.  AZERIS TEND TO BE VERY POLITE, BUT MAY APPEAR TO FOREIGNERS 
AS VAGUE AND NONCOMMITTAL ABOUT SPECIFICS IN BUSINESS TRANSACTIONS. 
 
B.  TRAVEL ADVISORY AND VISAS:  A PASSPORT AND VISA ARE REQUIRED TO 
ENTER AZERBAIJAN.  BUSINESS PERSONS WHO APPLY FOR THEIR VISAS MORE THAN 
FIVE DAYS IN ADVANCE AND TOURISTS WHO APPLY MORE THAN TEN DAYS IN 
ADVANCE WILL NOT BE CHARGED FOR THEIR VISAS.  INDIVIDUALS REQUESTING 
VISAS IN LESS THAN THIS AMOUNT OF TIME OR ARRIVING IN BAKU WITHOUT A 
VALID AZERBAIJANI VISA WILL BE CHARGED A FEE RANGING FROM USD 40 TO USD 
250 FOR THEIR VISA.  PASSPORTS WITHOUT VISAS ARE RETAINED BY IMMIGRATION 
AUTHORITIES AT THE AIRPORT.  VISITORS MUST APPLY TO THE CONSULAR 
DEPARTMENT OF THE MINISTRY OF FOREIGN AFFAIRS THE NEXT WORKING DAY TO 
RETRIEVE THEIR PASSPORT.  ALL VISITORS TO AZERBAIJAN ARE STRONGLY URGED 
TO OBTAIN A VISA PRIOR TO THEIR ARRIVAL.  TRAVELERS WITH VALID GEORGIAN 
VISAS ARE PERMITTED TO ENTER AZERBAIJAN FOR FIVE DAYS.  THEREAFTER THEY 
MUST OBTAIN AN AZERBAIJANI VISA.  VISA APPLICANTS MUST INCLUDE A LETTER 
OF INVITATION FROM AN INDIVIDUAL OR ORGANIZATION IN AZERBAIJAN WHEN 
APPLYING FOR A VISA.  OUTSIDE THE UNITED STATES, VISAS MAY BE OBTAINED 
FROM AZERBAIJANI EMBASSIES IN GERMANY, TURKEY, AND THE UNITED KINGDOM.  
FOR ADDITIONAL INFORMATION ON VISA REQUIREMENTS, CONTACT THE EMBASSY OF 
AZERBAIJAN, 927 15TH STREET, N.W., SUITE 700, WASHINGTON, DC 20005; 
TELEPHONE (202) 842-0001; FAX (202) 842-0004.   
 
CRIME IN THE CITY OF BAKU IS GENERALLY NOT A MAJOR PROBLEM.  IN RECENT 
MONTHS, HOWEVER, CRIMAL ATTACKS ON FOREIGNERS HAVE INCREASED.  THERE IS 
A WIDESPREAD PERCEPTION THAT ALL FOREIGNERS CARRY LARGE AMOUNTS OF CASH 
AND MAKE IDEAL TARGETS.  THE EMBASSY ADVISES AMERICANS NOT TO GO OUT 
ALONE AT NIGHT.  BUSINESS VISITORS ARRANGE TO BE MET AT THE AIRPORT WHEN 
THEY ARRIVE IN BAKU.  PLEASE REPORT IMMEDIATELY ANY INCIDENTS INVOLVING 
U.S. CITIZENS TO THE EMBASSY'S CONSULAR SECTION (TEL. 98-03-35, 36, 37) 
AND THE LOCAL POLICE. 
 
C.  HOLIDAYS:  THE FOLLOWING ARE THE NATIONAL HOLIDAYS OBSERVED IN 
AZERBAIJAN. 
 
NEW YEAR'S DAY                     JANUARY 1 
INTERNATIONAL WOMEN'S DAY          MARCH 8 
NOVRUZ BAYRAM                      MARCH 22 
DAY OF THE REPUBLIC                MAY 28 
DAY OF ARMED FORCES                OCTOBER 9 
DAY OF STATE SOVEREIGNTY           OCTOBER 18 
DAY OF NATIONAL REVIVAL            NOVEMBER 17 
UNIVERSAL AZERI SOLIDARITY DAY     DECEMBER 31 
GOURBAN BAYRAM                    1 DAY (ISLAMIC CALENDAR) 
RAMADAN HOLIDAY                   1 DAY (ISLAMIC CALENDAR) 
DAY OF SHEHIDS                     JANUARY 20 
 
D.  BUSINESS INFRASTRUCTURE:  BUSINESS CAN BE CONDUCTED IN AZERBAJANI, 
TURKISH OR RUSSIAN LANGUAGES.  THE GOAZ DOES NOT RESTRICT BUSINESS 
HOURS.  IN THEORY, BUSINESSES ARE OPEN ALL DAY MONDAY THROUGH SATURDAY.  
HOURS MAY VARY CONSIDERABLY DEPENDING ON THE PREFERENCE OF THE 
INDIVIDUAL BUSINESS PERSON.  IN FACT, BUSINESS APPOINTMENTS ARE RARELY 
MADE BEFORE 10 AM. ALL PRIVATE TRANSACTIONS ARE IN CASH, AS CREDIT CARDS 
ARE NOT YET USED.  THE TELEPHONE SYSTEM IN BAKU DOES NOT WORK WELL.  
INTERNATIONAL CALLS ARE DIFFICULT TO MAKE.  THE QUALITY OF LOCAL CALLS 
VARIES CONSIDERABLY DEPENDING ON WHICH TELEPHONE EXCHANGE IS USED.  
HOWEVER, CELLULAR TELEPHONES CAN BE PURCHASED AND USED LOCALLY.  E-MAIL 
VIA A LOCAL INTERNET SYSTEM IS ALSO AVAILABLE.  THE GOAZ POSTAL SYSTEM 
IS FUNCTIONAL, BUT NOT SECURE.  THE U.S. COURIER FIRM DHL IS RESIDENT IN 
BAKU (SEE CONTACT LIST, CHAPTER X, APPENDIX D.)  THERE IS A FUNCTIONING 
SUBWAY SYSTEM IN BAKU BUT, BECAUSE OF RECENT BOMBINGS, THE U.S. EMBASSY 
DISCOURAGES AMERICANS FROM USING IT.  BUSES AND STREETCARS RUN, BUT ARE 
VERY CROWDED.  TAXIS ARE INEXPENSIVE AND  EASY TO FLAG DOWN.  HOWEVER, 
THEY ARE NOT CLEARLY MARKED AND RATES MUST BE NEGOTIATED BEFOREHAND.  AT 
PRESENT THE BEST (WORLD CLASS) HOTEL IN BAKU FOR BUSINESS VISITORS IS 
THE HYATT REGENCY.  ELECTRIC VOLTAGE IN AZERBAIJAN IS 220V, 60 CYCLES.   
 
THERE ARE SEVERAL SHOPS IN BAKU WHERE FOOD, CLOTHING AND SMALL 
APPLIANCES OF REASONABLE QUALITY ARE AVAILABLE AT HIGH PRICES.  CARPETS 
MAY BE BARGAINS IN AZERBAIJAN, BUT IT IS DIFFICULT TO TAKE THEM HOME 
WITHOUT PERMISSION FROM THE MINISTRY OF CULTURE.  THERE ARE SEVERAL 
CARPET STORES INSIDE THE OLD CITY.  THE BEST QUALITY CAVIAR IS FOR 
EXPORT, BUT CAN BE BOUGHT AT SOME HOTEL COFFEE-SHOPS.  LOWER GRADE 
CAVIAR IS AVAILABLE FOR SALE AT DISCOUNT PRICES IN THE LOCAL MARKETS.  
DRINKING TAP WATER IS NOT RECOMMENDED EVEN AFTER BOILING.  BOTTLED WATER 
IS NOT ALWAYS AVAILABLE ON THE LOCAL MARKET.  BEER AND SOFT DRINKS ARE 
AVAILABLE IN SHOPS AND RESTAURANTS.  THERE ARE SEVERAL RESTAURANTS 
OPERATING IN BAKU.  ONE OF THE MOST COMMON LOCAL DISHES IS KEBAB, MADE 
OF LAMB, CHICKEN OR FISH. COFFEE IS NOT UP TO WESTERN STANDARDS, AND 
MANY AMERICANS HERE DRINK TEA.  VODKA, COGNAC, CHAMPAGNE AND BEER FLOW 
FREELY.  FRUITS AND VEGETABLES ARE MORE READILY AVAILABLE AT LOWER 
PRICES HERE THAN ELSEWHERE IN THE FSU. 
 
APPENDIX A:  COUNTRY DATA 
 
POPULATION               7.3 MILLION 
POPULATION GROWTH RATE   1.1% 
RELIGION                 SHIA ISLAM 
GOVERNMENT SYSTEM        REPUBLIC 
LANGUAGES                AZERI AND RUSSIAN 
WORK WEEK                MONDAY-FRIDAY 41 HOURS 
 
APPENDIX B:  DOMESTIC ECONOMY 
(ALL FIGURES ARE UNOFFICIAL ESTIMATES IN MILLIONS OF U.S. DOLLARS UNLESS 
OTHERWISE NOTED) 
 
                              1993   1994   1995*  
 
GDP (CURRENT PRICES)           3231    2627   2153 
GDP GROWTH (%)                  -23     -22     -6 
GDP PER CAPITA** ($)           $443    $360   $295 
GOV EXPEND AS % OF GDP           50      46     33 
INFLATION (%)                  1130    1664     85 
UNEMPLOYMENT (%)                N/A     N/A    N/A 
FOREIGN EXCHANGE RESERVES       N/A       3    201 
AVERAGE EX RATE FOR U.S.$       120    1457   4500 
DEBT SERVICE RATIO (%)           10      10     10 
US ECONOMIC ASSISTANCE***        20      23     26 
 
* PROJECTED 
** DUE TO EXCHANGE RATE CHANGES, THESE PER CAPITA GDP FIGURES APPEAR 
VERY LOW.  THEY ARE NOT CALCULATED ON A PURCHASING PARITY PARITY BASIS.  
WE BELIEVE THAT THEY DO NOT FULLY REFLECT THE GROWTH OF THE INFORMAL 
TRADING ECONOMY (WHICH IS NOT CAPTURED BY OFFICIAL FIGURES.) 
*** DUE TO SECTION 907 RESTRICTIONS, U.S. AID TO AZERBAIJAN IS ALMOST 
ENTIRELY DIRECT HUMANITARIAN ASSISTANCE TO REFUGEES AND INTERNALLY 
DISPLACED PEOPLE PROVIDED THROUGH PRIVATE VOLUNTARY ORGANIZATIONS. 
 
APPENDIX C: TRADE 
                           1993     1994   1995* 
TOTAL COUNTRY EXPORTS FOB   718      637    613 
TOTAL COUNTRY IMPORTS       817      814    844 
U.S. EXPORTS                  7       10      5 
U.S. IMPORTS                  0        0      0 
 
* PROJECTED 
 
APPENDIX D:  U.S. AND AZERI CONTACT LIST 
 
U.S. EMBASSY BAKU: 
 
RICHARD D. KAUZLARICH, AMBASSADOR 
DAVID SEDNEY, DEPUTY CHIEF OF MISSION 
LINDA WARDMAN, EXECUTIVE ASSISTANT  
ARNOLD HOROWITZ, POLITICAL OFFICER 
JACK TUCKER, ECON/COMMERCIAL OFFICER 
DUANE BUTCHER, ADMINISTRATIVE OFFICER 
RICHARD BROWN, PUBLIC AFFAIRS OFFICER 
JULIE RUTERBORIES, CONSULAR OFFICER 
 
83 AZADLIQ PROSPEKTI 
BAKU, 370007, AZERBAIJAN 
 
TEL: 98-03-35, 98-03-36, 98-03-37 
FAX: 98-37-55;  TELEX 142110 AMEMB SU 
 
U.S. ADDRESS: 
U.S. EMBASSY BAKU 
DEPT. OF STATE  
WASH, DC 20521-7050 
 
 
AZERBAIJANI CONTACTS: 
 
1.  BAKU ADMINISTRATION FOR OWNERSHIP RIGHTS AND BUSINESS SUPPORT   
(BUSINESS COUNSELING) 
73 FATALI KHAN KHOISKY STREET, 370110 
TEL: 64-97-70, 64-71-90 
 
2.  BAKU BOARD OF COMMERCE  
(HELPS TO FIND BUSINESS PARTNERS) 
4 SAMAD VURGUN STREET, 370022 
TEL: 95-68-36, 95-68-48 
 
3.  BAKU CITY EMPLOYMENT CENTER  
(REGISTERS UNEMPLOYED WORKERS AND TRIES TO FIND JOBS FOR THEM) 
58 SABAIL STREET, 370003 
TEL: 91-18-24, 91-08-85 
 
4.  BAKU GENERAL CUSTOMS BOARD  
(CITY CUSTOMS OFFICE) 
62 NEFTCILER AVENUE, 370601 
TEL: 93-95-88, 93-53-49 
 
5.  MINISTRY OF AGRICULTURE AND FOOD SUPPLIES 
IRSHAD ALIYEV, MINISTER 
4 SHYKHALI GURBANOV STREET, 370079 
TEL: 94-53-55, 94-34-06 
TELETYPE: 142216 DASK SU 
 
6.  MINISTRY OF TELECOMMUNICATIONS 
SIRUZ ABBASBEYLI, MINISTER 
33 AZERBAIJAN AVENUE, 370139 
TEL: 93-00-04, 93-43-27 
FAX: 98-42-85 
TELEX: 142492 SAHIL SU 
 
7.  MINISTRY OF ECONOMY 
SAMED SADYKHOV, MINISTER 
GOVERNMENT HOUSE, BAKU 370016 
TEL: 93-69-20, 93-64-90 
FAX: 93-20-25 
 
8.  MINISTRY OF FINANCE 
FIKRAT YUSIFOV, MINISTER 
6 SAMAD VURGUN STREET, 370000 
TEL: 93-30-12 
FAX: 93-07-43 
 
9.  MINISTRY OF FOREIGN ECONOMIC RELATIONS (REGISTERS FOREIGN 
BUSINESSES) 
NIJAT QULIYEV, ACTING MINISTER 
23 NIYAZI STREET, 370066 
TEL: 92-94-57, 92-94-90, 92-94-92 
FAX: 98-00-11 
TELEX: 142274 FARAH SU 
 
10.  MINISTRY OF JUSTICE 
SUDABE HASSANOVA, ACTING MINISTER 
13 BULBUL AVENUE, 370601 
TEL: 98-49-41, 98-80-04 
FAX: 93-41-67 
 
11.  MINISTRY OF TRADE  
(RESPONSIBLE FOR INTERGOVERNMENTAL TRADE) 
MIRI QAMBAROV, MINISTER 
GOVERNMENT HOUSE, 370016 
TEL: 93-64-63; 98-50-74 
FAX: 93-13-35 
 
12.  STATE COMMITTEE FOR GEOLOGY AND MINERAL RESOURCES  
(EXPLORES AND REGISTERS MINERAL RESOURCES) 
AKRAM SHEKINSKI, CHAIRMAN 
100A AGAYEV STREET, 370073 
TEL: 38-54-54; 38-04-81 
FAX: 39-84-32 
TELEX: 142287 SIPIZ SU 
 
13.  STATE COMMITTEE FOR ANTI-MONOPOLY POLICY AND BUSINESS SUPPORT   
(WORKS OUT ANTI-MONOPOLY AND BUSINESS DEVELOPMENT POLICIES) 
RAGIB QULIYEV, CHAIRMAN 
83 SALATYN ASKEROVA STREET, 370002 
TEL: 95-79-72; 94-80-82 
FAX: 94-69-51 
 
14.  STATE STATISTICS COMMITTEE 
ARIF VELIYEV, CHAIRMAN 
24 INSHAATCHILAR AVENUE, 370136 
TEL: 38-11-71; 38-77-25 
FAX: 38-05-77 
 
15.  STATE COMMITTEE FOR THE PRODUCTION OF SPECIAL MACHINERY AND 
CONVERSION   
(RESPONSIBLE FOR CONVERSION OF MILITARY PRODUCTS MANUFACTURING PLANTS) 
MAMED NAMAZOV, CHAIRMAN 
40 MATBUAT AVENUE, 370141 
TEL: 39-40-30; 39-23-07; 39-24-53 
 
16.  STATE CUSTOMS COMMITTEE  
(MAIN CUSTOMS OFFICE)  
KAMALADDIN HEYDAROV, CHAIRMAN 
2 INSHAATCHILAR AVENUE, 370073 
TEL: 38-80-80; 92-75-45; 94-94-00 
 
17.  STATE OIL COMPANY OF AZERBAIJAN REPUBLIC 
(OFFSHORE AND ONSHORE OIL EXTRACTION, REFINING)  
NATIK ALIYEV, PRESIDENT 
73 NEFTCHILER AVENUE, 370601 
TEL: 92-44-80; 92-10-15 
 
18.  AZERIGAZ STATE COMPANY 
(NATURAL GAS DISTRIBUTION) 
TARIYEL HUSEYNOV, PRESIDENT 
23 YUSIF SAFAROV STREET, 370025 
TEL: 67-74-47; 67-75-65 
FAX: 65-12-01 
 
19.  AZERIKIMYA STATE COMPANY 
(PETROCHEMICALS, PLASTICS) 
FIKRAT SADYKHOV, PRESIDENT 
86 SAMAD VURGUN STREET, 370000 
TEL: 93-76-20 
 
20.  AZERENERGY STATE COMPANY 
(ENERGY GENERATION AND DISTRIBUTION)) 
MUSLIM IMANOV, PRESIDENT 
A. ALIZADE STREET 10, 370601 
TEL: 93-73-58; 93-72-57 
FAX: 98-55-23 
 
21.  AZERBAIJAN AIRLINES STATE CONCERN (AZAL) (DOMESTIC AND 
INTERNATIONAL FLIGHTS, AIR FREIGHT) 
ADALAT ALIYEV, GENERAL DIRECTOR 
11 AZADLYG AVENUE, 370000 
TEL: 93-44-34; 98-44-97 
FAX: 98-52-37 
 
22.  CASPIAN SHIPPING COMPANY 
(SHIPPING OF GOODS) 
AYDIN AHMEDOV, CHIEF 
M.A. RASULZADE STREET 1, 370601 
TEL: 93-20-58; 93-51-81 
 
23.  BAKU SEA PORT 
AYDIN MAMEDOV, CHIEF 
U. HAJIBEYOV STREET 72, 370010 
TEL: 93-50-22; 93-02-68 
 
24.  NATIONAL BANK OF AZERBAIJAN 
(CENTRAL BANK, REGULATES BANKING SYSTEM) 
ELMAN RUSTAMOV, CHAIRMAN OF MANAGING BOARD 
19 BULBUL AVENUE, 370070 
TEL: 98-71-67; 93-02-31 
FAX: 93-55-41; 93-13-25 
 
25.  STATE TAXATION INSPECTORATE 
(SUPERVISES COLLECTION OF TAXES)  
SHOHRAT VEKILOV, CHIEF 
A. NOBEL AVENUE 23, 370025 
TEL: 66-00-62; 66-00-37; 67-23-49 
 
26.  BAKU STATE TAX INSPECTION BOARD 
ZABIT AKHMEDOV, CHIEF 
S. VURGUN ST 114 
TEL:  95-68-58; 95-68-84 
 
27.  CHAMBER OF COMMERCE AND INDUSTRY OF AZERBAIJAN 
(CAN HELP FOREIGN FIRMS REGISTER, FINDS FOREIGN PARTNERS FOR LOCAL 
COMPANIES, PROMOTES TRADE FAIRS) 
SULEYMAN TATLIYEV, PRESIDENT 
RAUF VEZIROV, VICE PRESIDENT 
31/33 ISTIGLALIYAT STREET, 370000 
TEL: 92-89-12 
FAX: 98-93-24 
 
U.S COMPANIES RESIDENT IN BAKU: 
 
1. AMOCO CASPIAN SEA PETROLEUM COMPANY
DOUGLAS HILL, RESIDENT MANAGER.  
11 HASSAN ALIYEV STREET, (MFA BUILDING) 
TEL: 98-91-70; 98-91-71; 92-39-65; 92-43-54;  
92-63-06(HOTEL OPERATOR) FAX: (OPERATOR ASSISTED) 
EXPLORATION AND DEVELOPMENT OF OFFSHORE OILFIELDS). 
   
2. AZEKO 
YUSIF SADYHLY, CHAIRMAN OF BOARD; SALAM HAJIYEV, GENERAL DIRECTOR. 
26 A NEFTCHILER PROSPECTI, SPORTS STADIUM 
TEL: 92-06-62; 92-44-87; 92-31-50 FAX: 92-48-50 
AMERICAN PARTNER IS US-USSR TRADE AGENCY, VADIM M. LIBERMAN, MANAGER.  
EXPORT/IMPORT; TREATMENT OF OIL-GREASED LAND IN APSHERON AREA. 
 
3.  AZERBAIJAN SERVICES CORPORATION (AZSCO) 
JOE STIMPSON, PRESIDENT 
26 A NEFTCHILER PROSPECTI, SPORTS PALACE 
TEL: 92-41-18 
BUSINESS CONSULTANT. 
 
4. AZIMEX INTERNATIONAL  
HARRY GANI, PRESIDENT. 
11 HUSI HAJIYEV STREET 
TEL: 98-98-89; 94-14-14 FAX: 98-92-00 
EXPORT/IMPORT TRADING COMPANY, SPECIALIZING IN IMPORTING OILFIELD 
EQUIPMENT TO AZERBAIJAN. 
 
5. BAKER HUGHES AZERBAIJAN 
BILL MESSERALL, GENERAL MANAGER. 
FUAD MELIKBEY, LOCAL REPRESENTATIVE. 
27 UZEYIR HAJIBEYOV STREET, APT. 47 
TEL:/FAX: 98-65-76. 
EQUIPMENT FOR OILFIELDS AND REFINERIES. 
 
6. BAROID GENERAL AZERBAIJAN 
JONATHAN WHITE, MANAGER. 
86 CHINGIZ MUSTAFAYEV STREET.  
TEL/FAX: 98-12-44; 94-90-16 
CHEMICALS FOR OIL INDUSTRY. 
 
7. BECHTEL 
CHAPAY SULTANOV, LOCAL REPRESENTATIVE. 
59 SULEYMAN TAGIZADE STREET 
TEL/FAX: 93-68-15, TEL: 93-68-01 
ENGINEERING SERVICES FOR THE AIOC. 
 
8. BREDERO PRICE INTERNATIONAL BV 
TONY SAAB, PROJECT MANAGER. 
184 SULEYMAN RAHIMOV STREET 
TEL: 93-65-56, FAX:  93-37-16 
EXTERNAL/INTERNAL PIPE COATING. 
 
9. BROWN AND ROOT/ REGIONAL HALLIBURTON INTERNATIONAL INC. 
SELCUK GUNER, MANAGER. 
41 BOLSHAYA KREPOSTNAYA STREET, 
ENCYCLOPEDIA BUILDING 
TEL: 98-93-44; 98-93-45 FAX: 98-93-44 
OILFIELD EQUIPMENT AND SERVICES; SUBSIDIARY OF HALLIBURTON COMPANY. 
 
10. BUFFALO AIRWAYS 
TATYANA MATROSOVA, GENERAL MANAGER. 
11 AZADLYG PROSPECTI 
TEL: 98-44-07; 93-22-30	FAX: 98-52-37. 
AIR FREIGHT TRANSPORTATION. 
 
11. CASPIAN DEVELOPMENT CORPORATION 
CHARLES SCHROEDER, PRESIDENT. 
26 A NEFTCILER PROSPECTI, 
SPORTS PALACE 
TEL: 92-15-57; 98-94-58  FAX: 98-94-58 
LAND DEVELOPMENT AND CIVIL CONSTRUCTION. 
 
12. CASPIAN GEOPHYSICAL 
FUAD ALIYEV, GENERAL MANAGER. 
77 NEFTCILER PROSPECTI 
TEL: 98-82-12; 98-82-14 
FAX: 93-86-22 
TELEX: 142331 CASPI SU 
JOINT VENTURE WITH DIGICON GEOPHYSICAL CORP.- U.S., MD SEIS-RUSSIA AND 
U.S. AND SOCAR TO CONDUCT SEISMIC SURVEYS OF THE CASPIAN. 
 
13. CASPIAN HOLDING 
DAVUD AMINI, GENERAL MANAGER. 
13 ALMAZ ILDIRIM STREET, APT. 9  
TEL: 92-87-73 
EXPORT/IMPORT JOINT VENTURE IN PETROCHEMICALS PLANNED. 
 
14. CHEVRON 
MICHAEL O'DAY, PROJECT MANAGER. 
GULSHAN ALIYEVA, LOCAL REPRESENTATIVE. 
83 MOSKOVSKIY PROSPECTI 
TEL: 38-00-67; 66-24-60;  
66-98-91; 90-07-75 
GEOPHYSICAL EXPLORATION OF OFFSHORE OIL AND GAS FIELDS; ALSO A JOINT 
VENTURE WITH SOCAR ON GEOPHYSICAL DATA PROCESSING. 
 
15. DG SEIS OVERSEAS LTD. 
RICHMOND MILLER, MARINE MANAGER. 
83 MOSKOVSKIY PROSPECTI 
TEL: 66-45-11 
FAX: 66-18-73 
GEOPHYSICAL EXPLORATION OF OFFSHORE OIL AND GAS FIELDS. 

16. DHL BAKU 
CHINGIZ MAMEDOV, MANAGER. 
TBILISI PROSPECTI, SPORTS PALACE, ENTRANCE 7 
TEL: 93-47-14, TEL/FAX: 93-47-28 
MAIL AND COURIER SERVICE. 
 
17. ERNST AND YOUNG 
ALUM BATI, REPRESENTATIVE DIRECTOR. 
11 MARDANOV QARDASHLARI STREET, APT. 32 
TEL: 94-14-13; 98-33-85 
FAX: 98-33-85 
AUDIT; TAX ADVICE; CONSULTING; PRIVATIZATION ADVICE; ACCOUNTING; COMPANY 
REGISTRATION; LABOR LAW ADVICE; PROPERTY LAW ADVICE. 
 
18. EXXON VENTURES 
JOHN HOHOLICK, RESIDENT MANAGER. 
AZIK PERELBERG, RESIDENT MANAGER 
1 INJASANAT STREET. 
TEL: 92-57-46; 90-07-84; 90-07-81 
EXPLORATION AND DEVELOPMENT OF OFFSHORE AND ONSHORE OILFIELDS. 
 
19. HIGHLAND/BAKTEXAS 
MEHDI AHADOV, GENERAL DIRECTOR. 
AMIRJANI SETTLEMENT, BAKU 
TEL: 20-05-24 
TEL/FAX: 20-38-93 
SUBMERSIBLE PUMPS FOR OFFSHORE OILFIELDS; JOINT VENTURE WITH THE 
SURAXANY OILFIELD EQUIPMENT PLANT. 
 
20. HYATT REGENCY BAKU 
PETER RICHARDS, GENERAL MANAGER.  
1 BAKIKHANOV STREET, BAKU 
TEL: 98-08-27 
FAX: 98-08-17 
FIRST CLASS HOTEL. 
 
21. KAISER ENGINEERS LTD 
COLIN PILKINGTON, MANAGER. 
97 AZADLYG PROSPECTI, FLOOR 3, APT. 60  
TEL: 96-03-61 
FAX: 98-73-87 
RENOVATE SUMGAIT ALUMINUM SMELTING PLANT; ALL TYPES OF ENGINEERING WORK. 
 
22. MAKABE INTERNATIONAL 
LEV KOKIELOV, PRESIDENT. 
LEVI SHARON, GENERAL MANAGER. 
54 XAGANI STREET, APT. 17 
TEL: 93-74-73 
IMPORT, EXPORT, WHOLESALE. 
 
23. MCDERMOTT INTERNATIONAL, INC. 
TED LAWRENCE, RESIDENT MANAGER. 
26 A NEFTCHILER PROSPECTI, SPORTS PALACE 
TEL: 92-34-82; 92-34-53; 92-33-29; 92-34-23 
MARINE CONSTRUCTION FOR OIL INDUSTRY.  
 
24. MOBIL 
GEOFFREY B. SLATER, MANAGER;  
LEYLA MAMEDOVA, LOCAL REPRESENTATIVE. 
19/13 XAQANI STREET, BLOCK 4, APT. 25 
TEL: 93-28-76 
SATELLITE TEL: 873-153-6522 
SATELLITE FAX: 873-153-6523 
OFFSHORE OIL EXPLORATION, PRODUCTION, REFINING, MARKETING. 
 
25. PENNZOIL CASPIAN CORPORATION 
THOMAS HICKOX, VICE-PRESIDENT FOR OPERATION;  
PHIL MAXWELL, VICE-PRESIDENT FOR ADMINISTRATION. 
"OLD INTOURIST" HOTEL, 
63 NEFTCHILER PROSPECTI 
TEL: 92-40-07; 91-67-88; 92-63-06 
FAX: 91-67-88  
EXPLORATION AND DEVELOPMENT OF OFFSHORE OILFIELDS. 
 
26. PETROFAC INTERNATIONAL 
GEORGE DAKLOUCHE, GENERAL MANAGER. 
RABOCHIY PROSPECTI, AZERNEFTYAG REFINERY 
TEL: 67-84-84; 66-53-23 
MECHANICAL AND CIVIL CONSTRUCTION. 
 
27. PONDER INTERNATIONAL SERVICES, INC. 
JOE PONDER, PRESIDENT.  
ALLAN HOLLIS, VICE-PRESIDENT.     
1 FIKRET AMIROV STREET, APT. 5 
TEL: 98-65-19 
TEL/FAX: 98-37-35 
WORK-OVER OF OIL AND GAS WELLS. 
 
28. PRICE WATERHOUSE 
ALI ZAVAR, RESIDENT MANAGER. 
RASUL RZA STREET, BLD. 6, APT. 33 
TEL: 93-07-00 
FAX: 93-07-00 
REGISTRATION AND PAYROLL SERVICES; BOOKKEEPING IN ACCORDANCE W/AZERI AND 
INTERNATIONAL ACCOUNTING STANDARDS; LOCAL STATUTORY AUDITS; AUDITS IN 
ACCORDANCE W/U.S. AND U.K. GAAP AND GAAS; LABOR ISSUES AND CONTRACTS; 
FEASIBILITY STUDIES; OTHER CONSULTING SERVICES. 
 
29. RAM FORWARDING, INC 
PATRICK SWEENEY, SALES REPRESENTATIVE.   
BAKU AGENT IS MURPHY INTERNATIONAL.) 
3 B.BUNYATOV STREET. 
TEL: 25-67-22; 26-31-91; 25-41-89 
FAX: 98-34-22 
FREIGHT FORWARDING, CUSTOMS CLEARANCE. 
 
30. STARK ENTERPRISES, INC.   
MIKHAIL LEIBOV, PRESIDENT; 
ALEXANDER NISANOV, VICE-PRESIDENT;  
ALI ASHUROV AND TOFIG SAIDOV, DIRECTORS.  
18 BUL-BUL PROSPECTI 
TEL: 93-85-18; 98-60-27 
FAX: 98-60-27 
EXPORT OF PETROCHEMICALS; IMPORT OF FOOD STUFFS INTO THE CIS REPUBLICS; 
FUNDING OF THE CONSTRUCTION OF A POLYPROPYLENE PLANT IN SUMGAIT. 
 
31. TRANSCAUCASUS DEVELOPMENT CORPORATION
DR. STEVEN KADIVAR, CHAIRMAN AND PRESIDENT. 
28 MAY STREET, 3. 
TEL: 38-70-79 
FAX: 93-97-68 
HOTEL AND OFFICE CONSTRUCTION.   

32. TURAN INTERNATIONAL TRADING AND SERVICES 
ALEX KISLIK, PRESIDENT. 
119 NEFTCHILER PROSPECTI 
TEL: 98-88-63; 93-03-70; 93-95-24; 93-98-20 
TEL/FAX: 93-96-68  
IMPORT OF FOOD STUFFS TO AZERBAIJAN, FINANCIAL ASSISTANCE TO NEWLY 
ESTABLISHED ENTERPRISES, CIVIL CONSTRUCTION,CONSUMER GOODS PRODUCTION; 
JOINT VENTURE WITH THE ITI TRADING INTERNATIONAL, INC. 
 
33. UNOCAL 
WADE LUNDSTROM/KENNETH BRADLEY, RESIDENT MANAGERS. 
MEHDI HUSEYIN STREET 1 A,  
"ANBA" HOTEL. 
TEL: 98-91-11; 92-93-01  
FAX: 98-91-13 
EXPLORATION AND DEVELOPMENT OF OFFSHORE OILFIELDS. 
 
KEY WASHINGTON, D.C. CONTACTS: 
 
1)  MULTILATERAL INVESTMENT GUARANTEE AGENCY (MIGA) 
LEIGH HOLLYWOOD, VICE PRESIDENT GUARANTEES 
THE WORLD BANK 
1818 H ST., N.W. 
WASHINGTON, D.C. 20433 
TELEX:  RCA 248423 
TEL: (202) 473-6168 
FAX: (202) 477-9886 
 
2) EXPORT-IMPORT BANK OF THE UNITED STATES (EXIM) 
811 VERMONT AVENUE, N.W. 
WASHINGTON, D.C. 20571 
INTERNATIONAL BUSINESS DEVELOPMENT: 
ARTHUR PILZER, VICE PRESIDENT 
JERRY SOLOMON, DEPUTY VICE PRESIDENT 
FAX  (202)565-3931 
TEL: (202)565-3903; (202)565-3904 
EXIM INTERNATIONAL BUSINESS DEVELOPMENT OFFICERS: 
MICHELE ROLINGS, INTERNATIONAL DEVELOPMENT OFFICER 
FAX  (202)565-3931 
TEL  (202)565-3913 
 
3)  EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT (EBRD) 
ONE EXCHANGE SQUARE 
LONDON EC2A 2 EH 
UNITED KINGDOM 
PH  44-71-338-6000 
FAX 44-71-338-6100 
 
4)  U.S. AND FOREIGN COMMERCIAL SERVICE 
U.S. DEPARTMENT OF COMMERCE  
WASHINGTON, D.C.  20230 
DIRECTOR, EUROPE: 
MR. GEORGE W. KNOWLES 
PH  (202)482-1599 
FAX (202)482-3159 
 
5)  U.S. AND FOREIGN COMMERCIAL SERVICE 
U.S. DEPARTMENT OF COMMERCE 
ROOM 1235 
WASHINGTON, D.C.  20230 
RUSSIA-NIS PROGRAM OFFICE 
DEPUTY DIRECTOR 
E. VIVIAN SPTHOPOULOS 
PH  (202)482-2902 
FAX (202)482-2456 
 
6)  U.S. AND COMMERCIAL SERVICE 
U.S. DEPARTMENT OF COMMERCE 
WASHINGTON, D.C.  20230 
EXPORT MARKETING/TRADE CONTACTS 
INTERNATIONAL TRADE ADMINSITRATION 
ROOM H2202 
PROGRAM COORDINATOR 
JAMMIE L. MCKAY 
PH  (202)482-0691 
PH  (202)482-2504 
FAX (202)482-4433 
 
7) U.S. AND COMMERCIAL SERVICE 
U.S. DEPARTMENT OF COMMERCE 
HERBERT C. HOOVER BUILDING, ROOM 1235 
WASHINGTON, D.C.  20230 
RUSSIA/NIS PROGRAM OFFICE 
INTERNATIONAL TRADE SPECIALIST 
RICK A. DE LAMBERT 
PH  (202)482-2902 
FAX (202)482-2456 
 
8)  BUSINESS INFORMATION SERVICE FOR THE NEWLY INDEPENDENT STATES 
(BISNIS)   
INTERNATIONAL TRADE ADMINSITRATION 
U.S. DEPARTMENT OF COMMERCE, ROOM 7413 
WASHINGTON, D.C.  20230 
INTERNATIONAL TRADE SPECIALIST 
KAREN T. RUBEIZ 
PH  (202)482-4655X28 
FAX (202)482-2293 
 
9) OVERSEAS PRIVATE INVESTMENT CORPORATION (OPIC) 
1100 NEW YORK AVENUE, N.W., TWELFTH FLOOR 
WASHINGTON, D.C. 20527 
 
FINANCE DEPARTMENT, NIS DIVISION: 
JOHN HARPER, REGIONAL MANAGER 
PH  (202)336-8494 
FAX (202)408-9866 
ALEXANDRA COBURN, FINANCIAL ANALYST 
PH  (202)336-8515 
FAX (202)408-9866 
 
INSURANCE DEPARTMENT, NIS DIVISION: 
ROBERT FEATH, INSURANCE OFFICER 
PH  (202)836-8572 
FAX (202)408-5142 
J. LILA GRANDA, INSURANCE OFFICER 
PH  (202)336-8664 
FAX (202)408-5142 
 
INVESTMENT DEVELOPMENT DEPARTMENT: 
ERIC LUHMANN, NIS MANAGER 
PH  (202)336-8621 
FAX (202)408-5145 
NICOLA BRADLEY, INVESTOR SERVICES OFFICER 
PH  (202)336-8650 
FAX (202)408-5145 
 
10) U.S. TRADE AND DEVELOPMENT AGENCY (TDA) 
ROSSLYN PLAZA EAST 
1621 NORTH KENT STREET 
ARLINGTON, VA 22209 
DANIEL STEIN, REGIONAL DIRECTOR 
ALISON KOFF, COUNTRY MANAGER 
PH  (703)875-4357 
FAX (703)875-4009 
 
11) FOREIGN AGRICULTURE SERVICE, U.S. DEPARTMENT OF AGRICULTURE, TRADE 
ASSISTANCE AND PROMOTION OFFICE,  
PH (202) 720-7420 
 
APPENDIX E:  TRADE EVENT SCHEDULE 
 
THE FIRST AZERBAIJANI INTERNATIONAL TRADE FAIR "EVERYTHING FOR THE HUMAN 
BEING," A CONSUMER GOODS SHOW, WILL BE HELD IN BAKU SEPTEMBER 20-23, 
1995.   
  
THE THIRD INTERNATIONAL CASPIAN OIL & GAS EXHIBITION AND CONFERENCE WILL 
BE HELD DURING THE FIRST WEEK OF JUNE 1996.  WE EXPECT THIS EVENT WILL 
AGAIN BE CERTIFIED BY USDOC FOR USG PARTICIPATION.