AZE.US
Azerbaijan’s political stability and predictable business environment have become major advantages in attracting foreign investment, according to political analyst Ilgar Velizade.
Velizade, head of the South Caucasus Political Scientists Club, said during an interview with the Daily Europe Online YouTube channel that large investors are primarily interested in the security of their capital and the ability to plan projects over many years.
“Stability is not only a guarantee for the preservation of investments, but also for the implementation of large-scale, long-term projects,” Velizade said. “No one will invest in a zone of instability.”
He argued that international companies often pay more attention to the consistency of regulations and the predictability of government policy than to the political model of a particular country.
As an example, Velizade pointed to the continued presence of French energy giant TotalEnergies in Azerbaijan despite prolonged tensions between Baku and Paris.
TotalEnergies is involved in the development of the Absheron gas and condensate field in the Azerbaijani sector of the Caspian Sea.
Velizade noted that agreements between Azerbaijan and foreign energy companies are approved by parliament and carry the force of law. This provides investors with legal protection regardless of fluctuations in relations between governments.
“Whether it is Macron or not, whether Azerbaijan likes France’s policy or not, Total continues to operate as before,” he said.
According to Velizade, Azerbaijani President Ilham Aliyev has continued to meet with TotalEnergies executives and discuss the Absheron project even during periods of heightened political tension with France.
He said this approach sends an important message to other international companies: investments made in Azerbaijan will remain protected even when relations between Baku and the investor’s home country deteriorate.
Velizade also argued that some major European businesses are increasingly looking for predictable markets outside the European Union, including Azerbaijan, Central Asian countries, Gulf states and China.
He said investors want stable conditions, clear regulations and assurances that the rules will not suddenly change because of political developments.
The analyst also linked Azerbaijan’s investment appeal to its pragmatic relations with neighboring countries.
He said Baku has generally tried to prevent disputes with Georgia and Iran from developing into long-term political confrontations that could disrupt trade, energy supplies and regional transport routes.
The Azerbaijan-Georgia border is particularly important for cargo moving between Central Asia, China, the South Caucasus and Europe. Any serious deterioration in relations between Baku and Tbilisi could encourage international companies to look for alternative routes, Velizade said.
He also pointed to the North-South transport corridor, which continues to operate despite periodic tensions between Azerbaijan and Iran.
According to Velizade, borders can serve as barriers or as points of contact and transit. Governments that allow political and historical disputes to dominate relations with their neighbors risk weakening trade and discouraging investment.
“History should be studied by historians,” he said, adding that practical politics should focus on reducing risks, protecting communications and defending the country’s economic interests.
Velizade concluded that Azerbaijan’s ability to maintain working relations with foreign companies and neighboring states has strengthened its reputation as a relatively predictable destination for long-term capital.
AZE.US