This in-depth report on Investment Climate and Market Structure (ICMS), published in 2011, was prepared by the Azeri authorities in close cooperation with the Energy Charter Secretariat. Undertaken on a peer review basis, the report serves the purpose of information sharing and cooperation between ECT member states. It provides the most comprehensive and recent information on the country's legal framework for establishing foreign businesses in its energy sector. The report analyses the investment climate and presents the energy market as a whole, outlining the structure of the market in terms of the main players and strategic development issues in each subsector.
The Energy Charter Investment Group reviewed the ICMS report of Azerbaijan at its meeting in October 2011. It agreed upon a number of policy conclusions and recommendations that were subsequently adopted by the Energy Charter Conference on 29 November 2011.
The Energy Charter Conference concluded that Azerbaijan had adopted an open door policy in the oil and gas sector that had resulted in significant inflow of foreign direct investment. New pipelines for the export of natural gas are important for increasing the security of energy supply from Azerbaijan to the neighbouring countries as well as to global markets. In order to stimulate further the development of the Azeri energy market it was advised to consider the establishment of an independent state agency to regulate the energy sector in a fair, transparent and predictable manner. The Energy Charter Conference recommended to continue with legislation and regulation improvements aimed at setting high standards of business conduct, transparency, corporate governance and environment protection.
The Review of the Investment Climate and Market Structure in the Energy Sector of Azerbaijan is available in English.