Cloud Solutions As a New Business Model

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221x130 mm CLOUD SOLUTIONS AS A NEW BUSINESS MODEL

Special Interview with the Minister of Transport, Communications and High Technologies, Mr. Ramin Guluzade From Ground to Cloud Security Over Movable Property – New Perspectives for Borrowers and Creditors

A Word From Executive Director of AmCham Dear AmCham members and friends,

Digitalization of diverse processes and deliverables are inevitable part in modern day business management and Issue 27 survival of enterprises. Thanks to this process, companies can widen their market. However, it is not single sided. The wave of digitations brings both fruits and challenges. Herein, Credits the key issue is to utilize opportunities for further development or implementation of new ideas. Over the last years, the government of Azerbaijan made solid AmCham Executive Director: and strategic steps forward in development of economy, with Natavan Mammadova an emphasis to widening digitalization. It is possible to observe such commitment on the basis of Strategic Road Maps for the National Economy and Main Economic Editor: Sectors of Azerbaijan, as well as vision of the Ministry of Transport, Communications Aykhan Nasibli and High Technologies. Currently, monitoring & evaluation of strategic roadmaps shows commitment to the principles of open government, which leads to further Articles contributed by: transparency, accountability and efficiency in fulfillment of the targets. As the leading business association, AmCham members are highly committed to Agateyyub Jafarov embrace, share case studies and successful results, as well as be a role model in Nurlana Ahmadova the market. We see that digitalization drives sustainable development and it realizes Rena Abutalibova the true definition of globalization. During the bi-annual White Papers, which is Kamil Valiyev developed by AmCham members, relevant recommendations and upcoming steps Meltem Novruzova are reflected and shared with the government offices. Nazrin Baghirova Herein, I wish you the best and success in your businesses. Fariz Ismailzade Best regards, Advertisers: Natavan Mammadova Azintelecom PASHA Bank Azerfon Mozaik Editor’s Comment Turkish Airlines Dear friends, BP th Coca Cola Welcome to 27 edition of IMPACT Azerbaijan magazine, devoted to Digital Architecture of Businesses. Deloitte This issue is very special for our team. We are celebrating our Ekvita 10th anniversary! During the past years, the magazine grew ITECA in size, in scope and captured attention of diverse stakeholders, including private sector, public sector and wide range Publisher: of third sector representatives. Within 27 editions, diverse American Chamber of Commerce subjects have been covered, which were highly important for in Azerbaijan development of the country: from tourism to banking, as well as from labor market to education. This issue covers one of the important subjects for businesses – digitalization. As Tel: (+994 12) 497 13 33 Minister Ramin Guluzade indicated in his interview, “ICT has penetrated into all ar- Fax: (+994 12) 497 10 91 eas of our modern life”. In this context, the government of Azerbaijan has introduced www.amchamaz.org wide range of digital and e-platforms to enhance effectiveness and efficiency of public services, stimulating the development of private sector. Even more, strategic Advertising opportunities: road maps highlight importance of digitalization in diverse areas for further development of the economy. Regarding to the cornerstone of economy – the private sector, Please contact the Editor at digitalization created a positive spillover effect not only for company management, [email protected] but also to provision of relevant goods and services. As a result, digitalization in Azerbaijan has dramatically changed the nature of demand and supply in the last The articles in IMPACT Azerbaijan few decades. express the opinions of the authors Herein, it is my pleasure to appreciate for contribution of interviewed officials, au- and do not necessarily reflect the thor of articles, as well as advertisement providers, including Azerfon, Azintelecom, Coca Cola, Mozaik Printing, Turkish Airlines, BP, Deloitte, PASHA Bank and Ekvita. position of the American Chamber of Commerce in Azerbaijan I am sure you will enjoy reading our content.

Best wishes, Aykhan Nasibli contents IN FOCUS MEMBER CONTRIBUTION 4 20 Special Interview with the Minister of Security Over Movable Property – Transport, Communications and High New Perspectives for Borrowers Technologies, Mr. Ramin Guluzade and Creditors

Kamil Valiyev MGB Law Offices 7 Meltem Novruzova A Wonderful Journey That We MGB Law Offices Are Proud Of DEVELOPMENT & EDUCATION Nuran Kerimov Deloitte Azerbaijan 22 Promoting Dialogue Between Public and Private Sectors for Educational 9 Development and Economic Growth in Transition to digital banking is a Azerbaijan key target of PASHA Bank for the Nazrin Baghirova forthcoming years US Educated Azerbaijani Alumni Association Fariz Ismailzade Taleh Kazimov ADA University PASHA Bank

12 AMCHAM AZERBAIJAN Azerbaijani IT Companies are 26 Providing Borderless Services Under About Us “Made in Azerbaijan” Brand

Ismayil Alakbarov Neuron Technologies 27 Business Events 16 From Ground to Cloud

28 Agateyyub Jafarov Committee Highlights Seabak Nurlana Ahmadova Seabak 31 AmCham Legal Update 18 Digitalization and Exhibitions are Different Sides of the Same Coin 36 Social Events

38 Member News & Events Rena Abutalibova ITECA Caspian 40 M2M Discount Program

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Special Interview with the Minister of Transport, Communications and High Technologies, Mr. Ramin Guluzade and electronic signature tokens have been created. To date, over 100,000 electronic signatures have been issued and new generation ID card to be given to each citizen in the nearest future will be provided with an electronic signature certificate. Thus, new ID cards will be used for identifying identity, as well as, signing electronic documents. In order to expand non-cash payments, E-government payment system E-gov Pay has been created by us and made available to the population.

Regional Data Center was commissioned in December last year. How would you characterize this project? The launch of the Data Center is a very important event both for the country and the region. This means establishment of a centralized IT resource function in Azerbaijan. The project allows government agencies and businesses to reduce their capital costs, minimize overall IT costs by reducing operating costs to zero, as well as export IT services. Data Center is the first such a center in the South Caucasus region with TIER III, ISO 20000 and ISO 27001 certification. What strategy are you implementing for wider applica- Data Center is operated by Azintelecom, which is under the tion of ICT? Ministry structure. Information communication technologies (ICT) has pene- Infrastructure-based services of the data centers that are trated into all areas of our modern life. This is a tendency of created on cloud technologies provide protection from cyber development in the world. Azerbaijan is also an active partici- attacks. The Regional Data Center and its cloud-based infra- pant of this process. ICT field is always in the spotlight of the structure services are of great importance to attracting foreign head of state. currency to the country on its favorable terms and transform- We try to apply technologies that meet up-to-date require- ing Azerbaijan into an IT Center of the region. ments in all areas. We are implementing a telecommunication infrastructure upgrade project throughout the country. These projects are based on the latest generation technologies to provide high-quality services to the population. Today ICT is successfully applied in any area. The implementation of effective projects are underway in our country in the field of e-education, e-tax, e-health, e-agriculture, e-customs, e-commerce and other directions.

What work has been done within the direction of further- ing E-government? All the services I have just mentioned are reflected in “Elec- tronic Government” model. The services of more than 40 government agencies are provided to citizens on the portal E-government. Through the mobile application of the portal, users are sent notifications Your Ministry gives special support to start up projects. for communication, utilities, penalties and so on in real-time In your opinion, what should be done to ensure that mode. This can be considered a successful start for building these projects succeed internationally? a “mobile government”. Constant attention and support is provided to innovative The use of e-signatures have been improved this year against ideas, intellectual entrepreneurship and startups in our coun- the background of increasing demand for electronic services

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try. As a result, in recent years the startup ecosystem of Azer- Next BakuTel exhibition-conference is approaching. How baijan has grown and now we have projects that can enter the do such traditional events affect the development of the global market. As a strategic goal, as a result of transforming sector? ideas into IT business growth of new products and services, Azerbaijan International Exhibition and Conference on Tele- development of this field has been identified. Innovative busi- communications and Information Technologies BakuTel, ness incubators have been created in many leading universi- which is the most important event of the region in the field of ties of the country within the framework of cooperation with ICT, has been held for 23 years. The participation of the Pres- the Ministry of Education. ident of the country in the opening of the exhibition shows the Over 100 projects have been financed by the government high authority of this ICT event and the state’s support to this within grant competitions held by the State Fund for Develop- sphere. Dozens of countries are represented at the exhibition ment of Information Technologies. by more than 100 companies. The exhibition is also impor- The work is also under way to attract foreign investors to the tant for holding international forums and conferences. We are country’s ICT sector and we continue with creation of “IT In- planning to hold some important meetings this year as well. vestors Club” and local venture fund for the purpose of estab- I think that very important decisions are adopted within the lishing links between potential foreign investors and local IT framework of the exhibition-conference, which can be con- companies, attracting local private investments to their proj- sidered a successful platform for joint cooperation and imple- ects. mentation of projects.

When will the 3rd satellite of Azerbaijan be launched into the orbit and what is its importance to our country? It should be noted that Azerspace-2 is our second telecommunications satellite. The work on the launch of Azerspace-2 into orbit in 2018 is going within the action plan. The satellite will be able to meet growing demand in the region in the field of network services and will offer high technical capabilities, affordable coverage area and quality services. The new satellite will also be the reserve of the first telecommunications satellite Azerspace-1 in orbit. Azerspace-1 is also operating successfully and has a customer base in 22 countries around the globe. 75% of satellite’s capacity is now commercially available. While studying the ICT sector of Azerbaijan, a social-re- One of the important resources of our space industry is the lated project drew our attention. Public Internet project. earth observation satellite Azersky. Today Azersky satellite How did this initiative come about? is widely used in many areas, such as defense, security, Internet development in Azerbaijan is dynamic. 80% of the emergencies, exploration of natural resources, maritime, en- population has an access to Internet. Given the interest of vironmental protection, urban planning, mapping, agriculture, people to internet, we provide free Wi-Fi to those places tourism, etc. where large number of tourists and people rest. It’s gratifying that our satellites are fully operated by local Public WiFi project has already been implemented in 15 parks experts. of the capital city, including the Seaside National Park. Ac- cording to our plan, all parks in our capital city will be provided with free wifi by the end of this year.

Thank you for your sincere interview. I thank you and wish you success in your future activities. Our guest’s biography Mr. Ramin Guluzade is the Minister of Transport, Communications and High Technologies of the Republic of Azerbaijan. Previously, he served as the First Deputy Minister of Communications and High Technologies and Minister of Communications and High Technologies, during 2015-2016. Mr. Guluzade has worked for over 10 years at Heydar Aliyev Foundation and led numerous local and international projects. By the Order of the President of the Republic of Azerbaijan, HE Ilham Aliyev, he was awarded with Tereggi (Progress) medal in 2014. Mr. Ramin Guluzade is a graduate of Azerbaijan State University of Economics with a master’s degree.

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A Wonderful Journey That We Are Proud Of Nuran Kerimov Managing Partner of Deloitte Azerbaijan, President of AmCham in Azerbaijan demand in advisory services from our clients primarily relat- ing to the transformation of business strategies, financial and accounting reporting, increasing tax compliance, and setting up contemporary corporate governance structures. We consider the government and state regulators to be important stakeholders. I am proud of our past and current collaboration with various ministries and state authorities in terms of sharing international best practices in different areas, helping to establish regulations targeting the improvement of the business climate and increasing tax compliance.

Looking back over the past 15 years, which accomplish- ments make you especially proud? Could you please provide us with some details on how There are quite a few achievements that make us feel very Deloitte began its activities in Azerbaijan (in terms of its proud. Let me start with my favorite subject, which is talent. people, the office, first clients, etc.)? Throughout the years we have developed many talented pro- Deloitte opened its office in Azerbaijan in 2002. We started fessionals in finance, tax, accounting, and risk advisory. We in a small room in the Landmark business center with only a have a special international mobility program through which couple of people. One of the first things that the firm did was we regularly send our employees on international assign- hire a team of Azerbaijani graduates and send them to Mos- ments to Deloitte offices around the world to gain experience cow for learning and professional development. and for their personal development. We proudly remember our first clients, among which I can Many Deloitte Azerbaijan alumni now occupy senior positions mention were ATA Bank, Hyatt Baku, Wrigley, and a few oth- in leading businesses around the country. Our international ers. clients respect us and regard us as a global organization, which is true. To me, Deloitte is an equally great Azerbaijani What were the initial services then, and how far have firm that is fully committed to training and developing talented they grown and extended? Azerbaijani youth. Audit was the first service offered to our clients in Azerbaijan. We take pride in the value we bring to the business of our Then tax and accounting services followed a bit later. When clients. Over the past 15 years we have successfully assisted comparing the service offerings that we had back in 2002 ver- many emerging and rising Azerbaijani companies in growing sus today, there is a big difference. Over the past 15 years their business and expanding internationally. We have helped we have produced many talented Azerbaijani specialists who many international investors to successfully navigate Azer- help our clients in a range of areas from audit to advising baijan’s business environment and establish starts-up here. on corporate governance and legal matters, building internal audit departments and implementing SAP solutions, and developing efficient tax and legal investment strategies. With Deloitte being the current auditor of BP, our goal is to become a leading audit firm in the Azerbaijani oil and gas industry. Since we have historically been active in working with banks and insurance companies, our advisory specialists are helping the finance industry players to transform their businesses and become more competitive. We all witnessed the substantial economic reforms carried out by the Government of Azerbaijan from the beginning of 2017. It is our mission to help our clients in successfully transforming their businesses as the Azerbaijani economy changes. Over the past 18 months, we have seen a considerable

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among our priorities. Our employees are united in their commitment to charity and the pursuit of corporate social responsibility. We enjoy planting trees as well as teaching school children about environmental protection, and our employees teach different subjects at local universities.

What are the plans for the future? Deloitte Azerbaijan’s future success is very much connected with the future success of the country. We are optimistic about the reform initiatives put forward by the government. We are going to continue strengthening our advisory capabilities in Azerbaijan to better help our clients successfully transform their business in a rapidly changing environment. As part of our global strategy, we plan to increase the scale of our legal practice in Azerbaijan.

Where is Deloitte Azerbaijan now (from an internal perspective–Deloitte professionals and their initiatives, and an external perspective–recognition in the local business environment, involvement/strength in cooperation with the government, significant social projects)? As we celebrate our 15th anniversary in Azerbaijan, we have confidence in our business and are optimistic about our future prospects. First and foremost, it is our people who bring excellent services to our clients. Today, we employ more than 100 professionals across our Audit, Tax & Legal, Risk Ad- visory, Financial Advisory Services, and Consulting departments, and we are constantly seeking bright graduates and experienced professionals.

We will continue investing in our people by sending them on secondments to different offices within the Deloitte network. Working with Azerbaijani universities to produce highly educated graduates will remain an important goal for us. Our collaboration with public authorities will remain a priority and we will work closely with them to bring international knowledge and expertise to the country.

Our guest's biography Mr. Nuran Kerimov joined to Deloitte in 2003 to start the tax practice of Deloitte in Azerbaijan. Nuran has devoted most of his professional life to the practice of local and international taxation. He has significant experience in advising both international and Azerbaijani companies and individuals on a variety of tax and associated business issues. Before joining Deloitte Nuran has worked as a legal and tax professional for several organizations in Azerbaijan. Furthermore, we are proud of our client portfolio. Today, we Nuran was promoted to a partner level in 2008 and equity serve hundreds of public and private clients from different in- partner level in 2011. dustries. Among our clients we have large international com- Nuran holds Master of Laws (LL.M.) degree from the University panies such as BP as well as state-owned enterprises such of Georgia, USA, and Bachelor of Laws degree from the as Azerbaijan Airlines. Voronezh State University, Russia. We consider ourselves to be a responsible firm. Serving the Nuran is currently serving as the President of AmCham. public interest with trust and integrity, helping local communi- In 2016 Nuran was elected as a member of the Board of ties, and protecting the environment in which we operate are Directors of Deloitte CIS.

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“Transition to digital banking is a key target of PASHA Bank for the forthcoming years”

Taleh Kazimov Chief Executive Officer and Chairman of the Executive Board, PASHA Bank the frame of our traditional press-conferences. However, at this stage we would like to share with you the fact that Bank has exceeded forecasts on a number of indicators. Compared to the beginning of 2015, as of end of 2016, PASHA Bank’s consolidated balance increased more than two times from 1.3 billion AZN to 3 billion AZN (IFRS), profits increased from 12.5 million AZN for end of 2015 to 69 million AZN in 2016, i.e. 5.5 times increase has been observed.

Against background of economic challenges in the country and region, which measures enabled PASHA Bank to achieve the net profit of almost 70 million AZN? Despite weakening of economic activity in the country, the Mr. Kazimov, 2017 is the last year of the period covered demand of our customer for banking products and services by PASHA Bank’s current development strategy. How has been remained stable and even increased on a number would you evaluate Bank’s operational results for this of directions. By continuously analysing market conditions, period? Has the Bank achieved its objectives? against background of macroeconomic situation fluctuations, In the course of strategic period covering the years of 2015- PASHA Bank has taken preventive approaches to address- 2017, PASHA Bank has had a number of tasks pertaining ing possible challenges stemming from customer’s activities to development of business operations and further strength- and has introduced accurately defined, tailor-made solutions ening of institutional aspect. Moreover, this period coincided for each and every business case. Moreover, being one of with economic challenges in the country and the region, de- largest banks of Azerbaijan, we closely observe, analyse and valuation processes against background of macroeconomic professionally manage all potential risks pertaining to region conditions fluctuations which resulted in introduction of a and country’s market throughout the whole portfolio. As a re- number of corrective measures into our plans. Even though sult of all above-mentioned, the total number of our custom- three more months are left till the end of strategic period, we could state that we will close this period with positive results. In the course of last two years, Bank’s organizational structure was changed, new functions were introduced and numerous projects that were imperative for Bank’s future successes were implemented. One of the most important steps taken towards this direction was transition to new bank platform- Oracle FLEXCUBE: within the frame of expansion of Bank’s operations in Azerbaijan, Turkey and Georgia, this step was aimed at improvement of business processes in our countries of operations. Almost three months left till the end of strategic period and during this period we will continue moving towards Bank’s objectives. Information about work results will be released within

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In the light of above mentioned, which areas of economy will be defined as priority for loans allocation in mid-term perspective? We have conducted comprehensive analysis of country’s and region’s economic environment, assessed every area and segment of market and thoroughly evaluated all potential risks and opportunities. Our analysis showed that almost every segment of non-oil economy has potential for business operations, if we have to name specific areas, bank’s activities will be focused on supporting businesses in areas such as agrarian complexes, information and communication technologies, transport, production, tourism and trade. Thus, by continuing strengthening our position as corporate and investment bank we will remain the partner of real sector both in terms of providing financial services and business consulta- tions for the development of small and medium entrepreneur- ers for the end of 2016 increased more than three-fold and ship. approached the number of 2000, the volume of operations processed by those customers within this period increased by Thank you very much Mr. Kazimov! We appreciate your almost 40% and exceeded 1.1 billion AZN. time dedicated to the interview with IMPACT magazine In your interview with journalists you have mentioned that the and wish you all success! focus of new strategic document covering the years of 2018- 2020 will be on transition to digital banking. From what is it stemming from and how would it impact the operations? Digital technologies gradually cover all aspects of our daily life and it is applicable to modus operandi of modern business operations as well. In this context transition to digital banking is inevitable global process. Even though Azerbaijan has relatively small sized economy, the country proactively participate in global processes and one of the key players in the region. In this manner, modern technological tendencies will not pass us. As you know 12 strategic road maps covering along with other areas, the development of financial sector, as well as information and communication technologies on development of key areas of Azerbaijan economy were approved. In the light of this, being leading corporate bank of Azerbaijan, we proactively work on digital component of our Our guest`s biography strategy which will enable us to reach qualitatively new level Mr. Taleh Kazimov has extensive professional experience of work with our customers. As of today, we were able to en- in commercial and investment banking, loans and risks sure that 65-70% of total volume of customers’ operations are management. He was appointed as CEO and Chairman of processed through internet banking services. PASHA Bank Executive Board on July 1, 2015. Mr. Kazimov began his career in financial sector in 2004 as a PASHA Bank doesn’t limit itself within the classic bank leading specialist in the treasury department at BankStandard notion. However, to what extent banking services user- and later as the head of accounting management and budget sin Azerbaijan, in particular your customers, are ready planning. He was later promoted to deputy director of corporate for transition to digital banking? loans department. In 2006 he joined Ernst and Young as an Indeed those innovations and changes will imply exit from auditor. Before his current position at PASHA Bank, Mr Kazimov comfort zone for certain number of users of bank products. served as the chief investment officer of the bank and a member Even though as a result of those changes, operational costs of the executive board responsible for business development, institutional, investment, corporate and SME banking and risk will be reduced mutually, customers of local banks will not management. Mr Kazimov joined PASHA Bank in 2007 as waste time in queues and processing paper-based transac- risk manager and then promoted to the position of the bank's tions, those customers would face discomfort while working treasury director in 2009. He is also a member of the supervisory with new technologies. To prevent such cases, being the boards for PASHA Bank Turkey and PASHA Bank Georgia. leading corporate bank of country, PASHA Bank will proac- Taleh Kazimov is a Vice-President of American Chamber of tively support its customers during transition period and pro- Commerce in Azerbaijan and Board member of US-Azerbaijan vide the most relevant banking services. Chamber of Commerce in US.

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Azerbaijani IT Companies are Providing Borderless Services Under “Made in Azerbaijan” Brand Ismayil Alakbarov Founder & CEO, Neuron Technologies Chairman of ICT Commission of Azerbaijan’s National Confederation of Entrepreneurs and crowded companies. I drew a contra pie chart for him, showing that one day his argued market will be no more than 5% of the overall market in my mind. I also explained that this market will be created by enthusiastic people like me. The new generation IT leaders will create this market. I like to remember this bad lesson of demotivation and share with new startups as a motivation case. Neither this conversation, no other ones stopped me in driving forward with my passion. And here we go. We become a leading technology company. It took us four years only. You have been in Azerbaijani market for four years only. We managed to adopt a visionary leadership in our business It is not a long history. However, you have achieved for operations and build competence in our Neuron team. These significant results. What is your secret? two deliverables have been the main pillars for our success I have founded Neuron Technologies in 2013. During this rela- story. tively short period, my company has become one of the lead- Let me briefly inform you who is Neuron Technologies. We ing IT enterprises in Azerbaijan. We have had a fast growth provide wide-range of services in the sphere of information profile since our establishment. Our solutions and products, and communication technologies, including tailor-made soft- customer base, as well as our gross turnover double and even ware development, system integration and ICT infrastructure triple every year. This may be viewed as a paradox for some establishment solutions. We are committed to provide excel- people in light of the recent economic challenges and down- lence in customer service. Company specializes in bringing time. However, let me highlight, that in Chinese language, the solutions to ensure business optimization and sustainable word “crisis” is composed of two characters, one represent- ing danger and the other, opportunity. We have chosen the opportunity one to go. Thus, we managed to transform challenges into opportunities that enabled us grow up to the level where we are now. But this is just a starting point of the long journey. The key to our success has been our enthusiasm and passion to bring innovative IT solutions for the industry and community challenges, as well as, the e-Government agenda of the country. I still remember the time, when immediately after registering the company, I approached my friend, who was quite knowl- edgeable at that time in the sphere of IT. I went to him to get a feeling of motivation by the time, when I had no office, no brand book, no team, other than my vision and passion. Dur- ing my conversation with him, he drew me a pie chart with percentage of the existing market share in A4 paper, explain- ing that there is absolutely no chance for me in the IT segment, as if the market was already divided among the big

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experts to bring innovative and competitive solutions are our main advantages. We are able to integrate business strategies with our technology know-how, we always strive to grow and continuously improve. We are part of the solution, not part of the problem. We strive to increase our human capital. With our strong team spirit, we always become the extended family members of our customers. We always strive to go by extra mile. We always listen and conduct open information exchange. We create transparent and healthy environment in the company… We do all these in an agile format. We actually live in an agile business life. The calendar year for some people is 365 days. However, it is 8,760 hours or 525,600 minutes or 31,536,000 seconds in our business terminology. We are of the opinion, that this is quite a big time frame to do big things. We try to eliminate any single wasted moment in our business activities and strive not to waste any single second in our day job. We growth. We excel in bringing innovative solutions for software put all our efforts to bring efficiency to our work practice. I development, system integration, information management even advise my young team members to save time in sleep- systems, web development, mobile and smart technologies, ing, time spent on transportation to and from work and even auditing & consulting. Neuron Technologies has partnership time spent in toilet. Cumulatively, all these saved time slots relations with global companies, like as CISCO, HP, ORA- give us room to bring efficiency to our work-in-progress and CLE, IBM, Microsoft, EMC Documentum, AVAYA, Docsvision, provide impetus for our enthusiasm. Barracuda. The European Bank for Reconstruction & Devel- Someone can call us workaholics. However, we realize that opment has approved Neuron Technologies as a pre-quali- our lives are very short and we must be able to catch doing fied ICT company to provide advisory services, as part of the many useful things to make the world better than it is. Business Advisory Support Program in Azerbaijan. Neuron Technologies has been the winner of the world’s On international arena, your products are known under most important business excellence award, “The Bizz 2015”. “Made in Azerbaijan” brand. Can you please let us know We have consistently gone above and beyond in its com- about your product and solution portfolio and shed light pliance with the evaluation criteria for business excellence, for the recent products, which are popular outside of namely business leadership, the quality of its goods and/or Azerbaijan? services, management systems, innovation and creativity, Our strategic goal is to become a world-class IT company and corporate social responsibility, and its achievements. For this step-by-step we are moving towards this strategy. Our main reason, the World Business Confederation, headquartered in goal is to take our potential into the global arena and facilitate Houston, USA granted this major business award to Neuron smooth transfer of our solutions, knowledge base and tech- Technologies in 2015. Neuron Technologies has also been nologies. We strongly believe in our intellectual export to the awarded by “Gabriel Al-Salem Foundation Award” as part of world markets. the “Consulting Without Borders” International Award Compe- We currently undertake the World Bank financed project in tition. Even more, we have granted with “IT Company of the Central Asia. Neuron Technologies became successful in in- Year” award in 2014 by prestigious national Azeri Business ternational tender for “Development of a system of supplying Award for its contribution to the development of ICT sector in information and automation of hydrometeorological mainte- Azerbaijan. nance processes by means of modern web resources and technologies, as part of Central Asia Hydrometeorology Mod- Globally speaking, IT is not an easy area to do business. ernization Program”. Neuron Technologies competed with the Where do you find this enthusiasm? leading IT companies from Germany, Russia, Kazakhstan, From time to time, I remind my team members the secret of Kyrgyzstan in this international tender and became success- our so-called “magic stick” in relation to our customer service. ful at the end. It was not easy, but we did it. Let me high- I tell them: if our customer says we need to jump, we ask how light that it is very difficult to meet the World Bank tendering height? This approach made our company competitively ad- thresholds, technical requirements and standards, but we did vantageous in addition to our technical capabilities. meet and exceed them all. We started the project in July 2017 We create value chain, transparent and healthy atmosphere and the project will be completed within the next year. We will and increase our human capital. All these help us to develop provide sustainable technical support services for the Hydro- innovative and competitive solutions. meteorology Agency of the Republic of Kyrgyzstan during 5 Also, establishment of modern business practices and cor- years after the contract execution. This enables our medium porate culture helps Neuron Technologies to set the com- term presence in the market of Kyrgyzstan. pany for success. Ability of our agile, trusted and ambitious We are currently in the process of negotiations with partners

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management in a unique online platform. This modular-based platform brings information technologies on top of the agenda throughout the whole spectrum of learning stages, education process, ensures transparency and highly contributes to the increase of education quality. This solution is being widely used in the education system of Azerbaijan. The system is being successfully implemented at the Ministry of Education of the Republic of Azerbaijan, Azerbaijan State Oil & Industry University, Azerbaijan State Customs Academy, Azerbaijan State Pedagogical University, Baku Higher Oil School, West- ern University, Azerbaijan National Conservatory and Azer- baijan Technological University and others. The use of this solution is going to expand to the major universities in the country. Currently, around 40,000 students out of the total 150,000 at the above-mentioned high schools use Unibook. Our “Caremed” medical and hospital information system is currently being deployed at the medical clinics in Azerbaijan. Neuron Technologies implements various e-Agriculture solu- in Belarus, Kyrgyzstan, Iran, Tajikistan, Hungary, Tanzania to tions in partnership with the Ministry of Agriculture of Azer- deploy our Microsoft Azure cloud-based Unibook e-Education baijan. With the on-going tourism boom in the country, we system at universities in these countries. We have recently decided to contribute to this sector as well. Our developed signed agreement with Belarus State Post-Diploma Acade- “DigiMus” digital and interactive museum information man- my to provide “Unibook” platform for their content manage- agement system is currently being used via touch screen info- ment. We are planning to enter into the third markets through kiosks in various museums in Baku. joint partnership with our Belarussian partner. We provide the technological platform and they provide content and this Do you think Azerbaijan carries a great potential and way we will introduce online distance learning opportunities enough resources to be competitive in international for people in Eastern Europe, CIS and Central Asia. We also area? What are the areas which we need to put further intend to pilot “Unibook” in two private universities in Georgia attention? and our negotiations are underway in this regard. As highlighted, Neuron Technologies has conducted wide- We have recently completed the legal proceedings of estab- range of software development projects in e-Education, e- lishment of Neuron Technologies in Prague, Czech Repub- Agriculture, e-Healthcare, e-Tourism, e-Culture and other lic, which will be in charge of the forthcoming EU projects. areas in support of e-Government and digital transformation We deemed it operationally efficient to manage the future EU agenda. Many countries face the same digital challenges like projects from our Prague office. Azerbaijan does. I would like to emphasize that Azerbaijan is I would also like to highlight that during the recent years, Neu- ahead of many countries of the region, even those located ron Technologies has developed a number of IT products and in Eastern Europe, in terms of e-Government digital trans- software solutions, which have successfully been implement- formation initiative. Azerbaijan has successfully implemented ed in Azerbaijan. We are in the process of exporting these e-Gov projects during the last 10 years and this process is solutions to the global markets. We have prioritized CIS and still going forward. I am happy to say that majority of these Central Asia, Eastern Europe, Near East and Africa as priority projects have been implemented by the local IT companies. markets in our export growth agenda. This process has empowered Azerbaijan’s IT capacity and Let me give you some examples of our solutions, e.g.: with the e-Gov portfolio of our national companies, we appear “Unibook” Education and Learning Management Platform, to be competitively advantageous in international markets, “Caremed” Medical and Hospital Information System, “Farm- particularly those of CIS, Central Asia, Near East and Africa, er House” Complex Agriculture Information Management where e-Gov programs are massively going forward. System, “iRIS” Interaktiv Regional Information System, “Me- I think Azerbaijan’s e-Gov and digital transformation case can teoSoft” Complex web based solution for Hydrometeorology, be considered as a best-in-class example for many develop- “DigiMus” Digital Museum Interactive System, “SalesPad” ing countries. For example, countries like Afghanistan, Monte- Sales Reporting & Tracking System and others. All these so- negro and others are after using Azerbaijan’s “Asan Service” lutions have successfully been deployed in Azerbaijan and model. With these in mind, I can proudly say that Azerbaijan now we are in the process of exporting these products to the has a great potential and enough resources to be competitive overseas markets under the “made in Azerbaijan” branding. in the sphere of exporting IT to the international arena. It is needless to say that our solutions bring efficiency to the conducted business processes by the customer enterprises. In this case, according to your experience, what should For example, “Unibook” is a complete e-Education solution be the focus of Azerbaijani IT companies in international bringing all the business processes in education and learning tenders, globally speaking?

14 Issue 27 in focus

We should also indicate that the government has been supporting startups. Are there further steps which you consider needed in order to stimulate youth for being more active? In my opinion, Azerbaijan itself is a startup as an independent country. We, as a country started to build everything from scratch some two and half decades ago after the collapse of the Soviet Union and we have made a tremendous progress during this period. Yes, Azerbaijan’s achievements can be seen as best-in-class example. However, I must confess, that we did accomplish all these achievements during the oil era. The country has stepped into the post-oil era now. The essence of this new era is ‘Digitalization’. The success factor of the countries in this new era will be based on the extent they can smoothly go through this digital transformation process. Such a digital transformation process is not an easy process though. ‘Data’ becomes of the essence in this process. Coun- tries, which manage ‘Data’ in a strategic way, ensuring total Azerbaijani IT companies should strengthen their human re- digital transformation, will success in the long run. Innovation sources firstly. Information technologies, particularly software will be integral part of this transformation process. Internet development and system integration sphere are highly human of things, big data, cyber security, cloud computing, artificial resource intensive. Currently, one of the main challenges of reality, bio-technology, robo-technology, nano-technology… IT companies are staff retention and competency alignment are the main themes of the new game in the next 100 years. with the new technology trends worldwide. And, startups are inevitable to make progress in each of Another focus area should be development of proper interna- these segments in the new digital era. Unfortunately, startup tional business and marketing strategies. We need to conduct activity in Azerbaijan is not capable of coping with all these proper analysis of IT markets in the wider region and find out developments yet. We need to provide further motivation for the forthcoming short to medium term digital transformation young generation to come to IT. There must be practical ways agenda. Let us bear in mind that the total cumulative annual to stimulate this process. IT schools must be opened in each GDP of the wider regional countries is around 3 Trillion US of the university. IT skills and competence levels need to be Dollars. I am talking about some 300 Million populations in developed in young generation. More and more high tech the markets of these countries of the region. And, most im- parks, incubation centers, be them public or private, need to portantly, Azerbaijan’s geo-strategic location makes it very be opened in the country. Venture funds need to be estab- attractive in the sense of participation of its IT business com- lished. Governmental tax incentive regimes must be applied munity in the on-going digital transformation of the wider re- to those business communities supporting startups. I feel gion. The region, which is only two hours of flight interval and confident that if we do all these things right and in a timely around 1 thousand km radius from Azerbaijan… and proactive manner, Azerbaijan’s new generation startups will lead the digital transformation of the country in the next 50 And what is the next level towards boosting export of years… I personally believe on this…! Azerbaijan in IT field? I anticipate rapid growth of export of Azerbaijan’s IT products Our guest`s biography and solutions in the next 10 years. Country’s high-level strat- Mr. Ismayil Alakbarov is Founder & CEO of Neuron egy to develop non-oil sectors and decrease dependency Technologies LLC, as well as Chairman of ICT Commission on energy sector, most importantly, business attractiveness of Azerbaijan’s National Confederation of Entrepreneurs. Mr. of IT sector will necessitate and boost this process. Accord- Alakbarov is renowned IT entrepreneur and visionary business ing to my estimations, Azerbaijan’s IT potential and exports leader in Azerbaijan. After his successful career and 20 years of can bring around 1 Billion US Dollars revenue to the national experience in multi-national oil & gas corporation and diplomatic economy every year, should we proceed in a strategic way. service in Geneva, Ismayil Alakbarov decided that it is This process should be done through a Public Private Part- innovation and digital technologies that have changed the world nership initiative. We need to mobilize Azerbaijan’s diplomatic and can change again. He founded Neuron Technologies that missions and trade representations abroad to support Azer- has been integral business part of the country’s contemporary baijan’s IT exports to the third countries. The Government of digital transformation process, becoming a leading IT company Azerbaijan should determine tax and financial incentives for in Azerbaijan. Neuron Technologies exports its technology exports of intellectual products, as it was done for the exports solutions under the “made-in-Azerbaijan” brand, already of agrarian products. Our IT companies should participate in operates in Eastern Europe, Central Asia. Neuron Technologies international tenders through synergized efforts in the form of has a fast growth profile and it is becoming international IT consortiums. company.

15 in focus

From Ground to Cloud Agateyyub Jafarov desk, but “only a small part of the interior is devoted to stor- Business Support Representative, age, the rest to mechanism”. Seabak Indeed, the day has arrived when the previously unimagina- ble idea of recording our own thoughts, storing and sharing them with unlimited number of users is possible. According to Bush’s very own words “science has provided the swift- est communication between individuals; it has provided a record of ideas and has enabled man to manipulate and to Nurlana Ahmadova make extracts from that record so that knowledge evolves Technical Support Representative, and endures throughout the life of a race rather than of an Seabak individual”.

But, were Bush alive today, what revolutionary ideas would he come up with? With the current technology becoming not only an extension of our capabilities - an inherent part of human nature, but also In his essay, “As We May Think” dated July, 1945, Vannevar a constitutive dimension of our culture and an unrivalled plat- Bush, an outstanding American engineer and inventor, who form for uninterrupted connection of communities, nations assisted on the Manhattan Project, expressed his concerns and even countries, there’s an imperative need for a system for the disastrous, rather than constructive and sustainable, that unifies all data and allows you to access, store and share direction of scientific efforts. data with anyone from any device, any place and anytime. Bush urged scientists that instead of extending the people’s In short - Cloud computing - an information and communica- physical powers, scientific community should create an ef- tion technology that delivers computing resources, such as fective and efficient accessibility to a knowledge base which computer applications, networks, servers, storage, process- he explicated in his essay as collective memory machine and ing power and services – over network. called it “Memex” (from memory extender): “A Memex is a It requires minimal storage availability or processing power lo- device in which an individual stores all his books, records, cally because most of computation happens remotely. Cloud and communications, and which is mechanized so that it may computing affords users with ubiquitous on-demand access be consulted with exceeding speed and flexibility”. to a range of computing resources without their ownership, He argued that this technology will afford people access to and employs only that much of it which is actually required and command over both, inherited knowledge of the ages while charging only for the services availed. It is also speedily and current knowledge. The creation and development of this arranges and delivers with little management effort and ser- pacific instrument should be the first objective of scientists, vice provider involvement. he insisted. The multitude of benefits of the Cloud based networking are He imagined “Memex” to be an office desk that could be oper- grouped into following categories: ated from a distance, with “two slanted translucent screens” upon which a material would be landed for a “convenient reading”. With a keyboard to the right of the screens and a Robust Security and Improved Disaster multitude of buttons and levers, the user could search for any information operating an electrically powered optical recogni- Recovery tion system. The images were stored on microfilm inside the In the traditional model, encryption methods are used to pro- tect a customer’s data, but this poses a challenge in certain countries that restrict the import and use of encrypted laptops. So multinational companies run the risk of breaking local country laws and having their pieces of technology subjected to review which may disclose the encrypted information. Cloud replaces these concerns by having all data securely stored on the Internet. Thus, the laptop no longer stores the data, but becomes an instrument by which to access it. In addition, by 2020 Google Cloud plans to develop a system that will allow simultaneous updates of security principles for all participants who are sharing the network, as well as tools and practices. If a single system member’s security is

The prototype of the Memex Machine breached, all members of the Cloud services will receive a fix

16 Issue 27 in focus

of the system. This will allow all users of the Cloud Services to control over monthly expenses. receive rolling automatic software updates, checks and fixes of their networking systems and will make the use of technology safer and more secure for everyone. Insight As the world is moving further into the digital age, the old phrase “Knowledge is Power” no longer seems to be case. Data and its analysis are the new power. Hidden within the millions of bits of data are kernels of priceless, actionable information just waiting to be identified and acted upon. Sorting through that data to find these nuggets can be very difficult, time-consuming and costly—unless you have access to the right Cloud computing solutions. With the company’s information stored in the Cloud, tracking mechanisms and building customized reports to analyze information organization-wide can be easily implemented. From these insights, an action plan to increase efficiency and Google Data Center meet organizational goals can be effortlessly built – a sure way to beat competition. Since hardly anything is as irritating as waiting for system A renowned Pulitzer Prize-winning writer and journalist, update to be installed, Cloud-based applications automati- Nicholas Carr, in his book “The Big Switch”, compared Cloud cally refresh and update themselves, significantly shortening computing to electric utility service. He illustrated that just down-time. This also saves valuable IT staff time and money as electricity service companies use centralized power gen- spent on IT consultation. eration stations to distribute electricity through electric power grids to multitude of distant end-users, so is Cloud computing Lower Energy Consumption and Waste is a similar technology transformation to deliver computing resources, owned by Cloud service providers, over a network. Reduction With the integration of Cloud systems into industries and Today, no longer placing a recycling bin in the office break- governments, traditional desktops will become extinct and room is sufficient to meet the world’s environmental sustain- programs will no longer need to be installed. Laptops will be ability requirements. True sustainability requires solutions for rent and offices will become obsolete by turning to virtual that address wastefulness and carbon footprint at every level spaces. With millennials – the first digital, tech-savvy genera- of a business. Thanks to the concept of sharing economy, tion that’s used to being connected - entering the workforce hosting on the Cloud is more environmentally friendly and sig- and becoming an integral, decision-making part of it, they will nificantly lowers corporate carbon footprint. seek newer ways to achieve productivity and more attractive Additionally, it considerably reduces paper waste, improves workspaces to share their ideas. Also dubbed as the “Green energy efficiency, and, given complete data accessibility, re- Generation” they will seek opportunities to go green in every duces commuter-related emissions. step of their work and thus, possibly, drive the next revolution – a Green one. Cloud computing will play an indispensable role in bringing people even closer, making companies more Lower Operating Costs and Higher Ef- effective and efficient, all the while making the global footprint ficiency smaller. The less a company spends on IT resources, the more it Authors` biography can invest into delivering high quality services. With Cloud, Mr. Agateyyub Jafarov is Business Support Representative a Cloud Service Provider becomes an extension of the com- of Seabak. With over 20 years of experience in IT field, he has pany’s IT department, enabling it to scale back on costly in- been Branch Manager for Seabak for the past 15 and grew house IT as well as large expenditures for new servers and a successful company which now serves over 120 SMBs in other computing needs to free up time to focus the company’s 4 distinct IT fields. Mr. Jafarov received Bachelor’s degrees mission. at the State Economic University, as well as the Azerbaijan Technical University, and holds multiple International Mobility and Flexibility Technical Certifications. With software applications and platforms regularly main- tained and updated remotely, a company’s critical business Ms. Nurlana Ahmadova is Technical Support Representative processes will be run in a continually available environment. for Seabak. Ms. Ahmadova studied Engineering at the Colleagues can store, access, share, and edit business in- University of Aberdeen, UK. She developed a strong interest formation, no matter where they are, from any connected de- in programming whilst writing her final year thesis on Finite vice. A company’s capacity in the Cloud can be decreased or Element Modeling. Currently, she is studying for Microsoft increased as and when it needs to be, which offers complete Certified Professional exams.

17 in focus

Digitalization and Exhibitions are Different Sides of the Same Coin

Rena Abutalibova using computers. Today, it is hard to imagine exhibitions with- Sales Director, out e-registration, matchmaking and other services, including ITECA Caspian high-speed Internet connection at Expo Centers. Exhibitions and IT platforms jointly create new business opportunities. Synergy of exhibitions and the Internet provide a complete and diverse impact on the target audience, which makes the advertising and marketing programs more effective. For example, we have been using Fast Track electronic registration Today, Information and Communication Technology (ICT) is system for visitors for some years now and the statistics here becoming integral to our lives; it has covered virtually any field speak for themselves with an increasing number of visitors of human activity. Therefore, it is hardly surprising that the registered online; the number of visitors registered online use of mobile phones or tablets to access for all kinds of in- amounted to 15% of the total number of visitors in 2014, and formation is now one of the biggest trends. this number increased to 40% by the end of 2016. We plan to So people want to have an access to all available information continue improving this system to minimize the distribution of from wherever they are, and on top of it all, they want to have printed invitations. some influence over the situation irrespective of their location. I am sure that the exhibitions and conferences will become While being able to access for all these opportunities upon more interactive thanks to mobile devices and various appli- a need - when distance means nothing and when there is cations, including virtual reality environment in the near future. almost no barrier to the necessary flow of information - why Note that innovative technology and software, which are then are exhibitions still so important? actively integrated to our lives, can be first met at Bakutel, the The simple answer is that exhibitions cannot be replaced by Azerbaijan International Telecommunications and Information digitalization, as exhibitions go beyond a simple flow of infor- Technologies Exhibition and Conference which is the most mation. Exhibitions are the most effective tool for finding new digitalized exhibition in Azerbaijan. I believe that this year’s customers and expanding the geography of sales; exhibitions Bakutel exhibition, which will be held from 5th to 8th of Decem- help in promoting international cooperation and increasing ber at Baku Expo Center, will also please us with the indus- the flow of investments. One might argue that today there are try innovations. The exhibition is held with the organisational different Internet portals that offer goods and services and support of the Ministry of Transport, Communications and even virtual exhibitions, but even here, the relevance of trade High Technologies of the Republic of Azerbaijan. The event is shows remains unchanged. organised by Caspian Event Organisers (CEO). Exhibitions offer certain advantages over the IT solutions for I think that Bakutel 2017 will allow us to look into the future of visitors; it is a sort of multisensory perception of events and a consumer technologies, and in our turn, we can adopt these real-life experience of interacting with brands, alongside the technologies for the next exhibitions. product testing and face to face communication with people, which helps in learning more about each other. It is also a place for exchange of ideas, where one can gain invaluable experience. Statistically, face to face communication has more benefits and yields more results as compared to ne- gotiating at a distance. There are some people who never use the Internet, while others remain indifferent to the advertising. Certain groups of people simply avoid making online purchases. However, those people who are interested in expanding their business still visit exhibitions and spend their valuable time to acquire specific knowledge and skills which provide a solid ground for making decisions. However, it cannot be denied that the digitalization has started to change the industry of events and has affected both Author's biography the interactions with exhibitors and visitors, as well as the for- Ms. Rena Abutalibova is Sales Director of ITECA Caspian mat of services provided by event organizers. The process of since December, 2015. She joined to ITECA Caspian as Sales digitalization has been long; ever since the organizers started Manager since 2006. Mrs. Abutalibova is a graduate of the Western University, 2000.

18 Issue 27

member contribution

Security Over Movable Property – New Perspectives for Borrowers and Creditors Kamil Valiyev creditors will have more visibility and transparency in respect MGB Law Offices, of liens and other interests imposed on movable property of Partner borrowers and security providers. This eventually should lead to more favorable terms and conditions (e.g. lower interest rates) for borrowers and create more reliable business environment in general. Objects of Security Interest Meltem Novruzova A security interest over (i) movable property, including MGB Law Offices, movable property to be owned by a borrower in the future and Associate (ii) rights and claims fall under the scope of the Law. Having said that, the rules established by the Law do not apply to a security interest over movable property (e.g. vehicle, vessel, aircraft, etc.) and securities (e.g. participatory interest, share, bond, etc.) which are subject to the state registration. The following types of a security interest over movable Long-awaited Law on Security over Movable Property has property are available: been finally adopted. So why it was adopted and how your (i) State and Municipal – for example, issuance of an order to business may benefit from it either as a borrower or a creditor? a bank by a tax authority for transfer or freezing of funds from Businesses operating in Azerbaijan often encounter issues in a taxpayer’s bank account or seizure of taxpayer’s property to attracting funds for financing their projects. In particular, not ensure payment of tax debts, an accrued interest and financial always businesses are able to satisfy requirements of their sanctions; receipt of security by customs officers for both an creditors, which prefer solid and liquid security instruments to existing and future customs debt; imposition of temporary reduce their risks associated with lending. Borrowers may be restrictive measures on movable property by courts; and more interested to offer their immovable property or movable (ii) Private – for example, a contractual pledge and a usufruct property, including equipment or other goods they possess or over movable property; lease of movable property; lessor and intend to purchase with the borrowed funds as collateral for lessee’s right of pledge. their borrowings. However, in the absence of the registry of security interests over movable property, lenders may not be eager to accept movable property as a security due to higher Perfect Your Security Interest Principally, the Law can be characterized with the mechanism transactional risks associated with the lack of the efficient for perfection of a security interest over movable property. mechanism for tracking pledged movable property and Perfection of a security interest evidences registration of a enforcement of their security interest over movable property. security interest with the appropriate state authority and thus, With the introduction of this new Law, legislators establish the perfected security interest becomes protected from and a new set of rules on creation and perfection of a security effective against third-party claims. Such perfection shall be interest over movable property, state registration of a realized through the State Registry of a Security Interest over security interest over movable property and procedures for Movable Property (hereinafter the “State Registry”) managed enforcement of security interest over movable property under by the Chamber of Control over Financial Markets. The Azerbaijani legislation. By thoroughly regulating the rules with respect to a security interest over movable property, the Law is quite important in terms of interests of borrowers, security providers and creditors. The Law is expected to encourage businesses to use movable property more actively as a security for attracting and providing funds. To put it another way, creditors should be satisfied with minimizing the level of their financial risks by perfection of their security interest over movable property. Furthermore,

20 Issue 27 member contribution

State Registry will not serve only for perfection of a security Cautions and Recommendations interest over movable property, but also for registration of Despite benefits and opportunities the Law provides, certain amendments to a security interest, objection to a security provisions of the Law should be carefully considered by interest and termination of a security interest. The rules on borrowers, security providers and creditors. For example, registration of a security interest are yet to be prepared and it is not clear from the Law whether creditors should obtain introduced by the Cabinet of Ministers of Azerbaijan. security provider’s consent prior to entering into intercreditor’s Under the new Law creditors are provided with an opportunity agreement for the change of the order of priority for payment to advance their rights in the order of priority for payment of claims. Such provision constitutes a risk in terms of of claims by disclosing the security interest over movable security providers’ interests and may lead to the objection property to third parties either by registering such security of security providers, especially when security providers are interest in the State Registry, or by acquiring right of not borrowers. To avoid such risk creditors may consider possession or obtaining control over the subject of a security obtaining the security provider’s consent (i.e. by making the interest. Disclosure of the state and municipal categories of security provider a party to the relevant agreement) for such a security interest is mandatory. Hence, private businesses change. should be able to inquire whether movable property (e.g. The rules on the registration of security interest notices have equipment, tools) owned by their current or potential business not been introduced and the State Registry has not become partners or borrowers are subject to any state lien or whether operational yet. Therefore, practical aspects of the registration any court injunction is ordered in their respect. process are unpredictable. Furthermore, it is not clear yet, Notably, creditors that hold a security interest over movable whether additional requirements will be imposed with respect property created prior to the effective date of the Law will also to execution of pledge agreements or upload of additional enjoy the right of perfection of such security interest. They paperwork will be required for the said registration. are entitled to register their security interest created prior to the effective date of this Law with the State Registry within 9 (nine) months from the date once the State Registry becomes operative in order to claim priority from the original date of creation of the security interest. Such creditors are not to be required to obtain a prior consent of security providers and the notification of security providers will be sufficient for registration purposes. Prioritize Your Claim The Law also establishes the order of priority for payment of creditors’ claims if a movable property is subject to several security interests. Creditors could prioritize their claims against the claims of other creditors by disclosing their security interest through one the above described methods. Correspondingly, the claim of creditor who has first disclosed the relevant security interest shall be paid first.1 Such disclosure opportunity is prerequisite for creditors to have priority over the claims of other creditors. Authors' biography However, irrespective of whether the above disclosure has Mr. Kamil Valiyev is a partner with MGB Law Offices. His been made or not, the Law privileges certain categories of practice primarily focuses on energy and infrastructure creditors. For example, when subject of security interest is projects and he extensively advises local and international acquired with the proceeds of creditor’s funds, a claim of such clientele on project development and financing. He holds the creditor shall prevail over the claims of other creditors, subject Master of Laws degree from the University of New Hampshire to certain requirements to be complied with under the Law. School of Law and the Bachelor of Law degree from the Baku Publicity of Security Interest State University. The State Registry will provide public search engine, which Ms. Meltem Novruzova is an associate with MGB Law will enable creditors to determine whether the particular Offices. Meltem specializes in corporate, trade & commerce property is already subject to a security interest. Information and project finance. She extensively acts as a legal counsel for contained in the State Registry can be accessed both in international financial institutions on secured and unsecured, electronic and paper-based forms. This feature will enable subordinated and syndicated loan transactions, debt the State Registry to become an effective risk management restructuring and security perfection issues. Prior to joining tool for businesses. MGB Law Offices, she had worked for one of the leading 1. Notwithstanding the above, when subject of security interest is funds from the bank account, the international tobacco companies. Meltem holds a Master order of priority for payment of creditors’ claims shall be paid as envisaged by Article 965 of the Civil Degree in Commercial Law from Baku State University. Code.

21 development & education

Promoting Dialogue Between Public and Private Sectors for Educational Development and Economic Growth in Azerbaijan

Nazrin Baghirova perspectives.” Standing Committee on Students and Youth Deputy-Chair, US Educated Azerbaijani under the Ministry of Education, US Embassy, ADA Center of Alumni Association Excellence in European Studies, American Chamber of Com- merce in Azerbaijan, British Educated Azerbaijani Alumni As- sociation and American Center were partners of the event. The aim of the conference was to empower delegates from four industries: public sector, education, businesses, and non-governmental organizations to establish collaboration Fariz Ismailzade with the purpose of attracting alternative income to sustain- ADA University Vice Rector, able development of higher education institutions. Board Member of American Chamber of Hence, the conference thematic framework included the fol- Commerce in Azerbaijan lowing topics and as the result of these discussions between the guest speakers and the Ministry of Education representatives, university administrators, industry representatives, other government and non-governmental organizations, the The Strategic Roadmap on National Economy (2016), Azer- international experts have urged the following recommenda- baijan 2020: Strategic View and Main Priorities (2014) and tions: the State Strategy on Education Development (2013) set 1. Entrepreneurial University Model: this concept has been strategic priorities to increase productivity of the human developed by the European Commission and well imple- capital and ensure sustainable economic growth based on mented through different measures, including the on-line tool productivity, knowledge and innovations. The strategic goal https://heinnovate.eu/en. For many scientists, this approach 7.3 in the latest state document of the Strategic Roadmap is also known as a Third Generation University, Open Univer- states: “In order to achieve increase in productivity of the hu- sity and Global University, too. The non-public funds are con- man capital, to increase competitiveness in the production centrated only in the firms or their representatives. Therefore, and service sectors, and to ensure integration to the national it is highly expected from the academics to offer something economy into the global economy, ...the quality of education valuable to the companies and get paid in return. Here comes in all levels must be improved, continuous training activities to the main question – what to offer? What does it mean for the the employees, preparation of specialists upon the demand of academics to think as entrepreneur? Searching for a proper the labor market, stimulating investments of the private sector answer, the academics should introduce some business ori- into the education and research, and efficient utilization of the labor force are required” (p.82). Achieving these goals require close cooperation of the tertiary education institutions with the labor market, industry, society and increased investment into higher education institutions. Therefore, the US-Educated Azerbaijani Alumni Association, ADA University, Azerbaijan Technological University (co-organized the event in Ganja) with platinum sponsorship by SO- CAR ASQ have organized the first international and regional conference, 28-30th of April, 2017 (in Baku and Ganja), as part of Education Week, titled as “Finance and entrepreneurial activities at higher education institutions: challenges and

22 Issue 27 development & education

• Invest or increase investment into in STEM/STEAM projects with BlockChain technology for future job market • Introduce a 3-day “Design Thinking” courses to faculty members and alumni with partnership for consultancy with examination or assignment on applying innovative approach to tackle issues in workplace to obtain a pio- neer design thinking practitioner as a professional qualification.

3. International Education vs. Transnational Education: Internationalisation and transnational education (TNE) have been on the agenda of many higher education institutions for quite some time strengthening their contribution to the development of the knowledge society and their competitive position in a global market. In the context of the British higher education (HE) system, TNE can be defined as “the provision of HE degree program leading to a UK qualification for students based in a country other than the one in which the ented initiatives; thus to establish the so-called “University- awarding institution is located. This includes joint, double or Business Cooperation”. dual awards” (The Scale and Scope of UK Higher Education The Entrepreneurial University is in fact a public-owned High- Transnational Education, HE Global, 2016, p.7). Whereas, in- er Education Institution (HEI) which acts as a private com- ternationalization can be defined as “the intentional process pany. This is what should be done for transition to this model of integrating an international, intercultural or global dimen- (recommendation provided by Dr. Daniel Pavlov, University sion into the purpose, functions and delivery of post-second- Ruse, Director of Entrepreneurial Center): ary education, in order to enhance the quality of education • Raise awareness about transition towards Entrepreneur- and research for all students and staff, and to make a mean- ial University ingful contribution to society” (J. Knight in Internationalisation • Build capacity to encourage HEIs to become more en- of Higher Education, European Parliament, 2015, p.29). trepreneurial. Academics to offer a value proposition and While internationalisation and TNE activity can generate sig- create financial flows in return nificant surpluses to institutions, they also have an opportu- • Define: 1. academics, who create financial flows with the nity for further quality improvements to their research, curricu- clients are entrepreneurial academics; and 2. any uni- lum and learning outcomes, enhanced quality of education, versity, which creates financial flows with their clients is research, reputation and visibility. “Entrepreneurial University”. As the competition in TNE activities is rapidly expanding, it is • Promote transfer of knowledge, new start-ups, education strongly recommended to implement the following steps (rec- (https://heinnovate.eu/en) ommendations by Dr. Suzanna Tomassi, Coventry University, • Disseminate and sustainably exploit the results Acting deputy head of the Global Engagement Department): • Higher Education national framework supporting trans- 2. Sustainable Development and Innovations: Sustainable formation and international developments of their univer- Development Goal 9 calls for building resilient infrastructure, sities should be developed. This includes, but not limited promoting inclusive and sustainable industrialization and fos- tering innovations. It’s sub-goal 9.5 states - “Enhance scientific research, upgrade the technological capabilities of industrial sectors in all countries, in particular developing countries, including, by 2030, encouraging innovation and substantially increasing the number of research and development work- ers per 1 million people and public and private research and development spending”. The following recommendations have been developed within ecosystem establishment – a mechanism for Sustainable De- velopment (Dr. Shirley Young, Heng Seng Tertiary Institutions (Hong Kong) Management college, Director of Center for Cor- porate Sustainability and Innovations): • Establish a policy with incentives to faculty members’ capacity building on design thinking to offer consultancy services to industries with revenue generation for an entrepreneurship university

23 development & education

benefit between university program and industry is ADA Foun- dation. ADA Foundation has been successfully cooperating with the private sector for the last 10 years. The Foundation is an endowment-building arm of ADA University organized exclusively for charitable purposes to support the university in creating and maintaining educational activities in Azerbaijan and throughout the world. It has built partnership with major companies in Azerbaijan, whose continuous support makes scholarships, student projects and numerous academic ini- to: 1) overseas credit recognition, 2) grants access, 3) tiatives possible. The partners in return benefit from ADA’s work permits for staff, students and their dependants, 4) academic and scientific excellence to further their commercial post study visas, etc. success via executive education programs. Additionally, the • Capacity building among staff on the institutional level Foundation works with business sector to enhance internship and among different authority units should be provided and employment opportunities for young graduates. Building • Frequent events that will help deepening their under- the permanent endowment funds, the Foundation invests in standing of TNE and internationalisation the future of ADA University. • That universities provide support in relations to 1) time, The following well implemented EU best practices can be for- 2) staffing, 3) development of new and enhancement of mulated as policy recommendations (provided by Dr. Gyorgy existing processes and procedures, 4) governance and Covacs, Lawyer and ENAM Board Member): leadership, etc. • Azerbaijani Industrial Doctorate Program: enabling that researchers spend half of their time in companies, from 4. Alumni Engagement and Financing Higher Education: leading multinational companies to small medium enter- Azerbaijan is a country where philanthropy emerged as a prises (SMEs) result of oil exploration at the end of 1800s. Hence, it has • Cooperation of Azerbaijani companies and universities history of industrial philanthropists and their educational ini- on life-long learning needs, in-work training and up-skill- tiatives, in addition to the religious giving, as a primary type ing of philanthropy. During the Soviet Union, alumni philanthropy • Azerbaijani companies need to receive incentives to pro- was not exercised. The studies show that Azerbaijan ranks vide more places for internships and to help universities 131st in the World Giving Index. Therefore, considering the in developing modern learning environments, innovative history and socio-cultural context of the country, the alumni learning laboratories giving back should be studied, researched, and the results Therefore, the 1st International and Regional Conference titled should be used by the policy makers, university administra- “Finance and Entrepreneurial activities at higher education in- tors, and education researchers. stitutions: perspectives and challenges” played an important With the recent initiatives that support per-capita financing role in increasing awareness and promoting the new concepts of higher education in Azerbaijan, educational philanthropy and establishing closer dialogue between public and private could provide alternatives to public funding mechanisms. The sectors. Hence, such novel concepts, as entrepreneurial and experts (Noah Drezner, Ph.D., Associate Professor; Abbas innovative academic mind set, corporate business university Abbasov, Ph.D. candidate; Teachers College, Columbia Uni- models, transnational education, alumni giving back, and university) underscore following major implications for further research regarding educational philanthropy in Azerbaijan: • Government incentives both to individuals and to universities to give and request funds (e.g. tax deductions and tax-exempt status) • Public’s perception of higher education in Azerbaijan and its importance in public vs. private good • Trust in HEI’s to handle alumni donations and similar funds • Motivations to give among graduates of Azerbaijani HEI’s

5. Public Private Partnership (PPP): It is vitally important for economic growth of the country and population welfare. The PPP enables educating and training highly skilled manpower ready to overcome economic, social and environmental challenges. It benefits both universities and the private sector, where supply meeting the demand, and demand stimulates supply. One of the Azerbaijani best practices of PPP and its mutual

24 Issue 27 versity public private partnership, as well as their meaning and role in quality and alternative financing of education in different advanced countries were introduced and discussed during the event. In addition, the participants discussed adop- tion of introduced best practices in local socio-cultural context of Azerbaijan. As one of the university representatives said, “it is important and effective when the models that are successful in other countries are adapted to the local context of a particular country, rather than “copy-pasting” them.” In addition, the representatives from business and public institutions in Baku an Ganja expressed their gratitude for effectively fa- cilitating the dialogue, and thus promoting the trust and interest in future closer cooperation between public and private sectors.

Authors' biography Ms. Nazrin Baghirova is chief policy advisor at the Ministry of Education of the Republic of Azerbaijan since 2013. She served as an advisor to the rector on university strategic development and head of International Relations office at Azer- baijan State Agricultural University (2009-20013). Ms. Baghirova is also Deputy Chair for the US-Educated Azerbaijani Alumni Association. She holds four US State De- partment fellowships: Global Undergraduate Exchange program (2001-2002), Edmund Muskie (2006-2008), Norman Borlaug (2012) and Cochran Program (2013). Ms. Baghirova is an alumna of the Executive Education Pro- gram in Education Policy from Harvard University, Graduate School of Education (2015). Also, she holds Masters degree in Education Policy and Leadership Program from University of Utah (2008) and Business Administration from Khazar Uni- versity (2016), as well as bachelor in English language philol- ogy (2003).

Mr. Fariz Ismailzade is Vice Rector for External, Government and Student affairs at the ADA University (since 2011). He has joined ADA in 2006 and worked in the positions of Director of Executive Execution (2006-2010) and Executive Dean (2010-2011). Mr. Ismailzade has done research at the Center for Strategic and International Studies (CSIS) in Washington, D.C and Embassy of Azerbaijan in the US. His research interests include political affairs in the Caucasus and Central Asia, energy security, and development. He has presented papers at the symposiums at Heritage Foundation, MGIMO, Columbia University, Stanford University, Fletcher School of Law and Diplomacy, UCLA, Vienna Diplomatic Academy as well as at international conferences such as Association for Study of Nationalities (ASN), Wilton Park Conferences, Middle East Studies Association (MESA), German Marshall Fund and NATO Advanced Research Workshop. Fariz Ismailzade is currently pursuing Doctoral Degree at Maastricht School of Management. He holds Executive MBA from IE Business School (Spain) and Masters Degree in Social and Economic Development from Washington University in St. Louis, and a BA in Political Science from Western University in Baku with one-year interim studies at Wesleyan University in Connecticut. AmCham Azerbaijan

The American Chamber of Commerce in Azerbaijan is a About Us private, non-profit business association supporting and promoting the interests of business in Azerbaijan.

Established in 1996, AmCham is composed of over 260 members and asso ciates active in every sector of the Azer baijani economy. We represent 80% of all foreign investment, as well as a significant portion of local investment which allows us to promote American, Azerbaijani and multinational corpora- tions. This includes leading companies in Energy, Banking, ICT, Legislative/ Financial Consulting, Professional Ser vices, Education, Real Estate Develop- ment, Health, Transportation, Travel and Production fields.

An active and positive influence in Azerbaijan, we conduct our mission with integrity and respect for the country, observing all local laws and insisting on the highest ethical standards in all relationships and transactions. Membership To apply

Why join? There are two types of affiliation with To apply for affiliation with AmCham, AmCham: Member and Associate. a candidate must submit a written Key member benefit – Member status includes voting application in the form adopted by best networking opportunities in privileges and eligibility for Board and the Board of Directors. Membership Azerbaijan! committee chairmanships in addition applications are available at the to the privileges granted to Associates. AmCham office or on our website at As a member of AmCham, your company For affiliation as a Member, a candidate www.amchamaz.org. The application has access to a vast network of business must be a legal entity, registered and form should be completed and sent to information and contacts in Azerbaijan and doing business in Azerbaijan and be our office with the company registration in the US government, as well as valuable in good standing in the community, as certificate issued by the Ministry of information on US businesses across determined by the Board of Directors. Justice of Azerbaijan. Europe through ECACC (European A legal entity, branch or representative A candidate meeting the objective and Council of American Chambers of office of a legal entity is eligible to subjective requirements for affiliation Commerce) and US Chamber of be affiliated with AmCham as an with AmCham is accepted as either a Commerce. Associate, subject to the Board of Member or Associate upon receiving Directors’ determination of good an affirmative majority vote of the Additional Member Benefits include: standing in the community. Board of Directors and paying the first Associates are eligible to participate in year’s fee for the candidate’s category • Annual Employee Salary Survey various activities; receive our regular of affiliation. • Quarterly Inflation Survey publications, including the Membership To maintain affiliation with AmCham, • AmCham Membership Directory Directory, Annual National Employee Members and Associates must • AmCham Resource Library Salary Survey and Quarterly Inflation continue to meet our eligibility Survey. Associates, however, are not requirements, be in good standing in For more detailed information please entitled to vote or serve on our Board the community, and be current with all visit our website www.amchamaz.org of Directors. financial obligations to AmCham.

26 Issue 27 AmCham Azerbaijan

Business Events Back to Business Cocktail Reception

and wished everybody a successful business year. Then, Mr. Carl Bistany, President of SABIS Educational Systems delivered a presentation on the new educational demands for the future which was highly appraised by the audience. The guests were invited to a mini tour to SABIS SUN International School and to enjoy the view of luxury showroom villa at the Dreamland Residence. Moreover, they had a

On September 15, 2017 AmCham Azerbaijan jointly with British Business Group and Dreamland Baku Golf Villas & Residences organized Back to Business Cocktail Reception for its members. Back to Business Cocktail is a traditional event of AmCham arranged annually for member companies to come together after a summer break, to share news and impressions, to get recent updates and just enjoy the best networking opportunities in Azerbaijan. This time the event

chance to participate in a golf tournament organized at the Dreamland Golf Club Academy. The event was accompanied with delicious food, live music and best networking opportunities.

took place in stunning venue Dreamland Baku Golf Villas & Residences. Mrs. Natavan Mammadova, Executive Director of AmCham Azerbaijan, Mr. Bahadir Yeltekin, Director of Dreamland Baku Golf Villas & Residences, welcomed the guests and expressed their pleasure to see everybody after the summer vacation

27 AmCham Azerbaijan

questions from Mentors on business and career advises, challenges and experience and create supportive bonds that encourage growth, confidence and leadership. Our mentors list for this Mentoring Walk included Teyba Gouliyeva, Head of Representative Office of Societe Generale, Sona Abbasova, Corporate Communications Director of PASHA Bank, Tatyana Mikayilova, Chairwoman of 100 Business Woman of Azerbaijan, Managing Partner of Red Communications,Gwen Burchell, Director of United Aid For Azerbaijan.

Mentoring Walk 2017 On June 16 AmCham together with the 100 Business Women of Azerbaijan networking organized Mentoring Walk event one more time aimed to promote women leadership in organizations. The previous event carried enormous success with lots of the positive feedbacks and requests for repeat. Therefore, it was decided to have the Walk once again at ADA University.This was 1 hour walk in the territory of ADA campus (outside, in fresh air). Within this hour, young females – Mentees, who are at junior positions in different companies, as well as, some female students from ADA University were able to ask Committee Highlights ICT Committee Meeting In a globalized world, Digital Cities need to continually offer the easiest, most accessible places to live, learn, work, travel On September 14, 2017 AmCham ICT Committee hosted its and play. Emerging Smart Cities are likely to be the winners regular meeting. in the global competition for the attention of increasingly Mr. Tural Hajiyev, coordinator of the ICT Committee welcomed footloose international investment, residents and employers. the members and outlined the agenda. Then Mr. Hajiyev Through real innovative developments, Mr. Flavio Tejada introduced the guest speaker, Mr. Flavio Tejada, Director of spoke about the increasing relationship between Technology, Master in Real Estate Development, IE School of Architecture Real Estate investment and the making of future digital cities. and Design. The speaker delivered a presentation on In conclusion, Mr. Tural Hajiyev proposed to make plan for “Digital cities”. The presenter gave information about urban the following year and asked the members to share ideas revolution, technological urban disruptions, disruptive urban and topics. Also, he outlined five main topics: protection of technologies, e-commerce and knowledge development. For intellectual property rights; cyber security (October is National over 50 years, there has not been such intense debate and Cyber Security Awareness Month in US embassies which is intervention in cities. 21st century is undergoing the most an annual campaign to raise awareness about the importance profound urban revolution to date, where cities are the main of cybersecurity); financial technologies; IT education in the catalyst of economic and social development, but they also country; regulation and legislative restriction and obstacles. create significant environmental impacts. BigData based Technologies are evolving and the Digital Disruption will provide new opportunities at city scale to effectively address Tax & Customs Committee's Meeting AmCham Tax and Customs Committee hosted its regular emerging challenges like Globalization, Demography & meeting on September 12. Ms. Arzu Hajiyeva, Chairperson of Climate Change in our built environment.

28 Issue 27 AmCham Azerbaijan

the Committee opened the meeting by welcoming participants and introduced the guest speaker Mr. Safarali Jafarov, Director of Tax Monitoring Office in financial institutions for International Cooperation and Tax Monitoring at financial institutions within the Ministry of Taxes. Mr. Jafarov delivered a presentation about VAT electronic certification process. He started the presentation with the overview of the history of oil and gas industry and its importance. Then, Mr. Jafarov spoke on statistics of agreements in force. Later, he gave information about processes and steps of getting the certification. Also, showed a video-instruction on how to fill an online application, as well as submitting and implementing. HR/ Legal Working Group Meeting On July 7 HR/ Legal Working Group had a meeting with Mr. Abulfat Maharramov, Deputy Director of the Department of preparation. Labor Policy of the Ministry of Labor and Social Protection. Later, Ms. Leyla Novruzova introduced Mr. Ruslan Agayev, The aim of the meeting was to discuss recommendations AmCham Salary Survey Consultant who delivered a suggested to the labor legislation. presentation on Salary Survey 2017, data collection, data analyses and report. At the end, Mr. Fakhri A. Gurbanov from Azerinteltek delivered the results of 2017 Graduate Recruitment Survey Summary which is supported by the Ministry of Education of the Republic of Azerbaijan and AmCham in Azerbaijan. Legal & Compliance WG’s Meeting On June 20 AmCham Legal and Compliance Working Group hosted its third meeting sponsored by Ekvita. Mr. Ilgar Mehti, Chairman of the Legal and Compliance Working Group, opened the meeting and introduced guest speakers, Prof. Jorg Menzer, Managing Partner of Noerr Romania and Mr.Aku Sorainen, Senior Partner of international law firm Sorainen. Prof. Jorg Menzer provided the detailed information about the International Bar Association. The IBA, established in 1947, is the world’s leading organisation of international legal practitioners, bar associations and law societies. It influences the development of international law reform and HR Committee’s Meeting On June 30 AmCham HR Committee hosted its regular meeting. The HR Committee Chair Ms. Leyla Novruzova opened the meeting and thanked SOCAR, especially Mr. Xalik Mammadov, SOCAR’s VP for HR, IT and Regulations. Then Mr.Xalik Mammadov and Mr.Nuran Kerimov, President of AmCham in Azerbaijan, delivered respective speeches. Later, Ms. Leyla Novruzova outlined the context of the Meeting and presented HR program for this year. Then, Ms. Novruzova gave the floor to Ms. Leyla Abbasova, HR Advisor of BP, who delivered presentation on “Business Digital Transformation”. She talked about modernization and transformation – the forces of global change; external modernization trends and digital HR. The next presentation was made by Ms. Shabnam Abilova, Senior Legal Consultant from Deloitte on company audit

29 AmCham Azerbaijan

spanning over 160 countries. It has considerable expertise in providing assistance to the global legal community. IBA aims to promote an exchange of information between legal associations worldwide, to support the independence of the judiciary and the right of lawyers to practise their profession without interference and support of human rights for lawyers worldwide through its Human Rights Institute. Furthermore, Prof. Jorg Menzer spoke about committees and conferences of the IBA and invited everybody to take part in IBA Europe-Caucasus-Asia Forum 2017, which will take place in London, on September 6-8, 2017. Later, Mr. Ilgar Mehti introduced Mr. Aku Sorainen, who delivered presentation on “Law Firm Management”. The presentation was about Sorainen business law firm which has fully integrated offices in Estonia, Latvia, Lithuania shapes the future of legal profession throughout the world. and Belarus; partnership structures; law firms back office It has a membership of more than 80,000 individual lawyers structures; human factor in law work with clients; building and more than 190 bar associations and law societies practice and sector groups. First ever AmCham Trade Mission to Canada

We are pleased to invite you to join us in the first ever Trade – 500USD per each participating company. Mission to Canada organized by the American Chamber of For more details and in order to apply for the participation Commerce in Azerbaijan (AmCham) jointly with the Embassy please contact Narmina Mamishova at projects@amchamaz. of Canada in the Russian Federation on the occasion of the org. Please be informed that there are only 10 available spots. Canadian Western Agribition Show in Canada which will We hope to see you for this special event! take place in Regina, Saskatchewan on November 20-26, 2017. This Agribition Show is intended for those engaged or interested in all aspects of agriculture – crops and forage production, all livestock species such as cattle, sheep, goats, poultry genetics and breeding, meat and food manufacturing and processing, farm and food processing equipment, etc. For qualified buyers attending the Show a financial support of 50% or for up to $1,500 CDN for all travel related expenses is provided plus: • Complimentary Show pass • Transportation to and from the Regina International Airport, hotel, and the Show • Full access to the business center (internet access and meeting rooms) and hospitality room (There is a free buffet in the hospitality room for all foreign guest where the breakfast and lunch/dinner are always served) • A unique opportunity to develop industry contacts in new markets as well as network with exporters and government agencies • Off-site farm tour November 26 (pre-registration required)

The participants of the Trade Mission are also eligible for: • Technical assistance (recommendations on accommodation and transportation etc.) • Registration process support • Entire Visa support Please note that the Trade Mission Participation Fee applies

30 Issue 27 AmCham Azerbaijan

AmCham Legal Update

TAX AND CUSTOMS • Taxation of income of a resident generated from coun- Amendments to the Tax Code tries with low tax jurisdictions pursuant to Article 128 of President Mr. Ilham Aliyev has signed the decree “On imple- the Tax Code. mentation of the law on amendments to the Tax Code of the Republic of Azerbaijan” on July 14, 2017. Amendments to the Customs Code In accordance with the amendments, the words “(with the President Mr. Ilham Aliyev has signed the decree “On imle- exception of e-tax invoice that submitted to foreigners and mentation of the law on amendments to the Customs Code of stateless persons with the condition of refunding of VAT)” the Republic of Azerbaijan” on July 13, 2017. shall be replaced with the words “(with the exception of e-tax In line with the amendments, in the articles 40.2 and 40.3 the invoice that submitted to foreigners and stateless persons, words “application on customs clearance” shall be removed to all physical persons during the shopping festivals with the and the words “defined by the relevant executive authority” condition of refunding of VAT)”. Moreover, in line with the shall be added after the words “requested”. Moreover, the amendments, article 176.2-2 shall be added to the Tax Code: word “as well electronic” shall be added after word “written” “The form of the e-tax invoice for refunding of VAT on goods to the articles 45.2, 48.1, 48.3, 50.1, 150.5. The article 128.1 purchased by physical persons in the territory of the Repub- shall be amended as below: lic of Azerbaijan during shopping festivals, not intended for “When foreign goods are exported from the customs territory, production or commercial purposes shall be approved by the re-export notification shall be submitted by a person to com- relevant executive authority”. petent customs authority for implementation of export clearance.” List of countries and territories with preferential taxation approved Rules for the organization of sale of taxpayer’s seized President Mr. Ilham Aliyev has signed a decree on July 11, property in trade networks (including electronic trading 2017 on approval of “The list of countries and territories with networks) have been approved preferential taxation”. The Cabinet of Ministers of the Republic of Azerbaijan has The list contains 40 countries and territories to be used for the adopted a decision on approval of the “Rules for the organi- following purposes: zation of sale of taxpayer’s seized property in trade networks • Application of extra WHT of 10% under Article 125.1.9 of (including electronic trading networks)”. the Tax Code; The rules consist of 3 sections: General provisions; Rules for • Determining controlled transactions for Transfer Pric- the organization of sale of taxpayer’s seized property in trade ing purposes in accordance with Article 14-1 of the Tax networks (including electronic trading networks); and Final Code; provisions.

31 AmCham Azerbaijan

In accordance with the general provisions of the rules, the sentative from the Central Bank, three representatives from types of seized properties of taxpayers which cannot be sold relevant executive authorities and two representatives of the in trade networks (including electronic trading networks) have member banking community as recommended by member been defined: banks.” It shall be noted that, three representatives from rel- • Real estate; evant executive authorities consists of one representative of • Securities; each of the Ministry of Labour and Social Protection of Popu- • Cultural heritage samples. lation, Ministry of Finance and Ministry of Economy respectively. New rules on Administration of Double Tax Treaties Moreover, the word “the Fund’s” in the text of articles 8.1.1- Ministry of Taxes approved new Rules on Administration of 8.1.4, 8.1.10, 8.1.13, 8.1.16 shall be replaced with the words Double Tax Treaties (“Rules”). “under an agreement with the appropriate executive power, The Rules have been enacted as of July 1, 2017 repealing the Fund’s”. It shall be noted that authorities of appropriate the old rules. The Rules introduce several notable novelties executive power are implemented by the President of Repub- compared to the old rules. We are studying the Rules very lic of Azerbaijan. carefully and will provide more detailed information in our next issue. Amendment to the law on Insurance Activity Overview of new rules on Double Tax Treaties Administration President Mr. Ilham Aliyev has signed the order on implemen- The Ministry of Taxes issued new Rules on Administration of tation of the law “On amendment to the law on Insurance Ac- Double Tax Treaties (the “Rules”). By repealing the old rules, tivity” on July 12, 2017. the new Rules are effective as of July 1, 2017. In line with the amendment, new article is added to the law Below are major points: related to impelementation of the law “On Non-cash settle- • Advance tax relief may be obtained for all type of income, ments” as below: including business (active income) if such income is not “Article 6-1. Settlements attributable to a PE in Azerbaijan. Previously, such relief The payments in accordance with the settlements defined by might only be obtained for dividend, royalty, interest and this law shall be implemented in non-cash”. income from international shipments. • Applications may also be filled electronically along with Draft law on “Insurance on unemployment” a hard copy submission. Previously only hard copy sub- The proposed law establishes mechanisms improving peo- mission was possible. ple’s social security in the labor market. According to the draft • No requirement to get respective DTA application ap- law, the 0,5% of person’s salary will have to be paid to the proved by the overseas tax authorities. Only a tax resi- State Social Protection Fund of Azerbaijan both by an em- dency certificate is required to be approved by the for- ployer and an employee for unemployment insurance. A dis- eign tax authorities; missed from job person will have to register as unemployed • Tax office may also return the approved applications to the income payer (tax agents) in online regime. in State Employment Service under the Ministry of Labor and Social Protection. Following the registration, insurance will BANKING, FINANCE AND INSURANCE compensate person’s unemployment up to 6 months and dur- Amendments to the law on Compulsory Insurances ing that time will try to find an appropriate job for him/her. The President of the Republic of Azerbaijan Mr. Ilham Aliyev has amount of compensation will depend on the work experience signed the order on implementation of the law “On amend- of an employee. ments to the law on Compulsory Insurances” on July 13, 2017. Decree on ensuring activity of State Agency on Compul- In accordance with the amendments, the new article 4-1 shall sory Medical Insurance be added to the law as below: President Mr. Ilham Aliyev has signed decree “On ensuring “Article 4-1. Settlements activity of the State Agency on Compulsory Medical Insur- Payments under settlements defined with this law are imple- ance” on September 6, 2017. mented only in non-cash.” According to decree, Charter of the State Agency on Com- Moreover, the words “cash or” in the text of article 11.1 shall pulsory Medical Insurance (“Agency”) shall be approved. The be replaced with the word “only” and article 11.3 shall be implementation of founder’s authorities are empowered to abolished. the President of the Republic of Azerbaijan and the Agency. The authority of the President includes establishment of the Amendments to the law on Deposit Insurance amount of charter fund, approval of annual financial reports, President Mr. Ilham Aliyev has signed the decree “On amend- establishment of the executive body, determination and early ments to the law on Deposit Insurance” on July 13, 2017. In termination of its authorities, reorganization and liquidation of line with the amendments, article 6.2 shall be amended as the Agency, and etc. The authority of the Agency includes below: determination of development directions and approval of its “Article 6.2. The Trustee Board consists of one representative structure. Moreover, in accordance with the decree, the Ex- from the financial markets supervisory authority, one repre- ecutive Board shall be established to manage the Agency.

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Regulation of the Financial Stability Council has been ap- 22.0.5, 22.0.13, 22.0.16 shall be replaced with the words proved “under an agreement with the appropriate executive power, President Mr. Ilham Aliyev has signed decree “On approval of Central”. The word “international” in article 22.0.8 shall also Regulation of the Financial Stability Council of the Republic of be replaced with the words “under an agreement with the ap- Azerbaijan” on July 31, 2017. propriate executive power, international”. It shall be noted that In accordance with the decree, CabMin shall submit recom- authorities of appropriate executive power are implemented mendations on conformity of statements of the President to by the President of the Republic of Azerbaijan. the decree within 3 months. Moreover, the Ministry of Justice of the Republic of Azerbai- MISCELLANEOUS jan shall ensure conformity of the normative legal acts and Amendments to the law on Copyright and Related Rights normative acts of central executive authorities to the decree President of the Republic of Azerbaijan Mr. Ilham Aliyev has and inform the CabMin. signed the order on implementation of the law “On amendments to the Law on Copyright and Related Rights” on July Amendments to the Charter of Financial Market Supervi- 11, 2017. sory Authority In accordance with the amendments, the following clause has Mr. President Ilham Aliyev has signed the decree “On amend- been added to the article 6 of the law: ments to the Charter of the Financial Market Supervisory Au- “3. Advertisement is an object of copyright within the terms thority of the Republic of Azerbaijan”. provided in this law.” In accordance with the amendments, Board of Directors (“the Moreover, the following clause has been added to the article BD”) appoints the external auditor of FIMSA and accepts au- 32: dit report; approves financial planning and budget of the au- “3-1. Creator and producer of advertisement are the subjects thority; determines the amount of fees of entities controlled by of the related rights within the terms provided in this law.” the authority and the procedure for payment of fees; adopts appropriate decisions on licensing and permits in the financial Amendments to the Law on Telecommunication markets in circumstances provided by the legislation in the President of the Republic of Azerbaijan Mr. Ilham Aliyev has consent with the President of the Republic of Azerbaijan. approved the law “On amendments to the law on Telecom- The next amendments are regarding with authority to sign of munication”. the BD. In line with one of the amendments the first provi- According to the amendments, an operator and provider may sion of article 9. has been edited as “The chairman of the advertise on the basis of agreement signed with an adver- BD, in case of his/her absence, Deputy Chair shall sign the tiser. The operator and provider may send the advertisement decisions, normative acts and other acts in the frame of his/ to the subscriber individually only upon consent of subscriber her authority”. Moreover, the right of relevant member of the per written agreement. Operator and provider should cre- Management Board having authority to sign on current activ- ate opportunity for subscriber to deny advertising message ity of the FIMSA has been cancelled. anytime or choose any type of advertisement. Operator or In the second part of decree, Mr. President has given task provider shall be responsible for sending advertisement to a to the Cabinet of Ministers (the “CabMin”) of the Republic of subscriber without permission or if the advertisement does Azerbaijan on adjusting President’s acts, decisions of Cab- not comply with the requirements of the Law on Advertising. Min and other normative legal acts to the decree within three Moreover, advertisement on alcoholic beverages with more months. than 5% alcohol shall not be placed on telecommunication devices. Amendments to the law on “Non-cash settlements” According to the order, Cabinet of Ministers of the Republic President of Republic of Azerbaijan Mr. Ilham Aliyev has of Azerbajan (“CabMin”) has to introduce recommendations signed the order on implementation of the law “On amend- about adaption of laws of Republic of Azerbaijan and statements to the law on Non-cash settlements” on July 13, 2017. ments of the President to the law “On amendments to the law In accordance with the amendments, the word “insurance” in on Telecommunication” within 3 months. the text of Article 3.4.2 of the law shall be amended to word “insurances”. Amendment to the law on Unfair Competition Moreover, in line with the amendments, new article 3.6 shall President Mr. Ilham Aliyev has signed the order on implemen- be added to the law as below: tation of the law “On amendments to the law on Unfair Com- “Settlements specified in the article 3.4.4 shall not be appli- petition” on July 11, 2017. cable to the subjects of detective search activity, intelligence In accordance with the amendment, the word “illegal” in third and counter-intelligence activity”. paragraph of the article 9 is replaced with the words “unfair, inaccurate and confidential”. Amendments to the law on Central Bank According to the order, CabMin has to introduce recommen- President Mr. Ilham Aliyev has signed the decree on imple- dations about adaption of laws of the Republic of Azerbaijan mentation of law “On amendments to the law on Central and statements of the President to the law “On amendments Bank” on July 13, 2017. to the law on Unfair Competition” within 3 months. According to the amendments, the word “Central” in articles

AmCham Azerbaijan

Charter of the State Advertising Agency has been ap- July 13, 2017. proved In accordance with the amendment, new clause shall be add- President of the Republic of Azerbaijan Mr. Ilham Aliyev has ed to the text of Article 9 of the law as below: signed decree “On organization of activity of the State Adver- “10. Payments to the travel agents shall be paid only in non- tising Agency” on July 31, 2017. cash”. According to the decree, the President approves the Charter of the State Advertising Agency, and the Cabinet of Ministers Amendment to the Labor Code of the Republic of Azerbaijan (“CabMin”) approves annual fi- President Mr. Ilham Aliyev has signed the order on implemen- nancial report of the Agency. tation of the law “On amendment to the Labor Code” on July Moreover, CabMin shall submit recommendations on con- 13, 2017. formity of statements of the President to the decree within 2 In line with the amendment, the clause “x” shall be added to months. CabMin shall also ensure conformity of its normative the first part of article 12 of the Labor Code as below: legal acts to the decree and inform the President. “x) to ensure implementing of all payments paid to the em- The charter fund of the Agency is in amount of ten thousand ployee with this Code in accordance with the law on Non- manats and shall be formed from the state budget. cash settlements.” It should be noted that, the President signed decree “On establishment of the State Advertising Agency” on June 20, TRADE 2017. Decree on approval of the Protocol on establishment of the Working Body Amendment to the law on Wine-growing and Winery President of the Republic of Azerbaijan Mr. Ilham Aliyev has President Mr. Ilham Aliyev has signed the order for imple- signed decree on approval of the Protocol “On establishment mentation of law “On amendments to the Law on Wine-grow- and activity of the Working Body” which shall coordinate the ing and Winery” on July 11, 2017. actions of contracting sides on establishment of free trade According to the amendments, new article 15-1 has been zones among GUUAM member states. added to the law under name “Advertising of winery prod- According to the decree, Cabinet of the Ministers of the Re- ucts”. In line with the new article, requirements for the adver- public of Azerbaijan (“CabMin”) shall carry out actions for tising of winery products are defined with Article 27.1 of the implementation of the provisions of the Protocol. Moreover, law of the Republic of Azerbaijan “On Advertising”. Moreover, Ministry of Foreign Affairs of the Republic of Azerbaijan shall advertising of winery products with more than 5% of alcohol notify GUUAM Secretariat on implementation of the neces- in telecommunication devices, on the face and back of the sary domestic procedures required for the Protocol to come periodic publication, on the front page of internet information into force. resources; advertising of winery products in print publication, audio and video materials for minors; advertising of winery Decree on ensuring the activity of Trade Representatives products with more than 5% of alcohol in the open space shall President Mr. Ilham Aliyev has signed decree “On ensur- be prohibited. ing activities of the trade representatives at embassies and consulates of the Republic of Azerbaijan operating in foreign Amendments to the Migration Code countries” on September 05, 2017. President Mr. Ilham Aliyev has signed the order “On implementation of amendments to the Migration Code of the Re- In accordance with the decree, administrations of trade repre- public of Azerbaijan” on July 14,2017. sentatives shall be established at the embassies and consul- According to the law, the information shall be sent to appli- ates operating abroad. Trade representatives and their ad- cant’s e-mail address maximum in 3 hours after the receipt ministrations shall be included in the structure of the Ministry of application on issuance of accelerated e-visa. Moreover, of Economy of the Republic of Azerbaijan. Stuff schedules foreigners and stateless persons shall submit e-visa informa- and the number of the employees of administrations of trade tion together with border crossing document while crossing representatives shall be approved by the Ministry of Economy the state border checkpoints of the Republic of Azerbaijan. In upon consent of the Ministry of Finance. The employees of line with the new article 38.11, foreigners and stateless per- administrations of trade representatives shall be appointed sons (except whose temporary staying period in the Republic and dismissed by the Minister of Economy. Moreover, the of Azerbaijan has been extended or who obtained a permit for Ministry of Economy shall carry out technical and financial temporary residence) have to leave the territory of the Repub- assurance of the administrations. According to the decree, lic of Azerbaijan based on the e-visa person has presented CabMin shall approve the Regulation of trade representative while entering the country. and structure of its administration within 1 (one) month. Cab- Min shall also prepare and submit the draft law on exemption Amendment to the law on Tourism of salaries of trade representatives’ and their administrations’ President Mr. Ilham Aliyev has signed the order on implemen- employees from income tax within 1 (one) month. tation of the law “On amendment to the law on Tourism” on

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Social Events 22nd Annual Independence Day Picnic 2017 The 22nd Annual Independence Day Picnic was held on July 8th, 2017 with more than 600 guests. In the welcoming speech Mrs. Natavan Mammadova, Executive Director of AmCham in Azerbaijan, extended

of Azerbaijan Mr. Robert Cekuta and President of AmCham Azerbaijan Mr. Nuran Kerimov. Representatives of the Gold sponsors of the event – Mr. Vugar Sadig, Kapital Bank and Mr. Ilgar Nuri, Veyseloglu

warm welcome to everyone and stressed the importance of this traditional event uniting people in a relaxed informal atmosphere. The ceremony was officially opened with Azerbaijan and US National Anthems accompanied by US Navy Marines followed by welcome addresses of H.E. Ambassador of the United States of America to the Republic

Group of Companies welcomed the guests and expressed their pleasure to contribute to the U.S. Independence Day Picnic organized by AmCham Azerbaijan. All the guests enjoyed delicious food generously provided by Mambo Beach Club & Restaurant, mouth-watering ice- cream, unlimited soft drinks, cold beer and energizers with the background music by a live music band “Orient Express”.

36 Issue 27 AmCham Azerbaijan

Moreover, they enjoyed the kids’ club entertainment, various games and competitions for adults and kids, human bowling trampoline and best Instagram Picnic photo competition. The highlight of the event was “AmCham’s Got Talent Show” sponsored by PwC. The participants of the competition presented interesting performances and honorable jury selected the best performance. The guests were impressed by amazing “Virgo Show”. They also had a chance to enjoy the charity performance by Tunzale Agayeva. The culmination of the picnic – the raffle draw – provided the winners with fabulous prizes. The event ended with

Coca-Cola Bottlers, Azercell, Dalloyau Restaurant, Dreamland, EstEthica Clinic, Excelsior Hotel & SPA Baku, Fairmont Baku Flame Towers, Four Seasons Hotel Baku, GoldenPay, Hayat Clinic, Hertz Azerbaijan, Hilton Baku,

fascinating fireworks and disco. We express our sincere gratitude to the Gold sponsors of the Picnic – Kapital Bank and Veyseloglu Group of Companies; Silver Sponsors – Turkish Airlines and SKN Electrical Services; Bronze Sponsors – Bos Shelf, Engin, Paramed Swiss Clinic and The Landmark Hotel Baku. Also, Raffle/ General Sponsors were Absheron Hotel Group, Azerbaijan

Holiday Inn Baku, Hyatt Regency Baku, International SOS, JW Marriott Absheron Baku, MediClub Medical Service, Micromax Azerbaijan, MOZAIK Printing and Design, Park Inn by Radisson Baku Hotel, PMD Group, Procter & Gamble, Scalini Italian Restaurant, Shahdag Mountain Resort, VISCO Love, VIVA Dessert and Your Event Solution.

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Member News & Events AtaBank OJSC is connected to the world’s leading payment services provider On August 28, a signing ceremony for partnership was signed between AtaBank OJSC and UnionPay International. Within this cooperation, operations with the cards emitted by UnionPay International will be available in ATMs and POS- terminals of AtaBank OJSC. It should be noted that founded in 2002 by the State Council of the People's Republic of China and National bank of the People's Republic of China, UnionPay is the world leader on number of the issued cards and on volume of transactions on cards. Cards of UnionPay International are accepted for payments in 162 countries. The number of cards emitted by UnionPay International is about 5 billion, including 70 million cards issued outside of China in 40 countries.

ways to measure the market. Then, she presented the trends Roundtable Discussion on Compensa- and results of the compensation and benefits survey conduct- tion & Benefits Survey in Azerbaijan ed for Azerbaijan. On July 10 AmCham with Birches Group LLC, a multinational HR consulting firm headquartered in New York, organized a Roundtable Discussion on Compensation & Benefits Survey in Azerbaijan. The aim of the seminar was to present and discuss the latest findings from their most recent compensation and benefits survey, as well as to learn more about trends in local staff compensation packages among employers in the country. The session was led by Birches Group Survey Specialist, Ms. Mancel Francisco. She gave information about Birches Group, Characteristics of Emerging Markets, a brief on the survey methodology and

HR Specialist Program session On June 21 the latest HR Specialist Program session took place. “The Overview of Azerbaijan Labor Code and it’s key aspects in Personnel Management” was delivered by Ms. Shabnam Abilova, Senior Legal Consultant, Deloitte.

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Projects AmCham Azerbaijan, Index of Prices by households. The sample of representative goods and services for which prices are collected each period is held constant and the The new edition of Consumer Price Index (CPI) covers the set of weights is fixed to reflect the importance in the typical 2nd quarter of 2017 (April – June, 2017). The Consumer household budget of the particular good or service. It is Price Index (CPI) is designed to measure the change in the possible that, following the trial period. First ‘basket’ was average level of prices paid for consumer goods and services represented by AmCham Azerbaijan in 2006. In 2012 the by private households. AmCham members will find it useful weights were adjusted and ‘basket’ was reviewed. in setting pay increases, product prices etc. The CPI can also be used to determine the value of a sum of money from the past at today’s level. Over the last year (the base is 100 at 30 June 2016) the AAIP rose by 14.87 percent for Azerbaijani consumers and 15.36 for Expatriate consumers. In the 2nd quarter of 2017 the AAIP rose by 0.12 percent for Azerbaijani consumers and 0.73 for Expatriate consumers. The largest upward effect on the AAIP rate came from Non-durable household goods and Fats & Oils where Index of Prices rose by 3.1 and 1.12 percent, respectively. The downward effect on the AAIP rate came from Fruits & Vegetables where Index of Prices went down by 5.63 percent due to seasonal affects. The survey is conducted collecting the prices of a fixed representative group or ‘basket’ of goods and services every quarter. These prices are then compared to the prices of the same goods and services from the previous quarter and the price change calculated. The prices of these goods and services are then combined into a single index measuring the overall level of prices. Different ‘weights’ are attributed to the various goods and services to reflect the average expenditure New to AmCham Regular Members

Associate Members

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(M2M) Discount Program

ABSHERON HOTEL GROUP SEABAK LLC • 15% SPA • up to 10% on IT Support Services TRAVEL, HOSPITALITY AND LEISURE • 10% Retail/rack price of room • FREE migration to CLOUD.AZ Services • 15% Laundry • up to 5% on IT Equipment, Cartridges and • 15% Food and Beverage (Only Boulevard Software Licensing Hotel) • up to 15% on Internet Services at LandMark and other business centers CHENOT PALACE JW MARRIOTT ABSHERON BAKU • 20% discount on Chenot • 10% discount on all Food & Beverages – INTERNATIONAL BANK OF AZERBAIJAN Programs (Full Board Bio-Light Discount is applicable maximum for 20 people • 50% discount on Amex or Detox food is included in the per card. The card cannot be applied for Gold card program) meetings & events held in hotel • 50% discount on Amex • 15% discount on Room Rates • 10% discount on all Spa Treatments – The Platinum card limit is 20 guests per card. Discount does not • Free MC World Elite card apply for spa products retail EDUCATION • 30% discount on Laundry & Cleaning – ADA UNIVERSITY Discount is applicable for minimum on 3 days • 10% on Executive service Education Corporate HYATT REGENCY BAKU SHAHDAG TOURISM CENTER Trainings Programs • 15% discount on • 10% discount on Shahdag Hotel & SPA restaurant and bar accomodation INTERNET AND COMMUNICATIONS • 15% discount on laundry • 10% discount on Zirve Hotel accomodation AZQTEL LLC and dry cleaning • 20% discount on SkyPort Wireless • 20% discount on Spa Leased Line treatments at Armaiti Spa & Fitness HEALTHCARE & MEDICAL INSURANCE FAIRMONT BAKU FLAME TOWERS • 10% discount on Food and Beverages at Le Bistro Restaurant and Nur Lounge • 20% discount on Spa treatments at ESPA

FOUR SEASONS HOTEL BAKU PROFESSIONAL SERVICES HAYAT CLINIC Medical Center • 10% off on Zafferano Restaurant & Bentley`s • 15% discount to all services Bar • 10% off on Jaleh SPA (treatment, gym offer, OTHER retail products)

PASHA INSURANCE For all employees of AmCham Regular Member Companies: OFFICE SYSTEMS • 15% discount on voluntary insurance of • 10% discount on office chairs THE LANDMARK HOTEL BAKU property • 15% discount on hard furniture • 15% discount on Food & Beverages • 5% discount on voluntary motor insurance • 40% discount on office partition at:Caspian Grill & Terrace (ala carte) Lunch (CASCO) AUTOSTAR KAUKASUS GMBH AZERBAIJAN & Dinner For individual M2M Card holders: • Bangkok Noi (ala carte) lunch • 20% discount on voluntary insurance of • 10% discount on all • Seto (ala carte) Lunch & Dinner property services at Mercedez – • Salo (ala carte) lunch • 10% discount on voluntary motor insurance Benz Service Center • Shin Shin (ala carte) Lunch & Dinner (CASCO) • Dolce Pausa (regular menu) Throughout the day “UPS-AZ” LLC • 25% discount till the end of this year from the basic tariffs on export shipments (after signing a contract with “UPS-AZ” LLC) VIATOR PIC • 20% discount on the “Professional staff NOVCO GROUP OF growth” training COMPANIES • 15 % discount on the “Human Resources Management” training • 20% discount in HOLIDAY INN BAKU • 15 % discount on the “Mini MBA” training MyBrands network • 10% Discount on Food and Beverages at • 20 % “Hotel personnel development” training Holiday Inn Restaurant Marina 18 and Sagi • 3 hours free consulting after the training ASPI AGRO MMC Bar • 15% Discount on Holiday INN Spa annual SIAR RESEARCH AND CONSULTING GROUP subscription (fitness center and swimming • 10% discount on a number of pool) services and projects • 10% Discount on “Your Special Day” events inclusive Weddings, Engagements, Henna • 10% discount on beverages in Savalan Parties Boutique Wine House

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