Issue 36 A Word From Executive Director of AmCham Credits Dear members, Now, when we are leaving behind another year, it is time AmCham Executive Director: to look back and recapitulate the most important changes Natavan Mammadova and events of the year. And this is with certainty that we can say: 2019 was a year to be remembered as the year of even deeper structural and economic reforms. Editor: Moreover, we observe tremendous judiciary reforms Aykhan Nasibli which will serve as a strong enabler of transparent, competitive economy. Having said that, we devoted the Articles contributed by: current edition of IMPACT to “Reforms in Azerbaijan”. Arif Guliyev, Gunel Sadiyeva Sharaf Asgarova, Gulchin Mammadova It must be highlighted that AmCham, benefiting from strong contribution of member companies and experts of our committees, is always supporting reforms in the Asim Hashimov country by providing strong expertise and know how. We do that by the mean of our Pavel Belorusskiy position papers as well as creating different platforms for discussing diverse issues Farid Mammadov affecting economic development of the country and the investment climate in the Gumru Eyvazova country. We take a lot of pride to note that the significant number of recommendations Elnur Aliyev have been incorporated to different legislative acts and government programs. Huseyn Mammadov As of early next year, in order to contribute for ongoing reforms, AmCham Vladimir Remyga members will work on White Paper 2020, with a focus on taxation, customs, banking and finance, ICT, compliance, labor, migration, tourism, safety, CSR, etc. Advertisers: BP As usual, AmCham stands ready to support the Government of Azerbaijan in its Azerfon aspiration to make Azerbaijan strong business and investor friendly country. Turkish Airlines Nobel Oil Best regards, Natavan Mammadova Betta

Publisher: Editor’s Comment American Chamber of Commerce Dear members, dear friends. in Azerbaijan Welcome to the next edition of IMPACT Azerbaijan magazine!

Tel: (+994 12) 497 13 33 This month we celebrate the end of 2019 and welcome 2020. Fax: (+994 12) 497 10 91 It is a festive period. Even more, Azerbaijan is implementing www.amcham.az further wave of progressive reforms. It is expected that these www.impact.az reforms are not only aiming to enhance socio-economic conditions, but at the same time contribute for further diversification of the economy. It should be mentioned that Advertising opportunities: these reforms carry positive signals and a lot of expectations Please contact the Editor at for different stakeholders. Thus, the current edition is devoted [email protected] to “Reforms in Azerbaijan.” Herein, the magazine covers lots of interesting interviews and articles thanks to The articles in IMPACT Azerbaijan contribution of experts from the AmCham community. Also, using this opportunity, express the opinions of the authors and I would like to appreciate for our advertisers – Azerfon, Turkish Airlines, BP, Nobel Oil and Betta. do not necessarily reflect the position of the American Chamber of Commerce in Happy upcoming holidays and enjoy reading IMPACT! Azerbaijan Sincerely, Aykhan contents IN FOCUS 4 16 EY Azerbaijan Launches the Unique Changes in Banking Sector ‘EY Entrepreneur Of The Year™’ Program

Special interview with Gumru Eyvazova Nargiz Kerimova Senior lawyer, GRATA International 6 17 Commercial Courts as Part of Reshaping Organizational Structure Judicial-Legal Reforms with Changing Commitment of CFOs

Elnur Aliyev Rauf Aghayev Senior associate, BHM Law Firm Chief Financial Officer, Nobel Oil Services 18 8 Institutional and Legislative Adapting the Azerbaijan Tax System Changes in Azerbaijan to the International Tax Principles

Sharaf Asgarova, Partner, EKVITA Arif Guliyev Gulchin Mammadova, Legal Assistant, EKVITA Director, Tax Advisory Services, PwC Azerbaijan Gunel Sadiyeva MEMBER CONTRIBUTION Manager, Tax Advisory Services, PwC Azerbaijan 21 Employees’ Wellbeing and Clients’ 11 Satisfaction - a Key to Unlocking Major Transformations in Electric Success Power Sector

Huseyn Mammadov Betta LLC, Chief Executive Officer Asim Hashimov Legal Consultant, KPMG Azerbaijan 22 Cyber Crisis Management: 13 Readiness, Response, and Recovery How Do We Manage?

Vladimir Remyga Director in Risk Advisory department, Deloitte Dr. Pavel Belorusskiy CEO, Dərs Evi Educational Center AMCHAM AZERBAIJAN 26 15 About Us “Platforms of Trust” - Trade Exhibitions in Azerbaijan

27 Business Events Farid Mammadov 33 Amcham Members’ Luncheon General Director, Caspian Event Organisers 40 Social Events

2 Issue 36 NEW YEAR NEW DISCOVERIES 126 countries to be discovered. Happy New Year.

FINLAND in focus

EY Azerbaijan Launches the Unique ‘EY Entrepreneur Of The Year™’ Program

Special interview with Nargiz Kerimova Assurance Partner, EY Azerbaijan

the country’s economy. While the government’s efforts have already brought about positive changes and substantial results, this is still very much work in progress. Indeed, a lot is yet to be done and achieved to improve the business climate and stimulate the business community in the country.

I: Why is economic diversification so important?

NK: It is very straightforward: the prosperity of any country rests on the entrepreneurial spirit of its small and medium- sized enterprises (SMEs) and their ability to operate and grow seamlessly. Indeed, these small and medium-sized companies make up the backbone of the economies of most competitive, developed nations. In the United Kingdom, for instance, small businesses currently contribute more than 90% of new private-sector jobs. In emerging economies, SMEs account for up to 60% of employment and up to 40% of GDP. Therefore, the importance of these small businesses cannot be understated.

Azerbaijan’s newly appointed Economy Minister, Mikail I: But what will this improvement of the business climate Jabbarov, expects significant growth in the non-oil sector and economic liberalization achieve? next year. He made this optimistic forecast during the recent parliamentary debates over Azerbaijan’s state budget for NK: I have already suggested that there is a direct link 2020. Mr. Jabbarov said he anticipated an increase of 8.8% between small and medium-sized enterprises and economic in the non-oil sector, but insisted that much work still needed growth. Apart from creating new jobs and paying taxes that to be done in terms of improving the business environment. fill the nation’s coffers, SMEs play the role of what we call The Azerbaijani government has consistently pursued a sentiment barometers. Small businesses are quicker to policy of diversifying the country’s economy. Impact spoke to react to international trends and global changes than larger Nargiz Kerimova, a Partner at EY Azerbaijan, which recently companies or huge corporations. Small and medium-sized launched a special program to recognize and reward the businesses realize vividly that they will be able to compete and most successful and innovative entrepreneurs in the country. grow by responding to technological advances. Eventually, We asked Nargiz about the need for a better business climate they form the nucleus that local economies revolve around. and its relevance to the ongoing economic reforms. It is not surprising then that the output of these businesses directly relates to confidence in the markets in which they NK: Azerbaijan has, for quite some time now, been creating operate. It is this optimism that often brings about new supply incentives and taking measures to diversify its economy and chains, creates new jobs and generates investment to fuel wean it away from heavy reliance on oil and gas. It is with economic prosperity. To answer your question, the better the this objective in mind that the government recently launched business climate, the bigger the output of small businesses, comprehensive administrative and economic reforms: to and, eventually, the more positive the overall economic and encourage continuous growth of the non-energy sectors of investment climate.

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I: What role can EY Azerbaijan play in forging such a backbone of the economy?

NK: We at EY realize that entrepreneurs shape not only our economy, but also our lives. As I already said, they create jobs, and that is very important for any economy, developed or emerging. More importantly, businesspeople stimulate innovation without limitations. They are motivated by their desire to grow their business and succeed, and, in doing so, they better the world around them, sometimes even without knowing it. This is why, for the first time in Azerbaijan, we have launched the EY Entrepreneur Of The Year™ program. Actually, Azerbaijanis have traditionally been good merchants and resourceful entrepreneurs. Therefore, this program intends to celebrate the entrepreneurial ingenuity of our businesspeople, share their inspiring stories and recognize their achievements.

I: What makes this program special?

NK: EY Entrepreneur Of The Year™ is a recognized global brand and has long been the world’s most prestigious competition for the benefit of entrepreneurs. It is a unique global program that recognizes entrepreneurial achievement by individuals and companies that demonstrate vision, leadership and success and work to improve the quality of life in their communities, countries and around the world. This program was established more than 30 years ago and today operates in more than 60 countries and 145 cities around the world. By participating in this competition, entrepreneurs can connect with their peers, access relevant insights to help navigate their growth journey and raise the profile of their panel of judges consisting of widely respected individuals companies and teams. who represent the business community, government agencies and reputable international organizations. The jury I: How are you going to adapt the competition to will select the winner of the national competition, who will then Azerbaijan? get to represent Azerbaijan at the EY World Entrepreneur Of The Year™ Award in Monte Carlo in June 2020. We are NK: The main focus of this year’s EY Entrepreneur Of very happy that we have brought the EY Entrepreneur Of The Year™ program in Azerbaijan is small and medium- The Year™ program to Azerbaijan, because we are now in sized business enterprises. We have therefore teamed a position to put the local entrepreneurial ecosystem in the up with a number of partners and sponsors who share global spotlight, paving the way for the most successful our genuine intention to celebrate, support and connect national entrepreneurs to benefit from international exposure local entrepreneurs. The idea behind holding the program and recognition. is to recognize Azerbaijan’s successful entrepreneurs For more detailed information about the EY Entrepreneur Of who are making a positive impact on their society and the The Year™ program, please visit www.eoy.az economy. That is why I invite every entrepreneur who meets the requirements to take part in the national stage of the Biography of our Guest competition. Nargiz Kerimova is Assurance Partner at EY Azerbaijan. She joined EY in 2002 as an auditor to become the first I: Who will determine the winner? female assurance partner with an international accounting firm in Azerbaijan in 2015. In 2017, Nargiz was appointed to NK: EY is the organizer of the competition, which means we lead Advisory Services at EY Azerbaijan. Nargiz is a licensed will compile and make an initial assessment of applications. Azerbaijani auditor and a member of the Association of However, we will not pass any judgments or make any Chartered Certified Accountants (ACCA). decisions on the entries. Nor will any of our partners or Kerimova holds a master's degree in international economics sponsors. Entrepreneurs who participate will have their from Azerbaijan State University of Economics. She is married applications evaluated and analyzed by an independent and has four children.

5 in focus

Reshaping Organizational Structure with Changing Commitment of CFOs

Rauf Aghayev Chief Financial Officer, Nobel Oil Services

to identify their common vision and find solutions to possible contrasting requirements. The next step is to correlate your solution with the overall corporate strategy and make sure it embraces the key business lines and areas of operation. A successful digital transformation comes when the top management sanctions and supports this time and resource consuming process, known as digitalization.

How does the implementation of change take place? Digitalization involves both automation and people. There should be conformable programs and human resources that can help build the necessary digital systems and align them with the existing needs. This increases the demand for qualified professionals who understand both technology and business. The need is on rise in the market, hence we observe a shortage of such employees. To meet this demand, organizations need to involve high-priced specialists and invest in growing in-house resources. This may seem to be an expensive spending, but in the long-term perspectives, it could be considerably advantageous and yield more benefits. From the other side, digitalization leads to cultural shift for which people need time to adapt. Managers should discern the gap between the actual capabilities and those aimed at What changes do you observe in the finance sector digitalizing the financial functions. The cyclical and swift pace amidst the growing digitalization of business? of digital work help achieve a higher degree of interaction, Currently, organizations face with constantly increasing facilitate collective work and information sharing across amount of data and businesses require from CFOs to take the business units. All high performing business cultures a real-time, data-enabled approach for making decisions. - particularly digital ones - require strong leadership and This is where the need for digitalization arises. IT industry effective engagement of employees. Therefore, managers offers various applications to optimize financial performance. and leaders have to promote a new digital culture conforming However, it is not only about the application you choose, but to corporate goals and strategy. also about the way you implement it within an organization. Firstly, there should be a clear vision of what is an overall Which steps in digitalization did you undertake within need for digitalization. The shift should be smooth so that your company and how it affected your operations? you are able to ensure a non-disruptive flow of business. In 2016, Nobel Oil implemented SAP ERP (Enterprise Resource Thus, it is important to clarify which areas need immediate Planning), OpenText and other SAP products. Migration to changes and how to align these changes with the rest of SAP helped create a centralized database, improve accuracy operations. Secondly, finance is linked to various business and quality of information, organize and optimize business divisions, mostly sales, procurement, supply chain, project processes in key operational areas. Having and using real- management and HR. In order to design an integral model time analytical data is essential in a rapidly changing oil & gas that could serve the business needs, these divisions need sector. We automated more than 180 business processes

6 Issue 36 in focus

and expanded them to five subsidiaries within the group of allows HR specialists to promptly provide the hard data. companies. Although SAP is being functioned in our company Ethics & Compliance function is on the top of our priority. In for a relatively short period, the effect we observe is immense. this field, we are also introducing digital solutions, facilitating We have now a centralized management of our group’s cash the learning and training processes for both our employees and liquidity. Financial steering combined with an integrated and third parties we work with. In the field of operations, we business planning, predictive forecasting and simulation is have developed Glensol + CMMS which is being used for closely related to transition from processing paper-centric turbomachinery services. Other soft products designed for data to digitalized planning and forecasting. Reporting supporting operational process are yet to come. is generated automatically and the systems produce the financial closes monthly, quarterly and annually. Thanks to an What is the role of CFO in the future? instant visibility on various financial indicators alongside the Traditionally, CFO acted in a purely technical way of fulfilling the actual trends and figures, we can make business decisions routine Financial & Accounting tasks. According to McKinsey easily. Controllers are freed to spend more time on quality global survey, about 41% of CFOs’ time in the past 12 months control and value-adding core analytical tasks, as well as was spent not on traditional or even specialty finance, but support the decision-making process. This system allows us on other roles, including strategic leadership, performance getting a simplified real-time reporting and passing many of management and analytics. Instead of fulfilling backward- the reporting responsibilities down to a self-service course. looking function, finance now encounters growing need for By reducing the time spent on producing reports, our people data-driven analysis and insights into what may support that in Finance & Accounting have a greater capacity to analyze growth. Organizations need CFO that undertakes a role of the data and to advise on performance improvements. The a strategic partner for finding new ways of raising capital, ultimate result is that we obtain deeper and faster insights into playing a critical role in Merger & Acquisitions and mapping the business. With all these implementations, we boosted our out expansion plans. Stakeholders set new expectations for operational performance and became even a more valuable information and insights. All this dictates new requirements for business partner. CFOs in order to add up new skills and add value through the better use of analytics and data. Therefore, future CFOs will In which other areas has Nobel Oil introduced a digital have to be experienced not only in their professional fields, transformation? but uphold everything from supply chain to macro-business SAP ERP system is mostly connected to finance, but it trends. Competitive environment sets an imperative toward covers also the areas of supply chain management, project efficiency, so CFOs need to consider various aspects, such management, human capital management, as well as as developing a thorough analytical roadmap for prioritizing document management and control. In the field of supply the business needs, an automated business logic to combine chain, it facilitates the visibility of and access to purchase data from various sources, and real-time reporting systems orders, invoices, processed orders and payments. One of the and analytics modules to support budgeting and forecasting biggest hurdles in procurement operations is the purchase deliverables. Scenario modeling, advising on resource order approval process. With ERP system’s function of deployment and maintenance of investor relations should be sending notifications to key people on the required actions, considered by a CFO as an integral part of his work. With an no paper is needed for the process and it runs much faster. increased and indispensable role of digitalization, CFOs have All the contracts are stored and handled in a single point, to be able to deal with cybersecurity, as well. Combination of so that the system sends alerts on their expiration date and all of the skills in a single position will lead to transformation allows planning and negotiating of new contracts. Automation of Chief Financial Officer to Chief Strategy Officer, reshaping is essential to exempt procurement specialists from time- the organizational structure. consuming, low-value tasks and empower them with fulfilling more strategic activities while reducing risk, saving resources Our guest’s biography and eliminating waste. This is crucial to preserve and Mr. Rauf Aghayev is an established professional with a increase competitiveness in the market. In the field of human profound knowledge of finance and international financial resources management, SAP helps automate HR services, products, markets and financial tools. Mr. Aghayev started including payroll and benefits, as well as facilitate the shift career within banking sector, as SME Loan Officer and further from paper filing to electronic data and present instantly a continued as Leading Analyst of Risk Management department. chronological history of an employee’s career path, learning In 2013, Mr. Aghayev joined Nobel Oil Services as a Project and development activities, personal details and payroll Analyst. He was further promoted to Head of Financial Division. records. Therefore, HR professionals can spend more time Since 2018, Rauf Aghayev serves as Chief Financial Officer on evaluating employee performance and benefit-expense and manages financial activities within Nobel Oil Services factors that are necessary for formulating human capital group of companies. strategies. When organization comes to HR department for Mr. Aghayev holds a bachelor degree in Finance from Azerbaijan getting the appropriate information that helps manage the State Economic University and has successfully enrolled to most valuable capital - employees, implementation of SAP London Business School for getting degree in Executive MBA.

7 in focus

Adapting the Azerbaijan Tax System to the International Tax Principles

Arif Guliyev Gunel Sadiyeva Director, Tax Advisory Services, Manager, Tax Advisory Services, PwC Azerbaijan PwC Azerbaijan

The tax system of Azerbaijan began formation in early 90s, taking this share of economy from the shadows. Yet, everyone when Azerbaijan became independent. The first significant is well aware that legalizing revenues will lead to a significant milestone was the codification of the tax legislation. The increase in tax collection on the one hand, but on the other work on the development of the Tax Code of Azerbaijan hand, it can lead to an increase in business tax costs. began in 1998 and continued till mid-2000. The Tax Code of The increase of tax costs, in turn, could trigger a chain the Republic of Azerbaijan was ratified by the Milli Majlis on reaction, including an increase in consumer prices, a 11 July 2000. decrease in purchasing power, inflation, and as a result the Many tax concepts in the Special Part of the Code were based discontent of the population. To avoid such a chain reaction, on a model recommended by the International Monetary the government needs to find the right balance. Fund for developing countries. For that time, it was a quite An attempt to find such a balance has been made. The progressive document for a country that only in the recent amendments to the Tax Code provide for a reduction of past embarked on the path of independence. the tax burden on the non-oil sector on the one hand and Along with the Constitution of Azerbaijan, the main goal of tightening of the tax compliance measures on the other hand. this document was to instil in the business community and However, our calculations show that the reduction of the tax the general population the idea that taxes were a major burden provided by the amendments to the Tax Code in 2019 component of state revenues. Another task was to educate might not fully cover the increase in the possible tax costs of the business and people about the “economics” and tax the shadow business. There are two ways out of the situation compliance, i.e. understanding of the principles of taxation, for businesses: a regressive approach, i.e. an increase in methods of calculation, reporting, payment and liability. prices, or a progressive one, which assumes an increase in business efficiency, which should lead to lower costs. Tax reforms in Azerbaijan The business should understand that increase in prices is not However, the world does not stand still, it is rapidly changing a panacea, since the purchasing power of the population has together with the business. It is changing so rapidly that certain limits. keeping up with innovations and new trends is becoming more However, it will be very difficult to avoid at least some and more difficult. The business environment is transforming increase in consumer prices. Therefore, the government also into a more complex one, the new methods of doing business faces certain tasks. At a minimum, it is necessary to calculate have appeared. Thus, the tax system and legislation require the effect of “whitening” on the business and the population, immediate reaction to those changes. then, adopt protective measures of low-income segments In the recent years, there have been encouraging signs of of the population, which should be developed based on the the progress in the tax legislation, which can be seen in calculations of macroeconomists. introduction of new tax concepts, tax incentives, as well as Talking about a full-scale reform, the tax reform is only increase of transparency. one part of it. The main engine of tax reforms are the Tax So, the key message of the amendments to the Tax Code Administration and the Ministry of Finance. introduced in 2019 is reduction of the share of the shadow Certain steps are already being taken, including steps to economy in the country. The shadow economy currently has increase trust of taxpayers in the tax authorities, work of the a large market share in the economy of Azerbaijan (various tax administration with problematic taxpayers and creating a analyses and surveys indicate the range of 50% to 70% of tax ombudsman institute. GDP), and the taxpayers often have not reported the real Moreover, the current Draft Law on amendments to the Tax income, under-declared the wages of employees, overstated Code will to some extent simplify the tax compliance and expenses, etc. increase the transparency of the business activities. A major challenge facing the Azerbaijan tax administration is In recent times we are witnessing reforms in different areas,

8 Issue 36 in focus

erosion and profit shifting (BEPS) initiative of the Organisation for Economic Co-operation and Development (OECD), which refers to tax planning strategies used by multinational enterprises that exploit gaps and mismatches in tax rules to avoid paying tax. The BEPS Package provides 15 Actions that equip governments with the domestic and international instruments that will help to combat the tax avoidance. In 2016, the OECD Inclusive Framework was established to allow the interested countries, including developing economies, to participate in the development of BEPS related issues and implement the BEPS Package. The Azerbaijani tax administration constantly monitors the recent tax challenges flagged by the world tax society. We are witnessing the intention of the Azerbaijan tax administration to be part of this society. On 8 October 2019, the 5th regional meeting on BEPS for Eurasian Countries was held in Azerbaijan and hosted by the Ministry of Taxes of the Republic of Azerbaijan with the support of the OECD and the Intra-European Organisation of Tax Administrations (IOTA). Organization of this event such as court system, measures in banking sector, promotion in Azerbaijan shows the commitment of the Azerbaijan of agriculture, support of small and medium enterprises. Yet, tax administration to become member of the OECD it is important that the reforms initiated by various authorities Inclusive Framework and readiness to introduce OECD’s be part of an integrated business reform. recommendations in domestic tax legislation to combat the Business is a driver of the changes, whereas the tax tax challenges. administration and the legislator in many cases are in the The following provisions of Azerbaijan tax legislation were reactive position to create the regulatory frameworks. No tax introduced drawing on the experience of other jurisdictions or legislation in any jurisdiction is able to cover all transactions based on the BEPS package: and to keep pace with the business. This is why in many 1. Transfer pricing rules countries, before introduction of changes to the tax legislation, 2. Country-by-country reporting (the introduction is such proposed changes are often published for open public expected with the adoption of the Draft Law on the discourse and consultation, where the representatives of amendments to the Tax Code) business community, consulting and law firms have the 3. Thin capitalization rules (limitation of interest deductibility) opportunity to share their concerns and ideas with respect to 4. General anti-avoidance rules (Article 13.2.70 of the Tax the expected changes. Code – tax avoidance scheme) Another issue raised by the business is the fact that the 5. Taxation of digital economy (Article 169.3 of the Tax changes becoming effective in most cases immediately, Code – VAT on e-trade) which could cause a difficulty for the businesses to prepare 6. The aim of these measures is to protect the Azerbaijani for the implementation of the changes. tax base and fight the shifting of tax base to low or no-tax location, which has effect of reduced taxable revenues International cooperation in tax matters within the country. and protection of Azerbaijani tax base The current focus of the measures taken by the tax administration is to decrease the share of shadow economy and increase the amount of declared income. In other words, the ultimate goal of the tax administration is to protect and broaden the tax base. If current domestic tax law has effective measures to combat the tax avoidance within a country, the Azerbaijan tax provisions addressing shifting of tax base to another countries are either undeveloped or their application is not enforced in practice. Given the globalized nature of trade, investment and finance, there are limits to what can be achieved by domestic policies alone. One of the major tax topics of the recent 5 years is Base

9 in focus

Further enhancement requires provisions regarding criteria development. Many aspects of taxation are either missing for a permanent establishment constitution and rules on or require detail. In addition, multiple amendments into the attribution of profit to permanent establishments. existing Tax Code have led in some cases to contradictions and confusion in the text. These issues could be largely resolved through adoption of a new comprehensive tax code. Broadening a permanent establishment The creation of such a code is not an easy process and will take at least one year. It is necessary to study the experience concept and legislation of other countries in order not to “reinvent the In the current age, the physical presence of a company in the wheel” and adapt them to the specifics of the country by using market country is often not required and the taxation rules the positive achievements of Azerbaijan. Therefore, both should react to the changes in the business operating models. foreign and local experts should be involved in this process. Currently, Azerbaijan does not have a right to tax the income In conclusion, transparency and clarity of the tax system, as of a company, if this company has no physical presence well as alignment with global tax policies, plays important role (permanent establishment) in Azerbaijan. However, in the for the reputation and investment climate of the country. While digital era, the allocation of taxing rights can no longer be each country is responsible for its tax system, it is important exclusively determined by reference to a physical presence. to support national efforts by strengthening and enhancing OECD published a proposal on taxation of digital economy, international cooperation and participation in addressing which intends to allocate taxation rights to the market country international tax matters. (where the consumers are situated). The multilateral measure is not yet adopted and adoption of this approach by OECD is Authors’ biography expected not earlier than in 2020. Mr. Arif Guliyev is Director at Tax Advisory Services, PwC But even if it is adopted by OECD, the relevant changes could Azerbaijan. Out of more than 35 years of work experience, be made into the domestic legislation, as well as to effective Arif has spent 28 years working in the sphere of taxation, Double tax treaties, to which Azerbaijan is a party. eight years of which were for Azerbaijan’s Tax Administration In the meantime, several countries have taken unilateral and 20 years with PwC Azerbaijan. measures. Some have amended the definition of a permanent Arif has participated in a number of high-level negotiations establishment and introduced broader criteria (nexus rules) of investment projects between foreign investors and the for establishment of a taxable presence in a country, while Government of Azerbaijan, helping to achieve the most others have introduced the turnover taxes on digital activities. preferential investment terms for clients. Arif was closely involved in the drafting and adoption process of the 2001 Attribution of profit to permanent Tax Code and its subsequent amendments as well as other important taxation acts. establishments Mr. Guliyev has a significant experience in assisting The domestic tax law does not have a clear rule on which companies with respect to M&A, setting up a tax effective portion of the revenue earned by the multinational company structure of operations, dispute resolutions with the state should or can be allocated to a permanent establishment in authorities and tax litigation, claim of tax incentives under Azerbaijan. Internationally adopted rules are based on the statutory legislation and international agreements. authorized OECD approach, which is based on the principle of the “separate entity approach”, which allows to use the Ms. Gunel Sadiyeva is Manager, Tax Advisory Services, PwC hypothesis by which a permanent establishment is treated as Azerbaijan. Gunel boosts more than 10 years of experience a separate and independent enterprise for the purposes of in tax and legal advisory, including Big4 experience where determination of business profit attributable to this permanent she has assisted clients with complex tax and commercial establishment. matters. Gunel’s main practice areas comprise advising on The authorized OECD approach requires a two-step analysis: issues related to international and corporate taxation, merger functional analysis and determination of arm’s length prices. and acquisitions as well as structuring of potential investments The same approach is reflected in the transfer pricing rules. in Azerbaijan. She has a wide legal advisory experience in Similar to the transfer pricing rules, the introduction of corporate, employment, and commercial law with companies comprehensive profit attribution rules, as well as expanding in financial, construction, manufacturing and PSA sectors. the concept of a permanent establishment may cause Her qualifications include a Bachelor degree in Law and a the adverse reaction from the side of multinationals due Master degree in Civil and Economic Law from Baku State to complexity of the tax rules and negatively affect the University in Azerbaijan. In 2011, she has obtained her LL.M country’s investment climate. From other side, creation of in Private and Public Economic Law from the Friedrich-Schiller comprehensive rules will give to the multinationals clarity and University in Jena, Germany. In 2016 she has achieved transparency with respect to the predictability of the tax costs Advanced Diploma in International Taxation - certification and fairness in taxation. For the tax administration this could indicating a high level of competence in international taxation. lead to a growth in tax collections. Gunel is also an adjunct lecturer in International Tax Law at The tax legislation of Azerbaijan is still in process of Baku State University.

10 Issue 36 in focus

Major Transformations in Electric Power Sector

Asim Hashimov Legal Consultant, KPMG Azerbaijan

For the past 15 years, Azerbaijani electric power sector workers celebrate October 20 as their professional holiday. The history of this day begins on 20 October 1981, with the launch of the first unit of “Azerbaijan” Thermal Power Plant, the biggest in the South Caucasus, construction of which started at the initiative and direct management of the national leader Heydar Aliyev. The date marked the beginning of a new era of Azerbaijani energy sector. months1. Trakya Elektrik Uretim Ve Ticaret A.S., which operates thermal power plant Trakya Elektrik under BOT Far reaching institutional and agreement effective until 2019, with an option for extension until 2046 is another good example.2 infrastructural reforms Improvement of infrastructure usually starts with reforming Strategic roadmap for the development of utilities (electricity regulatory institutions and strengthening a legal and policy and heat, water and gas) in the Republic of Azerbaijan, framework. Thus, one of the important measures undertaken approved by the Presidential Decree dated 6 December in the framework of the reforms carried out in accordance with 2016 (hereinafter “Strategic Roadmap”), clearly defines the the Strategic Roadmap is the establishment of the Azerbaijan country’s energy policy and the outlines of the future energy Energy Regulatory Agency (AERA) under the Ministry of landscape in the short, medium and long term, clearly Energy with the status of a public legal entity in December demonstrating government’s commitment to power sector 2017. AERA was established on the basis of the State Energy reforms. The document sets strategic goals for sustainable Control Department and the State Gas Control Department development in the electric power sector, one of the key of the Ministry of Energy. The areas of electrical and thermal areas of national economy, and determines the top priorities, power, as well as gas supply, have been identified as key such as an increase in generating capacity of the power areas of the activities of AERA.3 system, reconstruction and expansion of electrical networks Improved legislative framework and well-governed institutions and increase in the export potential of the country’s energy create an enabling environment for further infrastructural resources. development in electric energy industry. The commissioning Strategic roadmap also envisages stimulation of investments of the 400-megawaat “Shimal-2” power plant, held with the in new power plants through public-private partnership participation of President Ilham Aliyev in 5 September 2019 mechanisms (e.g. through the build-operate-transfer (BOT) became an important event in the history of power industry of model) as development of new infrastructure often depends on the country. Together with “Shimal 1”, power plant will account new ways of doing business. In a BOT model, the government for 20% of the country’s total electricity production and 40- grants to a private company the right to develop and operate 50% of the Baku and Absheron peninsula. Furthermore, at a power plant for a certain period. Company then recoups “Azerbaijan” Thermal Power Plant, as part of the ongoing its investment costs and profit through sale of electricity. major reconstruction works, outdated equipment are replaced At the end of the period, a power plant is transferred to the by new ones, and the stations and substations are completely government. It is also worth noting that Turkey could serve rebuilt.4 as a successful example of such public-private partnership 1. Official website of Uni-Mar Enerji Yatırımları A.Ş - http://www.unimar.com.tr/about-us.html model. For example, Unimar Marmara Ereglisi Power Plant 2. Official website of PJSC Inter RAO - https://interrao15.downstream.ru/?/en/75-turkey 3. Art. 1.1. of the Regulations of AERA approved by the Decree of the President of the Republic of was wholly financed by private capital resources and the Azerbaijan “On Establishment of Azerbaijan Energy Regulatory Agency (AERA) under the Ministry construction of the power station was completed within 29 of Energy” № 1750, dated 22.12.2017 4. February 2019 Issue, “Azərbaycan İşıqları” Journal

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Transition towards liberalized electric collectors in Sumgait Technology Park.7 Furthermore, the signing of Memorandum of Understanding energy market envisaging co-operation and capacity building for investment Another important aspect of the reforms is the formation in renewable energy projects in Azerbaijan between the of liberal market relations in the electric power sector. The Ministry of Energy and Total Eren of France is expected to appeal of market liberalization in this sector is significant. lead to projects that will generate 420 megawatts (MW) of Liberalization of electricity sector can attract domestic and power from wind, solar and bioenergy, all in line with the foreign investment that will assist in making the electrical Strategic Roadmap.8 system of the country more reliable and efficient. In accordance with the Presidential Order “On Acceleration of Reforms in the Energy Sector of the Republic of Azerbaijan” Summary Institutional reforms, consisting of upgrading of existing dated 29 May 2019, Azerbaijan have started a gradual infrastructure, attraction of both private and foreign transition to a liberal market model in the electricity sector. investments, creation of a competitive environment and a The Ministry of Energy shall prepare the draft “Long-term new legislative framework in the energy sector has already Development Strategy of the Energy Sector of the Republic begun. Ongoing reforms will further strengthen energy of Azerbaijan” and proposals on liberal market model and security, ensure efficient use of energy resources, improve renewable energy. The Cabinet of Ministers of the Republic economic and technical efficiency of the electricity sector, of Azerbaijan, on its turn, is tasked with development of new creation of favorable conditions for foreign investment, create draft laws “On the use of renewable energy sources in the new businesses and jobs in the electricity sector. production of electricity”, “Regulation in the field of energy and utilities”, as well as new draft versions of existing the Laws of “On Energy” and “Gas Supply”. The presence of sufficient infrastructure, political will, human resources and committed regulatory body creates opportunities for transition to a liberal market model in Azerbaijan. Transition could greatly contribute to attraction of private investments, improvement of service quality, reduction of government subsidies and increase in electricity production in the country. Renewable energy: a driving force of the future Azerbaijan has considerable renewable energy potential as country has extensive resources of solar, wind, geothermal, hydro and biomass. Development of this potential is one of Azerbaijan’s strategic priorities, because increasing shares of renewables in the power mix in Azerbaijan are not only environmentally friendly, but also will contribute to diversification of the energy basket and increase energy security.5 In 2013, in order to improve the governance in this sphere, the State Agency of the Republic of Azerbaijan on Alternative and Renewable Energy Sources was created, and Author’s biography a number of programs were adopted to develop this industry. Mr. Asim Hashimov is a Legal Consultant within Law Practice at Agency set a target to generate 20 per cent of the electricity KPMG Azerbaijan. Prior to joining, he has worked for many years in Azerbaijan from renewable sources by 2020. as in-house lawyer at one of the biggest banks in Azerbaijan. Alongside institutional developments, wide range of Asim provides advices on various areas of Azerbaijani law to technologies used to convert renewable resources into both local and international clients from various industries. electricity have been developed in Azerbaijan. Noticeably, His main areas of expertise include banking, energy, contract, “Azguntex” solar panel factory in Sumgayit city is equipped corporate, personal data, labour and migration. with the most advanced technology and environmental Mr. Hashimov holds an LL.B. in International Law from Western standards are strictly followed.6 Likewise, latest scientific and University (Baku) and LL.M. in International and European Law technical innovations have been applied in production of solar from University of Strasburg.

7. Official website of the President of the Republic of Azerbaijan - https://president.az/articles/2729 5. https://www.adb.org/sites/default/files/publication/522891/adbi-wp992.pdf 8. http://www.minenergy.gov.az/index.php/en/news-archive/330-ministry-of-energy-and-total-have- 6. Official website of the President of the Republic of Azerbaijan - https://president.az/articles/4755 signed-memorandum-of-understanding

12 Issue 36 in focus

How Do We Manage?

Dr. Pavel Belorusskiy briefly share a few observations about how organizations I saw were managed and what needs to be reformed in this CEO, Dərs Evi Educational Center area. The first is the “problem yoxdur” (transl. “no problems”) phenomenon. You give your subordinate a task and you hear – no problem, will be done. When the time comes and the task isn’t done you enquire why. And you hear – but the task was too difficult, too big, not realistic to achieve in the time When we hear the word “reform” we immediately think of the required. – So why didn’t you say so from the start? – You are government. It is the government’s prerogative to do reform, the boss, how can I say no to you… and sometimes even its solemn duty. We feel that “they” should do something so that “we” can live and work better. Almost 20 years ago Dutch psychologist Geert Hofstede And so, sector by sector, industry by industry our government studied cross-cultural differences in behavior and introduced initiates reform – reform of tax, reform of education, legal the Power Distance Index which measures to what extent reform, economic reform. We rejoice at the scale of reforms the lower ranking individuals in an organization accept and initiated recently, and we sometimes complain when reforms expect that the power is distributed unevenly. When the are slow or inefficient. power distance is high, superiors in an organization are respected and even revered, as opposed to organizations There are many areas however which are not regulated by the with lower power distance, where superiors are viewed more government, and therefore outside the scope of such reform as equals and are not treated with as much reverence. The considerations. And one of them is key – without reforming it “problem yoxdur” phenomenon is one of the manifestations of most other reforms will be at most inefficient. I am talking about the high Power Distance that we observe in many companies management: how we manage our organizations and how we in Azerbaijan. lead our teams. All the progress, all the change is delivered by organizations – government, commercial and non-profit When I was doing layout of our new office I suggested open- alike. So how we manage determines how successful will be space format. You should have your own office, I was told, our organization, our industry, our economy, our society, and you are the Director. If Gods come down from Mount Olympus our country as a whole. and sits with mere mortals, what are we to believe in? This will damage the morale… By now I have been living in Azerbaijan for five years, during which I built a successful company from scratch and helped One of unfortunate consequences of high Power Distance transform management in a large holding and several medium is difficulty in speaking truth to power. There is very limited size companies – both myself or with the help of Adizes information flow bottom up, subordinates often don’t dare Institute for Organizational Transformation. So I would like to tell the problems of the organization to their superiors. And this gets coupled with the old Soviet legacy – autocratic management. Most decisions are taken by executives themselves, there is very little decentralization of decision making.

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The so called Iceberg of Ignorance suggests that executives top-managers and shareholders of the holding took the word on their own know no more than 5% of all the problems of in closing. He said, barely holding back his tears, that to him organization. So we as executives end up making many being asked for his opinion and having a chance to deliver it important decisions in an informational vacuum. And no in front of all the “bosses” was more valuable than a salary matter how smart and experienced an executive you are, raise! sooner or later the quality of your decisions will suffer and you are bound to make a mistake. The Azeri culture traditionally has very high spirit of entrepreneurship. This is the necessary ingredient of rapid During his November master class in Baku famous American economic growth. To speed it up we need more education business consultant Doctor Ichak Adizes said: “A CEO needs on how to manage better, more managerial tools, more big ears and a small mouth.” We as executives need to learn knowledge and skills. And to reform certain common to listen, not just give directives. We should encourage a managerial practices. culture of open communication in our organizations, teach people to disagree without being disagreeable, so we get The bad news is that no one will initiate this reform and see more democracy when a decision is being developed, cooked it through but ourselves. The good news – it’s entirely in our so to speak. However, when a decision is taken – no more own hands. So let’s roll up our sleeves and learn to lead and talk! Each should know his part, just go do it! Dictatorship manage better! in implementation! Doctor Adizes even invented a word for it – we need to develop “DEMOCRASHIP” of Management: TIP #1: Try to avoid giving direct answers to your DEMOCRAcy in decision making, DictatorSHIP in subordinate’s questions. Instead use: “What do you implementation. think?”, “What’s your opinion on this?”, “How would you tackle it?”, “What is your preferred solution?” Making it a This enables us to become not just bosses to our teams, but habit can work wonders in your organization. Just to start, true leaders. To lead by example you need to come down it will improve bottom-up information flow, stimulate your from Mount Olympus, sit with the people, ask their opinion, employees, force them to take more responsibility and hear them out, demonstrate that they’ve been heard. This create a better learning atmosphere in your company. point was driven home for me during a diagnostic session in a large holdings in Baku 4 years ago. At the end of the session TIP #2: When you give a task to someone don’t spell a middle manager from one of the factories who ended up out all the details yourself. Instead ask them: “How long sharing his opinions for three days side by side with all the do you think you need to complete the task? What other resources/people you might need?” And give them a little more than they ask for. This is one way to solve the “problem yoxdur” phenomenon and make people really take responsibility for their task. That way they will try much harder to actually finish in the time they themselves asked for.

Author's biography Moscow State University graduate, Pavel Belorusskiy, received his Ph.D. in Mathematics from the University of Chicago. In 1996, while at the University of Chicago, Pavel received the Graves Prize for excellence in teaching. Since then Pavel has held positions as a professor at both the University of Michigan and UCLA. After leaving academia in 2000, Pavel became a successful top-manager and entrepreneur, managing and/or owning companies of various sizes and industry specializations. In 2014 Pavel moved to Azerbaijan and invested all his valuable experience and knowledge in Ders Evi. It is now one of the leading private educational institutions in Azerbaijan. Pavel has also been a Certified Associate of the Adizes Institute for the past 10 years. Since October 2019 he is also a Managing Partner of the Adizes Institute office in Azerbaijan. In this role Pavel utilizes his management and entrepreneurial experience in helping a multitude of client organizations in Azerbaijan – and worldwide – to overcome the challenges of growing and scaling their business in a healthy and sustainable way.

14 Issue 36 in focus

“Platforms of Trust” - Trade Exhibitions in Azerbaijan

Farid Mammadov and existing ones are strengthened. General Director, In this case, using the development of industry exhibitions as a reference, we, as the organizers, can draw conclusions Caspian Event Organisers about the current state of the industry and see where the vector of its development is directed. And based on today’s exhibition performance indicators, we can talk about the most positive forecasts. Exhibition activities in Azerbaijan cover a wide range of economic At a new stage in the development of Azerbaijan, large-scale topics, including the oil and non-oil sectors of the country’s reforms are being implemented that cover all spheres of economy. Recently, exhibitions in agriculture, the food state and public life; this process can only arouse positive industry, telecommunications, and transport have been emotions, because reforms carried out in the areas of tax showing dynamic growth. The Caspian Oil & Gas Exhibition and customs lead to the de-monopolization of the economy and Conference also retains its stable position. and the emergence of new economic entities. Accordingly, In recent years, Azerbaijan has become a hub in terms of competition among companies is increasing, which is a very organizing events, and our country is increasingly being important factor, since competition is an engine of progress. included in the list of priority countries for events of global Thanks to this, companies provide better products and strive importance as a New Destination. One of the business for excellence. This causes demand in the market, and tourism trends is the combination of business trips with leisure. improves the overall quality of goods and services that can Nowadays, business travelers who spend a significant part be offered to a potential buyer. Concurrently, a decrease in of their lives on business trips no longer want to follow the prices for a particular product or service is also observed. repetitive route of airport-hotel-meeting-airport. In this sense, All these directly relate to the development of exhibitions, as Baku is an ideal destination. Moreover, in 2019 Azerbaijan they are one of the channels for promoting goods and services. improved its position in the global competitiveness index Note that recently small and medium-sized businesses have compared to 2018, in the Doing Business 2019 Report. actively joined the exhibitions, which is another indicator We plan to develop the content of the exhibitions, expanding of sustainable development of the economy. The recently the program of additional events and recreational activities in created Small and Medium Business (SMB) Development the framework of the exhibitions. We will pay special attention Agency does a great job of attracting small and medium- to activities aimed at training. We now live in an age of lifelong sized businesses, and teaching their representatives how to learning, and having a diploma is not enough now to succeed. use tools, such as exhibitions. For SMB representatives and It is necessary to constantly work on yourself, improve your startups, this is a great opportunity to be on the same platform skills and knowledge. In our vision, in addition to having an as industry leaders, find partnerships with them and negotiate informative function, exhibitions should now have a training contracts on an equal footing. mission. Exhibition activity is an integral part of the economy; the We would like to take this opportunity to thank the country’s development in those sectors of the economy that are the leadership for their support in the exhibitions. We also highly focus of attention and where investments are made is appreciate the efforts and participation of all the structures, immediately reflected in exhibitions, where the revival and and the private sector. growth of interest are immediately noted. At the same time, See you at the exhibitions in Baku in 2020! we can observe the opposite picture: the weak dynamics of a project is also an indicator of the industry. At one time, exhibitions were called the industry’s barometer. I would call exhibitions an information realm with many intersecting lines, which sometimes do not intersect outside the exhibition space, but they all lead to the same goal - sustainable economic growth. It is through this interaction that new practices and new types of communication are born. During the exhibition, a high intensity of personal contacts between exhibitors and visitors is achieved, and through face- to-face contact, new business relationships are established

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Changes in Banking Sector

Gumru Eyvazova For example, the World Bank’s Doing Business 2019 report showed that the coverage of CRS system was 41.5%, which Senior lawyer, is 9.4% higher than the world average. Azerbaijan reportedly GRATA International has instituted the Mortgage and Credit Guarantee Fund, the first private credit bureau and movable property institutions, set up as part of strategic roadmap reforms to reach advanced country levels. In addition, in order to further develop small and medium-sized The implementation of the measures outlined in the Strategic businesses in the Republic of Azerbaijan, by the decree of the Road-map on National Economy and Key Sectors of the President of the Republic of Azerbaijan of June 26, 2018, No. Economy of Azerbaijan, approved by the Decree of the 148, the Agency for the Development of Small and Medium President of the Republic of Azerbaijan dated December Business was established. In accordance with paragraph 9.2 6, 2016, is already showing positive signs. Analysis of of this Decree, the central and local executive authorities and Azerbaijan’s current banking system suggests that it municipalities, state organizations established on behalf of [the banking system] has been recovered to ensure its the state, state legal entities controlling shares (shares) are sustainability and development, with the financial reforms entitled to provide electronic registry services included in the already producing good results. single G2B (small business) and to issue legal documents, as In accordance with this road-map and related government well as rendering services to SMEs through the list of services programs, the banking sector needs to be adapted to post-oil provided to micro, small and medium businesses prior to era’s economic requirement and focus on new leading sector registration. to ensure sustainable development in addressing existing Last, but not the least, institutional reforms provide banks problems. with an efficient credit risk management system, through Another logical result of reforming the National Payment maintaining operating costs, simplifying assessment and System was the Interbank Card Center (ICC) launched on underwriting procedures, increasing the borrower’s credit and April 1, 2016, as a step towards increasing the effectiveness operational risk and achieving high ratings. of payment cards issued by resident banks. In addition, February 28, 2019 Presidential decree on additional measures to pay off a portion of citizens’ problem loans not only started completely a new page in the history of the banking sector, but also provided a solid basis for a significant reduction in the size of the banks’ total loan portfolio. This decree will create conditions for a healthy credit ecosystem; thus, facilitating to pump new liquidity into the real sector and ultimately leading to macroeconomic prosperity. A variety of international rating agencies have already confirmed the importance of the Decree for the banking sector and its role in solving non-performing loans. Moody’s International Rating Agency, for example, has published a very positive forecast for growth Azerbaijan’s banking sector has seen in recent years. Author’s biography It should be noted that, as a result of fiscal reform, incentive Ms. Gumru Eyvazova is a Senior Lawyer at GRATA tax mechanism will encourage employers to pay employees International. Before joining to this company, Gumru was salaries and other payments officially, which will have a working in capacity of Legal and External Affairs Executive at positive impact on the growth of customer accounts and British American Tobacco Exports B.V. Representative Office in cardholders to result in digitization and online payments. Azerbaijan. For many years she was experienced within banking Another reform was promoting and facilitating the development industry and worked in capacity of Head of Legal Division. She of an efficient credit reporting system (CRS) which plays an attended training related to legal management and was a Legal important role in addressing these problems. The system is Consultant for 2 worldwide airline companies in Azerbaijan. also a key to ensure the concept of risk management. One Gumru also serves as a Chair of the Board of Directors of of the main regulatory trends of modern world and numerous local NGO, "Khazrim" Student-Youth Organizational Public studies have shown that there is a positive correlation between Association. the development of the CRS system and economic growth. Ms. Eyvazova has graduated from the School of Public and Analysis of international statistics also shows that Azerbaijan International Affairs of ADA University (LLM, 2018), School of has recently gained a successful experience in this field. Law from Baku State University (LLM, 2007; BSc, 2004).

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Commercial Courts as Part of Judicial-Legal Reforms

Elnur Aliyev the commercial court, and the other claims fall under the jurisdiction of the general courts. Previously, in such situations, Senior associate, the cases would have been heard by general courts. BHM Law Firm Moreover, in case of any concerning the jurisdiction of courts, then the relevant complaint shall be lodged directly with the Supreme Court bypassing the appellate courts and such complaints shall be examined within 10 days by the judges composed of the civil, commercial and administrative As part of the judicial-legal reforms carried out in Azerbaijan, chambers of the Supreme Court. Such procedure would newly established commercial courts will function starting from definitely speed up the proceedings and also would hopefully 1 January, 2020. These courts, in principle, would replace the lead to unified approach in respect of the jurisdictional issues. economic chambers of the currently existing administrative- Also, on 19 July 2019 the Presidential Order was adopted, by economic courts. which the following six commercial courts were established in One of the issues listed in the Presidential Decree dated 3 the respective cities: April 2019 on deepening reforms in judicial-legal system, was establishment of specialized courts for disputes concerning • Baku Commercial Court entrepreneurship activities, and also taxes, customs duties • Ganja Commercial Court and compulsory state social insurance payments in order to • Sumgayit Commercial Court ensure settlement of such disputes by judges having deep • Shirvan Commercial Court legal knowledge and experience in the relevant field. • Shaki Commercial Court As a follow-up to the Decree, on 9 July 2019, relevant • Commercial Court of the Nakhchivan Autonomous changes were made to the Code of Civil Procedure Republic. (hereinafter the Code) and the Law on Courts and Judges. According to the changes, the commercial courts shall The commercial courts shall be composed of the President examine the cases concerning commercial disputes as and judges, the number of which is determined by the the courts of first instance pursuant to the rules of the civil Judicial-Legal Council. In order to ensure the relevant proceedings. The commercial disputes are defined as the specialization and qualifications of the judges of commercial disputes in connection with entrepreneurship activities. And courts, the Order also stipulates that when proposing judges the definition of entrepreneurship acitivity is indicated in the for appointment to these courts, the Judicial-Legal Council Civil Code as the activity carried out independently by person, should pay special attention to their theoretical and practical the main aim of which is to earn profit (income in case of experience in the relevant field. individual entrepreneurs) from use of property, sale of goods, Lastly, it is to be noted that the disputes between entrepreneurs performance of works or provision of services. Also, as part of and the administrative authorities, including the disputes the changes, the phrase of economic disputes throughout the concerning taxes, customs duties and compulsory state social Code was replaced with the phrase of commercial disputes. insurance payments shall be examined by the administrative One of the important issues is determination of the jurisdiction courts, the courts which would replace the administrative of the commercial courts and general courts (city or district chambers of the currently existing administrative-economic courts). According to the changes, the commercial courts courts. shall also examine the cases stipulated in Chapter 40-5 of the Author’s biography Code (voluntary restructuration of the obligations of a bank), Mr. Elnur Aliyev is a senior associate at BHM Law Firm. and also the cases stipulated in Chapters 35 (restoration of Elnur specializes in international business law, international the rights of persons with regards to the lost documents) and arbitration, public international law, human rights and sports 40-2 (temporary limitation of the right of individual taxpayers law. His previous experience includes working for three years or the heads of management of legal entities to leave the as an assistant lawyer at the European Court of Human Rights country) of the Code in case those are connected with and working as a senior lawyer at Baku 2015 European Games entrepreneurship activities. and Baku City Circuit (Formula 1 Azerbaijan Grand Prix). It is also to be noted that, when joining claims connected Elnur Aliyev holds an LLM in International Business Law from with each other, they should be examined by the commercial Central European University and LLB in International Law from courts, if some of the claims fall under the jurisdiction of Baku State University.

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Institutional and Legislative Changes In Azerbaijan

Sharaf Asgarova Gulchin Mammadova Partner, EKVITA Legal Assistant, EKVITA

Azerbaijan is a country at the peak of its development, what is the agreement on implementation of mediation concluded once again confirmed by numerous fundamental reforms and between the parties. If the dispute arose from economic, cooperation agreements with a number of progressing states. as well as family and labor relations, then the parties, prior Only in the months of October and November of the present to filing a lawsuit, undertake to attend the initial mediation year agreements were concluded in strategically important session. areas of the economy with Poland, Russian Federation, The mediation process consists of several stages and Belarus, Kazakhstan and Lithuania. ends with the conclusion of a settlement agreement, the implementation of which is mandatory. The starting point of the mediation process in economic, as well as family and 1. Institutional Reforms labor disputes is considered to be the moment of the parties’ These months were particularly remembered for the large- participation in the initial mediation session. In all other scale changes in the governmental and municipal system. cases - the moment of conclusion of an agreement on the By the Decree of the President dated October 23, 2019, the implementation of mediation. Ministry of Taxes, the State Committee for Property Issues After the start of the mediation process, the parties determine and the State Agency for Antimonopoly and Consumer the volume of controversial issues, and the mediator listens Markets were abolished as separate state institutions and and expresses his position. The mediator may conduct included into the structure of the Ministry of Economy in individual negotiations with the parties at any stage of the the status of relevant state services, thereby expanding the mediation process aimed at resolving the dispute at hand. structure and functions of the latter. In the process of mediation, the parties make proposals Later, by the Order of the President dated November 28, regarding their position and the conditions for the settlement 2019 Financial Market Supervision Authority (FIMSA) of the of the dispute. Throughout the mediation process, the Republic of Azerbaijan was abolished, and all its powers, principle of confidentiality of information must be maintained. authorities and property were given to the Central Bank of the Total duration of the mediation process can be no more than Republic of Azerbaijan. 30 days. By an agreement of the parties, this period may be A number of official changes also affected the prime minister of extended for another 30 days. the country and his deputies, the chairman of the presidential administration and the heads of the local executive power Costs of providing mediation services within the initial bodies of a number of regions of the country, as well as mediation session several districts of Baku. The initiative to carry out such In the summer of the present year, the Cabinet of Ministers reforms in the institutional system of the state was launched as a result of the country’s innovative policy to modernize adopted two Resolutions, in order to resolve financial issues social infrastructure and increase national welfare. regarding mediation services during the initial mediation session: 1. The Resolution of the Cabinet of Ministers dated July 15, 2. Legal Reforms 2019 On the approval of the amount of fees and other 2.1 Legal reforms in mediation expenses for the provision of mediation services during In order to fully and comprehensively implement the newly the initial mediation session; adopted Law of the Republic of Azerbaijan on Mediation 2. The Resolution of the Cabinet of Ministers dated August (March 29, 2019) the Cabinet of Ministers passed a number 16, 2019 On the approval of the Procedure for the of Resolutions regulating the financial, organizational and payment of mediation expenses from the state budget. other aspects of this procedure. Mentioned expenses are covered either by the parties to The mediation process is carried out in accordance with the dispute or by funds allocated from the state budget. In

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accordance with the Resolution referred to in Point 1, the • A set of pictures of goods that give you a detailed picture amount of expenses varies depending on the type of dispute of the appearance of industrial designs; under consideration. Thus, the price for a dispute arising • Abstract. from family and labor relations in both cases is AZN 50 (USD When filing the application, the principle of the unity of patent 29.5), while in economic disputes the price varies between objects must be respected. The application cannot contain AZN 20 – 400 (USD 12 – 235) depending on the price of the expressions, drawings, images and other materials that are claim. The amount of the expenses for postal, clerical and contrary to public policy and morality. Design requirements other services regarding mediation session is determined on (format, font, distance between deviations, etc.) of the the basis of supporting documents; and should not exceed submitted documents were also determined. AZN 10 (USD 6). These costs may be covered by state funds if the party to the Description of the patent objects dispute is an individual who does not have sufficient funds The description of the invention and utility model must express to cover mediation costs. This condition is confirmed by the the content of these objects, the field of technology to which presence of the relevant document issued by the Ministry they relate (scope), the level of technology (information about of Labor and Social Protection. The amount issued from the totality of important features of an analogue similar to the the state budget should not exceed the amount set in the intended object), etc. This, if added, includes a list of graphic Resolution of the Cabinet of Ministers dated July 15, 2019. materials. These funds are not to be used for any other purposes than established by law. Formulas for invention and utility model The formula determines the nature of the objects and the Maintaining a mediation registry scope of legal protection granted by the patent. In accordance The Resolution of the Cabinet of Ministers on the Approval of with the Resolution, the formula: the Rules for the Maintenance of the Mediation Register dated • Must be clear and accurately represent the contents of September 5, 2019 was taken for exclusively informative the objects; purposes to determine the list of mediators, mediation • Must not contain unscientific concepts; organizations and educational institutions on mediation, as • May contain mathematical expressions (formulas) and well as to ensure access to information about them. The symbols, as well as chemical formulas; mediation register is maintained by the Mediation Council and • May be one-sided and multi-sided. is publicly available on the official website of the Mediation Council. Abstract The abstract is a brief description of the invention. The 2.2 Legal Reforms in IP abstract gives the title of the invention, a description of the Enhancement of the formal procedure for obtaining a technical field to which the invention relates, and the essence patent of the invention indicating the technical result obtained, if the In order to avoid problems for entrepreneurs whose business title of the invention is not known. The abstract may contain is based on any invention, as well as for scientists and additional data, including a graphical description, table data. designers (who may be accused of plagiarism), an appropriate The abstract should be no more than 1000 characters on patenting procedure is introduced that ensures the protection average. of intellectual property, which is regulated by a number of normative acts. Materials explaining the essence of the patent objects On November 8, 2019, the Cabinet of Ministers has adopted Materials explaining the contents of objects can be the Resolution on Approval of the Requirements for the represented in the form of drawings (diagrams, graphs, application for obtaining of a patent. drawings, oscillograms, etc.), photographs, tables, diagrams. The Resolution establishes the detailed requirements and If it is not possible to clarify the description of the invention rules for obtaining of a patent for inventions, utility models or utility model using drawings or diagrams, a photo may be and industrial designs (“Patent objects”). In accordance presented. with the Resolution, the applicant himself, his authorized In order to explain the essence of industrial design, a set of representative or registered patent attorney may file an images expressing the appearance of the product must be application. The rules for formatting and filing an application presented. are determined by the Intellectual Property Agency. State registry of the patent objects Requirements for the application on the patent objects Also, along with the above mentioned Resolution, on The application for registration of the patent objects includes November 22, 2019, the Cabinet of Ministers adopted a several documents required for submission: Resolution approving the Rules for the inclusion into the state • The application reflecting relevant information; registry of inventions, utility models and industrial designs, • Description reflecting the content (features) of objects; which governs the inclusion of information on inventions, • The claims of invention or utility mode; utility models and industrial designs, amending it and issuing • Drawings and other materials revealing the essence of duplicate patents. This register is executed by the Intellectual objects; Property Agency.

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3. Decision Of The Plenum Of The on Mortgage do not clearly define the conditions necessary for a mortgage agreement. Therefore, to conclude a mortgage Constitutional Court agreement, the essential conditions must be clearly indicated It is well known that the decision of the Constitutional Court in the credit line agreement, considering that the mortgage is binding on the territory of the Republic of Azerbaijan and is agreement is of a security nature and therefore shall be subject to unconditional execution after entry into force. For considered in conjunction with the credit line agreement. this reason, we would also like to present you one of the latest Changes in terms of the credit line agreement consequently decisions of the Constitutional Court. lead to the changes in terms of the mortgage agreement. The decision of the Constitutional Court of the Republic of Unlike a guarantee agreement, among the conditions for Azerbaijan (“the Constitutional Court”) dated July 25, 2019 the termination of a mortgage agreement, there is no such (the “Decision”) on interpretation of Article 1.0.9 of the Law condition as changing the scope of obligations without the on Banks, Articles 10.5, 14 and 48 of the Law on Mortgage consent of the mortgagor, and even if such a change leads to and Articles 307.4, 405.1 and 477.0.1 of the Civil Code (the an increase in liability or other adverse consequences for it. “Code”) will serve as fundamental instrument in settlement The Court considers that the absence of the necessary of disagreements in the litigation practice pertinent to validity conditions, as well as the lack of consent of the mortgagor to and enforcement of guarantee and mortgage agreements. amend them in the mortgage agreement, unlike the guarantee To conclude a guarantee agreement, a clear definition of agreement, do not lead to the termination of the agreement, the terms of the credit line agreement is required, since the but to its consideration as non-concluded. guarantor’s liability is based on the terms of the latter. The Following the above mentioned, the Constitutional Court essential terms of the guarantee agreement include the loan came to the following decisions: amount, terms, interest rate, etc. • The guarantor and the debtor are fully responsible Further, in accordance with article 477 of the Code (termination to the creditor if all the necessary conditions of the of the guarantee [agreement]), a guarantee is considered guarantee agreement been agreed, in accordance with terminated upon termination of the obligation secured by the requirements of the law. In this regard, the guarantee it, as well as in the event of a change in the terms of this is considered terminated in the event of any change in obligation entailing an increase in liability or other adverse the guarantor’s liability leading to adverse consequences consequences for the guarantor, without the consent of the for him. latter. Such changes are: • A mortgage agreement is considered to be non-concluded • Increase in the total loan amount; in relation to a loan agreement, and the obligations arising • Interest rate increase; from this agreement are not considered an obligation • Change of loan currency; secured by a mortgage, if the necessary conditions are • Extension of the loan repayment term. not indicated in the mortgage agreement concluded as Thus, according to the Constitutional Court, for the termination security for the loan agreement and if these conditions of the guarantee, two conditions are necessary: were subsequently determined in loan agreements • Change in the secured obligation without the consent of without the consent of the mortgagor. the guarantor; Note: The subsequent (dated 9 September 2019) decision • Increased liability or other adverse consequences for the of the Constitutional Court limits the application of the above guarantor deriving from such changes. Decision to the cases not already settled by a valid and Considering the above mentioned, the Constitutional Court effective court decision. came to the conclusion that in order to conclude a guarantee agreement, a clear definition of the terms of the credit line Authors’ biography agreement is necessary, and therefore the consent of the Ms. Sharaf Asgarova started her career with EKVITA and guarantor is required for all the subsequent changes to the now she is a partner and head of Oil & Gas practice along with credit line agreement as well. The guarantor is liable before Corporate and Labor/Migration. Sharaf carries almost 10 years the creditor to the same extent as the debtor (direct liability), of professional experience in legal sphere. and in case of an unauthorized change to the underlying She received bachelor’s and master’s degree in Commercial credit line agreement the guarantee is considered wholly Law from Baku State University. Also, she has received her terminated. second LLM in Energy and Environment from Tulane University, As for the mortgage agreement, Article 10.5 of the Law on USA and she is fluent in Azerbaijani, Russian and English. Mortgages lists the conditions that must be specified in the mortgage agreement, among which the need to determine Ms. Gulchin Mammadova joined EKVITA as legal intern fresh the procedure for calculating the amount of obligations from university with EKVITA being her first official workplace. secured by the mortgage is necessary if this amount is not She is involved in Oil & Gas practice group and also provides stipulated in the mortgage agreement and to be determined legal support in corporate and labor matters. in the future. The Court believes that this condition implies the Gulchin has received her bachelor degree in law from Baku need to indicate the amount of the obligation secured by the State University in 2019. While studying at the university, mortgage, terms, interest rates, currency, etc. Gulchin was an active student and did an internship in several The Court also notes in its decision that the Code and the Law well-known organizations, including AmCham.

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Employees’ Wellbeing and Clients’ Satisfaction - a Key to Unlocking Success Huseyn Mammadov added companies like MediClub, Pasha Travel, Premium Trans to our list of clients the last year. Betta LLC, Our competitive advantage is our ability to provide high quality Chief Executive Officer services at international standards and offer local competitive prices. For AmCham members we are going a step further and offering M2M discounts on our services. Please visit our website for more information at www.betta.az

Betta LLC is present in Azerbaijani marketplace since 2008. Main services include manguarding and electronic security services of critical sites and businesses, including telecoms, oil and gas, manufacturing sectors, office security. Our partners include SOCAR-AQS, Nobel Oil, Azerconnect, Norm, etc. We do believe that macroeconomic changes can only be implemented when small-medium size enterprises are supporting them at microeconomic level. Our company was fully reorganized in 2018. New management has vast experience in major international companies, including AIOC, AMOCO, BP. In line with the trends of the socio- economic reforms in the country, the main objective of the changes was to ensure job satisfaction of staff to reduce high turnover rates, which is an endemic issue for most security companies. We do realize that we hire young, predominantly male population who are just starting their first steps in mature life and, probably, are being employed for the first time. So, our hiring process includes broad training program, including professional training and certification, psychological training of working as a guard, Security and Human Rights aspects, etc. Author’s biography This process and individual coaching help to prepare young With a progressive career in government, BP Plc. International people with strong personal values and communication skills and lately in private sector at senior regional and executive to step into other professional positions and make further roles, Mr. Huseyn Mammadov has vast experience in managing successful steps in their lives. security and business agenda with various stakeholders. In his Acting in full compliance with local legislation and the best previous job at BP in capacity of VP Communications, External international standards, the company was able to achieve a Affairs, Security and Regulatory affairs, he was managing leading position in the market. This was possible by targeting security and political risks for a BP led consortium of major oil and managing both staff satisfaction to motivate the best companies in AGT region. performance and ensuring high customer satisfaction by During his career in BP since 2006, he was involved in delivering delivering quality services. New governance processes, top major regional projects like ACG, NREP, WREP, BTC, SCP, down risk assessment and risk management plans for all etc. Since August 2015, Mr. Mammadov moved into private clients’ sites, customer satisfaction surveys were introduced. sector offering bespoke services to clients on risk management, Internal and external focus on continuous improvement security, loss prevention and resilience. Since July 2018 Huseyn brought immediate results – ISO 9001 Certification, Best works as CEO of Betta LLC. Company of the Year by Navigator.Az Award, reduced In 2014 Huseyn was awarded with the “Order of Progress” by turnover of staff by 20% in one year - are just some examples. the President of the Republic of Azerbaijan for his contribution Our client base has started growing and diversifying. We to the development of major oil and gas projects in Azerbaijan.

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Cyber Crisis Management: Readiness, Response, and Recovery Vladimir Remyga Response Management’s response can either contain or escalate an Director in Risk Advisory department, incident; indeed, a poor response can even create a crisis. Deloitte Vigorous, coordinated responses to incidents limit lost time, money, and customers, as well as damage to reputation and the costs of recovery. Management must be prepared to communicate, as needed, across all media, including social media, in ways that assure stakeholders that the Hacked devices, crashed websites, breached networks, organization’s response is equal to the situation. denials of service, copied emails, stolen credit card data, and other cyber incidents have become commonplace. It’s enough Recovery to leave one thinking—correctly— that no organization can Steps to return to normal operations and limit damage to achieve totally assured cybersecurity. the organization and its stakeholders continue after the Most organizations have therefore developed some level incident or crisis. Post-event steps include assessments of cyber incidence response (CIR) capabilities. Yet those of the causes and of the management of the incident or capabilities, which are often weighted toward short-term crisis, and promulgation of lessons learned. Effective crisis responses and IT issues, may fail to address all impacts of management extends beyond preparing for any specific event a cyber-incident and keep it from reaching crisis proportions. to development of broad, flexible capabilities that enable Avoiding a cyber-crisis often comes down to properly response to a wide range of events along various dimensions. managing a cyber-incident before, during, and after it unfolds. From the standpoint of cybersecurity—the main deterrent to This starts with a broad view of cyber crisis management. cyber incidents—the goal is to develop a secure, vigilant, and Executives often see cyber incidents as “an IT issue,” when IT resilient organization. is only one domain involved. Forward-thinking management IT and digital assets now drive a huge portion of enterprise teams recognize that effective crisis planning involves multiple value. Knowing this and understanding system vulnerabilities, functions and skill sets. They also recognize that these must attackers target organizations repeatedly and from various be highly coordinated if an incident is to be contained or, if an angles. Therefore, the risk that cyber crises pose to reputation, incident does escalate to crisis levels, managed. brand, operations, and customer and supplier relationships will continue to increase, as will the associated legal and The need for crisis planning financial effects. CBS.com notes that 1.5 million cyberattacks occur every No board of directors or senior executive team can credibly year, which translates to over 4,000 attacks every day, 170 deny the seriousness or the likelihood of cyber threats. So, every hour, or nearly three every minute1. While few attacks the time to prepare a highly effective cyber crisis management succeed, the high probability of cyber incidents dictates plan is before a cyber-incident occurs. that every organization needs to be prepared to respond effectively. Effective preparation addresses the entire crisis management lifecycle of readiness, response, and recovery. The cyber incident response lifecycle Each phase of this lifecycle presents opportunities to protect While the precise nature, location, and impact of incidents the organization from risks, costs, and damage emanating cannot be predicted, the incident response lifecycle follows a from an incident—and to strengthen the organization’s predictable path. defenses going forward: The CIR lifecycle illustrates the interplay between organizational capabilities and stakeholder confidence. Readiness Immediately after an incident, affected capabilities must Readiness equates not only to vigilance, for example in the be restored. This usually takes hours or days, but can take form of 24/7 Monitoring, but also to readiness of resources. weeks or months in severe cases. Also, cybersecurity must A well-prepared, multifunctional team must be poised to be enhanced to secure the environment, improve visibility into deal with all aspects of an incident or crisis. In addition, threats, and reduce the impact of future incidents. crisis simulation and war-gaming enables management Containing an incident and avoiding a crisis calls for to understand what can happen, which steps to take, and proactively addressing stakeholder concerns. Customers whether the organization is truly prepared. usually express concern regarding loss of personal data and privacy and may develop long-term brand aversion. 1. CBS News, These cybercrime statistics will make you think twice about your password: Where’s the CSI cyber team when you need them?

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Business partners are concerned about near-term cross- Getting coordinated contamination of their systems and the longer-term integrity Cyber incident response programs require coordination in of data and transactions. Employees may be overwhelmed six key areas: governance, strategy, technology, business by negative publicity and increased stress. Regulators want operations, risk and compliance, and remediation. assurance regarding consumer protection, and the state of the business and industry. Investors are attuned to short- term financial impacts and longer-term business and brand viability. Over the course of the response lifecycle, crisis communications stand among the highest priorities. Specifically, the organization must: • Respond to a high volume of requests from customers, business partners, vendors, regulators, law enforcement, and the board of directors • Manage requests from business partners to modify arrangements, processes, and methods of sharing information • Engage in proactive messaging to the broader base of stakeholders and the public regarding what is known and not known, and what the organization is doing • Monitor and address traditional, web-based, and social media reactions to the event and to the organization’s response and intentions. • addition, management must: • Address any potential threat of legal or regulatory action, Governance and determine what legal recourse is available to the Governance frames the way you organize and manage organization your response team. It ensures program coordination • Minimize the time between developing and implementing across functional areas, documentation of all policies, the remediation plan, while also managing the risks procedures, and incidents, and clear communication roles, generated in that interim responsibilities, and protocols. Governance aligns response strategy with goals and provides mechanisms for cross- The more comprehensive and tested the plan, the better functional communication. management’s response to an incident will be. Yet Key steps in establishing governance for response management should understand that the plan does not management include: represent a script that will play out in reality and that responses • Segregating duties by establishing an independent must be flexible and fluid. You may have to depart from the investigation team to help determine causes and plan, but the plan will provide a framework and guidance for remediation steps coordinating the diverse elements involved in the response. • Considering the role of legal counsel, who should be on or represented on the response team, which should be

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operational capabilities, but do not eliminate risk • Resolving the tension between immediate needs in the wake of an incident and longer-term remedies • Accepting that workarounds and throw-away work are often necessary to meet near-term priorities

Business operations After an incident, critical business operations must resume as soon as possible to minimize disruptions that generate financial, reputational, regulatory, and stakeholder impacts. Keys to minimizing business disruption include: • Implementing out-of-band processes to replace those that are broken or that present too many constraints during incident response or to remediation • Planning for surge support and allocating resources led by a business manager (to foster a cross-functional accordingly approach to CIR) • Understanding existing business limitations, such as the • Defining incident response and recovery lifecycle phases risks associated with using standard payments systems and a decision framework with clear steps and measures or certain applications of success Risk and compliance Strategy Risk and compliance functions should assess and manage Response strategy defines how you lead, prioritize, the regulatory compliance elements of incident and crisis and communicate during incident response and crisis response, including interfacing with legal counsel, regulators, management. Organizations should align response strategy and law enforcement. The keys are to be able to comply with with the organization’s responsibilities and values. A sound requirements and to demonstrate compliance. For example, strategy frames a cost-effective, well-resourced, organization- after an incident, investigative processes and responses wide approach to addressing cyber incidents. This minimizes must be documented to demonstrate the adequacy of both. “tunnel vision” in response planning and reduces adverse Keys to successful management of risk and compliance after impact to operations and revenue. an incident include: Key aspects of response strategy include: • Anticipating requests from regulators and law • Defining escalation and prioritization processes to enforcement, which may include requests for access to manage and coordinate IT, operational, and business systems and a review of response activity recovery • Analyzing the impacts and loss exposures for insurance • Engaging the organization’s government affairs team or and other reporting purposes other government liaison function to inform and work with • Understanding any additional risks brought about by ad regulatory agencies and any appropriate officials—an hoc processes, technology, and work-arounds required essential step in any regulated industry during incident response • Aligning response efforts with security management and IT engineering initiatives Remediation Remediation begins after critical business operations Technology resume, with short- and long-term efforts to close gaps. The The IT and cybersecurity teams develop and implement organization must verify that attack vectors are eradicated and mechanisms for detecting, monitoring, responding to, and recovering from a cyber-incident or crisis. IT engineers create the needed architecture, and IT works to maintain systems that are resistant to attacks. Technical forensic and investigative capabilities are vital to preserving evidence and analyzing control failures, security lapses, and other conditions related to the incident (see sidebar: After an incident: Investigation and response). In addition, organizations should implement both proactive and responsive technology solutions to mitigate future cyber incidents. Key steps in framing the technology aspects of incident response include: • Being realistic about IT tools, which enable security and

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take steps to prevent similar attacks in the future. Remediation cyber-threats and risk sensing can detect patterns of criminal must eliminate or minimize root causes of incidents and activity, but would not be economically viable for most return businesses, functions, IT, and stakeholders to a secure organizations to develop on their own. By the same token, operating environment. objective verification of readiness, response, and recovery Keys to successful remediation include: plans, by means of crisis simulation, war gaming, and other • Balancing the inclination to secure digital assets against assessments, can detect gaps and weaknesses in those the need to do business seamlessly plans. • Prioritizing the influx of technology project requests and When it comes to incident and crisis management, readiness increased IT budgetary needs is an evolutionary state. What you were ready for yesterday • Preparing for increased regulatory scrutiny and a may be the last thing cybercriminals have in mind today. potentially more rigorous regulatory regime Indeed, you cannot really know the specific source or target The response team should include individuals from each of of the next attack. But you can gauge risks based on the the above six areas to develop a well-resourced, balanced, value of your digital assets and the impact of their being consistent approach to cyber incidents and cyber crises compromised. You can gauge likelihood. And you can ready across the organization. the organization for effective response and recovery.

Author’s biography Are you ready? Mr. Vladimir Remyga is a Director in Risk Advisory department. Most organizations will lack the resources to develop He leads Deloitte’s digital and cyber security services in the and maintain all necessary incident and crisis response Caspian and Caucasus regions. Vladimir has over twenty years capabilities in-house. The expertise required, the evolving of experience in IT and cyber security and serves large number risk landscape, and the resources of cybercriminals render of organizations in whole CIS region, specializes in Digital and it impractical for most organizations to go it alone. Thus, Cyber risk management, IT cost optimization and Digital driven an outsourced or co-sourced approach with a provider of transformations. managed cybersecurity and response services may be the He joined Deloitte in 2019 and shares his time between best option for most organizations. Azerbaijan, Kazakhstan, Georgia and Uzbekistan. Prior to Leveraging cyber-threat intelligence capabilities, for example joining Deloitte, Vladimir was based in Almaty, Kazakhstan via sharing with industry peers or outsourcing to specialists where he was IT Advisory Director in a global consultancy firm. will make sense for many organizations. Many will also He received his MBA in Entrepreneurship from Moscow benefit from external support in developing and maintaining International Business School (MIRBIS). cyber monitoring and cyber risk management programs. Vladimir also has honors degree in Protection and Safe For example, 24/7 Monitoring can provide early warnings of Information from Kazakh National Technical University.

25 AmCham Azerbaijan About Us The American Chamber of Commerce in Azerbaijan (AmCham Azerbaijan) is a leading private, non-profit business association supporting and promoting the interests of foreign and local businesses in Azerbaijan.

Established in 1996, the Chamber is Being one of the largest and the most Travel, Tourism & Hospitality, Corporate composed of around 250 Members influential organizations in the country Social Responsibility, Healthcare & and Associates active in every sector AmCham provides the best networking Medical Insurance, Legal & Compliance, of the Azerbaijani economy. AmCham opportunities. Other membership benefits FMCG and Procurement to make a real Azerbaijan represents nearly 80% include access to the data on the latest contribution to the future of business of all foreign investment, as well as a tendencies in the market (through such in Azerbaijan); Member-to-Member significant portion of local investment, information resources as Annual National Discount Program offers; U.S. Business in Azerbaijan. Through its 8 industry Employee Salary Surveys, Quarterly Visa Facilitation Program benefits etc. sector committees and 2 working Inflation Surveys, AmCham White Papers, groups, Members and Associates are AmCham Annual Reports, IMPACT Notably, the delegation of AmCham had able to share information, raise issues of Azerbaijan Quarterly Magazines); chance a privilege to meet with the President of common concern and propose possible to be heard and influence (Member Azerbaijan, H.E. Ilham Aliyev, in 2016. solutions. AmCham Azerbaijan remains Companies represent themselves Besides, the organization has established the most influential Access, Advocacy in committees in the areas of Tax & fruitful dialogue and keeps on cooperating and Advisory services provider in Customs, Banking, Finance & Insurance, successfully with government institutions Azerbaijan serving the improvement of Human Resources & Labor, Information on the highest level the business climate in the country. & Communications Technologies,

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Business Events Conference on “Digital Transformation and Innovation in Azerbaijan” On November 28, the conference on Digital Transformation and Innovation in Azerbaijan was held with organizational support of AmCham. The event was attended by representatives of the Ministry of Transport, Communications and High Technologies of the Republic of Azerbaijan, and more than 150 representatives from various business sectors and diplomatic corps. Mrs. Natavan Mammadova, Executive Director of AmCham and Mrs. Kamilla Shakhbazova, Chairperson of AmCham Digital Technology and Innovations Committee delivered opening speeches, welcomed the conference participants and spoke about the purpose of the conference and the importance of reforms for economy of the country.

of development, improving efficiency, expectations and innovations of AmCham. During the second panel of the conference on Innovation and Startups, speeches were delivered by Mr. Mammad Karim – the representative of INNOLAND, Ms. Shabnam Mammadova, representative of ASAN Service, and Mr. Garib Mehdi, representative of WeTravel. The last panel of the event addressed the subject of FinTech and was remembered by the speeches of Mr. Farid Osmanov, Central Bank representative, Mr. Vusal Khalilov, representative of PASHA Bank, Mr. Taleh Tahirli, representative of International Bank of Azerbaijan, Mr. Elchin Gadimli, representative of Rabita Bank and Mr. Farid Samadov, representative of Kapital Bank.

Then Mr. Rashad Azizov, the representative of the Ministry of Transport, Communications and High Technologies of the Republic of Azerbaijan shared detailed information about reforms made in the country in the relevant field, spoke about the importance of establishing closer dialogue between the state and business, as well as the business’s support for the state at all stages of reforms, and stressed that the conference was an important step in that direction. Mr. Rashad Azizov noted that issues regarding reforms on digital transition were regularly kept focus by the Government of Azerbaijan. Then, during the panel discussion on Digital Transformation Mr. Rufat Hajialibeyov – member of the AmCham Board of Directors, Mr. Fariz Jafarov – Director of E-Government Development Center, Mr. Mehman Abbas – Deputy Chairman of the Small and Medium-sized Enterprises Development Agency, and Mr. Elchin Aliyev – President of SINAM Company delivered speeches on main directions

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International Workshop on Waste Management Practices On November 14, “Azerbaijan without waste” international workshop was held in Baku. The workshop, which was attended by international experts, was dedicated to the adaptation to international practice and improvement of solid waste management in the country. The event was organized by AmCham, the Ministry of Ecology and Natural Resources, Coca-Cola Company and “Tamiz Shahar” OJSC within the framework of Caspian Ecology 2019 Azerbaijan International Environmental Exhibition. With his opening speech at the workshop, Deputy Minister of Ecology and Natural Resources of the Republic of Azerbaijan Mr. Rauf Hajiyev assessed the fact that the event was held within the framework of the Caspian Ecology 2019 International Environment Exhibition as a positive step, and provided information on priorities of the “2018-2022 National Strategy for Solid Waste Management of the Republic of Azerbaijan”, emphasizing the importance of adapting waste

Professor Thomas Lindqvist of the Swedish Lund University and the founder of the International Institute for Industrial Environmental Economics in Sweden, made a presentation on how to create effective public policies on the establishment of waste reduction and recycling practices using the examples of a number of European countries. The well-known expert in the field of environmental policy emphasized the importance of developing arrangements for waste reduction and recycling in Azerbaijan and establishing this process jointly with the manufacturers. Later, the representative of “Tamiz Shahar” OJSC informed about the proposals that were being developed to improve the process of solid waste management. Companies, such as Coca-Cola, Carlsberg, Azersun, Procter & Gamble, Unilever, Veyseloglu Group, which actively participated in the discussions, expressed their willingness to support the initiative to improve waste reduction and recycling practices in Azerbaijan. management in the country to the best international practices. Mrs. Natavan Mammadova, Executive Director of AmCham, stated that the Chamber, which represented by more than 200 foreign investors, as well as local companies, continued to support recent reforms in Azerbaijan. “The American Chamber of Commerce, which plays the role of a bridge between state bodies and the private sector in Azerbaijan, presents the opinions and suggestions of experienced private sector experts on various government programs and legislative drafts. This cooperation contributes to the development of business environment in the country and the implementation of reforms in line with international practice. AmCham welcomes the plans on waste management in Azerbaijan in accordance with modern standards. A number of international and local manufacturers represented in the Chamber are ready to take an active part in this process,” said Mrs.Natavan Mammadova.

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AmCham in cooperation with USAID: SGF/IFU EURASIA Road Show 2019 On October 31, the SGF/IU Eurasia Road Show 2019 was held in Baku. SGF International e.V. (SGF) and the International Fruit and Vegetable Juice Association (IFU) organized the forum in collaboration with AmCham and the United States Agency for International Development (USAID), with assistance of Coca Cola Company. This series of forums, which educates juice producers about the resources provided by SGF and IFU to its members and the wider industry to support access to international market, is held on a different continent each year, having previously taken place in Latin America in 2016, Asia in 2017, and in Africa in 2018. Mr. Rufat Mammadov, the Deputy Minister of Economy of the Republic of Azerbaijan, greeted participants in the Eurasia Road Show and emphasized the great importance of this platform in terms of providing access to international about international fruit and vegetable juice production markets for entrepreneurs engaged in fruit and vegetable standards. Hopefully, new opportunities will open up for fruit juice production and building cooperation with their foreign juice producers of our country, as well as entrepreneurs counterparts. involved in agriculture to access foreign markets after this event,” Aleksandra Heinerman, the General Secretary of SGF, and Dirk Lansbergen, the President of the IFU, expressed their great satisfaction with the Forum in Azerbaijan. SGF was founded in 1974 and performs voluntary control functions for its member fruit juice producers. IFU was founded in 1949 and is an international membership organization that brings together fruit juice producers and national producer associations from across the planet, while representing its members at the Codex Alimentarius and other international entities. SGF and IFU are open for Azerbaijani producers and invite them to join their respective organizations. The event was attended by nearly 50 local producers and entrepreneurs, as well as governmental and international donor representatives. The Forum included presentations by international speakers, including a speech by the chairman of the Agro Procurement and Supply company under the Ministry of Agriculture. Dr. Jay Singh, Mission Director of USAID/Azerbaijan, shared his gratitude, – “I am happy to have the International Fruit and Vegetable Juice Association and SGF in Baku. They bring together competitors to raise the standards and image of the juice industry as a whole.” He added “USAID has supported the establishment and strengthening of similar industry associations in Azerbaijan, including the Azerbaijan Hazelnut Producers and Exporters Association and the Azerbaijan Berry Producers and Exporters Association. Associations can offer benefits that members could not achieve on their own —such as reaping the benefits of economies of scale through joint purchasing and sales and sharing industry best practices to build reputation and brand recognition.” “The fact that the 2019 Forum is being held in Azerbaijan is a very significant event for the country’s agricultural sector,” noted Natavan Mammadova. “This Forum provides a unique opportunity for manufacturers targeting international markets and the European market in particular to obtain information

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2nd Joint AmCham and Baku City Circuit Career Fair The two-day career fair jointly hosted by Baku City Circuit Operations Company (BCC) and AmCham took place at BCC Academy, where about a thousand job seekers visited the fair held on 29-30 October. The head of the BCC Academy and BCC Human Resources Department, Ms. Iran Ahmadova, noted that young specialists showed particular interest in the event: “Career fairs create opportunities for acquaintance and first contact between companies and job seekers, they are especially helpful for junior staff at the beginning of their professional career. In order to provide the national economy with qualified personnel, leading companies should pay special attention to providing support to young specialists and opportunities for professional development”.

Further, Huseyn Huseynov, Head of Sustainable Development Department of the Ministry of Economy spoke about the government initiatives in this direction. Among the presenters were the Chairwoman of the Sustainable Development and Corporate Impact Committee of AmCham and Head of EY’s Climate Change and Sustainability Services in Azerbaijan and Georgia – Gunel Farajova, UN National Information Officer – Rashad Huseynov, UN Development Coordination Officer – Shams Mustafayeva and CSR Officer of Holcim Azerbaijan, Rena Tahirova. Presentations were held in an interactive manner encouraging an atmosphere of learning and development through an open dialogue. Speakers covered a variety of topics ranging from the role of media in sustainable development to the engagement of businesses in promotion of sustainability. Presenters also covered topics of special importance such as the concept of greenwashing, which is an increasingly AmCham Executive Director, Mrs. Natavan Mammadova common practice of promoting misleading information or highlighted the importance of the career fair and noted: “The biased presentation of facts about the environmental benefits event has been organized at a high level, with the involvement of certain actions taken by companies as a way to influence of country’s leading companies presenting their employment public perception of their brand. and internship opportunities. I believe that many visitors could find new opportunities for further professional growth”. Over 30 local and international companies participated in the career fair. While young specialists were among the main visitors to the fair, the age of job seekers was up to 60 years. Joint Workshop by AmCham Sustainable Development and Corporate Committee and UN Azerbaijan On October 28, AmCham in cooperation with the UN Azerbaijan held a workshop for media representatives on the topic “The Role of Media in Promoting Sustainability Among Businesses”. The workshop started with an opening speech by the Executive Director of AmCham, Natavan Mammadova, who highlighted the importance of media in promotion of sustainability.

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The dialogue continued after the presentations when media Mr. Shikhaliyev first thanked AmCham’s management and representatives and speakers had a chance to engage in members for the invitation, expressing his gratitude for the a Q&A session, voicing their concerns and brainstorming opportunity to meet directly with business representatives. He possible solutions. AmCham members and UN employees then spoke in detail about the work being done and the goals shared their expertise and recommendations, while media set out in application of digital approach to improve business representatives outlined the specifics of their work and environment. He stressed that the discussion of practical issues challenges. All the participants highlighted the importance of arising in the business environment within the single Platform such events as a way to bring the stakeholders together to (State-Business Dialogue) with participation of government discuss the challenges faced by all parties, to find solutions agencies, private sector and business associations, and the and to encourage mutual understanding. joint development of solutions in that area were very important at the current stage. Vusal Shikhaliyev said that along with successful future implementation, the improvement projects and proposals for the aforesaid Platform has facilitated to take into account the interests of all parties thereof. V. Shikhaliyev also noted that direct and close participation of business representatives in development of legislative and administrative improvement projects provided great opportunities for timely consideration of their proposals, advance preparation for the acceptance of the mentioned projects, as well as business process forecasting. It was brought to the attention that an electronic communication system easing access to all involved parties in improving the investment environment was created for this purpose within

AmCham event on Digital Approach to Improving Business Environment On October 11, AmCham organized an event on Digital Approach to Improving Business Environment for its members with the participation of Mr. Vusal Shikhaliyev, Head of the Secretariat of the Commission on Business Environment and International Rankings of the Republic of Azerbaijan. About 100 AmCham members and partners, including representatives of the diplomatic corps, business associations and Chambers, international organizations, and others attended the event. Opening the event, Mrs. Natavan Mammadova, Executive Director of AmCham, welcomed the guests and spoke about the importance of the event. Then, the president of AmCham, Mr. Nuran Kerimov noted that the main purpose of the event was to attain close involvement of foreign investment companies in the process of further improvement of the business environment in Azerbaijan and to inform them of favorable opportunities available through AmCham representing foreign investors. Afterward, N.Kerimov presented the special guest of the event, Mr. Vusal Shikhaliyev, to the participants and invited him to the floor.

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pleasure to see everybody after the summer vacation and wished everybody a successful business year. Then, Mr. Ilgar Rahimov, President of the National Paralympic Committee of the Republic of Azerbaijan gave detailed information on Paralympic movement and rapid development in Azerbaijan, successes of our athletes in international

the Commission on Business Environment and International Rankings (https://azranking.az). This system has a number of advantages, such as institutionalization and digitization of development, coordination and implementation of business reforms, the involvement of business representatives, international and local experts as permanent and equal members in the process of developing and communicating business reforms, etc.

competitions, state care for this movement, child Paralympic movement and rehabilitation of athletes, improvement of their living conditions and their integration into society. The event was accompanied with delicious food, music and best networking opportunities.

AmCham Back to Business Cocktail Reception 2019 On September 19, AmCham hosted its traditional Back-to- Business Cocktail Reception. The beginning of September signifies the end of summer holiday season and the start of a new business chapter, packed with lots of events and new opportunities. On this occasion, more than 200 members of AmCham community joined us to network, enjoy delicious food and drinks, and launch the new business season together. Mrs. Natavan Mammadova, Executive Director of AmCham Azerbaijan and Mr. Nuran Kerimov, President of AmCham Azerbaijan welcomed the guests and expressed their

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Amcham Members’ Luncheon of SOFAZ to the economy and the state budget throughout the activity was highlighted during the presentation. S. Movsumov also informed the participants about Baku-Tbilisi- Ceyhan, Baku-Tbilisi-Kars, STAR Oil Refinery, Southern Gas Corridor, reconstruction of the Samur-Absheron irrigation system, construction of Oguz-Gabala-Baku water pipeline, and other local and foreign projects financed by SOFAZ.

October 22 On October 22, AmCham Azerbaijan hosted members’ luncheon. The honorable Guest Speaker of this month – Mr. Shahmar Movsumov, Executive Director of the State Oil Fund of the Republic of Azerbaijan (SOFAZ), spoke on activities aimed at improving this sector in the country and the issues remaining high on its agenda. Around one hundred AmCham members and partners attended the event, including The Executive Director of the SOFAZ also presented thorough representatives of diplomatic corps. information about the investment portfolio of the SOFAZ. He noted that the volume of assets is approaching $42.5 billion. “The State Oil Fund implements a very conservative investment policy. Since 2012, however, the Fund has begun to implement a variety of new types of assets, raised shares and invested in real estate and gold. We will continue to work to increase the risky assets in the future”, he added. Besides, the Luncheon highlighted several member presentations.

Mr. Movsumov started his speech talking about the mission and goals of the SOFAZ. He noted that the mission of the SOFAZ is to collect revenues from depleted natural resources and make it a permanent source of income for the current and future generations of Azerbaijani people. He also said that the main objectives of SOFAZ are to maintain macroeconomic stability in the country, equally distribute income from depleted natural resources between generations and accumulate resources for future generations, as well as investing in the social and economic development of the country. Mr. Movsumov also touched upon the management structure and legal framework of SOFAZ. In addition, positive contribution

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Mr. Huseynov started his speech by referring to the difficult times our country had gone through since independence and its fastest revival from the deepest Post-Soviet recession among CIS countries. He emphasized the significance of post-oil reforms carried out since 2015. Moreover, he mentioned that the years of efforts to stabilize economy turned into positive growth starting from 2018 and according to the International Monetary Fund, static development is predicted in the non-oil sector for the medium-term. Later, he noted approximately 3 million people benefited from social reforms package carried out according to decrees

September 23 On September 23, AmCham Azerbaijan organized its first luncheon since the business season has started. The Guest Speaker – Mr. Emin Huseynov, Aide of the First Vice-President – delivered a speech on the recent economic development and diversification paradox.

signed by the President of the Republic of Azerbaijan. In this respect, Mr. Huseynov touched upon the adoption of other related Azerbaijani laws and regulations in this field. While talking about economic diversification, Mr. Huseynov stated that the natural resources and infrastructure are not sufficient to maintain sustainable economic development and emphasized the importance to establish institutions to undertake diversification, as well as human capital development effectively. At the end of his speech, Mr. Huseynov encouraged all business representatives to collaborate actively with government by emphasizing the importance of support on governmental reforms by both local and international companies. Lastly, Mr. Huseynov answered the questions raised by members and expressed his gratitude for the opportunity to have a face-to-face dialogue with the business community. He specifically thanked Mr. Nuran Kerimov and Mrs. Natavan Mammadova – President and Executive Director of AmCham – for invitation and hosting the event. Besides, the Luncheon featured several member presentations (SOCAR Midstream Operations; Kapital Bank; Vitam). Around 170 AmCham members and partners attended the event, including representatives of diplomatic corps.

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Committee Highlights Human Resources Committee Meeting On November 14, AmCham HR Committee hosted its next remarkable event dedicated to HR Role in Leadership Development with participation of more than 50 individuals from different organizations. The importance of HR was highlighted to have the right people for competitive performance in various leadership roles. Mrs. Ellada Alishova, Deputy Chairperson for AmCham HR Committee, opened the meeting by welcoming participants and gave brief foreword of the meeting. Following, she introduced the speakers Mrs. Rena Afandiyeva, HR & Training Head, PMD Group LLC and Mr. Eldar Mamedzade, Chief Commercial Officer of Nobel Oil. On October 18, AmCham HR Committee hosted its regular meeting for this month. Ms. Elnara Mammadova, Chair of AmCham HR Committee, opened the HR committee monthly meeting which was dedicated to Legal Panel, welcoming the audience and introducing official representative from Ministry of Labor and Social Protection of the Republic of Azerbaijan, Section Head Khanim Isgenderova, Independent Consultant on Labor Issues Rizvan Karimov and BP Legal Counsel Ms. Aliya Movsumova. Ms. Elnara Mammadova greeted guests and introduced the topics of the agenda. During the first part of the meeting, committee members discussed the main topics delivered from the audience. The participants raised a number of issues for discussion, such as inadmissibility of denying vocational requests, workplace safety and health for women and employees under 18, business travel payment methods Mrs. Rena Afandiyeva dedicated her presentation to & solutions, flexible working hours and distance working from Leadership Development from the perspective of HR under legal perspectives throughout the Panel. the slogan of “Great Leaders are Made, not Born”. She The second part of the meeting was dedicated to presentations gave information regarding HR’s role under challenging on “Compulsory insurance against loss of the professional circumstances, attraction of best people and sustainability of work capacity, as a result of labor accidents and occupational their motivation, and transition from administrative to business diseases” and its main purpose of protection of interests of partner role. Afterwards, she pointed out the importance insured persons and third parties who suffer damages and of having long term approach for individual leadership losses. Compulsory Insurance Bureau highlighted the recent identity, creation of leadership program, depth approach with changes through online registration and online payment for mentorship, coaching, and support. The presentation was mandatory state social insurance funds. followed with the analysis of four elements that HR needs Legal panel was concluded by practical classes from Xalg to create in order to have leadership in the organization, Life Insurance, they also shared their experience, challenges consequences of misalignment or how to use current HR through the online transition process. In the last part of the trends for better leadership in organizations. committee meeting, it was suggested by guest speakers and Mr. Eldar Mamedzade proceeded the meeting with his agreed by participants to conduct legal discussions on regular comprehensive approach to Leadership Development that bases for knowledge and practice sharing. drives from his more than 10 years leadership experience in Oil & Gas industry. In his speech, the necessity of On September 19, AmCham HR Committee hosted its first understanding two concepts – leadership and sustainability meeting for the new business season. The HR Committee – was mentioned for not compromising the needs of future Chair Mrs. Elnara Mammadova opened the meeting by generations as a result of today’s steps. He reflected on welcoming the members of the Committee and outlining the Jim Collin’s levels of leadership to give clear outlook to the context of the Agenda. She thanked all members who were audience and demonstrated key aspects of moral leadership actively participating in HR focus group. and neglected values to identify leadership. Firstly, she invited Mr. Mike Zhangi, Vice President Wells,

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BP (Azerbaijan), to deliver a presentation on the “Inclusion Guest Speaker Martin Glenn – Judge, U.S. Bankruptcy Court vs. Diversity”. He started the topic referring to the Maslow Southern District of New York. He delivered a session on how hierarchy of needs and demonstrated the difference between small businesses can benefit from bankruptcy proceedings, inclusion and diversity. Mr. Zhangi concluded his speech U.S. legislation and practice in the relevant field and other by providing HR members a list of solutions how to support related issues. management and staff. Mrs. Mammadova invited the second speaker – Alister Forder, Area Operations Manager, BP (Azerbaijan) to make Sustainable Development and Corporate a presentation on “Why women are underrepresented in the oil companies?” He compared the myths and facts about Impact Committee Meeting On September 30, AmCham Sustainable Development and this perception and drew a conclusion on leader’s role. He Corporate Impact Committee held its monthly meeting. Ms. emphasized that leaders are the main source of support to Gunel Farajova, Sustainable Development and Corporate women in their career advancement. Impact Committee Chair, welcomed the members of the committee and gave the floor to Mrs. Natavan Mammadova, Executive Director of AmCham. Mrs. Mammadova welcomed the participants and expressed her gratitude to EY for hosting the meeting. The future expectations of the committee chairs, as well as committee strategy were discussed, and participants agreed on importance of a regular sustainability report. Aslan Ibrahimov, Risk Advisory Manager, Deloitte, made a presentation about survey results and suggested to simplify the upcoming surveys. Later, Emin Ilyas, Founder of Bioropean LLC, talked about the current recycling practices in the country and he argued that the absence of recycling culture is one of the main reasons for low progress in this field. He added that current landfills and incineration plants were not capable of recycling batteries; Later, Mrs. Mammadova passed the floor to Leyla therefore, we are in need of technological advancement in Maharramova, Managing Director, LY Coaching & Consulting recycling. to present the ways how to boost diversity, as well as inclusion in the work culture of local companies. Discussion on position papers between AmCham Legal & Compliance Committee and Procurement WG On September 19, AmCham Legal & Compliance Committee and Procurement WG had a discussion on state procurement issues. At the end of the meeting, it was decided to draft a position paper reflecting procurement concerns and suggestions. Legal & Compliance Committee’s Workshop On September 26, AmCham Legal & Compliance Committee’s Workshop took place. We had an Honorable

Furthermore, Elshad Farzaliyev, Communication Manager of Coca Cola Bottlers in Azerbaijan, informed about the latest updates on plastic bag use in the country and discussed the importance of policy change in the community. Final suggestions by Committee Members were to organize workshops more often to integrate the CSR values into Value Chain and form a working group for committee members. Additionally, it was decided to draft a position paper on sustainability tax incentives.

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Mr. Pfeifle’s speech dedicated to global problems, specifically, IPR as a step to prevent cybersecurity threats. At the end, he gave recommendations on how to prevent cybersecurity crises: keep all licensees updated, move towards the cloud and increase awareness about these risks. Mr. Remyga made a presentation dedicated to Cyber crisis management: readiness, response, and recovery. Cyber incidents, such as organizations’ infrastructure devices hacked, websites crashed, email copied, stolen credit card data, discussed during the presentation and he provided an approach to efficiently manage such kind of risks. Additionally, he indicated 6 key areas of the Cyber incident response program: governance, strategy, technology, business operations, risk & compliance, remediation. He also talked FMCG Meeting about the Deloitte Center for Crisis Management which was On October 1, AmCham held its next FMCG meeting. very useful for clients to get information on how to prepare Waste management regulations expected to be adopted in for, respond to, and emerge stronger from any major crisis. In the country were discussed with the representatives of the the end, Mr. Rufat Hajialibayov concluded by highlighting the Ministry of Ecology and Natural Resources of the Republic of main points to prevent Cyber crisis: Azerbaijan and “Tamiz Shahar LLC”. The meeting was closed with the planning of the SGF-IFU Eurasia Road Show, which consists of five seminars for the juice industry that will be held in five different countries. Digital Technology & Innovation Committee Meeting On November 6, AmCham Digital Technology and Innovation Committee hosted its monthly meeting. Ms. Kamilla Shakhbazov, Chairperson of the Committee, opened the meeting by welcoming speakers, participants and announced the agenda. The discussion was dedicated to Cybersecurity and hosted by two speakers: • Mr. Mark Pfeifle, Cybersecurity Expert, former White House Advisor • Mr. Vladimir Remyga, Director, Risk Advisory at Deloitte. • National strategy for the government, Mr. Justin Berg, Commercial Officer of the US Embassy, in • Increase awareness through education, his short speech cited US Ambassador’s words about the • Continue promoting official licensing and GDPR. importance of cyber-security and proposed Azerbaijan to become a cyber-security hub for the region. On October 4, AmCham Digital Technology and Innovation Committee hosted its monthly meeting. Ms. Kamilla Shahbazov, Chairperson of the Committee, opened the meeting by welcoming participants and announcing the agenda. The discussion was dedicated to 2 topics “IT cost reduction: from OPEX to CAPEX, cloud computing and benefits of IT outsourcing” and “Data Protection Regulations of the EU”. Our first speaker – Mr. Ruslan Aliyev, Chief Commercial Officer of AzInTelecom – started his presentation on Cloud Computing and Digital Transformation and shared AZCLOUD experience how to transform IT professional to cloud professionals. Afterward, Kamilla gave the floor to the second speaker of the meeting – Ms. Amina Bakshiyeva, Legal Manager, Deloitte & Touche, who shared a presentation with participants about General Data Protection Regulations of the EU.

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Tax & Customs Committee Meeting On November 8, AmCham Tax&Customs Committee held its extraordinary meeting. Mr. Jeyhun Mamedov, Committee Chair welcomed the participants and opened the discussion. The meeting was devoted to the discussion of the topics to be included into the Position Paper to be submitted to the Government and setting a working group that will work on the preparation of the Paper based on the feedback from the Committee members. It is expected that the number of group members will be up to 10 and the group will meet on a weekly basis to draft and finalize the Position Paper. The deadline for the submission of the Paper is the end of November 2019. During the meeting Legal & Compliance Meeting On October 15, AmCham Legal & Compliance Committee hosted its monthly meeting. Mr. Vagif Ahmadov, Committee Chair, welcomed the participants and presented the topic of the meeting. The discussion was dedicated to position papers, as well as establishment of a working group for legal issues. Then, Kanan Tabasaransky from Procurement WG made a presentation about the latest procurement issues and answered the questions about “due diligence” concerns. BFI Committee Meeting

it was agreed to include the following topics into the Position Paper: • Issues related to short customs declarations • Clarity and transparency of customs reference price for goods • The disruptive practice of tax administration, which is not legislatively defined or differently interpreted – “risky taxpayers”, the broad definition of Azerbaijan source of income for withholding tax purposes. “Punishment of taxpayers” attitude of tax authorities. • VAT related issues – VAT payment date to the deposit account (even earlier payment is subject to penalty); recovery of VAT on advance payments under turn-key On October 18, AmCham Banking, Financial, and Insurance agreements (companies suffer huge burden); + possibility Committee held its meeting for this month. Mr. Bahruz of transferring funds accumulated in the deposit account Naghiyev, Committee Chairman, welcomed the participants, to the taxpayers’ bank accounts announced the agenda and gave the floor to the main speaker of the event, Mr. Shaig Ganbarli, an Economic analyst at Pasha Bank. Mr. Ganbarli made a presentation about the quarterly macroeconomic and financial sector analysis of Azerbaijan as of end-Sep 2019. Afterward, Mr. Naghiyev talked about the regulations recently updated by FIMSA. It included the proposals on: • Rules for classification of assets and creation of special reserves for possible losses; • Rules of calculation of bank capital and its adequacy ratio; • Rules for determining the limits of open currency position in banks.

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• Issues related to short customs declarations; • Clarity and transparency of customs reference price for goods; • The disruptive practice of tax administration, which is not legislatively defined or differently interpreted – “risky taxpayers”, the broad definition of Azerbaijan source of income for withholding tax purposes; • VAT related issues – VAT payment date to the deposit account (even earlier payment is subject to penalty); recovery of VAT on advance payments under turn-key agreements (companies suffer huge burden); • Introduction of losses carry back and longer term (at least, 10 years) for loss brought forward; • “Punishment of taxpayers” attitude of tax authorities. • Introduction of losses carry back and longer-term (at • It was decided to create a working group, who will work least, 10 years) for loss brought forward on the preparation of the paper based on the feedback • Different PIT, SIC and Mandatory Medical Insurance from the members. rates for private and non-oil and gas industry • The effective date of the proposed amendments. Referred rules are not introduced on a timely manner Travel, Hospitality and Tourism Moreover, it was decided to create a working group with the following members: Committee Meeting • Mr. Jeyhun Mammadov – BP • Ms. Narmin Aslanova – Deloitte • Mr. Zaur Gurbanov – EY • Mr. Arif Guliyev – PWC • Mr. Rustem Musayev – ACE Forwarding • Ms. Turan Jafarova – Azintelecom LLC (under the Ministry of Transporation, Telecommunication and High Technologies • Ms. Sevil Aliyeva – Auto Capital Azerbaijan • Mr. Akif Naghizade – Workplace InteriorsAdditionally, the participants agreed to share the list of the issues and members of the working groups with all Committee members to get their suggestions and/or candidates for the working group within a week-time.

On October 23, AmCham Tax & Customs Committee held its meeting for this month. Mr. Jeyhun Mamedov, Committee Chair welcomed the participants and opened the discussion. On November 7, AmCham THT Committee hosted its first The meeting was devoted to the discussion of the Position meeting for this year. Mr. Aykut Korkmaz, the newly elected Paper to be submitted to the government. The committee Chairman of the THT Committee, opened the meeting by members went through the survey results, which was arranged welcoming the audience, sharing the committee’s plan for the amongst the members before the meeting. The following upcoming meetings and announcing the speaker as well as points were raised during the discussion by members: the agenda of the first meeting. The meeting was held in the format of informative presentation on “Azerbaijan Tourism Agencies Association (ATAA)” with the participation of Mr. Ildirim Ganbarov, ATAA Board Member as a speaker. The purpose of the presentation was to make the guests better acquainted and aware of the structure, activities and nearest plans of the Association. Presentation followed by a Q&A session where participants had a chance to address their questions and concerns to the ATAA representative. A lot of points were touched, some of them being code of conduct of ATAA, data protection tools, training for travel agencies, cashless method of payment problems in the regions of Azerbaijan, cashback system between travel agencies and hotels, domestic fam trips, etc.

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Social Events 14th Annual Black & White Ball On Saturday, November 30, AmCham Azerbaijan hosted its diplomatic corpus in an absolutely unique environment. 14th Annual Black & White Ball – at the gorgeous BUTA Palace, More than 700 guests had the unique chance to dedicated to the 25th anniversary of the Contract of Century. enjoy the traditionally gourmet menu, high-class This magical and unforgettable ball brought together music, and dancing with an amazing show program. business leaders, high-level Government officials, On behalf of the entire AmCham team, huge thanks to all who members of Parliament, representatives of the attended the 14th Annual Black & White Ball!

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41 AmCham Azerbaijan

AmCham Legal Update

Developments in the sphere of mediation For the purposes of supplementing the implementation of Average number of em- Annual ployees during the re- Final amount of the bal- the Law on Mediation dated 29 March 2019, the Cabinet Revenue (mln. AZN) porting year (the number ance (mln. AZN) of Ministers has adopted Decisions No. 385 and 386 of employees) approving the Rules on Mediation Procedure (the “Rules”) 180,0 450,0 1500 and the Rules for Keeping Mediation Registry (the “Registry (previously it was 120,0 ) (previously it was 300,0) Rules”) on 5 September 2019. The Rules determine the procedure of mediation, as well as rights and obligations of Being qualified as a public interest entity affects accounting, persons participating in the mediation procedure, including obtaining professional certificates of chief accountants, mediator(s). Under the Registry Rules, the Mediation Council compiling, auditing and publishing financial statements of (the “Council”) is authorized to keep Mediation Registry (the an organization. “Registry”). It should be noted that the Registry contains information on mediators who have the right to engage in Control over the provision of information about new mediation, those who are suspended or those who have jobs and vacancies has been strengthened been expelled from the Council, as well as information According to the “Rules and Form of Reporting New or on mediation organizations and mediation training Vacant Jobs in Electronic Information System” approved organizations. It is envisaged that the Registry which is kept by Resolution No 411 of the Cabinet of Ministers of the on annual basis for every administrative unit shall be made Republic of Azerbaijan, an employer is required to report on publicly available on a web-page of the Council. a vacant job position to the “Vacancy Bank” via “e-social” internet portal of the Ministry of Labor and Social Protection Qualification criteria for public interest entities has within 5 (five) working days from the date of the vacancy been amended has been opened. Failures to do so will result in the Based on the Decision of the Cabinet of Ministers of the administrative penalty in the range from 500 Manats (US$ Republic of Azerbaijan, the criteria for qualification as 293) to 1000 Manats (US$ 586). In addition to that, “e-portal” public interest entity has been amended. Thus, now the automatically creates a staff schedule for each employer commercial entities with indicators higher than two of the based on employers’ registered employment contracts following criteria are considered as public interest entities: and vacancy bank information. This schedule reflects the

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total number of staff units and the number of occupied and Risky taxpayers and false transaction concepts and vacant job positions. If the staff schedule does not contain a related provisions: vacant job position, the employer may not technically submit The following terms are considered to be added in the Tax a notification on registration of new employment contract to Code: risky taxpayer, false transaction and beneficiary of the the e-government portal, i.e. is not able to legally hire new false transaction. The beneficiary of a false transaction is the employees. actual owner of a legal entity that receives income from the false transaction, or an individual who exercises control over Approval of the “Patent Claim Documentary that legal entity. Criteria for identifying a risky taxpayer are Requirements” expected to be published as separate guidelines. The Law The Cabinet of Ministers of the Republic of Azerbaijan envisages the followings with regards to the taxation of risky approved Decree No 437 dated 4 November 2019 setting taxpayers: the “Patent Claim Documentary Requirements”. The Decree points out that the Intellectual Property Agency • Information about risky taxpayers not to be considered (IPA) will determine a patent application form and filling and as a trade secret; presentation rules thereof as well as a template author’s • To perform extraordinary tax audit and operative tax rights agreement and service invention agreement for control; creation and use of invention, utility model and industrial • Determination of the date for refund of the overpaid tax sample. A local applicant (an individual or a legal entity) from the state budget without consideration of the full may file the patent application in person or through (i) his completion of the operative tax control. authorized representative; or (ii) a patent attorney registered with the IPA. The application can be made electronically, by Documents authorized based on the false transactions as post or directly to the IPA. Where the applicant is a foreign well as electronic delivery notes issued by a risky taxpayer person (physical or legal), the application should be made will not be treated as a basis for recovery of VAT from the only through the patent attorney (unless otherwise provided state budget. For the profit tax purposes, the value of goods by an international treaty to which Republic of Azerbaijan is delivered within false transactions will be calculated based on a party). the market price and related information.

The Law on amendments to the Tax Code of the Amendments related to registration and reporting: Republic of Azerbaijan has been adopted Based on the Draft Law, below listed persons can be The Law on amendments to the Tax Code has been adopted registered centrally: by the Parliament. It will be enforced upon signature of the President of the Republic of Azerbaijan. • Natural monopoly subjects; • Enterprises with special tax regime; Amendments related to VAT: • Taxpayers with average number of employees over 251 According to the Law, the accrual basis method for the and more; recognition of taxable turnover for VAT purposes will be • Taxpayers with residual value of its fixed assets exceeding canceled and replaced with the cash basis method. As a rule, 5.000.000 manats. in monetary transactions, i.e. cash and non-cash settlements, the time of the taxable transactions is the date when The mentioned taxpayers are obliged to apply to the payment occurs. Whereas the time of VATable non-monetary respective executive tax authority in order to be centrally transactions such as barter, in-kind transactions, as well as registered. Centralized registration of the taxpayer shall be free-of-charge provision of goods, services and works will be implemented beginning from January of the following year considered the time when such non-monetary transactions in which the decision to perform centralized registration was are completed. Another change with respect to VAT is that, made by this taxpayer. the sales of animal and poultry meat as well as the sales of feed and feed supplements used in livestock and poultry Real-time connected cash register: farms is exempted from VAT for the next 4 years starting from The taxpayers will be able to offset the costs incurred due January 1st of 2020. to the installation of the Real-time connected cash register against the tax liability arising after the installation of this Cancellation of the electronic tax invoice: register to certain extend. Electronic tax invoices will be cancelled. Taxpayers are expected to submit various types of electronic delivery notes The period covered by tax audits: depending on the nature of the transaction. The three-year audit period stated in the Tax Code covers a three-year period preceding the date the when tax authority Additional obligation on banks: made a decision to conduct an onsite tax audit. The current Information on transactions carried out through the accounts version of the Tax Code did not include the reference to the of VAT registered taxpayers will be submitted by the banks to date of the tax authorities’ decision for counting the three-year the respective executive authority by 10th of each month.

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period. In case the relevant executive authorities of foreign 3. State Service on Property Issues under the Ministry of countries have provided information on income derived Economy; abroad, tax audits may cover a period of 5 years preceding 4. State Service on Antimonopoly and Consumer Market the date of decision of the tax authority to conduct the audit. Supervision under the Ministry of Economy; 5. Regional branches of the Ministry of Economy; Taxpayers engaged in building construction activities: 6. Apparatus of trade representatives in the embassies Persons engaged in building construction activities do not and consulates of the Republic of Azerbaijan operating have right to be simplified tax payer, except for those who have abroad. commenced but have not completed their construction works until January 1, 2020. Persons engaged in the construction Amendments to the “Law on public legal entities” have of the buildings must submit information on each building in been adopted the prescribed template to the tax authority until 20 January Parliament of the Republic of Azerbaijan approved the of each year. changes to the “Law on Public Legal Entities”. The most significant changes concern: Transnational corporations and reporting obligations: The concept of a transnational group of companies has been • registration procedure: according to the amendment, a introduced and a corresponding reporting obligation has public legal entity may be registered even if not all the been established for these companies. Transnational group members of administrative bodies have been appointed; of companies refer to the companies that are resident in two and or more countries or a group of companies operating through • content of the Charter: the right to engage in business their permanent establishments. If the total income of such activity must be specifically mentioned. group of companies for the fiscal year exceeds the manat equivalent of 750 million euros, an enterprise belonging to Amendments to the “Code on Administrative Offences” that group and a resident of the Republic of Azerbaijan is have been implemented required to report in an appropriate template. The employment agencies providing assistance to job seekers in finding jobs both internally and internationally shall Exemptions applied to residents of the technology park: be subject to fines in the range from AZN 500 to AZN 1,000 For the residents of technology parks, it is envisaged to (appr. USD 293 to USD 586) for failure to provide Ministry of extend the defined tax exemptions in connection with profit, Labor and Social Protection of Population with the information income, land and property taxes from 7 years to 10 years. on the number of job seekers, as well as failure to engage in the electronic information exchange with Ministry of Labor Increase in excise tax rates: and Social Protection of Population. Moreover, according With the exception of cognac and cognac products, excise to the recent amendments, the administrative fine may be rates on all alcoholic beverages, tobacco products, and imposed for failure to pay state duties to the Financial Market energy (non-alcoholic or alcoholic) drinks are envisaged to Supervisory Authority as per the prescribed rules on the be increased. financial institutions (banks, non-banking credit institutions, insurance companies etc.) in the amount of AZN 3,000 (appr. The functions and structure of the Ministry of Economy USD 1,759) and on their officers in the amount of AZN 1,000 of Azerbaijan have expanded (appr. USD 586). By a decree dated October 23, 2019, the President of the Republic of Azerbaijan has approved the new structure of Amendments to the “Law on State Procurement” have the Ministry of Economy. Now the Ministry of Taxes, the been implemented State Committee on Property Issues and the State Agency According to the amendments, to be able to act as a supplier, on Antimonopoly and Consumer Market Supervision were all a candidate should not have committed any breach of the incorporated into the structure of the Ministry of Economy. requirements of the Tax Code Code of the Republic of The above authorities will have the status of state service. Azerbaijan, at least within the last year of its activities. According to the Decree the structure and number of employees, legal status, salaries, employee reward system, Amendments to the “Law on Credit Unions” have been rights and obligations related to the state service of the implemented employees remain unchanged at initial stage. Credit unions are now required to comply with requirements of the Law on Prevention of the Legalization of Criminally The new structure of the Ministry of Economy now Obtained Funds or other Property and the Financing of comprises of the following bodies: Terrorism. 1. Apparatus of the Ministry of Economy (departments and sectors); 2. State Tax Service under the Ministry of Economy;

44 Issue 36 Insured Insurance Service person* contract Insurance Terms of pack- Paid by /Insurance holder Premium payment ages base** (Insurer)

Citizens of the Republic of Azerbaijan, foreigners Ministry In equal and non- of Fi- Stan- 29 manat per instalments, Azerbaijan nance dard person for not later than citizens of the State Budget cover- one calendar the 15th perma- Republic age year day of each nently or of Azer- month temporarily baijan residing in the Re- public of Azerbaijan

By the in- * Persons At the surer - 2% of appointed same time the accrued by the Milli as salary salary fund; Majlis and payments, Employer 4% By the in- the Presi- but not later sured person dent of the than the 15th - 2% of the Republic of day of each employee’s Azerbaijan month salary.

* Employ- By the in- At the ees work- surer - 2% of same time ing in the the accrued as salary oil and gas salary fund; payments, and public Employer 4% By the in- but not later sector sured person than the 15th under em- - 2% of the day of each ployment employee’s month contracts salary.

From the date of the * Indi- conclusion of viduals the manda- engaged tory medical in entre- insurance preneurial A ddi- contract activities, 120 manat tional in full as well as Insured per person for Insured cover- amount individuals person one calendar person age within 30 perform- year days; ing works not later than (services) the 15th under day of each service month, in agreements equal instal- ments

From the date of the conclusion of the manda- tory medical insurance contract 120 manat in full * Other Insured per personAmCham for Insured Azerbaijan amount persons person one calendar person within 30 year days; not later than the 15th day of each month, in equal instal- ments

Changes to the “Law on Health Insurance” related to Taxpayer engaged the Mandatory Health Insurance shall be effective from in the Taxpayer en- Calculated ** Motor produc- gaged in the on a monthly January 1, 2020 petrol, tion and production base and 0.02 manat diesel fuel import and import of paid not The changes made to the “Law on Health Insurance” related for each litr and liquid of petrol, petrol, diesel later than the to the “Mandatory Health Insurance” will come into force as of gas diesel fuel and 20th day of a fuel and liquid gas next month January 1, 2020. The basic information on various categories liquid and objects of calculation of insurance premiums defined by gas **Energy the law is summarized in the table below. According to the (alcohol Taxpayer At the same or non- Taxpayer Decree of the President of the Republic of Azerbaijan, the Insur- purchas- 0.1 manat for time as the alcohol) purchasing ance ing the each excise state fee drinks and the excise Cabinet of Ministers will determine the form and procedures Base excise stamp for excise liquid for stamps stamps stamps on conclusion of the relevant health insurance contract and electronic medical insurance certificate. cigarettes. Taxpayer At the same Taxpayer Insured Insurance purchas- 0.05 manat time as the Service ** Tobacco purchasing person* contract Insurance Terms of ing the for each ex- state fee pack- Paid by products the excise /Insurance holder Premium payment excise cise stamp for excise ages stamps base** (Insurer) stamps stamps Taxpayer At the same Citizens Taxpayer purchas- 0.1 manat for time as the of the ** Alcoholic purchasing ing the each excise state fee Republic of beverages the excise excise stamp for excise stamps Azerbaijan, stamps stamps foreigners Ministry In equal and non- of Fi- Stan- 29 manat per instalments, Azerbaijan nance Change of working days in December dard person for not later than citizens of the State Budget cover- one calendar the 15th In order to ensure sequence of working and non-working days perma- Republic age year day of each nently or of Azer- on December 2, 2019 the Cabinet of Ministers of the Republic month temporarily baijan of Azerbaijan adopted the Resolution No. 461 “On the Change residing in the Re- of Working and Non-working Days” which declared December public of Azerbaijan 28-29 as working days and January 3 and 6, 2020 as public holidays. By the in- * Persons At the surer - 2% of appointed same time the accrued by the Milli as salary Sample form of Internship contract has been approved salary fund; Majlis and payments, Employer 4% By the in- the Presi- but not later On 16 September 2019, the Cabinet of Ministers of the Republic sured person dent of the than the 15th - 2% of the of Azerbaijan approved the “Sample Form of Internship Contract”. Republic of day of each employee’s Azerbaijan month A sample contract form (the “Sample”) has been prepared in salary. accordance with Article 11.3 and Article 11.4 of the Law of the * Employ- By the in- At the ees work- surer - 2% of Republic of Azerbaijan “On vocational education” (the “Law”). same time ing in the the accrued as salary Thus, based on the employer’s proposal, those who undergo oil and gas salary fund; payments, and public Employer 4% By the in- training and internships at enterprises and organizations but not later sector sured person than the 15th conclude a tripartite labor contract with the participation of under em- - 2% of the day of each ployment employee’s educational institution. According to Article 11.6 of the Law, month contracts salary. employers pay to interns who are involved in industrial training From the the amount not less than the minimum salary for their work and date of the * Indi- conclusion of services. The provisions of contract concluded between an viduals the manda- engaged employer and a trainee have also been included in the Sample. tory medical in entre- insurance Thus, as stipulated in article 1.5 of the sample, a temporary labor preneurial A ddi- contract activities, 120 manat contract is concluded between a trainee and an employer for tional in full as well as Insured per person for Insured cover- amount the period of internship without a probation period. According individuals person one calendar person age within 30 perform- year to article 1.3 of the Sample, at the end of the internship, the days; ing works not later than trainee will be issued a certificate of internship signed by the (services) the 15th under day of each employer and vocational training institution. The Sample also service month, in agreements sets employer’s obligations during the internship, which shall be equal instal- ments as follows: • to appoint an expert to guide the internship; From the date of the • to instruct trainee on labor protection, sanitary and hygienic conclusion of the manda- standards and rules, equipment operating and internal tory medical disciplinary rules; insurance contract • to make compulsory insurance against loss of professional 120 manat in full * Other Insured per person for Insured ability for trainee in accordance with Article 4 of the Law of amount persons person one calendar person within 30 the Azerbaijan Republic “On compulsory insurance against year days; industrial accidents and occupational diseases” and article not later than the 15th 20.2 of the Law. day of each Under the Sample, an employer does not have any obligation to month, in equal instal- employ an intern upon completion of the internship. ments

Taxpayer engaged in the Taxpayer en- Calculated ** Motor produc- gaged in the on a monthly petrol, tion and production base and 0.02 manat diesel fuel import and import of paid not for each litr 45 and liquid of petrol, petrol, diesel later than the gas diesel fuel and 20th day of a fuel and liquid gas next month liquid gas

**Energy (alcohol Taxpayer At the same or non- Taxpayer Insur- purchas- 0.1 manat for time as the alcohol) purchasing ance ing the each excise state fee drinks and the excise Base excise stamp for excise liquid for stamps stamps stamps electronic cigarettes.

Taxpayer At the same Taxpayer purchas- 0.05 manat time as the ** Tobacco purchasing ing the for each ex- state fee products the excise excise cise stamp for excise stamps stamps stamps

Taxpayer At the same Taxpayer purchas- 0.1 manat for time as the ** Alcoholic purchasing ing the each excise state fee beverages the excise excise stamp for excise stamps stamps stamps AmCham Azerbaijan

46 Issue 36 AmCham Azerbaijan

47 AmCham Azerbaijan

October 22 - Members’ Luncheon

AmCham October 18 - Human Resources Committee Meeting

October 18 - Banking, Financial, and Insurance Committee Calendar of Events Meeting 1 September - 1 December, 2019 October 15 - Legal & Compliance Meeting October 11 - AmCham event on Digital Approach to Improving Business Environment

October 4 - Digital Technology & Innovation Committee Meeting October 1 - FMCG Meeting September 30 - Sustainable Development and Corporate Impact Committee Meeting

September 26 - Legal & Compliance Committee’s Workshop

September 23 - Members’ Luncheon

September 19 - AmCham Back to Business Cocktail Reception 2019

September 19 - Human Resources Committee Meeting November 30 - 14th AmCham Black & White Ball 2019

November 14 - International Workshop on Waste September 19 - Discussion on position papers between Management Practices AmCham Legal & Compliance Committee and Procurement WG November 14 - Human Resources Committee Meeting

November 8 - Tax & Customs Committee Meeting

November 7 - Travel, Hospitality and Tourism Committee Meeting November 6 - Digital Technology & Innovation Committee Meeting October 31 - AmCham in cooperation with USAID: SGF/IFU EURASIA Road Show 2019 October 29-30 - 2nd Joint AmCham and Baku City Circuit Career Fair October 28 - Joint Workshop by AmCham Sustainable Development and Corporate Committee and UN Azerbaijan October 23 - Tax & Customs Committee Meeting

New to AmCham Regular

48 Issue 36