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A Word from the Executive Director of AmCham Dear AmCham Members and Friends, I am delighted to introduce the 19th issue of IMPACT Azerbaijan. Issue 19 This edition focuses on a topic that is of vital importance to the country’s present and future development – the medical and Credits healthcare system. In March 2013, AmCham addressed the State Customs Committee AmCham Executive Director: and Ministry of Health, in order to open a discussion about counterfeit Nargiz Nasrullayeva-Muduroglu and illegal parallel import products. This is part of our ongoing efforts to protect the pharmaceuticals market in Azerbaijan. In its appeal to Editor: the Minister of Health, AmCham requested stricter measures or restrictions on these types Jeyhun Atayev of products. As a result, AmCham was pleased to observe a positive change in the approach of the relevant ministries. As a consequence of AmCham’s appeal, regulation of pharmacies Articles contributed by: was tightened - in April 2013, the President of Azerbaijan approved amendments to the Law on Medicines. Under these changes, all medicines must bear the control marks of the relevant Sevinj Aliyeva executive authority, which is the Ministry of Health. In November AmCham met with Mr. Abulfaz Rustam Gasimov Abdullazadeh, Head of Analytical Expertise Centre for Medicines, to discuss the general action Aysel Suleymanova plan and the current situation in the market. We agreed to co-operate further on combating the Nuran Kerimov and Gunel Sadiyeva import of the illegal and counterfeit medicines. Later in 2013, AmCham also had a meeting with Guivami Rahimli and Kenan Shikhlinsky Jamil Aliyev, Head of the National Oncology Center, who shared our concerns and assured Hokuma Karimova AmCham of his support in further endeavors towards healthcare development. In this issue of IMPACT, we are proud to present our exclusive interview with Elsever Aghayev, Advertisers: Deputy Minister of Health, in which he touches upon various key issues, including the recent The Landmark Hotel major changes to Azerbaijan’s medical and healthcare legislation, the pharmaceutical Bakcell market, and the enforcement of mandatory medical insurance in Azerbaijan. Azerbaijan Diplomatic Academy YapiKredi Bank Azerbaijan The current issue also provides several fascinating member contributions, as well as an overview of AmCham events and activities from autumn 2013. GAZELLI GROUP Human Resource Company (HRC) I would like to take this opportunity to thank all of our counterparts and members for Mozaik their support for the development of the healthcare system as well as their ongoing ITECA Caspian LLC participation in magazine’s creation. I am sure that you will find this issue of Impact Azerbaijan informative and interesting! Printing: Kind regards, Nurlar Nargiz Nasrullayeva-Muduroglu Publisher: American Chamber of Commerce Editor’s Comment in Azerbaijan Dear Readers, Tel: (+994 12) 497 13 33 Fax: (+994 12) 497 10 91 I am very happy to welcome you to the 19th issue of IMPACT www.amchamaz.org Azerbaijan. I have really enjoyed working on it, partly because as a child, I wanted to be a doctor. This issue, in a way, allowed me to get a little bit closer to that childhood dream. Nowadays, the healthcare Advertising opportunities: system is not only about how people manage their health in their Please contact the Editor at everyday lives but also how they interact with the healthcare system [email protected] more broadly. Of course, this requires a new perspective on the Tel: (+994 12) 497 13 33 governance of health. In this issue you will find an interview on the recent reforms, new perspectives on the medical and healthcare The articles in IMPACT AZERBAIJAN system, and an article about the challenges and opportunities for the pharmaceutical market in Azerbaijan. express the opinions of the authors and do not necessarily reflect the position of In addition, you will find articles on the new Inspection Law and Foreign Account Tax the American Chamber of Commerce in Compliance Act, as well as information on projects aimed at the development of youth Azerbaijan. business and the training of world class project managers in Azerbaijan. As ever, I would like to thank all our contributors; we at AmCham greatly appreciate the outstanding support and assistance we receive from all of you. Happy reading! Jeyhun Atayev 1 contents IN FOCUS AMCHAM AZERBAIJAN 4 Interview with Elsever 45 About Us Aghayev, Deputy Minister of Health 46 Government Relations 22 Pharmaceutical market in Azerbaijan: challenges and opportunities 47 Business Events MEMBER CONTRIBUTION 27 A new inspection law: a step forward 49 Projects 50 15 years with AmCham: more than membership 31 FATCA and its impact on Azerbaijani financial 52 Committee Highlights institutions 38 The Mirror Effect - or What do 54 AmCham Legal Update I Look like on the Market? 56 Social Events 9th Annual Black & White Ball DEVELOPMENT AND EDUCATION 40 Contributing to training of world class project managers in Azerbaijan 58 Members’ News and Events 61 US Visa facilitation program 43 Investing in Tomorrow’s Employees 63 AmCham Calendar of Activities 64 (M2M) Discount Program 2 Issue 19 in focus Interview with Mr. Elsever Aghayev Deputy Minister of Health of the Republic of Azerbaijan on the recent reforms and perspectives on the medical and healthcare system Mr. Aghayev, I want to thank you for taking the time to improving child health and the relevant treatment-prevention speak with us today. Could you please update us on the measures, and governs relationships in this sphere. In this recent major changes to Azerbaijan’s the medical and regard, the President signed a Decree dated 10.04.2013 healthcare legislation? on the enforcement of the law, and the "State Program on In 2013, a number of regulatory and legal documents regarding Mandatory Medical Examination of Children" was adopted healthcare have been adopted to better protect public health. on 10.12.2013. Furthermore, the guidelines on measures Here, I will note both the adoption of new legislative acts and relating to mandatory medical examinations of children were also the amendments made to the current legislation. One of incorporated into the "Regulations on the Ministry of Health these new laws is the Law "On Mandatory Annual Medical of Republic of Azerbaijan". Decisions have been reached Examination of Children" (05.03.2013). The present Law on both the "Manner of keeping records on children who are stipulates the organizational-legal grounds for protecting and expected to be examined or have already been examined by 4 Issue 19 in focus the Ministry of Health of the Republic of Azerbaijan” and the "listing of the diagnoses and specialists expected to conduct the mandatory medical examinations of children". Under the Law "On amendments to the Law of the Republic of Azerbaijan "On medications" (22.02.2013), a control mark on the proper medication is required. For this reason, the Instructive Order (10.04.2013) of the President of the Republic of Azerbaijan on enforcement of the law was signed, and the relevant amendments were made to the "Rules on state registration and maintaining a registry of medications", in accordance with the resolution dated 12.07.2013 of the Cabinet of Ministers. According to the Law dated 31.05.2013, amendments were made to the Code of Administrative Offences, establishing responsibility for illegally carrying out Cesarean section surgery. The penalty for carrying out a Cesarean section without medical grounds is 5000-7000 AZN for high-ranking surgeons and 10,000-15,000 AZN for legal entities. In connection with the above, amendments have also been made to the Law "On Protecting the Health of the Population" and to the Regulation of the Ministry of Health. The Ministry of Health of the Republic of Azerbaijan has defined the medical 2013. Also, new processes for certifying medical staff grounds for conducting a Cesarean section. have recently begun. Could you update us on these procedures? What is the extent of the human resources According to the resolution dated 21.11.2013 of the Cabinet potential in the medical sector? Can all the medical of Ministers, "Rules on the Manner and Organization of institutions in Azerbaijan solve their staffing needs and Residency" have been amended. what is the situation on staffing provision and activities In relation to the Law "On Education", the previous rules across different regions of the country? adopted in 2010 failed to fully encompass some issues related to residency, but the new revised rules have further upgraded One of the key ways to bring our healthcare to the highest the requirements for residency and contain some guidelines international standards is via medical education and regarding points of concern. staffing reforms. The Ministry has recently taken substantial According to the resolution dated 18.04.2013 of the Cabinet of measures in this sector. As you may be aware, we began the Ministers, the "Rules on medical and psychological assistance internationally recognized certification of our medical staff in for detainees or imprisoned persons as well as their treatment January 2011. Certification helps to provide the public with in medical centers" were approved. high-quality medical services. It enhances the professionalism These rules govern issues related to the diagnosis, treatment and professional qualifications of persons dealing with practical and prevention methods, sanitary-hygiene, anti-epidemic and medical or pharmaceutical activities, as well as developing psychological measures in respect to detainees or imprisoned the theoretical and practical capacity of doctors and general persons. medical staff. Certification helps highly educated specialists Resolutions by the Board of the Ministry of Health have to become involved in medical or pharmaceutical activities. approved "Rules on giving opinions on the advertisement Improving the quality of public medical services through of medical services provided by private health facilities and reforms to the healthcare system is a major and vital issue.