AZERBAIJAN National leader of Azerbaijan PROFILE OF HEYDAR ALIYEV NATIONAL LEADER OF AZERBAIJAN Heydar Aliyev t is difficult to overstate the role played by Heydar Secretary General Mikhail Gorbachev and his policy Aliyev in the creation of a modern, independent of perestroika, following which he protested against guided the Azerbaijan. He was a key figure during the Soviet attempts by Soviet troops to re-impose control in Baku era, responsible for promoting the interests of and the policies that led to the conflict over Nagorno- IAzerbaijan within the Communist hierarchy; while as Karabakh. He renounced his party membership country President of the independent Republic of Azerbaijan and was elected as a moderate nationalist to the through from 1993 until he passed away in 2003 he guided Supreme Council of Soviet Azerbaijan, governing the the country through difficult times, laying down the Nakhchivan region until, in June 1993, he was chosen difficult times, foundations that have led to greater prosperity, stability, as Chairman of the National Assembly with temporary and international cooperation. presidential powers. These were confirmed by his laying down Born in 1923 – just six years after the Soviet success in a nationwide referendum, and in October Revolution – in the city of Nakhchivan, the young of that year Heydar Aliyev was elected President of the template Aliyev attended a local school before moving on to Azerbaijan – the first of two presidential elections in the Azerbaijan Industrial Institute (now State Oil which he received a popular mandate. which has Academy) where he studied architecture. His education During his swearing in ceremony in 1993, President was interrupted by the Soviet Union’s entry into the Aliyev explained his vision for the future of the country, led to greater Second World War in 1941, though he later studied in committing himself to strengthening Azerbaijan’s Leningrad (now St Petersburg), and in 1957 graduated independence, improving living standards, and prosperity, in history from Azerbaijan State University. resolving the conflict with neighbouring Armenia. By then he had already risen to prominence, both These were testing times for the newly independent stability and within Azerbaijan and the Soviet Union. From 1941 he republic. The conflict in Nagorno-Karabakh, where was head of department at the People’s Commissariat the militant groups backed by Armenians were fighting international of Internal Affairs in the Nakhchivan ASSR (todays against the Azerbaijani authorities, had escalated. In the Nakhchivan Autonomous Republic, a part of aftermath of the Khojali Massacre tens of thousands of partnerships Azerbaijan now blocked by Armenia from the rest of refugees and internally displaced persons sought safety the country). Recruited into the State Security service in Azerbaijan’s capital of Baku and the surrounding in 1944, Heydar Aliyev progressed rapidly to the rank areas. At the same time bitter divisions within the of Lieutenant General, Deputy Chairman and, from Azerbaijani leadership brought the embattled country 1967, Chairman of the Committee of State Security to the brink of civil war. Heydar Aliyev’s return to under the Cabinet of Ministers of the Azerbaijan Soviet power put an end to these internal divisions, and Socialist Republic. over the next decade he set about steering his country In July 1969 he was made First Secretary of the towards greater stability and higher living standards. Central Committee of the Communist Party of Within months of taking office, a ceasefire was Azerbaijan, the most powerful position within the signed, thereby preventing further bloodshed over Republic, and was tasked with the clampdown on old- Nagorno-Karabakh; though as a result nearly 20 per style Soviet corruption. Over the course of the next cent of Azerbaijan’s territory remained occupied by thirteen years he led Soviet Azerbaijan to greater Armenian-backed separatists and close to a million prosperity, helping to increase economic growth Azerbaijanis became internally displaced persons. rates more successfully than in most other Soviet Speaking on the seventh anniversary of the Khojali Republics, while at the same time raising the profile Massacre, President Aliyev called for ‘every effort of Azerbaijan within the Kremlin. As a result of these to be made to seek the world community’s unbiased efforts, Heydar Aliyev was first elected alternate and and resolute position regarding this genocide’, then a full member of the Soviet Politburo. As First which he called ‘one of the greatest atrocities of the Deputy Chairman of the Cabinet of Ministers of the 20th century’. Soviet Union, responsible for transportation and social However he sought to resolve these problems services, he became a key figure in the USSR. through diplomacy and international mediation rather 46 But in 1987, Aliyev resigned over differences with than a renewal of military conflict. As he pointed out FIRST on numerous occasions: ‘Azerbaijan does not plan to 33 companies worth US$30 billion, along with a Aliyev use the difficult situation in Armenia and Nagorno- further 27 joint ventures and seven alliances between Karabakh to achieve its own military objectives. We international players and SOCAR, the Azerbaijani state successfully support peace. We don’t consider a military solution oil company. acceptable’. Instead he looked to ‘international By 2007, oil production had risen to 860,000 bbl/d, sought to organisations that have been commissioned to restore driven mainly by growth from the ACG field. Azerbaijan peace and security in the world to resolve this conflict was the largest contributor to non-OPEC supply growth maximize the on the basis of mutual compromise and within between 2006 and 2007, and the country’s net exports universally accepted norms of international law.’ amounted to roughly 700,000 bbl/d in 2007, most of benefits of which was routed to Russia, Italy, Turkey, and Germany. The deal of the century The ACG group of fields produces Azerbaijan’s At the same time, President Aliyev set in motion a over 65 per cent of the historic agreement to harness the country’s vast country’s oil, and this huge oil and oil and gas resources. In 1994, after months share is expected to of arduous negotiations, he signed the continue to increase gas reserves ‘The Contract of the Century’: a US$7.4 as ACG’s oil billion Production Sharing Agreement production (PSA) made up of a dozen contracts with grows. By 2010, leading multinational oil companies Azerbaijan will to develop the Azerbaijani-Chirag- be producing Gunashli (ACG) fields. up to 4.7 million The PSA was the first by a former barrels per day, Soviet Union state with overseas oil putting it ahead companies. What’s more, it was to of Venezuela as develop a proven hydrocarbon resource. well as many The contract was also a way of cementing other leading Azerbaijan’s independence, and has made oil producing the country a global supplier of energy. countries. As Oil production under the first of these Europe and the PSAs with the Azerbaijan International United States look Operating Company (AIOC) began to diversify their oil Heydar Aliyev in November 1997. Since then, and gas supplies, the National Leader 28 PSAs have been signed with Azerbaijan will u of Azerbaijan 47 AZERBAIJAN Building up expand production, boosting its fast-growing economy International relations into a regional powerhouse. When he assumed the presidency in 1993, Heydar Azerbaijan’s President Heydar Aliyev’s approach was always to Aliyev focused his efforts on achieving peace and maximise the benefits of Azerbaijan’s huge oil and stability in the region and reducing tensions with economic gas reserves, looking to the major international oil Armenia over Nagorno-Karabakh. He reached a companies (IOCs) for the massive financial investments ceasefire agreement with Armenia in May 1994 and success on and modern technology needed both to update was hoping for an enduring peace. In his meetings Soviet infrastructure and build new export routes to with major international politicians, he always the back of key markets. highlighted Azerbaijan’s commitment to a peaceful Building up Azerbaijan’s economic success on the back and diplomatic resolution to the conflict within the its enormous of its enormous energy potential required both political framework of international organisations such as the stability and the attraction of massive inward investment. UN and OSCE. Heydar Aliyev played a crucial role energy President Aliyev managed to achieve both. in focussing the attention of the western world on Understanding the need to channel oil revenues to Azerbaijan, highlighting the investments by major potential fuel the country’s development, President Aliyev set up international oil companies and the country’s role as SOFAR, The State Oil Fund, in 2000. As a separate an ally in the development of the South Caucasus and required agency, management is transparent and subject to Caspian region. international scrutiny with prudent guidelines for Long conscious of Azerbaijan’s geo-political strategic political saving, spending and investing fund revenues, primarily importance, the Azerbaijani president understood the in domestic and foreign government bonds. need for a flexible approach to transporting oil out of stability Through these far reaching oil deals, Heydar Aliyev the region. In the event, Heydar Aliyev opted for a set the course for Azerbaijan’s long term political and route that bypassed Russia. Instead, it would head from and massive economic development and helped establish cooperation Baku and on to the Turkish port of Ceyhan, providing on an international level. As a direct result of the access to international markets. The choice of Turkey inward implementation of this oil strategy Azerbaijan has now was also significant in that it provided an opportunity become a global centre for oil and is benefiting from to further strengthen relations with a country with investment a new economic model established by Heydar Aliyev which Azerbaijan enjoys long-standing ties.