Doing Business in Azerbaijan 2009 - Azerbaijan Export ...

32 DOING BUSINESS IN AZERBAIJAN
Azerbaijani government’s policies in respect of utilities tariffs are
manufacturer friendly.
FDI friendly laws
Azerbaijani legislation is evolving in accordance with the strategic
goal of the Government which implements the “welcoming policy”
for foreign businesses.
Foreign investments are protected by certain guarantees provided
by the government and legislation, including:
• Guarantee against adverse changes in legislation—the general
rule is that legislation in force at time of making an investment
continues to apply to individual investor for subsequent 10 years,
notwithstanding any adverse change in law;
• Guarantee against nationalization and requisition—foreign
investments are not subject to nationalization (except in cases of
harm to population and state) and requisition (except in cases of
natural disaster, epidemics, accidents, emergencies). Foreign
investors are guaranteed immediate, adequate and effective
compensation in case of nationalization and requisition.
Compensation should be commensurate with the amount of the
investment at the time of nationalization or requisition, payable
in foreign currency and may be freely transferred abroad;
• Guarantee of compensation of damages—foreign investors are
entitled to compensation of damages, including lost profits,
incurred as a result of unlawful acts of state authorities;
• Guarantee of repatriation of profits—foreign investors are
entitled to repatriate profits derived from foreign investments
subject to payment of applicable taxes and duties.
The new Foreign Investment Bill currently under discussion in the
Parliament is expected to reinforce the above guarantees as well as
to introduce new legal instruments to protect foreign businesses.