Azerbaijan’s geopolitically important location in the Caucasus and its vast hydrocarbon reserves make it an important player for the US and European countries. Bordered by Russia, Georgia, Armenia, Turkey and Iran, the country remains pivotal for the US in combating narco-trafficking and terrorism. For Europe, Azerbaijan’s oil and gas reserves are a critical factor in reducing energy dependence on Russia. A European initiative, the Southern Gas Corridor, is planned to bring 16 billion
cubic meters (bcm) of gas per year of natural gas from
Azerbaijan and possibly also from other Caspian countries through
Georgia,
Turkey,
Greece,
Albania, and
Italy. Opened in 2018, the Southern Gaza Corridor is worth $45 billion. IFIs, including the World Bank, the European Bank for Reconstruction and Development, the European Investment Bank, and the Asian Development Bank-backed the project. With such strong financial support, the Aliyev government in Azerbaijan rules with impunity and total disregard for human rights and the rule of law.
In recent years, Azerbaijan has witnessed a sharp backslide in human rights, civic participation, and accountability in natural resource governance. Previously, Azerbaijan tried to paint an international picture of itself as an island of stability in the region: willing to engage with multilateral institutions and an inviting partner for foreign direct investment. It was one of the first countries to adopt the Extractive Industries Transparency Initiative (EITI), and the first to become compliant in 2009. It was quick to adopt and ratify the Aarhus Convention in 2000 and became a member of multilateral good governance initiatives such as the Open Government Partnership and the Natural Resource Governance Institute (limited engagement country).
While Azerbaijan’s Constitution protects civic and political rights and the right to a healthy environment, a new wave of repression has led to a massive crackdown on civil society in Azerbaijan. Scores of human rights defenders, journalists, civic activists, and bloggers have been arrested. New legislation has tightened the screws on civic activity and access to funding. Independence of the judiciary remains largely absent. Corruption, fueled by foreign investments in Azerbaijan’s hydrocarbons, prevails. Multilateral institutions like EITI and the Open Government Partnership first downgraded then suspended Azerbaijan’s participatory status due to governance concerns in 2017 and 2018, respectively, and western powers have escalated criticism, but the situation remains bleak. Without divestment from Azerbaijan’s oil and gas by IFIs and international lending institutions, President Aliyev has little incentive to improve the human rights situation in the country.