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Protection of Investments

Legal protection of foreign investments

Foreign investments on the territory of the Azerbaijan Republic enjoy full legal protection that is guaranteed by the present Law, other legislative acts and international agreements of the Azerbaijan Republic.

Guarantees against changes in legislation

In case if in future legislation of the Azerbaijan Republic will worsen investment terms, then within 10 years legislation which existed at the moment of implementation of investments will be applied thereto.

This does not apply to changes in legislation of the Azerbaijan Republic concerning defence, national security and public order, environmental protection, taxation, credits and finances, public morals and public health

Guarantees against nationalization and requisition

Foreign investments in the Azerbaijan Republic are not subject to nationalisation except exclusive cases causing damage to the people and state interests of the Azerbaijan Republic. Decision about nationalisation is taken by the Supreme Council of the Azerbaijan Republic. Foreign investments are not subject to requisition except cases of natural calamities, accidents, epidemic, epizootic situations and other force-majeure circumstances.

Decision about requisition is taken by the Cabinet of Ministers of the Azerbaijan Republic. Whenever measures on nationalisation and requisition are taken, foreign investor will immediately receive adequate

and efficient compensation.

Compensation of losses to foreign investors

Compensation paid to foreign investors should correspond to actual cost of investment at the moment of taking decision about nationalisation or requisition.

Compensation shall be paid in foreign currency and, should investor so desire, it shall be transferred abroad. Foreign investors have the right for compensation of losses including loss of profits as a result of acts of state bodies or officials thereof contradicting legislation of the Azerbaijan Republic. All disputes as per amounts of compensation of losses, term of such compensation and the procedure of its payment are subject to consideration in the Supreme Court of the Azerbaijan Republic in accordance with their competence and also in the Court of Arbitration if it is envisaged by mutual agreement of the Parties or International agreements of the Azerbaijan Republic.

Guarantees against termination of investment activity

In case of termination of investment activity foreign investor has the right for compensation of sums due to him and profits obtained as a result of said activity in monetary or material form, at actual cost at the moment of termination.

Guarantees of transfer of profits and other sums in foreign


After payment of respective taxes and charges transfer of profits of foreign investors and other sums, including compensation of losses in foreign currency obtained legally in connection with investments is guaranteed.

Guarantees of use of profits

 Profits of foreign investors obtained on the territory of the Azerbaijan Republic may be reinvested in the same currency, stored in banks of the Azerbaijan Republic, used for purchase of foreign currency in an order and on terms determined by National Bank of the Azerbaijan Republic.