Azerbaijan Country Page

 

   

Azerbaijan Data Azerbaijan Summary Reports: NCSJ report (below) CIA World Factbook U.S. State Dept. - background U.S. State Dept. - Human Rights U.S. State Dept. - Religious Freedom Azerbaijani Embassy U.S. Embassy Baku About NCSJ Country Reports Return to Directory

Population: 8.24 million Ethnic Composition:  90.6% Azeri, 2.2% Dagestani, 1.8% Russian, 1.5% Armenian, 3.9% other Religion: 93.4% Muslim, 2.5% Russian Orthodox, 2.3% Armenian Orthodox, 1.8% other Jewish population: approx. 25,000 2009 aliyah  (emigration to Israel): 221 1989-2006 Aliyah: 34,971 Size: 86,600 sq km Capital: Baku Major cities: Baku, Gania, Sumgait Freedom House Rating:  Not Free

Currency: 0.80 Azerbaijani New Manat = $1 GDP: $42.51 billion (2009 est.) GDP per capita: $9,900 (2009 est.) GDP Growth: 3.2% (2009 est.) Head of State: President Ilham Aliyev Head of Government:  Prime Minister Artur Rasizade Foreign Minister:  Elmar Maharram Mammadyarov Ambassador to United States: Yashar Aliyev U.S. Ambassador to Azerbaijan: Chargé d’Affaires Donald Lu Chronology of all U.S. envoys to Azerbaijan

SUMMARY

Strategically situated on the ancient Silk Road between Europe and Asia, Turkic-speaking and oil-rich Azerbaijan shares deep ties with both the East and the West. Azerbaijan’s contemporary relations with its neighbors have been shaped by the prolonged Nagorno-Karabakh territorial dispute with Armenia and by strenuous efforts to transport Azeri oil to Western markets. Relations with Russia have been strained over competing oil interests, Russia’s closer relationship with Armenia, and the Chechen insurgency. Azerbaijan is closely allied with NATO member Turkey and maintains relatively good relations with Iran; disputes continue with neighboring countries over the division of Caspian Sea energy resources and access to world energy markets.

Azerbaijan, like Armenia has suffered severe economic setbacks as a result of the Nagorno-Karabakh conflict and the Russian financial crisis of 1998. Although world oil prices rose dramatically in the early years of the 21st century, the more recent sharp decline in oil prices has left Azerbaijan with an uncertain economic outlook compounded by the need for significant reforms. Popular anger over the slow pace of reform, high unemployment rates, and the suppression of political and civil rights had led to mass protests in 2002. Parliamentary elections in November of 2005 were marked by electoral irregularities and some violence, although less than in previous elections. The next parliamentary elections have been scheduled for 2010.

Jews have been in Azerbaijan for many centuries and, since the breakup of the Soviet Union, have suffered little state sponsored discrimination. Judaism is officially protected as a “traditional” religion, and the community and government work together in various public welfare and educational activities. Azerbaijani-Israeli relations are strong and U.S.-Azerbaijan ties have increased since September 11th, 2001. Since 2002, the United States has waived application of Section 907 of the 1992 FREEDOM Support Act, despite the objections of the U.S. community. 


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AZERBAIJAN

INTRODUCTION
POLITICAL SITUATION
    Foreign Policy
    Israel
ECONOMIC SITUATION
SOCIAL SITUATION
JEWISH COMMUNAL LIFE & ANTI-SEMITISM
U.S. POLICY

Azerbaijan, bordered by Turkey, Georgia, Russia, Iran, and the Caspian Sea, is slightly smaller than the state of Maine. Descended from Caucasian and Turkic tribes, the Azeri people share strong cultural ties with the people of neighboring Iran and Turkey. An estimated 13-20+ million ethnic Azeris live in Iran, forming nearly a quarter of the Iranian population and far outnumbering the population of Azerbaijan proper.

Located geographically between Europe and Asia on the historic Silk Road trade route, Azerbaijan has suffered repeated invasions and occupations. Conquered by Turkic tribes during the Middle Ages, both Persia and the Ottoman Empire vied for control of Azerbaijan. In the Russo-Persian wars of the early 19th century, the northern region of Azerbaijan came under Russian rule. With the collapse of Imperial Russia, a reunited Azerbaijan declared its independence in 1917, only to be re-conquered by the Red Army in 1920. On August 30, 1991, after the fall of the Soviet Union, Azerbaijan regained its independence. In 1992, Azerbaijan became a member of the United Nations and of the Organization for Security and Cooperation in Europe(OSCE).



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POLITICAL SITUATION

Azerbaijan is a republic governed by a constitution that includes an executive, legislative and judicial branch. The executive branch dominates and there is no independent judiciary. The President and the National Assembly are elected by popular vote. The President appoints the Council Of Ministers, which is confirmed by the unicameral National Assembly. 

Heydar Aliyev, a former KGB general and former head of the Azerbaijani Communist party, came to power after a 1993 military coup deposed nationalist leader Abulfaz Elchibey. Reelected in 1998 amid allegations of campaign irregularities, Aliyev suppressed opposition. Faced with declining health, in 2003 he endorsed the candidacy of his son, Ilham Aliyev, whom he had appointed Prime Minister in August before the elections. Ilham Aliyev received 76.8 percent of the vote in the October 2003 elections. Aliyev senior died in December 2003.

Azerbaijani media outlets are either controlled directly by the government or self-censor to avoid confrontation with the government. Political opposition is limited and foreign and “nontraditional” religious groups are restricted In response to popular usage of the Russian language, the parliament passed legislation in October 2002 designating Azerbaijani the official language for all government business and correspondence.

The continued suppression of civil and political freedoms coupled with economic grievances, the lack of progress in Nagorno-Karabakh, and moves by President Aliyev to override the constitution resulted in massive protests in 2002 and 2003. Following a February 2003 referendum that accorded the president broader powers, violence erupted throughout Azerbaijan. Fears of similar violence dictated many of the government’s actions in preparing for the November 2005 parliamentary elections. 

However, on June 28, 2005, with pressure from the United States, the Azerbaijani government adopted an electoral law intended to assure fair elections. The law accorded opposition members one-third of the 18-seats on a new Election Commission. The elections held on November 6, 2005 were by far the most orderly and inclusive in the country’s independent history. Nonetheless, reports surfaced alleging that local government officials attempted to influence and intimidate voters, and irregularities in campaigning and the counting and tabulation of votes cast a shadow on the elections. 

In the 2008 presidential elections, incumbent Ilham Aliyev received over 87% of the votes. While the OSCE noted progress to fair elections, there was no alternative to Aliyev and the election once again failed to meet international standards. 

Throughout the presidential campaign, authorities limited freedom of assembly. They refused to authorize several proposed opposition rallies and failed to allow any rallies in the center of the capital, Baku. Opposition parties generally opted to hold protest rallies in compliance with government restrictions, and thus avoided violent dispersal. Police reportedly used force to break up several small, unauthorized opposition gatherings and arrested dozens of protesters at one of the opposition rallies. However, widespread clashes between opposition protesters and the police, such as those that took place in the wake of the 2003 presidential election, did not materialize.

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Nagorno-Karabakh frontier
Shai Franklin

Azerbaijani refugees in Baku, July 1999 

Shai Franklin

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Foreign Policy

Since 1988, Azerbaijan has been in conflict with Armenia over the enclave of Nagorno-Karabakh. Although under Azerbaijan’s control since independence from the Soviet Union, Nagorno-Karabakh’s large ethnic Armenian population declared independence from Azerbaijan in early 1992, after several years of agitation for union with Armenia. Azerbaijani forces moved to suppress the rebellion and a full-scale war followed between ethnic Armenians and Azeris that also involved locally stationed Russian forces. Over 800,000 Azeris and 300,000 Armenians became refugees as a result of the fighting and widespread human rights violations took place.

In 1994, ethnic Armenian forces conquered almost 20 percent of Azerbaijan, including all of Nagorno-Karabakh. A cease-fire was signed in July of the same year, and the captured territory remained under Armenian occupation. Since then, various parties, most notably the Organization for Security and Cooperation in Europe (OSCE), have tried to mediate the conflict. These efforts have met with little success, and border skirmishes have remained frequent. Since 1999, direct talks have been held between the Armenian and Azerbaijani presidents. Over the years, Nagorno-Karabakh has come to enjoy several elements of de facto statehood, including an elected president and a military of 15,000 soldiers although neither Armenia nor Azerbaijan has recognized its sovereignty.

Robert Kocharian, then President of the Republic of Armenia, met with President Ilham Aliyev in May 2005 to discuss Nagorno-Karabakh. Unfortunately, the meeting exacerbated tensions between the two countries and. shortly after the ill-fated meeting, both countries threatened to increase their military presence in the disputed territory. In February 2006, Kocharian and Aliyev met again in Rambouillet, France, and again in 2006 in Bucharest, Romania, accompanied by diplomats from the United States, France, and Russia. Despite initial optimism, the presidents failed to reach an agreement.

In 2008, Azerbaijani president Aliyev declared that Nagorno-Karabakh will never be independent; the position is backed by international mediators as well. The two nations are still technically at war, and citizens of the Republic of Armenia are forbidden from entering into Azerbaijan. Further, if a person's passport shows any evidence of travel to Nagorno-Karabakh, barring a diplomatic passport, they are forbidden entry to the Republic of Azerbaijan.

Azerbaijan’s relationship with Iran is complex. A great deal of trade occurs between the two nations, but a number of recurring disputes – over the division of Caspian oil reserves, the status of the ethnic Azeri population in Iran, and Azerbaijan’s friendship with Israel – have led to tensions. On particularly tense occasions, Iran has cut off power to the non-contiguous Azerbaijani province of Nakhichevan and sent warships to intercept Azerbaijani petroleum explorations on the Caspian Sea.

Azerbaijan also has a complicated relationship with Russia, colored by Russia’s domination of the region during the Tsarist and Soviet eras, and by more recent transfers of large quantities of Russian-made arms to Armenia during the Nagorno-Karabakh conflict. In late 1999, at the start of the Second Chechen War, Russia accused Azerbaijan of supplying arms and mercenaries to Chechen rebels and thus imposed trade restrictions. In November 2000, Russia cut off gas supplies during Azerbaijan’s parliamentary elections. Since then, Azerbaijan has worked to improve ties with Russia, and in February 2003, the two signed accords on increased military, intelligence and counter-terrorism cooperation. The two countries have also signed an agreement on the delineation of Azerbaijan’s undersea Caspian borders.

In addition, Russia has repeatedly sought to dissuade Azerbaijan from participating, along with Georgia and Turkey, in a major U.S.-supported Caspian Sea petroleum pipeline project, the Baku-Tbilisi-Ceyhan, or BTC pipeline. Begun in 2002, the pipeline started pumping oil in May 2006, giving Azerbaijan long-awaited access to international energy markets and bypassing existing Russian pipelines to the north. 

On July 13, 2005, Azerbaijan and Iranian officials met to discuss relations, especially the status of the Caspian, and on February 3, 2007 Azerbaijan’s minister of communications and information technology, Ali Abbasov, and the head of the Iranian State Broadcasting Agency, Ezzatollah Zarghami, signed a Memorandum of Understanding on bilateral media cooperation. 

Then Georgian Prime Minister Zurab Nogaideli and President Ilham Aliyev signed an agreement in June 2005 to synchronize the two countries’ energy systems in order to improve energy provision. However, despite good relations in the energy sector, the Georgian-Azerbaijani border still has yet to be clarified. 

Despite Russian opposition, Azerbaijan has consistently pursued closer ties with the West, and is an active member of the Euro-Atlantic Partnership Council and Partnership for Peace of the North Atlantic Treaty Organization (NATO). Azerbaijan became a member of the Council of Europe in January 2001. Azerbaijan’s relations with its neighbors are mixed. Azerbaijan is a member of the pro-Western GUAM (Georgia, Ukraine, Azerbaijan, and Moldova) regional alliance, and has especially close ties with Georgia and Turkey.

Israel

Azerbaijan and Israel have developed an increasingly close relationship over the past decade. Israel opened an embassy in Baku in the early 1990s, but there is no Azerbaijani embassy in Israel at this time, though Azerbaijan intends to open an embassy there in the future. In August 1997 then-Prime Minister of Israel Benjamin Netanyahu’s visited Baku. In April 2000, an Israeli trade delegation traveled to Baku to strengthen bilateral economic relations. Israel’s then-Deputy Prime Minister, Navaf Masalhu, visited Baku in January 2001, to meet with President Aliyev and other high-ranking officials. Talks focused on the development of economic and cultural ties and on the Middle East. Azerbaijan has also developed close intelligence and security cooperation with Israel, which shares its wariness of Iran. Such cooperation involves information exchange, routine briefings, and data analysis. 

Although some Azerbaijani Muslim groups protested Israel’s war against Lebanon in 2006 and throughout the summer of 2006 police controlled protest rallies near the Israeli embassy in Baku, Israeli business in Azerbaijan has grown alongside diplomatic relations. Four Azerbaijani cabinet members visited Israel in 2005 and in May 2007, Likud Knesset faction chairman Gideon Sa’ar and three other Knesset members visited Azerbaijan. Israeli-Azeri trade currently amounts to $700 million, annually, consisting largely of Azeri oil exports to Israel. Investment by the Israeli-owned Bakcell, a cell phone operator is the second largest in the Azerbaijani market. Also, many Israeli investors own significant assets in Turkish-operated Azerbaijani ventures. The formation of an organization of Azerbaijani Jewish immigrants in Israel in April 2007 was expected to aid in the development of closer bilateral relations between the two countries. An estimated 35,000 Azeri Jews immigrated to Israel since 1989, and the Azeri community in Israel is now estimated to number as many as 80,000-100,000.

Recently, in July 2009, Israeli President Shimon Peres led an official visit to Baku. He announced plans by the Israelis to share technological and scientific assets with Azerbaijan. His visit and his reception by the Azerbaijani sent a clear message to Iran, which had sought to have the Azerbaijani government to cancel the Israeli visit.


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ECONOMIC SITUATION

Economic conditions ricochet with world oil prices. Rich in natural resources, Azerbaijan’s economy depends on the oil, natural gas, steel and iron industries. While most land titles and small businesses have been privatized, the same is true for only 20 percent of medium and large-scale enterprises. In November 2000, President Aliyev stated categorically that Azerbaijan’s oil industry would remain under state control; subsequently, a Western-led consortium has led the development and exploitation of Azeri oil, in close partnership with the Azerbaijan government.

Azerbaijan is recovering from the sharp economic downturns of the post-independence period and the 1998 Russian financial crisis, both of which were aggravated by the ongoing conflict with Armenia and by pervasive corruption and foreign under-investment in the non-energy sector. An influx of oil revenues starting in the late 1990s led to significant economic expansion; following the start of export of Azeri oil through a trans-Caucasian pipeline to the Turkish port of Ceyhan in May 2006, some economists estimate that oil export revenues, could double Azerbaijan’s 2006 GDP by 2010. However, with the sharp decrease in oil prices, Azerbaijan has failed to see such projected increases. Despite its oil riches, Azerbaijan’s transition from a command to market economy has been slow; an estimated half of the population lives in poverty, while high structural unemployment and low standards of living persist throughout the country. 

Azerbaijan joined the CIS-7 initiative, created in 2001 by international lending organizations to reform the financial structure of new loans to the poorest former Soviet countries. In July 2001, the International Monetary Fund (IMF) approved a three-year, $100 million poverty reduction program for Azerbaijan. Following a brief suspension of funding due to Azerbaijan’s improper allocation of resources aligned for specific purposes, in March 2003 the IMF approved the release of the next installment of the loan contingent on the government preventing the diversion of money intended for Azerbaijan’s State Oil Fund for ad hoc welfare and infrastructural needs – particularly refugee assistance.

Domestic development of Caspian energy resources and increased foreign investment represent Azerbaijan’s best prospects for future economic growth. The Baku-Tbilisi-Ceyhan (BTC) pipeline, which carries oil from the Caspian Sea to the Mediterranean, accounts for most of the funding, received from the World Bank, with focus also on reform of the domestic energy sector and fiscal policy. Azerbaijan has been a member of the Asian Development Bank (ADB) since 1999. Unlike the IMF’s funding strategy, the ADB’s funding strategy for Azerbaijan envisions assistance with emphasis on welfare for internally displaced persons. The increase in volume of credit investments in the Azer-Turk Bank OSC, a joint venture between Azerbaijan and Turkey, has been a positive indicator of progress in the Azerbaijan economy. In July 2005, the Marketing Society of Azerbaijan presented a website aimed at facilitating the movement of goods and services between producers and consumers. The portal is intended to facilitate contact between foreign and domestic companies. In June 2005, the Ministry of Economic Development initiated a plan to restructure monopolies in order to improve market competition and reduce prices. The government has pledged to reduce the level of inflation, 21.6% in 2008, which has been tied to the state policy on monopolies. 



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SOCIAL SITUATION

For both males and females, the average length of schooling is 11 years. 99.5% of the male population is considered literate, compared to 98.2% of the female population. The University of Azerbaijan, established in 1919, includes more than a dozen departments, ranging from physics to Oriental studies, and has the largest library in Azerbaijan. The student population numbers more than 11,000, and the faculty over 600. The Institute of Petroleum and Chemistry, established in 1920, has more than 15,000 students and a faculty of about 1,000. The institute trains engineers and scientists in the petrochemical industry, geology, and related areas. 

Elementary education lasts for four years (Grades 1 to 4). It is followed by primary education which lasts for five years (Grades 5 to 9) and leads to the Certificate of Primary Education. Secondary education or high school lasts for two years (Grades 10-11). At the end, pupils receive a Certificate of General Education. To enter universities, they must pass a National Entrance Examination. After Grade 9, pupils may opt for specialized secondary education and enter professional lyceums, where they study for three years, or technical and vocational schools, where they study for one or two years. Professional lyceums offer both vocational and general education courses while the others only offer technical/vocational courses. After passing a State final examination, pupils are given the title of "minor specialists".

Though women in Azerbaijan nominally enjoy the same legal rights as men, gender discrimination is common. Particularly in rural communities, women who appear in public unaccompanied, smoke in public, drive automobiles, or visit certain theaters and restaurants are subject to disapproval. There are no legal restrictions on the participation of women in politics, although traditional social norms limit women's political roles, and they are underrepresented in elective offices. As of 2007, there were 14 women in the 125-seat parliament. Although the majority of Azerbaijani women work in the paid labor force outside the home, women are underrepresented in high-level posts, including top business positions. 


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JEWISH COMMUNAL LIFE & ANTI-SEMITISM

The first Jews of Azerbaijan settled in the Caucasus Mountains, possibly as early as the late Roman era. Known as Mountain Jews, or Tats, they lived in the mountains until the 18th and 19th centuries, when most moved to the Azeri lowlands and became agriculturalists. Tats spoke a distinct Jewish dialect called Judeo-Tat (Judeo-Persian), a language that remained unwritten until the Soviet Era. European Ashkenazi Jews arrived in Azerbaijan in the 19th century during Imperial Russian rule. 

Lesley Weiss

March 2003: Opening of first new Baku synagogue in 100 years

Many Jews emigrated after the collapse of the Soviet Union, fleeing war and poverty in the region. Communities of 500 or less remain in a number of smaller towns. Currently, the total population of Jews is between 15,000-20,000 Jews and most reside in Baku and Quba, the latter city of which was one of the centers for Jewish learning prior to 1917. Krasnaya Sloboda, a section of Quba, still has its own Jewish center and synagogue and officially adheres to the Jewish calendar. A state school in Krasnaya Sloboda educates Muslim, Jewish and Russian students. It is the only school in the country to teach minority languages and students learn about both Muslim and Jewish holidays. In 2006, Baku State University opened its first Hebrew language department.

In September 2003, Chabad opened the first national Jewish school in the country to be recognized by the Azerbaijani government. The ceremony received extensive coverage from both the Jewish press and the Azerbaijani media. Other schools in Baku and Quba include a state-subsidized day school and a Jewish College, which operates under the authority of the Vaad HaHatzolah of New York. In November of 2003, after receiving a state license, Azerbaijan's only private Jewish kindergarten saw enrollment rates rise beyond expectations. Because of the increase in interest, the Ohr Avner Foundation leased a building to house both the kindergarten and the school. By September 2005 enrollment in the Chabad-run Jewish national school had tripled.

There are approximately 10-15 Jewish organizations in Baku, including the Baku Religious Community of European Jews, a Jewish Women’s Organization, a War Veterans’ Society, the Azerbaijan-Israel Friendship Organization, and the Chavva Welfare Center for Women and Children. The American Jewish Joint Distribution Committee (JDC/ “Joint”) runs a Jewish kindergarten, a community center, a Chesed charity center, and a Hillel student center. The Jewish Agency for Israel (JAFI/ “Sochnut”) conducts programs in the city, including a Hebrew-language ulpan, a winter camp for children, a parents’ club, as well as a program to prepare candidates for aliyah (immigration to Israel).

Four synagogues hold services in Baku. Baku’s newest synagogue, opened in March 2003, is the first to be built in Azerbaijan in nearly a century. The opening ceremony, sponsored in part by the Baku Religious Community of European Jews, brought together broad diplomatic, governmental, and faith community representation, including NCSJ. However, recent Jewish history in Azerbaijan has included anti-Semitic attacks, including physical assaults and desecrations of synagogues and cemeteries. In May 2003, an Israeli tourist was attacked and murdered by a self-styled Muslim extremist while visiting relatives in Baku. In 2004, Jewish organizations received unsigned letters threatening to avenge the death of Hamas leader Sheik Ahmed Yassin. Only 250 Jews showed up for a community Seder instead of the expected 1,000. Rabbi Meir Bruk, who directs community activities on behalf of the Federation of Jewish Communities, credited the low attendance with widespread concerns about security, further evidenced by the precipitous change in venue after the planned public hall had refused its space in fear of possible attacks.

Nonetheless, Jewish relations with other ethnic and religious communities are generally positive. In October 2001, after the discovery of the desecration or destruction of 47 tombstones in the City Cemetery (one of Baku’s two Jewish cemeteries), which reportedly occurred the day after the installation of Israel’s current ambassador to Azerbaijan, the Prosecutor General launched a thorough investigation and the Baku Mayor’s Office began repairs on the cemetery.

In August 2006, an anti-Israeli rally was held in the town of Nardaran to protest the fighting in Lebanon and demonstrate support for Hezbollah. Speakers condemned the Israeli and Azerbaijani governments and called for local Muslims to join the struggle against Jews and Israel.

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U.S. POLICY

In September 1999, the United States and Azerbaijan signed an agreement pledging cooperation in counter-proliferation efforts against weapons of mass destruction. The United States has provided Azerbaijan over $8.6 million in landmine removal assistance since 1993, including training and equipment. In late-2001, Congress allowed President Bush to waive the restrictions mandated by Section 907 of the FREEDOM Support Act of 1992, facilitating full U.S.-Azerbaijan cooperation in the fight against terrorism. 

Overall U.S. assistance to Azerbaijan in FY2006 was estimated at $48 million, budgeted for democracy programs, private sector development programs, and security, law enforcement, and nonproliferation assistance. Since 1993, the U.S. has funded the travel of over 3,012 Azerbaijani citizens to the United States on academic and professional exchange programs. Additionally, the Peace Corps, which has been working in Azerbaijan since 2003, currently has 55 volunteers in Azerbaijan providing English instruction at the secondary level and working with NGOs.

Despite the waiver of Section 907 and expanded cooperation between the two countries, U.S.-Azerbaijani tensions remain over violations of press, political and religious freedoms. A 1999 Azerbaijani religious law aroused U.S. concern because of clauses intended to restrict the activities of foreign and “non-traditional” religious groups. The United States has likewise expressed concern at the existence of the Azeri State Committee on Religious Associations, which brings security concerns into the framework of state policy toward religious groups. The United States participated in the October 2002 Baku Conference on the Role of Religion and Belief in a Democratic Society, jointly sponsored by the OSCE and Azerbaijan. At that conference, the United States reiterated its criticism of the Azerbaijani government’s quelling of public protests.

President Aliyev paid a state visit to the United States in February 2003 to discuss U.S. cooperation for Caspian Basin energy development. In March 2003, Azerbaijan expressed support for proposed U.S. military action in Iraq. In May 2003, the Parliament approved the deployment of a 150-man unit to participate in peacekeeping efforts there. National Democratic Institute (NDI) Chairman and Former U.S. Secretary of State Madeleine Albright visited Azerbaijan in July 2005 to discuss further development of bilateral relations. Secretary Albright’s discussion with President Aliyev focused on issues of security and energy.

R.D. Ward /Defense Department

Azerbaijani President Heydar Aliyev (right) meeting with U.S. officials at Pentagon, February 2000

In April 2006, Aliyev visited the United States for the first time since 2003. He and President Bush reported that they discussed Caspian oil and gas reserves, the war on terror, and their hopes for future peace and stability in the Nagorno-Karabakh region.

The United States has expanded its financial stake in such efforts since 2001, and stated its strong support for the major proposed developments in Azerbaijan’s energy sector. Azerbaijan is actively backing the U.S.-led “War on Terror”, providing blanket overflight rights, intelligence and law enforcement cooperation, as well as use of bases. However, U.S. concerns persist over the Azerbaijan government’s suppression of civil liberties, and the United States continues to work for a resolution of the dispute with Armenia over Nagorno-Karabakh.

In March 2007, the United States and Azerbaijan signed a Memorandum of Understanding expressing the intent of both governments to begin a high-level dialogue on energy security in the Caspian region. In particular, the United States and Azerbaijan plan to discuss ways to create new pipeline connections linking Azeri oil and natural gas fields to European and global markets, including to Greece, Italy, and Austria. These new delivery routes would be privately built and operated, would bypass Russian territory, and would remain outside Russian control, unlike most current pipelines in the Caspian region.

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