Reshuffling in Azerbaijan's Financial Leadership: Samir Sharifov Resigns After 19 Years

On January 10, 2025, Azerbaijani President Ilham Aliyev signed a decree dismissing Samir Sharifov from his position as Minister of Finance. After 19 years of serving as Minister of Finance, Sharifov has now been appointed Deputy Prime Minister, marking a shift in his responsibilities while maintaining his influence in the government.

The Legacy of a Financial Reformer

Sharifov, a pro-Western figure in Azerbaijani politics, is regarded as the architect of the country’s economic modernization and global financial integration. Under his leadership, Azerbaijan achieved several significant milestones, including the elevation of the country’s credit rating to investment grade by Fitch Ratings in 2024. This achievement reflected improvements in Azerbaijan's fiscal indicators, such as an increase in foreign exchange reserves and a reduction in debt levels.

Sharifov also championed international cooperation, fostering partnerships with institutions like the World Bank and the European Bank for Reconstruction and Development (EBRD). These collaborations funded key energy and infrastructure projects, aligning Azerbaijan’s economy with global trends toward sustainability and green transformation. His tenure was marked by a heightened focus on climate finance, with budget allocations directed toward addressing the country's vulnerability to climate change.

Despite his successes, Sharifov faced criticism. Public demands for greater financial transparency, economic inequality, and the ongoing influence of Azerbaijan’s oil dependency periodically overshadowed his record. Some analysts argue that his dismissal is a response to these concerns, though official explanations remain absent.

Reasons for the Change

While specific reasons for Sharifov's dismissal have not been disclosed, experts speculate that a combination of factors is at play. After nearly two decades in office, Sharifov's tenure symbolized continuity, but it may have also stifled innovation. The leadership change could bring fresh perspectives to Azerbaijan’s financial strategy. In recent years, Azerbaijan has seen significant personnel shifts, likely aimed at addressing both internal and external challenges more dynamically. Sharifov had been criticized for his economic policies and management of oil revenues. Concerns over the transparency of the State Oil Fund of Azerbaijan (SOFAZ) and allegations of corruption in the energy sector further complicated his position. His transition to the role of Deputy Prime Minister may signal the government’s intention to leverage his experience in a broader political context, potentially focusing on strategic planning and economic reforms.

Challenges for the New Finance Minister

Azerbaijan faces serious economic challenges. Amid fluctuating oil prices, the country must continue its transition to a diversified economy, less reliant on hydrocarbons. The Ministry needs to expand green financing initiatives, integrating sustainable practices into infrastructure and agriculture. Simplifying tax policy and creating a more equitable business environment will be critical to driving economic growth. Strengthening trust from both foreign and domestic investors is also crucial, particularly when financing large-scale projects.

ASTNA columnist Toghrul Juvarly views Sharifov's dismissal as "a calculated risk." He explains, "While Sharifov's experience brought stability during unstable times, the global economy demands adaptive leadership. The next Finance Minister of Azerbaijan must balance continuity with bold reforms to stay competitive."

Juvarly also emphasizes the growing importance of climate finance: "The new minister must prioritize sustainable development. Climate resilience is not just an environmental issue; it is economic survival."