U.S. To Publish Investment Climate Report On Azerbaijan 'Shortly', State Dept Says

The United States said on Friday that it is in the process of publishing an annual Investment Climate Statement on Azerbaijan, a report which is widely used by both U.S. officials and investors to help make informed decisions about the business environment in a foreign country, TURAN's Washington correspondent reports.

Early this week, the State Department released its 2024 Investment Climate Statements (ICS) for more than 165 countries and economies, which did not include Azerbaijan.

"Some ICSs come out on a rolling basis, and the ICS for Azerbaijan was delayed for technical reasons," a State Department spokesperson said on Friday in response to TURAN's inquiry.

"There is a forthcoming 2024 ICS for Azerbaijan, and it should be published shortly," the spokesperson added.

The ICS are also a resource for partner governments to create business environments that are economically sound and sustainable to grow the middle class, empower workers, promote internationally recognized labor rights, combat corruption, support responsible business conduct, and help address the climate crisis.

For instance, this year's reports on Armenia and Georgia cover topics including: Openness to —and restrictions upon—foreign investment, Legal and regulatory systems, Protection of real and intellectual property rights, Financial sector, Responsible business conduct, Corruption, and other topics.

According to the authors, Armenia presents a variety of opportunities for investors, and the country’s legal framework and government policy aim to attract investment. However, the investment climate is not without challenges. "Obstacles include Armenia’s small market size, relative geographic isolation due to closed borders with Türkiye and Azerbaijan, weaknesses in the rule of law and judiciary, and a legacy of corruption," reads the report.

As for Georgia, while the report provides positive assessment to the business climate in general, it also expresses concern for the independence of Georgia’s judiciary, particularly for “the judicial sector’s ability to adjudicate commercial cases independently or in a timely, competent manner.” Business dispute cases are often stuck in courts for prolonged periods of time, local decision-making processes are inefficient, and there is a lack of effective anti-trust legislation. Moreover, Georgia does not have an integrated commercial code. The report also expresses concerns about accusations of political meddling and the selective enforcement of laws, including commercial laws.

When asked by TURAN about the recent U.S. decision to conduct a comprehensive review of its bilateral cooperation with Georgia, a State Department spokesperson said:  "We continue to monitor developments related to democracy in Georgia, including how these issues might impact the investment climate."

The 2024 Investment Climate Statements can be found here:  https://www.state.gov/reports/2024-investment-climate-statements/

There is no ICS for Russia this year either. "In countries and economies where the situation on the ground makes gathering and verifying this information particularly difficult, we do not publish reports," a State Department spokesperson explained to TURAN. 

In the meantime, the spokesperson deferred to the Department’s release from early this year on “Risks and Considerations for Doing Business in the Russian Federation and Russia-Occupied Territories of Ukraine," in which, for the first time since 2022, the U.S. issued a business advisory to assist companies in making informed decisions regarding the risks of conducting business in Russia.