Irfan Siddig: I hope the future development of Azerbaijan will let its talented people realize their potential

Completing his diplomatic mission in Azerbaijan, Ambassador Extraordinary and Plenipotentiary of Great Britain to Azerbaijan Irfan Siddig in an interview with Turan shared impressions on his three-year work in the country and commented on topical issues of the bilateral relations and London's position on the Karabakh settlement

Question: How far have the Azerbaijani-British relationships moved ahead during your diplomatic mission in Baku? In which spheres do the relationships most actively develop? Are there any areas, where diplomatic efforts have not given the expected effect yet?

Answer: The relationship between Azerbaijan and the UK is very strong and has been growing fastest in the economic area, particularly in the energy sector. The visits to Azerbaijan of the UK Foreign Minister William Hague for the Shah Deniz II Final Investment Decision and of the Lord Mayor of the City of London were important symbols of the UK commitment to our economic partnership with Azerbaijan.  The UK is the largest foreign investor in Azerbaijan by far and our partnership has been consolidated by the establishment of a new Joint Intergovernmental Commission between the UK and Azerbaijan which should help further develop our co-operation.  All this shows that we intend to develop good relations both in economic and political spheres. Until now, in the economic field, the focus has been on cooperation in the oil and gas sector. Now, looking to the future, we seek to diversify economic cooperation, aiming not only at oil and gas, but other sectors too.

Question: The ambassador of any state and especially of such a power as Great Britain fixedly monitors processes in the country of residence. In this sense what achievements and at the same time omissions of Azerbaijan have you noted during your stay in the country?

Answer:  Azerbaijan’s economic development since independence has been very impressive, mainly due to the strategic decision to invite world class energy companies, like BP, to work with Azerbaijan to develop the oil and gas resources.  This strategic approach to the country’s development continues through the implementation of large-scale regional projects such as Shah Deniz II field and the Southern Gas Corridor. However, the recent drop in world oil prices has shown that Azerbaijan’s economy has not positioned itself to manage the impact as strongly as it could have done.  The government is now actively pursuing economic reforms, but it would have been easier to manage the situation if measures in areas such as customs and taxation were taken before the crisis.  I hope the commitment to economic reform that we are now hearing about is matched in the implementation of the proposed  measures.

Question: Due to the falling oil prices the economy of Azerbaijan has faced serious problems. What advisory and financial aid can the British institutions provide, taking into account the potential of the London City?

Answer:  London is one of the world’s most important centres of financial expertise, so we can certainly help in this area.  The Joint Intergovernmental Commission mentioned earlier, included a specific working group focused on the financial sector, with experts from both sides from both Government and businesses.  There were a number of ideas suggested for further co-operation which I hope we will be able to implement. 

Question: By the way, a year ago Azerbaijan was visited by a delegation of the business community of Great Britain led by the Lord Mayor Alderman of London City Alan Yarrow. Then he spoke about opportunities of cooperation in training of the Azerbaijani experts, assistance to development of the capital market of Azerbaijan and its global integration. Are there any concrete steps in development of cooperation on the specified directions?

Answer:  There were a number of practical suggestion that were made, which we are still following up.  Implementation has not taken place yet, but I am hopeful that with the newfound importance of such co-operation, given the problems many Azerbaijani banks are currently facing, we will see practical progress in the future.

Question: Great Britain traditionally leads among foreign investors in Azerbaijan. Naturally the energy sector prevails. In which large oil and gas projects do the British companies show interest? What branches in the non-oil sector cause interest?

 - Large regional projects Shahdeniz, TANAP, TAP, and Southern Gas Corridor - this is what attracts the interests of British companies. BP remains a key player in the energy sector of Azerbaijan, especially in the project Azeri-Chirag-Guneshli. But if we talk about the non-oil sector, the potentially promising areas of cooperation may be IT, education, tourism and even agriculture. But to be honest, not as many British companies are present in Azerbaijan outside the oil and gas sector as I would like. They do not actively express a desire to come to the Azerbaijani market, because the conditions are not so favorable for this. But in light of recent events I think the government is doing more to attract investment into the non-oil sector so I hope we will see better conditions emerge soon.

 Question: Great Britain is one of the permanent members of UNSC - the structure that plays the leading role in the solution of present-day international problems. However four resolutions of UNSC that demand release of the occupied territories of Azerbaijan are still not executed. What is the position of London on this matter? What contribution is Great Britain able and ready to bring to the settlement of the Armenian-Azerbaijani conflict on the basis of rules of international law and resolutions of UNSC?

Answer: The United Kingdom has always supported the work of the OSCE Minsk Group. But I want to note that the third parties that could mediate the conflict are not the key stakeholders. In the end, it is the two sides, Armenia and Azerbaijan, who have to come to an agreement and resolve this conflict.

The recent clashes on the front line confirmed the dangerous and volatile nature of this conflict.  It reaffirmed that the status quo is unsustainable and is, in fact, already changing.  The UK is fully committed to a peaceful resolution of this conflict, but it seems that the peace negotiations are not moving forward.  It is vital that the peace talks resume as soon as possible, as it will be impossible to make progress without this.  The pre-conditions that Armenia’s President has set out for resuming peace talks reflect the insecurity felt in Armenia, particularly after the latest clashed.  Armenia is unlikely to be proactive on this issue while it feels insecure. Azerbaijan has demanded the return of its occupied territories, but the military rhetoric that accompanies these demands may make Armenia less comfortable returning the land.  In this case, one of the key factors that needs to be discussed more openly is the importance of security guarantees: to convince Armenia that withdrawing from Azerbaijan’s occupied territories will not result in greater insecurity and vulnerability for Armenia, but the opposite.  Azerbaijan should continue to state that it is only interested in a peaceful settlement of the conflict, as the President did very clearly and wisely after the latest clashes. This will help create the conditions for the return of occupied Azerbaijani land.  After this, you can then go to the second stage, which is determination of the final status of Nagorno Karabakh.  The United Kingdom is very interested in the resolution of this conflict and will continue to support efforts that produce peace.

Question: Are the repeated statements of the Azerbaijani leadership that Baku is ready to grant Nagorno-Karabakh the highest status of autonomy that exists in Europe not the security guarantees?

 Answer: Security and the level of autonomy are two different things. Security guarantees are about security issues, and the level of autonomy is more about a political settlement. From the point of view of Armenia, the Armenians returning the occupied territories will become vulnerable to attacks from the side of Azerbaijan. It is a question of how to convince Armenia that Azerbaijan will not attack them, so that they are willing to return the occupied territories. After that, you can discuss the possible deployment of peacekeeping forces, the demilitarization of the territory and its liberation from mines.

The OSCE Minsk Group is currently proposing a phased solution with the return of five regions of Azerbaijan at the first phase. From a logical point of view, it is beneficial for Armenia to return the five areas because it will not only improve Armenia’s security as there will no longer be an active line of fire, but it will also benefit economically, as it can open borders with Azerbaijan and probably Turkey, be included in regional projects which will help Armenia improve its trade, infrastructure and transport links.  But why is Armenian reluctant to return the occupied territories?  Because they do not trust Azerbaijan’s intentions, which is why security guarantees are important as they can help provide some assurance that commitments will be adhered to.

 Question: And what security guarantees could be more robust than those provided by the great powers, at least those co-chairing in the OSCE Minsk Group, and, apparently, with international peacekeeping force deployed?

 Answer: It is not about who and how should provide security assurances, and I do not say that Azerbaijan has to provide these guarantees. The idea is that we have two sides - Armenia and Azerbaijan, who are at war with each other, and the question is whether they are open to talk about peace. The issues of peacekeeping force and its status can be dealt with in detail later, but for the moment the question is whether the two warring parties can put aside their suspicion of the other and find enough trust to move ahead with substantial peace talks. 

 Question: The period of your work in Azerbaijan has coincided with legislative changes in Azerbaijan, which have been regarded by local independent NGO as limiting the conditions for work of civil society. Moreover, many local and foreign NGO have undergone checks of law enforcement and tax authorities. This campaign has not bypassed the known British organization Oxfam which has curtailed the activity in Azerbaijan. On the other hand Great Britain is one of the initiators of the Initiative of Transparency in the extracting sphere which assumes the high level of public control. In this regard it would be desirable to ask whether in the agenda of the bilateral relations there are any questions of facilitating conditions of NGO activity in Azerbaijan. Were there any discussions whether Oxfam will return to Azerbaijan or restore its donor activity?

Answer: The presence of NGOs in any country is a positive factor that helps with a state’s development. The state itself cannot do everything. NGOs help the development of the country, the state and the society as a whole. We believe the new legislation on NGOs governing registration and the provision of grants are rather restrictive.  It makes it difficult for donors to assist NGOs and in general to ensure that these institutions can work. We hope the state's position on this issue will change in the future and more liberal rules will allow NGOs to be active and to secure financial assistance in an open and unhindered manner.

As for Oxfam, this organization encountered certain problems. But these problems have been solved. It has its own priority areas and continues to work in other countries, where it will be able to see the fruits of its activities. But it has no plans to return to Azerbaijan. They closed their division here and no longer plan to resume their activities in Azerbaijan.

Question: What else would Mr. Siddig like to say to our readers?

Answer: Azerbaijan is a wonderful country. There are many wonderful and talented people here. I hope and am confident that the development of Azerbaijan in the future will continue, and these talented people, who have great potential, will be given the opportunity to exercise their talents in life.    –0--