Thirty-six-year-old Anar Aliyev speaks about his wealth

The publication of “Azerbaijan-Anonymous” Report by Global Witness on 10 December 2013 focused on Azerbaijan’s oil industry a lot of attention arose in Azerbaijani society on who is Anar Aliyev.

 Anar Aliyev gave an interview to Azeri magazine called Business Time and answered about his background and activities. 

 “As I have already mentioned in my Personal Statement I have no family relations with any powerful representatives of the Nakhchivani clan referred to by Global Witness. Taking this opportunity, I would like to stress again that have no close family relations with any of the referred persons or anyone else who holds high Government position in Azerbaijan.

I started my business activities in my teenage period. When the borders with Turkey were opened I was actively involved in import of Turkish textile and food products to Nakhchivan, Azerbaijan and Russia. I was supported in this business by my family. At the same time I was active in car import business. Afterwards with a generated capital in early 2000-s I came to Baku and was actively engaged into trading of lands and private properties located in luxurious Gyandjlik metro station area. For information

purposes I would like to stress that in early 2000-s within 2-3 years the prices of property in that area dramatically increased several times. Transactions with gradual sale of those properties allowed me to generate a substantial initial capital for my further business activities. Trading with construction materials and equipment was one of other my initial business activities. In the same time I started construction of residential premises through the advance crediting by the purchasers actively used in Azerbaijan.

It also substantially increased my capital. In 2003-2004 I set up “Aztrans” LLC which owned 17 cargo trucks and was quite successful in cargo transportation of local fruits  and vegetables to Russia. I opened “Grand LLC” belonging solely to me and I provided services to major oil and services companies including the local ones. Since Socar is the key player of Azerbaijan’s economy the cooperation with this company in Azerbaijan is unavoidable. In 2003-2004 “Grand” LLC was one of the first local companies which imported modern equipment and provided oil pipes’ x-ray services and started an active cooperation with Socar. All these years my companies provided various services, supplied goods and rendered construction services to Socar and its subdivisions. Therefore, my long-term cooperation with

Socar and other local and foreign companies upgraded me from an ordinary service provider and supplier up to a reliable partner. I believe that it was possible due to the strategy of our State and the Government on supporting the local businessmen. It also allowed me to participate in some, I would even emphasise that in some, but not many projects with Socar.

Socar Trading SA was set up as a result of the offer came from me and well-known oil trader Mr Valery Golovushkin. At that time Socar sold its crude through foreign companies. Both from political and economic points of view it was not admissible for Azerbaijan. From political perspectives it gave certain tool for pressure on Azerbaijan. As a result a proposal was made to set up a company in Switzerland a world centre for oil trading. This centre was to be professionally staffed and expanded to become the main hub for trading Azerbaijani oil. At that time Socar did not have the resources or know-how to establish this centre and as a result a proposal was made and accepted and Socar Trading SA was established. The traded price for Azerbaijani crude has increased across the world market. The resulting success of this venture has benefited Azerbaijan in that it now receives a more favorable price for its crude and this entail has benefited the whole economy of the country. Based on our offer Socar Trading SA should be financed by us during the first years of its activities. According to the initial arrangement such cooperation should be lasting 5 years and in case of positive results and achievements of the company Socar would have a right of purchase of all shares of the company in 5 years and as minority shareholder we took an obligation to sell all of our shares pursuant to the current market value. According to all agreements Socar had all control functions and as minority shareholders we took an obligations not to interfere into Socar Trading’s 64 январь 2014 BusinessTime activities, especially over the strategic field such as crude trading. I invested substantial funds into this company and the figures referred by Global Witness in its Report are not accurate. For example, in 2008 when the global financial crisis hit the entire world and Socar Trading SA faced serious financial difficulties and Socar was hesitating to provide the financial assistance, it was me who as one of the shareholders provided necessary financial assistance to Socar Trading SA and did not allow it to become insolvent. 

Moreover, as I mentioned earlier I was never involved in Azerbaijani crude trading. This right belongs to Azerbaijani State and Socar which uses its Marketing and Operations Department for these purposes. I never interfered into these processes and I have no doubts that I could not be allowed to do so by the State.

Currently a team comprised of local and international specialists and lawyers are looking over this issue.

We believe in civilized professional methods of disputes’ resolution. We are pleased to hear Global Witness’s most recent declaration that they are ready to correct their statements if they are provided the relevant evidences. Any way, I will use all possible means to protect my honor, dignity and business reputation. Undoubtedly, the court proceedings are not excluded for these purposes,” said Anar Aliyev.-03D-