Experts for the investigation of Lahic Energy, which was included in the US sanctions list

On May 1, the United States Treasury Department announced a new wave of sanctions aimed at entities supporting the Russian military-industrial complex, significantly broadening the scope of its restrictive measures amid ongoing tensions with Russia. This latest sanction list incorporates 60 companies located not only in Russia but also in Azerbaijan, Belgium, China, the United Arab Emirates (UAE), Slovakia, and Turkey.

Among those targeted is the Azerbaijani company "Lahic Energy" LLC, along with its director Jahangir Aliyev and his father Yevgeny Aliyev. The Treasury's statement highlighted that Lahic Energy operates within a sector of the Russian economy that supports Russia's military-industrial base, which prompted its inclusion in the sanctions list.

Located in the Binagadi district of Baku, Lahic Energy has come under scrutiny for its connections with the Russian military sector. This has raised concerns about the extent of its operations and affiliations.

MP Rasim Musabayov commented on the situation to the Turan news agency, suggesting that the director of Lahic Energy might be an Azerbaijani residing in Russia. He noted that many individuals, in the wake of sanctions following the conflict in Ukraine, have relocated to set up businesses in countries like Kazakhstan, Azerbaijan, Armenia, and Georgia. Musabayov emphasized the need to clarify the director's links to Azerbaijan and speculated on the minimal impact of these sanctions on the Azerbaijani economy.

“The sanctions, if strictly imposed, would likely result in the closure of the company's bank accounts in Azerbaijan, effectively ceasing its operations. However, it's possible that alternative companies may have been registered to circumvent these restrictions,” Musabayov explained.

Elkhan Shahinoglu, head of the Atlas Research Center, provided further context: "Following Russia’s aggressive actions in Ukraine, the U.S. and EU have progressively tightened sanctions against Russian businesses and oligarchs. This has prompted even countries like China and Turkey to adopt a more cautious stance towards Russia, and India has scaled back its trade relations."

Shahinoglu also stressed the importance of a thorough investigation into Lahic Energy’s activities to determine its exact role in relation to the Russian military sector. "Should evidence confirm cooperation with the Russian military-industrial complex, decisive actions will be necessary. Conversely, if no such ties are established, a public clarification will be required to mitigate any potential fallout with Western nations and to protect Azerbaijan's international relationships," he stated.

This expansion of U.S. sanctions reflects a continuing effort to curb Russian military capabilities through economic pressures, which now involves a broader network of international businesses and economic sectors.