(2004/C 88 E/0151)

WRITTEN QUESTION E-3399/03

by Olle Schmidt (ELDR) to the Commission

(17 November 2003)

Subject:   Azerbaijan

Presidential elections were recently held in Azerbaijan, which were followed by riots and political unrest. The new president, Ilham Aliyev, son of the former president, has already cracked down hard on any form of opposition. Azerbaijan is a country beset by a great many problems; large numbers of refugees, a ravaged environment and conflicts with its neighbours. At the same time, there are great riches to be exploited in the form of oil, which attracts interest in the region from many quarters, including the USA and the European Union. However, this economic interest must not lead us to turn a blind eye to the mismanagement of the country. Azerbaijan is in great need of reform and reconstruction, which is entirely possible with the anticipated revenue from oil. However, current events indicate that the country is more likely to become the fiefdom of the Aliyev clan, where progress towards democracy and improving living conditions do not come top of the agenda.

Will the Commission therefore say what steps are being taken to ensure that advances are made towards democracy in Azerbaijan at the same time as economic cooperation progresses? Has the EU attached any conditions to investment etc., such as linkage to progress on democracy, human rights, the situation of refugees and using the country's oil revenue for the good of the people as a whole?

Answer given by Mr Patten on behalf of the Commission

(17 December 2003)

The Commission has been assisting Azerbaijan make the transition to a democratic society based on a free market economy since 1992 with its technical assistance and other aid programmes. Currently these assistance programmes have poverty reduction and government reform as their principal objectives. The Government of Azerbaijan has recently started to implement its State Programme for Poverty Reduction and Economic Development (SPRED). The Programme has been welcomed by the International Financing Institutions and the wider donor community. The Spred provides the framework for all donor assistance in Azerbaijan. Only by addressing the fundamental and underlying problems will the progress to democracy and a free market economy be achieved.

The Commission along with the Member States carries out a very active dialogue on a wide range of matters including progress on democracy, human rights and the use of oil revenues for the good of the people as a whole. The Commission is one of the largest donors assisting Azerbaijan's refugees and Internally Displaced People through its programme for the rehabilitation of war damaged areas.

The Government of Azerbaijan has started to use its Oil Fund for the benefit of refugees who have been settled in different regions of Azerbaijan.