Strategic investments may be acquired by the state in exceptional cases contrary to national interests

In exceptional cases that run counter to national interests, strategic investments may be acquired by the state.

According to The Daily Baku, this provision is reflected in proposed amendments to the Law “On Investment Activity” that were discussed today at a meeting of the Milli Majlis Committee on Economic Policy, Industry, and Entrepreneurship.

Currently, investments may be acquired by the state from investors on two main grounds: for state needs and for requisition purposes (in the interests of society by decision of relevant state bodies in the event of natural disasters, technological accidents, epidemics, and other extraordinary circumstances). In both cases, the value of the investment is paid to the investor through compensation in accordance with Articles 13.3 and 13.4 of this Law.

The proposed amendment establishes a new ground for state acquisition of investments. This ground applies to investments of strategic importance and aims to prevent exceptional cases that cause harm to the interests of the Azerbaijani state and people or contradict the national interests of the Republic of Azerbaijan, through acquisition of such investments by the state.

Thus, the draft law forms the legal basis for the state acquisition of strategically significant investments in order to prevent exceptional cases that harm the interests of the Azerbaijani state and people or contradict the national interests of the Republic of Azerbaijan. For this purpose, the acquisition of investments may be carried out under the general procedure, that is, with compensation paid to investors in exchange for the state acquisition of the investments.