Legal regime (for 2018)

The existing legal framework governing the activities of the mining industry, which is not limited to the following acts and regulations created by the government are publicly available and published in the official websites.

LAWS



INTERNATIONAL AGREEMENTS


  • International Convention of 1969 on “Civil Liability for Oil Pollution Damage”: The participation of the Republic of Azerbaijan in the Convention was approved by the law number 691-IIQ dated June 18, 2004. The convention agreement is aimed at elimination or reduction of pollution at the territory (including territorial waters) of the contracted country
  • International Convention of 1990 on “Oil Pollution Preparedness, Response and Co-Operation”: The participation of the Republic of Azerbaijan in the Convention was approved by the law number 690-IIQ dated 18 June 2004. According to the Convention, the parties undertake responsibility to take actions individually or jointly to get prepared against the events that could potentially cause oil pollution.
  • Agreement on “Oil and oil products transit through oil pipelines highways and coordinated policy”: The agreement signed in Moscow dated December 27, 1996 was approved by Law No. 228-IQ.
  • Agreement on “The creation of interstate oil and gas transportation systems for the organisational principles”: Framework Agreement on the creation of interstate oil and gas transportation systems for the organisational principles was signed by the Republic of Azerbaijan dated July 22,1999 in Kiev and approved by the law number 938-IQ dated October 24, 2000. According to the Agreement, in order to establish the basis of mutually acceptable terms and conditions the parties carry out joint activities on restoration of existing oil and gas transportation system(s) , construction of new interstate oil and gas transportation system(s), maintenance and establishment of one or more interstate oil and gas transportation system.
  • Framework Convention of 2003 on “The protection of the marine environment of the Caspian sea”: This Convention was approved by the law number 89-IIIQ dated Apri 4, 2006. The purpose of the Convention is to protect Marine Environment of the Caspian Sea from pollution, as well as preservation of biological resources of the Caspian Sea , its restoration and rational use.
  • Protocol of 2011 to Framework Convention on “On the protection of the marine environment of the Caspian Sea” and regional preparedness, responsiveness and cooperation in combating oil pollution: This Protocol was approved by the law number 508-IVQ dated December 21, 2012. The purpose of this Protocol is to take regional measures based on preparedness, responsiveness and cooperation for protection of Caspian from the oil pollution caused by ships and land-based sources of the oil contamination of the sea in the seabed.
  • Protocol of 2012 to Framework Convention on “On the protection of the marine environment of the Caspian Sea” and protection of the Capsian Sea from pollution through land-based sources and activities carried out on the land: This Protocol was approved by the law number 911-IVQ dated February 25, 2014. Under the provisions of the Convention and accordance to the Protocol, the contracting parties individually or together will undertake all necessary actions to protect, control and reduce pollution of the Caspian Sea and its coastal areas, as a result of activities carried out on the land. The parties will exchange information and undertake joint actions on assessment and monitoring of the environmental impact.

CODES


  • The Civil Code of the Republic of Azerbaijan approved according to the law numbered 779 IQ dated December 28, 1999: The purpose of the Civil Code, is to ensure the freedom of the civil relationships on the basis of equality of the parties without prejudice to the rights of third parties. At the same time, the Code is regulated by the use of natural resources, environmental protection, civil law relations and other legislative acts. Intergovernmental agreements maintained by the Republic of Azerbaijan are applied directly to the civil legal relations (except for the cases when application of international agreement requires adoption of internal legal acts) regulated by the Civil Code.
  • The Tax Code of the Republic of Azerbaijan approved according to the law numbered 905-IQ dated July 11, 2000: The Tax Code includes the tax system and the basis of taxation of Azerbaijani Republic, determines payment of taxes and its collection procedures, sets the rights and obligations of the taxpayers, tax authorities and other participants, determines forms and methods of tax control and liability for tax violation of tax, refer to complaints about activities (inactivities) of the state tax authorities and their officials. If the provisions included in this Code and other normative-legal acts on taxation differ from those on the production sharing agreements and the agreements on main pipelines, including oil, gas and export oriented oil and gas activities and special economic zones which are approved by the legislation, then the provisions of these agreements or laws shall be applied.
  • The Water Code of the Republic of Azerbaijan approved according to the Law No. 418–IQ dated December 26, 1997: The Water Code of the Republic of Azerbaijan of Azerbaijan regulates legal issues regarding the use and protection of water bodies. If the rules determined related with use and protection of water bodies in the international agreements of the Republic of Azerbaijan does not comply with the rules provided in this Code, then the provisions of the international treaties, which the Republic of Azerbaijan is a signatory to, shall prevail.
  • The Labour Code of the Republic of Azerbaijan approved according to the Law No. 618–IQ dated February 1, 1999: The Labour Code determines Labour, social and economic rights of employees and employers and minimum level of guarantees associated with these rights and includes principles and rules on Labour relations, leisure time, work environment (safe and healthy) envisaged in the second section of the Constitution.
  • The Land Code of the Republic of Azerbaijan approved according to the law numbered 695 –IQ dated June 25, 1999: The Land Code of the Republic of Azerbaijan is directed to settlement in the Republic of Azerbaijan of the land relations evolving from application of different types of land ownership, implementation of the obligations of owners, users and lessees of the earth connected with the earth and protection of their land rights, creation of conditions for rational use of lands and their protection, recovery and increase in fertility of the earth, recultivation of the lands which came to unfitness as a result of pollution and destruction, preserving and improving the environment.

DECREES




ORDERS OF THE CABINET OF MINISTERS OF THE REPUBLIC OF AZERBAIJAN



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The Extractive Industries Transparency Commission established by according to the Decree of the President of the Republic of Azerbaijan "On additional measures to increase transparencey and accountability in the extractive industry" number 1315 dated April 5, 2017. The Commission on the basis of international principles implements the application of the principles of transparency and accountability in the extractive industry of the country and cooperates with extracting companies, civil society, experts and international organizations.

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