International Commercial Arbitration in Azerbaijan_Serhat Sasmaz_Abstract
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International Commercial Arbitration in Azerbaijan
Theory and Practice
2015
By
Haydar Serhat Sasmaz
Dissertation Supervisor: Andrey Kotelnikov
Submitted in partial completion of the degree of LLM
Word Count 15,919
(excluding the abstract, acknowledgments, abbreviations, table of cases, table of statues, table of
contents, footnotes, appendices, and bibliography)
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ABSTRACT
This dissertation seeks to critically study the status of International Commercial
Arbitration in Azerbaijan in terms of Theory and Practice.
After gaining its independence in 1991, Azerbaijan focuses its efforts to establish a
competitive free market economy which will support the economic development in all
senses. Foreign investors are encouraged to invest in Azerbaijan. The Azerbaijani
authorities appreciate that the development and growth of the economy depends on
existence of a reliable, sustainable and competitive free market place which will allow
the growth of foreign direct investment. Knowing this fact, foreign investors are
protected by means of several acts and legislations.
These acts protecting the foreign investment and investors; provide fair resolution of
disputes in theory. International arbitration is usually trusted and chosen by foreign
investors in that sense. Being aware of this; Azerbaijan tailored its legal framework
enabling the foreign investors to address their disputes to international arbitration.
The governing statute is the Law on International Commercial Arbitration dated 18
November 1999. This law is based on UNCITRAL Model Law (1985). Meanwhile,
Azerbaijan is party to many international conventions, treaties related to arbitration
and also undersigned many bilateral treaties. All of this shows that current legal
framework in Azerbaijan has created conditions for using arbitration as method of
alternative dispute resolution.
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ACKNOWLEDGEMENTS
First, I have to mention that it was really hard and challenging for me to carry out and
complete this study; especially having many life events at the same time such as:
welcoming a new baby girl to the family, relocating to a new country, dealing with
the challenges of the business life, etc. Therefore, all kind of support was really
invaluable and appreciated.
Accordingly, I wish to express my special thanks to all who have assisted, supported
and advised me during this study, in particular to:
My dissertation supervisor Mr. Andrey Kotelnikov for all his kind support, advise and
guidance from the beginning of this project;
Dr Kathrin Kühnel-Fitchen for her kind understanding and valuable efforts while
coordinating this programme;
My dearest wife Deniz, who encouraged and supported me all time to not to give up
and complete my studies;
My son Mert, for all his patience during my long study hours and days expecting to
play with me;
My little pretty daughter Yağmur Selin, who just joined us and brought joy and
happiness to our family;
My current employer Hill International who provided funding of my law studies;
Mr. David Merritt and Mr.Jeffrey Badman of Hill International, for their support and
belief on me;
Mr. Gordon Tregaskis, who provided invaluable support especially during the first
years of my studies;
My dear friend Mr. Gunduz Karimov, the managing partner of Baker & McKenzie’s
Azerbaijan office, for sharing his experience and thoughts during our discussions
about law, arbitration and Azerbaijani cases, meanwhile for supporting me to find
reference material.
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TABLE OF CONTENTS
ABSTRACT..................................................................................................................1
ACKNOWLEDGEMENTS ........................................................................................2
ABBREVIATIONS......................................................................................................3
TABLE OF CASES......................................................................................................4
TABLE OF STATUTES .............................................................................................5
TABLE OF CONTENTS ............................................................................................6
CHAPTER 1 - INTRODUCTION..............................................................................7
Background.................................................................................................................7
Aim.............................................................................................................................7
Literature Review .......................................................................................................8
Research Methodology...............................................................................................9
Structure......................................................................................................................9
CHAPTER 2 – AN OVERVIEW OF THE LEGAL SYSTEM OF AZERBAIJAN
......................................................................................................................................11
Introduction ..............................................................................................................11
Constitution and Judiciary System ...........................................................................11
Conclusion................................................................................................................16
CHAPTER 3 – INTERNATIONAL COMMERCIAL ARBITRATION IN
AZERBAIJAN: THEORY & PRACTICE..............................................................18
Introduction ..............................................................................................................18
Theory: Regulations, Laws, Conventions and Treaties............................................19
1. Law of the Republic of Azerbaijan on International Commercial Arbitration
(Arbitration Law) ..................................................................................................19
2. Civil Procedural Code of Azerbaijan ............................................................37
3. The Law of Azerbaijan Republic on Enforcement of Court Decisions ........40
4. Other regulations...........................................................................................40
5. Conventions and Treaties..............................................................................41
Practice: Arbitration Institution(s) and Cases...........................................................41
1. The International Commercial Arbitration Court of Azerbaijan...................41
2. International Commercial Arbitration Cases and ICSID Cases....................43
Conclusion................................................................................................................53
CHAPTER 4 – RECOGNITION AND ENFORCEMENT OF FOREIGN
ARBITRAL AWARDS IN AZERBAIJAN .............................................................56
Introduction ..............................................................................................................56
Provisions of the Arbitration Law ............................................................................57
Other Legislation ......................................................................................................58
International Law, Treaties and New York Convention...........................................59
Procedure to Enforce an International Arbitration Award .......................................61
Conclusion................................................................................................................62
CHAPTER 5 - CONCLUSIONS ..............................................................................63
APPENDICES............................................................................................................65
Appendix A – List of Bilateral Treaties undersigned by Azerbaijan....................65
Appendix B – Cross-Country Ratification of International Agreements.............66
BIBLIOGRAPHY......................................................................................................67