Other State Department Archive Sites

The State Department web site below is a permanent electronic archive of information released online from January 1, 1997 to January 20, 2001. Please see www.state.gov for current material from the Department of State. Or visit http://2001-2009.state.gov for information from that period. Archive sites are not updated, so external links may no longer function. Contact us with any questions about finding information. NOTE: External links to other Internet sites should not be construed as an endorsement of the views contained therein.

Country Commercial Guides FY 2000: Azerbaijan Report prepared by U.S. Embassy Baku, released July 1999 Note*

CHAPTER III: POLITICAL ENVIRONMENT

The United States has good relations with Azerbaijan and supports its independence and sovereignty. Likewise, the U.S. maintains close political and economic relations, and is carrying on a dialogue on security issues with Azerbaijan. Azerbaijan eagerly seeks closer cooperation with the United States. President Heydar Aliyev made an official visit to the United States in July/August, 1997, where he met with President Clinton and a wide spectrum of executive and legislative branch officials, and visited a number of U.S. cities. In April 1999, President Aliyev attended the NATO summit in Washington, D.C.

However, U.S. relations with Azerbaijan are complicated by Section 907 of the Freedom Support Act of 1992, which restricts direct U.S. Government assistance to the Government of Azerbaijan until the President certifies that Azerbaijan has ceased "all blockades and other offensive uses of forces against Armenia and Nagorno Karabakh." Azerbaijan sees this legislation as U.S. support for the Armenian side in the conflict over Nagorno-Karabakh. The administration opposes Section 907 and has called on Congress to repeal it. Beyond the ban on assistance to Azerbaijan, Azeris point to the extensive U.S. assistance to Armenia as evidence of U.S. support for the Armenian side of the conflict. In order to provide some support and aid to Azerbaijan, the U.S. Congress has approved certain "carve-outs" to Section 907. As a result, the USG has been able to provide millions of dollars in humanitarian assistance and democracy-building assistance to the GOAZ. USG business assistance agencies - USDOC/FCS, OPIC, EXIM and TDA - are also permitted to operate in Azerbaijan.

Azerbaijan straddles a strategic crossroad between Russia and the Middle East, and between Central Asia and Europe. On its southern border lies Iran, which has criticized Azerbaijan's close relations to Western countries and Israel. Iran has also criticized President Aliyev for allowing Western oil companies to participate in exploiting offshore Caspian oil deposits. On its northern border, Russia seeks to assert its influence on the Caucasus states. Azerbaijan continues to resist Russian attempts to bring it more closely into CIS security arrangements. Economic interests in Russia pursue a more commercial and cooperative approach to Azerbaijan. The principal security issue for Azerbaijan is the conflict with Armenia over Nagorno-Karabakh. A cease-fire has been effect for over five years. However, short skirmishes occurred in the spring of 1997 and again in mid-June, 1999. The United States along with Russia and France is a co-chairman of the OSCE Minsk Group, which is engaged in intensive efforts to achieve a lasting peace settlement.

Azerbaijan's system of government grants broad powers to the President. President Aliyev came to power in 1993 when the Popular Front government of former President Abulfaz Elchibey fell when a rebel military commander from central Azerbaijan marched on Baku. Despite attempted coups in 1994-1995, Azerbaijan's political system has remained stable. The elected parliament closely follows initiatives from the President's office. Presidential elections in October 1998 were marred by irregularities, as were parliamentary elections. The President's New Azerbaijan Party, other parties loyal to the President and independent deputies loyal to the president have an overwhelming majority in the parliament. Opposition parties have less than 20 percent of parliamentary seats, but criticize the government openly and maintain a lively and uncensored, opposition press. All major parties and most minor parties support close political relations and economic cooperation with Western countries and the United States. The government allows many opposition parties to function, but banned the Islamic Party in 1996. The parliament is trying to pass legislation that would enable Azerbaijan to hold municipal elections late in 1999.