President Ilham Aliyev has signed a decree amending the Law on Investment Activity, establishing new grounds for the state acquisition of investments in Azerbaijan.
According to the Operative Information Center-OMM, the new amendment defines specific conditions under which the state may acquire investments of strategic importance. This measure is designed to prevent exceptional cases that could harm the interests of the state and the people of Azerbaijan or contradict the country's national interests.
Under the updated legislation, the legal framework is now in place for the state to take over strategic investments when necessary to safeguard national security and public welfare. The acquisition process will follow general legal procedures, ensuring that investors receive appropriate compensation in exchange for the assets transferred to state ownership. Furthermore, the state acquisition of such strategic investments will be strictly governed by the laws of the Republic of Azerbaijan.
This legislative update aligns with Azerbaijan's broader economic strategy to ensure that large-scale projects and foreign direct investments contribute positively to the national economy while maintaining sovereign control over critical infrastructure and resources. By formalizing the compensation mechanism, the law aims to balance the protection of national interests with the rights of investors, maintaining a stable and predictable investment climate in the country.
