AKE Special Report: Political Risks in Azerbaijan

AKE travelled to Azerbaijan in June 2017 to examine key facets of Azerbaijan’s political risk environment and to meet valuable local sources.

The aim of the trip was to develop a holistic picture of the security, business, economic and political environment in Azerbaijan and offer insight into the main political and business risks facing investors, financial services and political risk insurers in Azerbaijan.

AKE undertook discussions and met with representatives of government ministries, journalists, opposition supporters and local players. AKE also visited key development sites in Baku, travelled across the country to Ganja and Zaqata, and also visited the city of Sumqayit. The contributions of all the interviewees have been taken into consideration in the analysis, which intends to assess the business risks and opportunities in Azerbaijan.

Political risks in Azerbaijan are influenced by global oil prices, regional gas networks, security risks along transit routes and internal oligarchic networks

Geopolitics and energy dominate Azerbaijan’s economy, politics, and regional ties, resulting in a crude blend that will play out in shaping its future.

Baku is poised to be an important player in China’s Belt and Road initiative, is the key source of alternative energy supplies in the European Union’s Southern Corridor policy and could shape the future of Russian-Turkish relations given the country’s ongoing conflict with Armenia.

Finally, it serves as a land bridge between Iran and Europe. AKE travelled to Azerbaijan to meet with journalists; political and business decision-makers; and activists to explore the state of the Azeri economy, state policies towards key sectors, the conflict with Armenia and Baku’s view of its geopolitical role. These come amid significant ongoing investment into bringing Azeri gas to Europe, efforts to bolster trade via Iran, and a currency and banking crisis brought about by the collapse in oil prices in recent years

We are specialists in providing political risk consultancy. We offer a bespoke consultancy solution that directly answers our clients' questions by cutting through the white noise of excess information and news updates that too often drown-out insightful analysis. At our core is a team of experts dedicated to providing tailored analysis and strategic forecasting, allowing our clients to confidently asses the risk associated with investing in challenging environments and emerging markets.


Our online country analysis platform Global Intake contains hundreds of detailed country reports updated in real-time, as well as a unique political risk rating scale that demonstrates the key political and business risks facing investors and political risk insurers. Profiles and risk ratings assess the risk of government intervention - including asset confiscation or contract cancellation - economic and credit risks, as well as political violence.