Azerbaijan moves to broaden grounds for expropriation of investments

Azerbaijan is considering expanding the grounds under which the state may expropriate investments. Proposed amendments to the Law on Investment Activity were discussed at a meeting of the economic policy, industry and entrepreneurship committee of the Milli Majlis.

Currently, expropriation is permitted for state needs or through requisition during emergency situations, with compensation paid to investors in all cases.

Under the draft amendments, an additional ground would be introduced where strategically significant investments harm public interests or run counter to the country’s national interests. The procedure would also предусматривает compensation and be carried out strictly within the legal framework.

The document aims to strengthen the protection of national interests and establish legal mechanisms to address risks in key sectors of the economy.