Tuesday, 07 May 2019 00:00

Azerbaijan's Defense Industry Reform

By Tamerlan Vahabov

May 7, 2019, the CACI Analyst

Azerbaijan’s centralized Ministry of Defense Industry (set up in 2005) has for now been dismantled and replaced by the Azersilah Corporation. For now, because the former ministry is “terra incognita” when it comes to its assets and liabilities. Depending on its indebtedness and liabilities, its corporate form may switch back to become a government agency. Yet regardless of its legal form, President Ilham Aliyev’s decree envisions corporatization, corporate management and sustainability of the defense industry product output. The twokey questions are how Azersilah will manage its relationship with newly emergent local companies in Azerbaijan’s defense industry market to attain financial stability, and how the new legal entity will contribute to a better alignment of its portfolio development with thearmy’s operational needs in the Nagorno-Karabakh conflict.

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Published in Analytical Articles

By Ilgar Gurbanov

March 27, 2019, the CACI Analyst

In parallel with their peace talks on the Nagorno-Karabakh conflict, Azerbaijan and Armenia seek to diversify and deepen their partnerships with major arms suppliers. By diversifying its arms purchases from several different partners, Azerbaijan seeks to multiply its arsenal and retain a military advantage against Armenia, whose corresponding efforts aim to cement the status quo through military occupation of Azerbaijan’s territories. Both countries aim to maximize the tactical efficiency of their arsenals on the potential battlefield.

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Published in Analytical Articles

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The Central Asia-Caucasus Analyst is a biweekly publication of the Central Asia-Caucasus Institute & Silk Road Studies Program, a Joint Transatlantic Research and Policy Center affiliated with the American Foreign Policy Council, Washington DC., and the Institute for Security and Development Policy, Stockholm. For 15 years, the Analyst has brought cutting edge analysis of the region geared toward a practitioner audience.

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