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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