President of the Republic of Azerbaijan Ilham Aliyev has signed a Decree on the establishment of the “Azerbaijan Industrial Corporation” Open Joint Stock Company (OJSC), with its shares fully owned by the state.

The purpose of signing the Decree is to increase the efficiency of state property management in connection with the implementation of the Decree on the approval of the Strategic Road Maps for the national economy and main sectors of the economy, to establish a reporting and control system based on corporate governance principles, to create favorable cooperation relations among state-owned enterprises, and to enhance production potential across the value chain.

It should be noted that ensuring balanced, competitive and sustainable development of the economy is one of the key priorities of the state’s economic policy. As a result of ongoing economic reforms and the policy of economic diversification, significant achievements have been made in all sectors of the economy, including industry. The volume of industrial production has increased substantially.

In order to ensure continued successful development in the coming periods, it is necessary to implement a number of measures in line with the main strategic goals of economic reforms, taking into account modern challenges and new initiatives. These measures include involving existing natural and economic resources in economic circulation and ensuring more efficient management of property held on the balance sheets of legal entities owned by the state or in which the controlling stake belongs to the state.

The structure of the “Azerbaijan Industrial Corporation” OJSC established for this purpose has also been approved. A Supervisory Board consisting of five members has been formed. The President’s Assistant for Economic Policy and Industry Issues, Head of Department Natig Amirov, has been appointed Chairman of the Supervisory Board of the “Azerbaijan Industrial Corporation” OJSC.

The current management of the Company will be carried out by the Director General. The Director General will have deputies responsible for production and services, strategic planning and development, financial matters, and other corporate services.

The Decree signed by President Ilham Aliyev also includes provisions regarding the authorized capital of the “Azerbaijan Industrial Corporation” OJSC. According to the Decree, property obtained and owned by “Aqrarkredit” CJSC in exchange for non-performing assets (debts) acquired from the “International Bank of Azerbaijan” OJSC will be transferred to the ownership of “ASK” OJSC.

Under the Decree, the Administration of the President of the Republic of Azerbaijan is instructed to prepare within one month a list of state property obtained by “Aqrarkredit” CJSC in exchange for non-performing assets acquired from the “International Bank of Azerbaijan” OJSC, which will be transferred to the balance sheet of “ASK” OJSC, as well as the mechanisms for its transfer and management, and submit them to the President of the Republic of Azerbaijan.

Relevant instructions arising from this Decree have also been assigned to the Cabinet of Ministers of the Republic of Azerbaijan and the Ministry of Justice.