700 Million Dollars to be Demanded from Azerbaijan, According to Media

Azerbaijan may face a demand for 700 million dollars. This was reported by Haqqin.az, referencing The Scotsman.

“EU countries are preparing to exit the Energy Charter Treaty, which obstructs the fight against global climate change and permits oil and gas companies to file lawsuits against governments in special courts. The Energy Charter Treaty (European Energy Charter), to which 50 countries, including Azerbaijan, have joined, was adopted in 1994 and protects the interests of Western oil companies operating in the post-Soviet space. This agreement also provides for the establishment of a special court, beyond the national jurisdiction of any of the states that have joined the agreement.

This means that if a Western company is dissatisfied with the energy policy of the government of the country in which it operates, that company can file a lawsuit against it, demanding compensation or even insisting that the government's policy be changed.

According to The Scotsman, the Energy Charter Treaty could allow energy companies to claim up to 10 trillion (!!) dollars in compensation from the countries where they operate. The issue is that European countries are now trying to limit oil, gas, and coal production or prioritize the use of renewable energy sources within the framework of the fight against climate change.

According to the Scottish publication, two mining companies have filed a lawsuit against the Dutch government for 1.4 billion dollars due to the decision to phase out coal. The Scotsman reports that more than 700 million dollars in compensation is also being demanded from the Azerbaijani government for the alleged blocking of oil and gas extraction.

The Azerbaijani media notes that it has not been able to ascertain which company has filed the 700 million dollar lawsuit against Azerbaijan,” the source writes.