Caviar diplomacy

How Azerbaijan bought the loyalty of European politicians - an international investigation

Photo: kursiv.kz

The International Consortium of Journalists for the Support of Organized Crime and Corruption (OCCRP) and another 10 European publications, including Le Monde , Süddeutsche Zeitung and The Guardian , published the results of a joint investigation about how the authorities of Azerbaijan bought the loyalty of famous European politicians. The term "caviar diplomacy" has long been in use in European diplomatic circles in relation to Azerbaijan. The investigation shows how this “diplomacy” based on petrodollars and the secret “black box office” was carried out in practice: in just two years, from 2102 to 2014, when mass plantings of journalists and civilian activists went inside the country, Baku with the help of fictitious companies in the UK and a bank in Estonia spent on promoting his positive image in the West, The acquisition of luxury items and the service of personal interests of high -ranking officials $ 2.5 billion.

What they spent on

The bulk of the money was withdrawn from Azerbaijani banks - for example, $ 1.4 billion received from the account of just one company in the state International Bank of Azerbaijan (IBA), which serves 750 thousand citizens of Azerbaijan. (In May 2017, the State Bank announced bankruptcy after he missed the payment of Eurobonds due to problems with liquidity and insufficient capital).

The British company Polux Management, who participated in laundering money from Azerbaijan transferred € 61 thousand. At the expense of Eduard Lintner-a German politician, a former deputy of the Bundestag and ex-chairman of the PACE Monitoring Commission. And two weeks before getting this money, Linner headed the observers from Germany in the presidential election in Azerbaijan, at which Ilham Aliyev defeated and once again defeated. But the Linner liked the elections

In return, President Ilham Aliyev and his close associates received lobbying for the interests of Azerbaijan in the EU and the blocking of resolutions with condemning violations of human rights in the post -Soviet republic. The accounts of all the same fictitious companies that provided fake reports, but at the same time served in the Estonian branch of the Danish Danske Bank (data on the movement of money managed to get the Danish newspaper Berlingske) paid personal expenses of high -ranking Azerbaijani officials.

Who was bought

On October 25, 2013, the British company Polux Management, which participated in laundering money from Azerbaijan, was investigated, transferred € 61 thousand to the expense of Edward Linner, a German politician, a former deputy of the Bundestag and ex-chairman of the PACE Monitoring Commission. And two weeks before getting this money, Linner headed the observers from Germany in the presidential election in Azerbaijan, at which Ilham Aliyev defeated and once again defeated. But Linner liked the elections. “The election process itself was organized at a high level and meets the same standards as, for example, in Germany,” said the German politician Linthner then (quote for Interfax-Azerbaijan). In total, € 891 thousand from fictitious British companies was transferred from 2012 to 2014, the investigation said.

According to a strange coincidence on the same day, October 25, 2013, € 20 thousand from the account of the same Polux Management were transferred to Kalina Mitrev’s account, Irina Bokova’s husband, Bulgarian politician and director of UNESCO. The purpose of the payment was indicated "Management services". Three days before the money entered the expense of Mitrev, his wife held the Azerbaijan photo exhibition - the space of tolerance.

“The authorities of Azerbaijan spend a lot of money on such PR events in order to smooth out the consequences of criticism of Western countries due to the situation with human rights in the republic,” OCCRP notes. “And the director of UNESCO Irina Bokova helps a lot of the country's authorities in promoting a positive image.” For example, in 2010, the first lady of Azerbaijan and the current vice-president of the Republic Mehriban Aliyeva was awarded the highest award of UNESCO-the gold medal of Mozart. The award was handed by Ms. Bokova.

Irina Bokova. Photo: Republicbuzz.com

In total, her husband Kalin Mitrev from 2012 to 2014 received from fictitious British companies that laundered money from Azerbaijan, € 425 thousand, the OCCRP investigators say. Mitrev himself assures that he received this money for consulting services in Azerbaijan, and paid all taxes in Bulgaria from the amounts received.

However, one of the most loud in this series was the corruption scandal around the Italian politician Luke Volunte, the ex-head of the European People’s Party faction in the Council of Europe: from 2012 to 2014, the investigation was approved, he received more than € 2 million from the same fictitious companies from the UK.

Today, the volunteer is under investigation: the Italian law enforcement agencies believe that he received money from the authorities in Baku in order to prevent Pase’s resolution on political prisoners in Azerbaijan, which, thanks to the efforts of Volunte, did not gain the majority of votes: in January 2013, 79 voted for the adoption of a resolution initiated by the Irish deputy Maknamara. PACE deputies, against 125. By the way, in full force against the adoption of the resolution, the Russian delegation voted.

However, the volunteer himself has the same argument as Bulgarian Mitrev: the money was not a bribe, but a fee for “consulting services”, which he provided an influential Azerbaijani businessman.

From whom the money was accepted

The Russian weapon exporter is also involved in the scandal - Rosoboronexport, which is part of the Rostec state corporation. In 2012, Rosoboronexport, the investigation said, transferred almost $ 29 million to the British company Metastar Invest, registered with Azerbaijan. Metastar Invest was a fictitious reporting in which it did not reflect the turnover of its bank account in Estonia. Meanwhile, it was from Metastar Investing accounts that the remuneration of Luke Volunte was paid.

At least $ 1.8 million of the money transferred by Rosoboronexport fell into the expense of Hungary, which belonged to the offshore company Velasco International. Judging by the documents from the Panama Dossier, this company belonged to Orhan Eyubov, the son of the First Deputy Prime Minister of Azerbaijan Yagubov Eyubov, who oversees, in particular, engineering.

It was not difficult to establish Eyubov’s involvement in transactions. “Lawyers who conducted Velasco International cases indicated that the original documents of the offshore company should be sent to Baku,” the investigation said. “OCCRP reporters checked this address in the capital of Azerbaijan and found out that Yagub Eyubov himself lives there.”

At least $ 1.8 million of the money transferred by Rosoboronexport fell into the expense of Hungary, which belonged to the offshore company Velasco International. Judging by the documents from the Panama Dossier, this company belonged to the son of the First Deputy Prime Minister of Azerbaijan Yaguba Eyubov, who oversees, in particular, mechanical engineering.

Money from Rosoboronexport also went to an offshore company related to the business of the President of Azerbaijan Ilham Aliyev, the OCCRP reporters continue. In particular, in the appointment of some payments it was indicated that money from the Russian supplier of weapons through the British Metastar Invest should have got another offshore company - Inmaxo Capital, which, in turn, acted as a mediator in the export of cement from Russia to Azerbaijan for the PASHA INSAAT construction company, which is part of PASHA Holding Holding. This holding is controlled by Arif Pashayev, father Mehriban Aliyeva, spouses of President Azerbaijan Ilham Aliyev.

In Rosoboronexport, in response to a request from journalists, they refused to explain what the true purpose of all these payments was.

How did you not forget about yourself

The accounts of the same British companies were paid for the personal expenses of high -ranking officials of Azerbaijan. So, in 2012-2013, Metastar Invest (it also paid European politicians) transferred more than $ 12 thousand to one of the best American clinics - Johns Hopkins Medicine. The appointment of the payment indicated what kind of services provided to the same first deputy prime minister Yagubu Eyubov and another his son, Emin, Azerbaijan’s Office in the Council of Europe. Fictive British companies, the investigation said, paid for the treatment of the Eyubov family not only in the American clinic, but also in European medical institutions.

The press secretary of the President of Azerbaijan Azer Gasimov also appears in the investigation. In January 2013, he, according to OCCRP reporters, received $ 18 thousand from Metastar Invest. The appointment of payment indicated that this was a “deposit for an educational trip to the United States”.

The full version of the investigation called "Azerbaijan" Landromat "is published on the English -language website of OCCRP.