Azerbaijan and the South Caucasus

Wednesday 22nd June 2011 Westminster Hall

[Mr Philip Hollobone in the Chair]

14:30

[Bob Blackman (Harrow East) (Con)]

Thank you, Mr Hollobone, for calling me to speak. This is the first time that I have served under your chairmanship and I trust that it will not be the last.

I refer Members to my entry in the Register of Members’ Financial Interests.

At the outset of this debate, it is important to refer to the strategic importance of Azerbaijan in the surrounding region. We must always remember that Azerbaijan sits between Iran to the south, Russia to the north and Turkey to the west. Of course, it is also adjacent to Armenia and Georgia, which I will say more about later.

Azerbaijan is a strategically important country that has freed itself from the yoke of the Soviet Union, and it is making tremendous strides as a democratic republic. It is important that we understand and appreciate the strides that Azerbaijanis are making. It is also important that we understand the importance of Azerbaijan to the British economy. Azerbaijan is a country that is rich in oil and gas reserves. Those reserves are strategically vital not only for the region but for Britain’s future economy.

I am particularly pleased that the Under-Secretary of State for Foreign and Commonwealth Affairs, the hon. Member for North East Bedfordshire (Alistair Burt) will respond to the debate today. I know that the region that Azerbaijan is a part of is one that he picked up on quickly as part of his ministerial responsibilities. I congratulate the Government on taking a strong lead in encouraging diplomatic relations with Azerbaijan and the other countries in the region.

Azerbaijan was the first secular democracy in the Islamic world, created in 1918. It gave the vote to women before women in this country or the US had the vote, which is a tremendous history. However, Azerbaijan’s development was halted when it was annexed by the Soviet Union back in 1920. Of course, Azerbaijan was under the Soviet yoke for 71 years before its battle for independence began. After their second revolution and after large numbers of brave Azerbaijanis were killed by Soviet soldiers, the country was finally able to become free and to govern itself.

Azerbaijan has a variety of different arrangements with different international bodies, including the United Nations, the World Bank, the International Monetary Fund, the Council of Europe and the Parliamentary Assembly of the Council of Europe, the EU’s Eastern Partnership, the Organisation for Security and Co-operation in Europe, the Organization of the Islamic Conference, Euronest, the Non-Aligned Movement and the European Bank for Reconstruction and Development. So Azerbaijan is very outward-looking; it is not an inward-looking country. We must encourage and promote that outward-looking nature, and ensure that we safeguard the future of this burgeoning democracy.

There is one major issue that is mentioned by everyone involved with Azerbaijan, which is the current situation in the occupied territories. Between 1992 and 1994, there was a war with Armenia, which led to Armenia occupying the region of Nagorno-Karabakh. The ceasefire in 1994 resulted in 17% of Azerbaijani territory being occupied by Armenia, an issue which remains a running sore today. It has also meant that 870,000 Azerbaijanis have been forcibly removed from their homes, and those people have had to be accommodated elsewhere in Azerbaijan.

The international community has taken action on that. There have been no less than five United Nations resolutions covering this issue, four in the Security Council and one in the General Assembly. All those resolutions have demanded the withdrawal of Armenian troops. However, the Armenians have refused to honour those resolutions, and they still occupy Azerbaijani territory today. That is a serious problem, because it has created 870,000 internationally displaced persons whom Azerbaijan has to accommodate. On my visit to Azerbaijan, I was able to see the new facilities that the Azerbaijani Government are developing for some of those people to live in. However, there are too few of those facilities, because those people live in dreadful conditions. Some of them live in tents and have done so for 10 years. Others live in slums or in old student accommodation, which we in this country would rightly condemn and ensure that it was removed. So progress in accommodating those people is slow, but they are due to return to their homes once the Armenian forces are removed from the occupied territories.

The current position has been negotiated over an extended period of time, but the progress of negotiations is far too slow. As part of the process, there is the Minsk group, which is co-chaired by Russia, the US and France. However, there is a debate about whether that group is impartial or is actually influenced by the Armenians. The reality is that Russia is a direct political, economic and military ally of Armenia, operating military bases within Armenia itself, so it can hardly be said to treat Azerbaijan and Armenia equally.

Under the Madrid principles, which are a proposal to resolve the conflict, there should be a phased withdrawal of Armenian forces. However, those principles have been accepted by Azerbaijan but not by Armenia, so there is a stalemate. The next meeting to discuss those principles is taking place this week. We hope that there will be progress, but so far there is little optimism, because nothing has happened. We have a concern, and we are a major investor in Azerbaijan’s economy. It is my contention that we should have a much more direct, prominent and vocal role in the peace process, to defend our own economy and to promote both our national interests and the interests of the region of which Azerbaijan is part.

In Azerbaijan, there are excellent relations between different people of different backgrounds and different religions. It is an Islamic republic, but the constitution guarantees that anyone has the right to choose any faith, to adopt any religion, to express their religious views and to spread those views. As many hon. Members know, I am a strong promoter of the Jewish community, and I try to combat anti-Semitism wherever it raises its head. The Jewish community in Azerbaijan is an excellent example of Azerbaijan’s different minorities.

Krasnaya Sloboda, in the region of Guba, is the only completely Jewish town outside Israel. The Bet Knesset synagogue in the town was restored by Government aid to ensure that Jewish people in the area can celebrate their religion. Other than Israel, Azerbaijan is the only country in the world where the finance to rebuild and refurbish a synagogue has come from a national Government. Opposite that synagogue there is a leading mosque, so religions co-exist side by side in Azerbaijan. Indeed, Azerbaijan has excellent diplomatic relations with Israel, and in many ways the relationship between the two countries demonstrates the future of diplomatic relations between Islamic countries and Israel. Israel has an embassy in Baku, the capital of Azerbaijan. All communities in Azerbaijan have the opportunity to celebrate their religions and their faith, which is a shining example for other former Soviet countries as they emerge from years of dictatorship.

There is one sad fact. Relatively recently, mass graves were discovered. At the moment, the one certain fact is that large numbers of people were murdered—battered to death—but when that happened, who the people were and who was responsible is disputed. I contend that it is vital that the international community gets involved in the discussion, in analysing what happened, in excavating the graves and in dating the murders, so that an international inquiry can establish responsibility and the perpetrators can be brought to justice. That is clearly a concern for everyone. Seeing the mass graves is thought provoking, because terrible atrocities have gone on down the years.

On my recent visit, I was astonished to see a war memorial to British soldiers and sailors who sadly died at the end of the first world war. I have to confess that it was news to me that we had had any involvement with Azerbaijan at any stage during either of the world wars, but there the memorial stood, in all its glory, restored by the Azerbaijani Government. I plead with the Minister to visit that memorial and see that we need to honour those brave British individuals who gave their lives by ensuring that the memorial is brought up to a decent modern standard. Some colleagues and I were privileged to lay a wreath at the war memorial, because those brave people need to be remembered.

The key issue in relation to Azerbaijan’s economy is energy supplies. The country sits on the Caspian sea, which has huge deposits of oil and gas, which are strategically important. Azerbaijan is the only country that can guarantee a gas supply through the southern corridor without going through Russia. A pipeline exists to take gas through Azerbaijan, bypassing Armenia, and then through Georgia, into Turkey and on to Europe. BP has just signed a major contract, which means that by 2015, I think, that one gas field will be able to supply twice the needs of Europe in any one year, which offers huge future potential. We have a direct and natural interest, because BP is the only external contractor and, once the process is complete, it will be the biggest gas and oil terminal in the world. BP is investing $20 billion in Azerbaijan, and one of the great things is that the Azerbaijani Government say that they are ensuring that the wealth that is created is recycled among the whole Azerbaijani people, rather than going into the hands of relatively few individuals. The great attraction is that they will regenerate their economy while ensuring that everyone benefits.

There are, of course, things on which Azerbaijan needs to make progress. There is the problem of 870,000 internationally displaced persons. Azerbaijan is still at war with its immediate neighbour, so stability is its greatest priority, and here is an opportunity for Britain and the European Union to work in partnership with the fledgling Azerbaijani Government to ensure that things improve. Azerbaijan does not have a perfect democracy, but its Parliament building is a darned sight better than the one we sit in—especially in terms of the seats that we all enjoy. Importantly, Azerbaijan has embarked on peaceful elections, the last of which was watched by 2,500 foreign observers, who clearly stated that the election was free, fair and appropriate.

There is a worry about corruption. Corruption can be a problem anywhere there is oil, gas and a burgeoning economy, but when accusations have been made, the President has taken direct action by ensuring that people who have allegedly taken bribes are dismissed from the Government straight away.

The other worry is that Russia continues to wish to extend its interests and influence in the region. It has just extended its lease on the air base in Armenia by 40 years, even though the last lease had a full 10 years to go before expiry. That demonstrates that Russia is not going to let go and still wishes to influence and control the whole element of Azerbaijan and the surrounding areas.

In conclusion, the fact is that there is a great opportunity for Britain and its economy, for the promotion of jobs and for furthering British interests in the region. Probably more importantly, there is an opportunity to encourage and promote a democracy that is relatively in its infancy and freeing itself from dictatorship to ensure that it recognises and benefits from everything that goes on. We also have the opportunity of saying to Armenia, in our diplomatic way, “If you reach a satisfactory conclusion and a proper settlement on the occupied territories, there is absolutely no reason why you can’t benefit from the economic activity that will flow. If however, you continue to blockade and prevent progress, the natural result will be that you will not benefit from the burgeoning economy.”

My final point is that most people do not know where Azerbaijan is. Not the greatest thing in the world as far as I am concerned, but the greatest thing as far as Azerbaijan is concerned, was winning the Eurovision song contest this year. I will not sing the song—[Hon. Members: “Oh, go on.”]. Azerbaijan is looking forward to hosting the contest next year and having the opportunity to bring people in to witness it from all over Europe. It plans to build a concert hall specifically for the occasion. This really puts the country on the map, in a very positive way, which is, I think, warmly welcomed by all concerned. Of course, if we can encourage better diplomatic relations with Azerbaijan, it might give us votes come the next Eurovision song contest—[Hon. Members: “Please, no.”] On a serious note, the contest has put Azerbaijan on the map, as has the expansion of oil and gas. The country has become a major strategic area of Europe and of the world, and we can invest and be directly involved in it. I trust that I have given a flavour of the debate. There is now an opportunity for other hon. Members to join in with their contributions.

14:49

[Mr Gerry Sutcliffe (Bradford South) (Lab)]

It is a great pleasure to serve under your chairmanship, Mr Hollobone. I, too, declare an interest as a member of the all-party group on Azerbaijan, and as someone who went on the recent visit to that country.

I congratulate the hon. Member for Harrow East (Bob Blackman) on securing this important debate, and it is good to see colleagues around the room who have a great interest in what I found to be a tremendous country. I will come back later to the fact that Azerbaijan does very well in sport, but I am grateful that the Minister, who was a good footballing colleague of mine and who knows of my love of sport, will reply to the debate. It is also good to see my right hon. Friend the Member for Warley (Mr Spellar), who will be leading for our side, in his place.

I shall follow the lead given by the hon. Member for Harrow East on what we found in Azerbaijan. He is right that, when we speak to most people about Azerbaijan, they do not know where it is. As he has said, it is strategically placed between Russia and Iran, on the Caspian sea, and it is a strategic country internationally in terms of various economic and historic events over many years. He is right that we should do everything in our power to ensure that the good links that exist between the UK and Azerbaijan continue.

When we went to Azerbaijan, people were very hospitable, and we were able to ask any questions that we wanted and to see a whole range of things. We were welcomed by the President, who I thought was very forthright. I have spoken to the Prime Ministers and Presidents of other countries, and I found his honesty refreshing when he discussed some of the problems that the country faces as well as some of the successes. There is also a great deal of optimism within the country, which might be mildly surprising considering, as the hon. Gentleman has mentioned, the issue that they face in relation to Nagorno-Karabakh.

We were fortunate—if that is the right word—to go to the front line to see first hand the problems that have arisen there. We also had the opportunity to speak to villagers who had been displaced. These were moving events in which a group of small schoolchildren sang us a song and then the villagers talked to us about the problem of not being able to go back to their homeland. We could see that the Government had a dilemma. In the capital, Baku, we visited some of the tenements—that is the only way to describe them—that the displaced people were in, and the living conditions were very poor. The dilemma for the Government was, yes, they wanted to re-house people in better housing, but those people did not want better housing in Baku; they wanted to go back to Nagorno-Karabakh.

As the representative of a Bradford constituency, I see parallels between Nagorno-Karabakh and the issue of Kashmir, where UN resolutions that have been in place for more than 40 or 50 years have never been acted on. The situation is similar in Nagorno-Karabakh. We sometimes wonder why some Muslim countries are angry at the way in which we in the west deal with UN resolutions—the issue may be more significant and complex than the picture that I am painting—but, if we consider that those resolutions have been in place for so long without any action being taken, it is possible to understand why that is the case. Indeed, the refugees and villagers told us, “You act in Libya and elsewhere in the world, but you don’t act on the legitimate issue of our problems with displacement.” Every contribution and every discussion and debate that we had made us aware of people’s concern about Nagorno-Karabakh and the need for the issue to be resolved.

On Armenia and Azerbaijan, Armenia has a wonderful opportunity, if it could only be seen. The hon. Gentleman has discussed Azerbaijan’s success with oil, gas and the pipeline. Armenia could get the same sorts of benefits, if it thought about its people and its future. We were reminded of parallels with Northern Ireland. Some expatriate Armenians are highly placed in Governments and lobbying groups across the world. They remember their homeland and are passionate about what it used to be, but the reality is that Armenia is a poor country that needs investment and support.

I hope that the discussions with the Minsk group will result in a positive outcome and that the issue of Nagorno-Karabakh can be resolved. The optimism of the Azerbaijanis was reflected in what the President and others told us. They said that the country feels the issue deeply, but that it was not going to hold them back from doing the other things that they need to do.

The UK’s links with and investment into Azerbaijan have been mentioned, but the relationship can work both ways. In fact, I know a small community of Azerbaijanis at Bradford university. One of the things that we need to look at on a wider scale in relation to general Government policy is student visas. We need to make sure that we do not stop people from countries such as Azerbaijan coming to the UK to enrich and enhance our cultures.

As I have said, Azerbaijan has a rich history. It wants to get involved with the wider world, particularly the European Union, and there are plenty of opportunities. On oil and gas, it is interesting that there is not only a British Midland flight from Heathrow to Baku and then Tbilisi, but a regular flight from Aberdeen to Baku, which carries Scottish oil workers. The links are there, and the opportunities are many.

On the area in which I have a great interest, sport, we were pleased to see the Azerbaijanis’ Olympic training centres. They relish and love sport. The Olympics and Paralympics will be in London next year, and the Azerbaijani team will be based in Ipswich. That will offer opportunities for cultural and sporting debates and exchanges. I have spoken to the Ministers with responsibility for those issues and to regional spokespeople, and they are keen on setting up groups of young people to get together to develop sport.

On the football front, one of the teams whose name I cannot remember is trying to get a strong team in Europe. An ex-Arsenal player, whose name also escapes me—[Hon. Members: “Tony Adams.”] Thank you. Memory loss is a sign of old age. Tony Adams is the manager of Azerbaijan’s most successful team and there is an ambition for that team to do well in Europe. They will be playing friendlies in the UK soon. It is an outward-looking country that wants to engage with the European Union and with us.

I was as surprised as the hon. Member for Harrow East at the relationship with the UK. It was moving to see the war memorial to the soldiers and sailors in an area in which Azerbaijanis had lost their lives during so many conflicts. It was a pleasure for us to see the memorial and the way in which the country honours our fallen servicemen and women. I encourage the Minister to go to look at it, if he gets the opportunity. It is of great significance.

The Eurovision song contest may not be everyone’s cup of tea, but when Azerbaijan won, it provided a great opportunity that it wants to grasp. About 35,000 people attended the Eurovision song contest in Germany, and the same number will attend the event in Baku next year. Work is already under way to get the appropriate venue and the appropriate hotels in place. I think that there are five five-star hotels being built and that a number of other hotels are on the way. They also want to sort out issues in relation to visas and visa restrictions, and we have been informed by the Under-Secretary of State for Culture, Olympics, Media and Sport, the hon. Member for Weston-super-Mare (John Penrose), who has responsibility for tourism, that that will be resolved shortly. It would be difficult to have a year of tourism without people being able to get into the country. They recognise that and are going to try to do something about it.

I have a plea from a big fan of the Eurovision song contest. Richard Pengelly, who is senior barperson in the Strangers Bar of the House of Commons, is an avid fan of the Eurovision song contest. He has asked me, given my involvement with Azerbaijan, whether I can make sure that he gets there next year, so I shall put that on the record on the basis that somebody who is listening may give him the opportunity to attend. He has said that he could act as a cultural adviser to Azerbaijan. It is a great opportunity for that country to have the rest of Europe visit it and see its facilities. People will be heartened to see the investment being put into the infrastructure, the roads and all the other things. They will also see the housing developments, that people are working very hard and that the investment is going right down to the people who count.

The UK Government should be proud of our relationships, and we can develop them further. Cities such as mine would benefit from visits from people from Azerbaijan in order to discuss religious freedom and tolerance. Azerbaijan had a problem with mullahs from outside preaching radicalism. It decided to deal with that, and it has done so. A mullah who does not come from or was not born in Azerbaijan cannot preach in the mosques. There are also important issues surrounding education and integration. We can learn a lot as well as give a lot to Azerbaijan, and I hope that we will do so.

I thank all those who were involved in the visit to the country. From that, I know that those who support Azerbaijan in its attempts to ensure that it opens itself up to the wider world will gather in strength. I wish the country well.

15:00

[Mr Mark Field (Cities of London and Westminster) (Con)]

I am lucky enough to be the chairman of the all-party group on Azerbaijan, and I was also on the trip that the previous two speakers attended in recent weeks. In addition, in recent months I have been board adviser to the European Azerbaijan Society.

We had a tremendous trip to Baku, Nagorno-Karabakh and Quba during the Whitsun recess. I congratulate my hon. Friend the Member for Harrow East (Bob Blackman) on securing the debate. Like him and the hon. Member for Bradford South (Mr Sutcliffe), I was particularly moved by being at a war memorial that faced and was yards from the Parliament building. It was a particularly important war memorial because, as those who are familiar with the history of this region will know, fighting took place in areas such as Baku during the great war. Such areas were part of the Ottoman empire at that juncture.

I very much hope that the Minister will take the opportunity when he is next in Baku to visit that memorial. Clearly, I suspect that work has been carried out by the war memorials body to keep the memorial in reasonably good shape. What struck me was that the memorial is an important part of what is called Martyrs’ Alley, which is the memorial for various conflicts that have taken place in Azerbaijani and, indeed, Turkish history over recent years. In particular, there were problems during 1990 when there was a move by the then USSR, which was on its last legs, to try to put down conflicts on the streets of Baku. There was also the conflict with Armenia, which started two years later. What struck me was that, given the importance of pride and face in what one might broadly call the Muslim world, we should be intensely proud of the fact that a small corner of this sacred ground is in the hands of a British war memorial.

I reiterate both previous speakers’ words. There seems to be a tremendous opportunity in relation to Azerbaijan. It is essentially a secular Muslim state. Some 94% or 95% of its inhabitants are Muslim, and the remainder are a few Jewish and some Christian inhabitants. Given Azerbaijan’s strategic importance between Russia and Iran and the daily security concerns that we face in this country from difficulties in that part of the world, fostering closer links with Azerbaijan seems to be an extremely sensible way forward.

Although we had a tremendously interesting visit and we felt it was very open, it would be wrong to be ludicrously idealistic and not to recognise that Azerbaijan faces some issues. It is not a functioning democracy as we would understand the term here in the UK. However, it has made tremendous strides forward both politically and economically in recent years. That should be recognised and rewarded as far as our relationship with the country is concerned.

I became involved with Azerbaijan immediately after the previous election, when there was a move to reconstitute the all-party group. I did so partly because local Azerbaijanis who have business interests in the UK and other parts of Europe have had a big impact in trying to ensure that the country is not just seen as another oil and gas state. It would be all too easy to put the country in a box as being one of the “stans” of that region, as if such countries are somehow similar in history and outlook to other countries strong in the oil and gas area.

However, it would be wrong to understate the importance of oil and gas and of the tremendous trading links between the UK and Azerbaijan that go back some 20 years to the signing of long-term contracts by BP, which is and remains tremendously committed there. Some 4,000 or so permanent UK expats live in Azerbaijan. They are predominantly Scottish, but a significant number of people from other parts of the United Kingdom also live there. They make a good living and play an important part in developing the economy.

The Azerbaijani economy has grown. There has been compound growth of 7% or 8% in recent years, partly on the back of oil and gas. However, Azerbaijan is keen to promote to the world that it is about other things. In particular, it is looking to develop its financial services expertise. Obviously, I hope that my background as a Member of Parliament for the City of London will assist in that regard. It is also looking to develop areas such as high quality agricultural produce—some significant manufacturing goes on—and the tourism industry. Baku was always regarded as the third city within the Soviet Union after Moscow and St Petersburg. It has tremendous tourism opportunities in a quasi-alpine area in the north of the country. Benefits will arise there in the coming years and I hope that the tourism trade begins to assert itself.

I very much agree with what the hon. Member for Bradford South said. There is clearly an issue with visas. It is probably fair to say that there is a two-way issue and that there is a problem at this end, too. I hope that people will begin to learn more about Azerbaijan. We can laugh about the Eurovision song contest, but it will provide a phenomenally important showcase for that country. On that particular weekend, Azerbaijan will have an opportunity to open itself up not just to the United Kingdom, but to the other countries of Europe to show what it is all about. I hope that Azerbaijan will use that opportunity to say more about some of its great beauty. As I say, Baku is a very cosmopolitan city. Obviously, it has benefited in recent years from oil and gas, but it is clear that it has a lot of architecture and history that goes back many centuries and shows what an important city it was.

It is only fair to say a few words, as other hon. Members have, about the Nagorno-Karabakh issue. That is understandably close to the heart of many political leaders. As my hon. Friend the Member for Harrow East mentioned, we were very fortunate to have a 40-minute audience with the President. As mentioned, he was very keen to talk extremely openly about all the issues that have been touched upon already in this debate, but he also wanted to stress the importance of Nagorno-Karabakh. There is an understandable feeling in what one might call the moderate Muslim world that perhaps it is all too easy to look at UN resolutions that are immediately acted upon, particularly UN resolution 1973, when other resolutions—there were four resolutions between 1992 and 1994 on the ongoing conflict between Azerbaijan and Armenia—have, to a large extent, been ignored. Lip service has been paid to trying to put those resolutions in place. I hope that the Minister will have something encouraging to say about the ongoing work that is being done not just within the UN, but as part of the bilateral relationship.

I totally agree with that the hon. Member for Bradford South said. It is in Armenia’s interests for the matter to be resolved as soon as possible. That country does not have the benefit of oil and gas and its people are becoming increasingly impoverished by its being regarded as a pariah state. As I say, it is evident that significant wealth from Azerbaijan’s oil and gas fields is going into building up a good life, even for those who feel themselves dispossessed in the Nagorno-Karabakh region. It would be in Armenia’s interests to recognise that there are tremendous advantages to being part of an area—albeit a little-known area as far as people in the UK are concerned—that has its eye on the future.

Finally, I wish to mention student visas. On a number of occasions I have made it clear that I have some concerns about the Government’s policy in that regard. We must recognise that education is a tremendous earner for this country and that our gold standard is recognised across the world—the English language has a part to play in that. We should also look to encourage the brightest and the best young people from across the world—not only Chinese and Indians, but Azerbaijanis—to spend time studying in this country. They could do two years of a postgraduate degree or part of a sandwich course, and they could, indeed, work for a year or two in this country afterwards. Such citizens from some of the less well known but fast-developing countries will be ambassadors for this country for the rest of their lives if they spend time here.

I recognise the political constraints that we are under in terms of getting our immigration numbers down, and there are, of course, great financial constraints on all our educational establishments, but it is self-defeating for this country to make coming to this country difficult for students and for highly skilled individuals from countries that are not members of the European Union or the British Commonwealth. We need a much more serious debate about that, and it behoves the coalition Government to be quite up-front about the issue. Immigration should not be about just headline figures and seeing such things as a great success going forward.

As I said, that issue is particularly important in developing countries, including not only Azerbaijan, but other south Caucasian countries, and I hope the Minister will be able to play some part in making a case on that issue. Indeed, I know he does that, and, like me, he probably believes that if Britain’s place as a trading and mercantile country is to be maintained, we need to make sure that we have as much free movement as possible for some of the best and brightest labour in the world.

Thank you for allowing me to contribute to this important and interesting debate, Mr Hollobone. I hope that the Minister and the Opposition Front- Bench spokesman, the right hon. Member for Warley (Mr Spellar), will take on board some of the positive impressions that we have all gained from our brief introduction to Azerbaijan.

15:12

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Member for Harrow East (Bob Blackman) for bringing this matter to Westminster Hall for debate.

As previous speakers have indicated, the United Kingdom has important economic and business ties with Azerbaijan; indeed, almost 52% of Azerbaijan’s contact is with the United Kingdom and other countries. However, I want to discuss religious and racial discrimination, which I mentioned to the hon. Gentleman before the debate, and which he touched on early in his deliberations. Although incidents of discrimination have taken place over the past few years, I want to mention a couple that have taken place in the past two weeks, so they are very relevant to the debate.

The secular Government continue to control religious freedom. Racial discrimination also affects religious freedom, because the Christian population is almost entirely ethnic Armenian and Russian, while the Muslim population is largely ethnic Azeri—given my Northern Ireland accent, some of those words will probably come out in a completely different way from usual, and I am not sure how they will be translated in Hansard, but that is by the way. A 1992 religious law initially granted more freedoms, but it has been amended several times, and restrictions have been introduced. Interestingly, Azerbaijan’s constitution clearly safeguards religious freedom, freedom of expression and human rights, but those things are not practised in reality, and that is where the problems are.

The state committee for work with religious organisations, which was formed in 2001, demands the registration of religious communities and censors religious literature. Christian groups that do not register are considered illegal and often face discrimination. In December 2007, following a police raid, five church members and three visitors were imprisoned and fined for meeting without state registration. Police officers also confiscated their books and other religious materials. On 20 June 2008, police arrested Pastor Hamid Shabanov on allegations of possessing an illegal weapon, which church members said was not true. They felt the arrest was an attempt to halt Christian activity in the area.

The state religious affairs official who led a police raid on a Baptist congregation in Sumgait during Sunday morning worship on 12 June this year explained away the lack of a warrant, saying:

“I’m the permission and the warranty”.

If a country enshrines religious freedom and human rights in its constitution, it must abide by that; it cannot make up the law as it goes along or discriminate against Christians and those of different racial identities.

[Mr Gregory Campbell (East Londonderry) (DUP)]

My hon. Friend is outlining some recent and topical instances of religious suppression in Azerbaijan. Does he agree that the best way to draw attention to the problems faced by Azerbaijanis going about their religious worship under intense pressure is sometimes through diplomatic channels and all-party group discussions and visits? In that way, we can try to get the Governments of nation states such as Azerbaijan to look again at their human rights approach.

[Jim Shannon]

I thank my hon. Friend for his contribution, which clearly highlights the issues. We will be asking the Minister and perhaps the all-party group to take the opportunity to raise these issues on behalf of people in Azerbaijan who are discriminated against.

On 12 June this year—the same day the Baptists were raided—Jehovah’s Witnesses in Gyanja stated that they were raided because they did not have compulsory state registration. An official of the state committee for work with religious organisations defended its officials’ participation in the raids, saying that they were working

“in accordance with the law".

However, it is an oppressive law and it is not right. The law on religion has been amended 13 times since 1992.

As I said, police and local state committee officials raided a church in Sumgait, near the capital, Baku, on 12 June, and they raided the Jehovah’s Witnesses at the same time. They were clear that they did not need the law of the land—they had permission and the warrant. Following both raids, fines are expected under the code of administrative offences for meeting for religious worship without state registration. The raids—the latest in a series on religious communities—came two days after Azerbaijan’s Parliament had adopted further restrictive amendments to the religious law. The Government are continuously moving the goalposts, and I am quite concerned about that.

A spokesperson said the law enforcement officers conducted these operations in accordance with the law, but he refused to give his name. When he was asked how raiding worship services was in accordance with religious freedom commitments enshrined in Azerbaijan’s constitution and the country’s international human rights commitments, he put the phone down—in other words, he had made his mind up about that.

Controversial and restrictive new amendments to the religious law have gone to the President, and this will be the 13th time that it has been amended since it was adopted in 1992. The amendments, which were given preliminary approval in a matter of weeks, on 31 May, raise the number of adult founders required for a religious community from 10 to 50, introduce new controls on religious education and increase the controls that the state requires religious headquarter bodies or centres to have over all communities under their jurisdiction. The amendments apply especially to the state-controlled Caucasian Muslim board, to which all Muslim communities must belong. Although I have outlined the raids on the Baptist church and the Jehovah’s Witnesses, there are also restrictions on those of a Muslim persuasion, so three religious groups are having problems in Azerbaijan.

Even before their adoption by the Parliament, the amendments have aroused concern among religious communities. In particular, those that had lodged re-registration applications in 2009, but which are still waiting for a response, fear that the new requirement for 50 adult founders will allow the state committee to reject their current applications. Potentially, churches that have been in operation for 20-plus years could have their activities restricted, and that would concern me.

In the Sumgait raid on 12 June, about 100 Baptists were at their Sunday morning worship service when about 20 police officers and men in civilian clothes broke in. The people in the church had been praying for about half an hour when the police burst in and they asked the police to wait until the end of the service before doing anything. Everyone present was told that it was up to each individual’s conscience whether they gave their name, as the police demanded. The police blocked all the exits out of the church and would not let anyone through without giving a name and address so, clearly, what they had said earlier meant nothing because they already had the details. Furthermore, police filmed the premises and the people attending on mobile phones and later on cameras. They confiscated all the religious books they could find—4,645 booklets, 9,229 individual books, 152 religious textbooks and 2,470 religious invitations—to have a wee look, to see if they were acceptable under Azerbaijan’s tight censorship of religious literature of all faiths.

Those raiding the Sumgait Baptist church refused to give their names, but the raid seems to have been led by state officials. Despite a number of phone calls, which went unanswered or were put down, there seemed to be a refusal to help those of a Baptist persuasion who wished to worship God in their church, their right to do so being enshrined in the constitution. Article 299 includes a wide range of offences, including meeting for worship without state permission. In December 2010, sharp increases in fines were introduced for all violations of article 299. Again, that will hit those who wish to worship God in their chosen way, and I am concerned that it has not been carried out as it should be. Hopefully, the Minister will be able to indicate what he can do to help those people.

The police were told that the church has no intention of applying for state registration because it believes that it does not need it and because it regards enforced state registration as an unwarranted intrusion into its internal affairs. Officers told the church that it would be fined. The Baptist pastor believes—as I do—that he has done nothing wrong. He adhered to the law of the land and to the wishes of a congregation who wanted to worship God on a Sunday morning and who have been worshipping in that building for a long time—some 20 years.

I am conscious of the time, so I will run through my remaining points quickly. The Jehovah’s Witnesses had a similar experience; 37 people were present during one raid, some of whom were taken away by the police for questioning for a number of hours and the rest given verbal warnings. Some were punished under the administrative offences code.

Earlier raids included three on Protestant churches in Sumgait over a three-day period in mid-May just past. Religious books were confiscated and two members of one congregation, a husband and wife, were each fined the equivalent of two weeks’ average wages. Other raids took place in Gyanja, where the Jehovah’s Witnesses had been raided, and those groups were banned from meeting for worship because they had not registered. At least one Star of the East Pentecostal church had a visit from the police and riot police to prevent worship. Even though the constitution says that such worshippers have rights, they do not. All the evidence points in a certain direction, and I am concerned about that. The state committee rejected the findings of a Council of Europe report, stating that

“it did not reflect the real situation in the country and bears a superficial character.”

However, I have talked about the evidence, which says something completely different.

In conclusion, Azerbaijan is a country rich in natural resources with which Britain has a special relationship. It has a wonderful people who are admired by those who have met them. At the same time, it has repressive laws that discriminate against those who want to practise their religious beliefs and against those of a certain racial persuasion. The Minister has an opportunity today, and I ask him and the all-party group to use their influence to ensure that those who want to practise their religious beliefs can do so without fear or discrimination.

[Mr Philip Hollobone (in the Chair)]

We have 18 minutes left until I call the winding-up speeches at 3.40 pm. I will call Karen Lumley, then Martin Horwood and Stephen Hammond.

15:24

[Karen Lumley (Redditch) (Con)]

It is a pleasure to serve under your chairmanship today, Mr Hollobone. I also thank my hon. Friend the Member for Harrow East (Bob Blackman) for securing an important debate.

I visited Azerbaijan before I came to this House, and I thoroughly enjoyed my visit, which was a major eye-opener for me. Baku is a fantastic city, which is growing month by month, and the opportunities for us in the UK are enormous. It is certainly a change from 20 years ago when my husband worked in the country as a geologist discovering oil. When I returned, it was apparent how much Azerbaijan had been transformed. What could happen in the next 20 years?

We must, vitally, get more involved in this important market. The UK is Azerbaijan’s largest foreign investor, and as the country develops, so must its infrastructure, bringing an exciting array of prospects for UK investors. UK investment has had an impressive start, but we can get involved in so much more. If more British companies are to be encouraged to invest in Azerbaijan, the Government must impress on the Azerbaijanis the importance of stability and of open and transparent government. Corruption is widely reported to be a big problem. Transparency International, in its corruption perceptions index, ranks Azerbaijan 134th. Tackling the general problem of how the country is perceived is critical for Azerbaijan’s development. It has a fantastic, growing economy, but that does not mean there is not considerable room for improvement or space for UK investment to expand further.

For the moment, the population appears relatively content with the regime. That is to say, there are not currently scenes of revolt, such as we have seen in other parts of Asia and north Africa, but let us remember that in the 2010 elections, Opposition rallies were forbidden. That, combined with reports of corruption and of violence in and along the borders, will not encourage new and perhaps nervous investors, especially those without experience of operating in countries with security challenges. BP was taken into Azerbaijan by the oil and gas, but financial services are not so fixed in where they can invest and so could look at other countries. We must emphasise Azerbaijan’s advantages.

Openness will improve when journalists are free to report and Opposition parties to protest. Azerbaijan is part of the Council of Europe, and that the country must not continue to disregard human rights law has to be made clear. Industry is not totally separate from such issues—we must look at Azerbaijan as a whole. I hope that the Azerbaijan all-party parliamentary group, of which I am a member, will raise this country’s profile as much as possible in the UK and that the Government will be more specific when outlining their objectives for their involvement in Azerbaijan. We look forward to hearing from the Minister.

Financial services, business services, engineering projects and project management are all areas that will grow with the Azerbaijani economy. We might not be able to compete with the cheap labour within the country or in neighbouring Turkey and Russia, but the UK’s expertise in business and financial services could benefit the Azerbaijani economy considerably. There are huge opportunities for Britain and it is up to us—the UK Government and UK industry—to lead the way. BP Azerbaijan comprises a large part of our financial presence and, as a company, has made a concerted effort to increase interaction between local companies and foreign investors with a scheme to introduce the two and under which they can interact and discuss how to do ventures together. We must support such schemes.

We have already heard about the UK education sector. English is used more and more in the country, especially by young people because it is seen as a language of business. UK education is increasingly looked at as offering international status and opportunity. The British Council has been encouraging cultural exchanges and we should be looking at that sort of thing on a much larger scale, with students from our country also going to Azerbaijan. We must encourage our universities to explore such programmes. It would be good to see some of our universities providing satellite centres in places such as Baku to educate the young people in their own country.

Although our economy is becoming stronger every day, we must not be complacent about our recovery. Abroad, in counties such as Azerbaijan, there is money to be made, which could benefit all our constituents. The Government are doing everything they can to encourage the entrepreneurial spirit in the UK, and must do so in UK companies looking abroad. New, expanding economies provide an exciting environment and we should take full advantage of each opportunity to help the UK to prosper.

Finally, as mentioned by my colleagues, we wish Azerbaijan every success in hosting the Eurovision song contest next year. Who knows, some of us might even be there—including Richard, from the Strangers Bar.

15:29

[Martin Horwood (Cheltenham) (LD)]

Thank you for calling me, Mr Hollobone. I will try to keep an eye on the time. I commend my hon. Friend the Member for Harrow East (Bob Blackman) for securing the debate, and for resisting the impulse to give a rendition of the Eurovision song contest’s winning song. That is a mercy to all of us.

The debate is very important because although the region is ostensibly stable at the moment, it clearly has potential for a lot of volatility. As well as the conflict over Nagorno-Karabakh, there was the war only a few years ago between Russia and Georgia, there is unresolved conflict over South Ossetia and Abkhazia, and we now have other regional powers, such as Iran, taking an interest, although apparently in the unlikely role of peacemaker at the moment. That all underlines how such a potentially volatile region could deteriorate quite fast. If we have learned anything from events in the middle east and north Africa, it is that one cannot take one’s eye off the ball and expect stable regions to remain stable just because they are at the moment.

Reference has been made to the conflict in Nagorno-Karabakh, and in fact it has been called the occupation of Nagorno-Karabakh. Clearly, one person’s occupation is another person’s liberation, and the origins of the dispute started with a regional soviet voting to attach itself to Armenia in 1988 under the USSR. It is important that while emphasising many other universal values such as human rights, the rule of law and democracy, we remember the important right to self-determination. That will clearly be a live issue in this country for the next couple of years. Should the people of Scotland, however unwisely, decide to vote for independence or a different constitutional arrangement with the United Kingdom, we would of course respect that, just as Czechoslovakia respected the right of Slovakia to separate from the Czech Republic some years ago.

[Stephen Hammond (Wimbledon) (Con)]

My hon. Friend’s point about self-determination is of course right, but if the indigenous population has been expelled, self-determination and its result will be rather different from what might otherwise be expected.

[Martin Horwood]

My hon. Friend makes a valid point. Perhaps the way forward is that suggested by the European Parliament in its 2008 resolution, which recognised the territorial integrity of Azerbaijan but referred specifically to rights to self-determination, whether in the form of home rule, devolution, confederation or whatever. It is crucial that popular consent is part of the process.

I agree that progress towards a peaceful resolution seems to be frustratingly slow, although it is positive that all parties now seem to have committed themselves to peaceful resolution of the dispute. I gather that the South Caucasus security and co-operation conference has now resolved that all outstanding issues in the region should be tackled by 2014, and I would be interested to hear from the Minister—his enormous portfolio now also includes that troublesome region—what pressure Her Majesty’s Government will put on the Governments of Azerbaijan, Armenia and Russia to make that process a success.

I want to mention briefly two wider issues. One is the role of western foreign policy in the post-Soviet space in the world. Clearly, discussions are continuing between NATO and Azerbaijan, which is interesting. It is probably right and wise that those negotiations are concentrating not so much on Azerbaijani membership, but on building stability and ensuring that Azerbaijan is a barrier to the spread of weapons of mass destruction and other things that contribute to the stability of the region and the rest of the world.

The other issue, which other hon. Members have mentioned, is human rights. The Arab spring or awakening has underlined the importance of what President Obama called

“the false promise of stability”

sometimes enforced by repressive tactics. Azerbaijan is not Libya; it is not Syria; it is not Iran. It has many of the characteristics of an increasingly prosperous multi-party democracy, yet there serious concerns. The Organisation for Security and Co-operation in Europe described the 2010 parliamentary elections as “peaceful”, but

“not sufficient to constitute meaningful progress in the democratic development of the country.”

Amnesty International reports:

“Threats, harassment, and acts of violence against journalists, civil society activists and opposition activists continue with impunity, leading to an increase in self-censorship. Criminal and civil defamation laws are used to silence criticism, resulting in prison sentences and heavy fines against journalists.”

If I had more time, I would highlight the cases of Jabbar Savalan, Eynulla Fatullayev, Adnan Hajizade and Emin Abdullayev. I hope that the Minister will be able to take up those cases in particular with the Azerbaijani Government.

If Azerbaijan is to take its place in the democratic family of nations—I agree with hon. Members who have said that it is important to have examples of Muslim countries that are emerging as stable and free democracies—it must recognise the importance of tackling the human rights issues that still exist there. I hope that the good offices of the Minister, the Conservative Friends of Azerbaijan, and the all-party Azerbaijan group will be utilised in that effort. That would be extremely positive for Azerbaijan.

15:35

[Stephen Hammond (Wimbledon) (Con)]

As befits the importance of this debate and of your chairmanship, Mr Hollobone, I have prepared 25 minutes of eloquent speech, but as only five minutes are available to me, I shall cut to the quick and not discuss issues that colleagues have already mentioned this afternoon. I also refer hon. Members to my declaration of interests.

Some hon. Members have discussed the petroboom in Baku. Clearly, there is a wide spread of economic prosperity in that country, and I want to concentrate on two issues. The first is the prospects for UK industry. Wherever we look across the globe, instead of being cautious and concerned, we in the UK should be embracing some of the opportunities. Notwithstanding some of the issues that hon. Members have raised, it seems to me that beyond the fact that BP has its biggest European plant and refinery in Baku, and that we are already the largest foreign direct investor into that country and the largest exporter in that region, this country is missing some significant interests and opportunities.

It has been said that the construction boom is being driven by the petrodollar, but the construction boom is there, and yet another concert hall for the Eurovision song contest is being built. Where UK industry is missing out, I encourage the Minister to chide UK Trade and Investment, which is not doing enough in that and other regions of the world. UK civil contracting still has a global competitive advantage, so why is it not taking this opportunity?

The infrastructure boom is driven by the needs of agriculture, industry and increasingly tourism, and some providers in the UK have international advantage and strength, but yet again some of the opportunities are not being seized. That point was made to us by the ambassador, and our commercial interest is being neglected in our relationship with Azerbaijan.

I was particularly struck by our meeting with the Tourism Minister. Many of us will remember it for all sorts of reasons, not least for the most stylish carpet I have ever walked across. None the less, one of his points was that on the back of the Eurovision song contest, Azerbaijan’s historic importance, its historic attractions—Baku’s importance has been attended to by a number of nations in world wars—and its natural features, the tourist industry is likely to expand. We have seen tourism in our country move slowly eastwards across the continent, and it is now moving even further eastwards from Croatia. The point that the Tourism Minister made to us was, “What is the UK going to do to grasp this opportunity? Who should we tie up with?” He was asking us to do something about it, and UK plc should grab that opportunity.

My hon. Friend the Member for Cities of London and Westminster (Mr Field) has discussed financial services. One of the most impressive people we met was the gentleman running the sovereign wealth fund, which is putting on $1 billion a month. When that fund moves from debt instruments into equities, private equity and property, we want to make sure that we are in there ensuring that our opportunity is taken. My hon. Friend has also discussed education, as I was going to, but I will not.

I want to challenge the Minister on the issue of Nagorno-Karabakh. Can we put this on the record today or not? Whatever has been said about self-determination, there are 700,000 internally displaced people—three times the number of Sri Lankan internally displaced people, which I know the Minister is acutely aware of as well. If those people were back in the Nagorno-Karabakh region and the seven surrounding satellites, self-determination would be a relevant issue and the right to it would be important. At that stage, it would be important for the UK Government to take notice. Will the Minister comment on that point? And will he comment on the outstanding UN Security Council resolutions 822, 853, 874 and 884? Does he accept that we should put pressure on Armenia to accept those resolutions? Do the UK Government believe that they should support the Azerbaijanis in the settlement of the resolutions? My five minutes are now well and truly up.

15:40

[Mr John Spellar (Warley) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Hollobone. I have been in a number of debates with you, but never with you in the role of a mute, so this is a new experience.

This debate, apart from being very interesting, has shown the value of delegations of Members of Parliament. If I may say so to the Minister, that is a message that needs to be heard both by the Foreign Office and by the House authorities. Participation in such delegations enables hon. Members to expand their horizons and brings a much more well informed atmosphere to the debates in the House in their various venues.

I congratulate the hon. Member for Harrow East (Bob Blackman) on securing this debate on a country and region—the wider subject of the debate—that receives too little attention considering its crucial location, importance and, as we have heard, potential for conflict. It is also significant in terms of European energy supplies. I make no apology for highlighting that fact. When President Obama was speaking just outside this Chamber in Westminster Hall recently, he dealt head-on with the issue of the importance of energy supplies to countries when he observed of the middle east that the west squarely acknowledges that

“yes, we have enduring interests in the region—to fight terror, sometimes with partners who may not be perfect; to protect against disruptions of the world’s energy supply.”

It is a perfectly proper aspect of foreign policy that we should be concerned about that.

As has been mentioned, both Britain and the EU have considerable interests in that regard. The EU countries are considerably helped by the diversity of supply, both from the existing pipelines and, potentially, from the Nabucco pipeline providing a route for gas, not only from Azerbaijan but from the Caspian region as a whole. That gives the promise of a more balanced and diverse gas supply for western Europe and, we hope, will avoid some of the problems that Europe has experienced with interruption of supply, which has periodically caused such difficulties, particularly in the accession states. That problem will potentially be exacerbated by the recent decision of Germany to shut down its nuclear reactors, with the inevitable and immediate impact on gas demand in Europe.

Therefore, the situation that I have described is good news for those countries and for us. The hope is that as the European region gets more competitive sources of supply and more diverse sources of supply, we will also start to see more stabilisation of prices, rather than some of the spikes in prices that we are seeing and the way in which, bluntly, those are exploited by the ever-greedy utility companies to introduce substantial increases in the charges for domestic gas supplies in particular. That will be important for us all. It is therefore encouraging that the EU will be supporting the Azerbaijan Government to move the Nabucco project ahead.

In that context, it was pleasing to see the report this month that the EU Energy Commissioner had characterised Azerbaijan as “the EU’s key partner” on regional energy projects, while delivering endorsements of the Nabucco project. It was also reported earlier this month that the legal framework for the pipeline had been finalised, with the support of the relevant Ministries of the transit countries: Austria, Bulgaria, Hungary, Romania and Turkey. All that is extremely welcome news.

Britain, of course, also has a significant role. I partly take issue with the hon. Member for Wimbledon (Stephen Hammond) on project management. AMEC, for example, has been a major presence in Azerbaijan for some time, operating out of Baku. Perhaps it has been there so long that he does not look on what it is doing as a recent innovation, but it has been immensely successful and is seen as a major partner by the Azerbaijanis.

[Stephen Hammond]

I recognise that there are 175 companies beyond BP in Azerbaijan. My point was not about those that are there already, but that there are significant opportunities, particularly in areas where we have a worldwide competitive advantage.

[Mr Spellar]

There is always opportunity, but we should equally recognise when people are taking advantage of that opportunity. The hon. Gentleman rightly points out that BP is a major supplier, but this is about more than being first among equals. The UK accounts for some 52% of all foreign investment in Azerbaijan. BP’s stake is enormous. It will be one of the largest terminals that it will be operating on behalf of the Azerbaijanis.

Reference has rightly been made to the very significant presence in British tertiary education institutions from Azerbaijan. I have seen an estimate that some 80% of Azerbaijani students who study abroad study in the UK. That was highlighted by my hon. Friend the Member for Bradford South (Mr Sutcliffe). In the strategic context, we must remember the importance of Azerbaijan as a route for supplies and forces going into Afghanistan. That is not insignificant in terms of Britain’s interest.

We must also consider the broader security situation. Nagorno-Karabakh has been mentioned. In many ways, that is a synonym for many of the difficulties faced right across the south Caucasus. We are aware of the recent history. What was said about the end of the cold war? It led to a period of less threat and less peace. Certainly the region that we are discussing experienced that. I am thinking of the two wars in Nagorno-Karabakh, with Armenia and Azerbaijan, and the considerable number of displaced persons. The hon. Member for Harrow East rightly drew attention to the UN resolutions. He also mentioned the Minsk group, which is currently the main forum for resolution of the conflict, although we have to recognise that, unfortunately, progress has been fairly limited in that context.

This debate is particularly timely, in that the meeting on Nagorno-Karabakh has been taking place in Kazan, I think, yesterday and today, with Azerbaijan, Armenia and Russia. I hope that the Minister will be able to enlighten us on that. We obviously hope that there has been progress, but it would be interesting to be updated on whether there has been any progress or developments at that meeting.

Before I yield to the Minister—I want him to have the full amount of time to deal with the many points that have been made—I want to sound a cautionary note. We should accept that in the Caucasus, progress will quite often take more time than we would hope. It will be slow—certainly slower than we would hope— and evolutionary. Russia may no longer be one of the two superpowers, but it is still, not only in its own estimation but objectively, a major and very significant power, a P5 member and a nuclear power. It is also clearly the regional power and has very clear interests in what it would regard as the near abroad. Therefore, its views, interests and perspectives have to be taken fully into account. That is the reality not only for the countries of the south Caucasus, but for those countries that are engaged there diplomatically or economically. It is therefore crucial that we have full engagement with Russia, recognising its legitimate interests but also representing ours, as well as the understandable concerns of other countries in the region. I hope that the Minister will be able to report the Government’s actions in this regard.

The debate has demonstrated the considerable interest that Members of Parliament take in Azerbaijan, and they are very well informed about it. We look forward to the Minister’s reply.

15:50

[The Parliamentary Under-Secretary of State for Foreign and Commonwealth Affairs (Alistair Burt)]

Like others, Mr Hollobone, I welcome you to the Chair. I congratulate my hon. Friend the Member for Harrow East (Bob Blackman) on securing this debate.

I thank the right hon. Member for Warley (Mr Spellar) for his usual well-grounded and thoughtful contribution. I shall do my best to respond to as many of the issues that have been raised this afternoon as I can. Nagorno-Karabakh was mentioned by many. The economy and investment matters were raised by my hon. Friends the Members for Redditch (Karen Lumley) and for Wimbledon (Stephen Hammond). Students were mentioned by my hon. Friend the Member for Cities of London and Westminster (Mr Field). A number of colleagues spoke about sport and Eurovision, but particularly the hon. Member for Bradford South (Mr Sutcliffe). The hon. Members for Strangford (Jim Shannon) and for Cheltenham (Martin Horwood) raised the matter of religious freedom and human rights.

I begin with an apology. My already exciting portfolio of north Africa, the Gulf, the middle east and south Asia, including Afghanistan, Pakistan, Iraq and Iran, now includes Azerbaijan—but only for today. I apologise for the fact that the Minister for Europe, my right hon. Friend the Member for Aylesbury (Mr Lidington), is not able to attend this debate. It is his region, however, and I shall faithfully report to him what has been said today. I hope that colleagues will excuse me if I am not able to deal with every question, but information will go back to my right hon. Friend.

We have a good bilateral relationship with Azerbaijan, which has a growing economy. We are a little worried about a slippage in transparency in recent years, but there is no doubt that a strong relationship has been built on a variety of factors, many of which I shall touch upon. I shall deal first with two of the lighter ones. The disproportionate impact of Eurovision could not be better demonstrated than by the fact that everybody in this debate has mentioned it. I share the excitement that must have been generated by it. There is no doubt that, as a focus of attention and as an opportunity, it will offer a terrific chance. We hope for its great success next year.

I should also mention the importance of sport, especially as football is the most popular game in Azerbaijan. Whatever Azerbaijan’s activities on the playing field, the hon. Member for Bradford South and my hon. Friend the Member for Cities of London and Westminster, who share my devotion to Bury football club, will know that Azerbaijan’s greatest contribution to football was to provide the most clear-sighted linesman in the history of World cup finals. It was Tofik Bahramov whose eyesight distinguished Geoff Hurst’s goal in the 1966 World cup final—for ever an honoured gentleman in this country.

My right hon. Friend the Foreign Secretary has clearly outlined his vision for our foreign policy. Our focus on building Britain’s prosperity and security provides an effective framework for today’s debate. Supporting Britain’s prosperity is one of the central themes of our foreign policy, and Azerbaijan is an increasingly important partner. There are shared benefits in co-operation; at a time when global economic recovery is still fragile, Azerbaijan’s economy is a driver for growth for a wide range of British businesses.

British expertise and industry has helped modernise and develop many sectors in the south Caucasus, including oil and gas, the development of infrastructure and information technology. The UK is well-placed in Azerbaijan, as a number of colleagues have said. We are the largest foreign investor, with 50% of direct foreign investment. Led by BP, British companies have invested more than $23 billion in Azerbaijan. Although the energy sector is the main focus for British companies, as was emphasised this afternoon, it is far from being the only one.

Azerbaijan and the south Caucasus region as a whole have increasingly dynamic and diversified economies that offer significant opportunities for UK business in financial services, retail, infrastructure, law, tourism and construction, among others. However, we need to do more to take full advantage of the opportunities that are available. I am therefore pleased to say that the Government and the private sector have increased activity there. My right hon. Friend the Minister for Europe led a successful UK trade delegation on a visit to Baku last year; and Lord Howell, a Minister of State, spoke at the launch of the Central Asia and South Caucasus Association. I shall take back to them the fact that Members have mentioned the increasing importance of trade.

The right hon. Member for Warley was right to mention European energy security. With its natural wealth of oil and gas resources, the region will play a vital role in ensuring Europe’s energy security. The transit of hydrocarbons to Europe via a southern energy corridor would give the EU a new and important source of energy. That would benefit not only the EU but the region itself, as it seeks to diversify its export routes. There are other opportunities for co-operation in the energy field. Working together on energy efficiency, creating more effective and more open markets, and addressing climate change are all areas on which we wish to engage more.

My hon. Friend the Member for Cities of London and Westminster mentioned the importance of students. It is not the Government’s policy to discourage the brightest and best from coming here. There are numerical issues, which we all understand, but part of the process is to identify those whose future relationship with us will benefit not only ourselves but, importantly, the countries to which they will return. We all recognise that long-term relationships can be created, and my hon. Friend was right to raise the matter.

I want to talk particularly about Nagorno-Karabakh, as so many Members concentrated on it. The right hon. Member for Warley was right to speak of it in the general context of security in the area. I hope that colleagues will forgive me if I concentrate on that region for the moment. It is a complex matter. The conflict has left many dead and thousands of Armenians and Azerbaijani people displaced. Sadly, as colleagues reported, deaths still regularly occur along the line of contact. It is a human tragedy and a tragedy for the region. We are clear that there can be no resolution of this conflict through the use or threat of force; nor does continuation of the status quo offer an acceptable long-term prospect for the region. I assure the House on behalf of the Government that it is a conflict to which the UK and others in the international community pay close attention.

France, the United States and Russia are the co-chairs of the Minsk Group peace process, who lead on negotiating a settlement to the conflict. The UK fully supports that work. This coming weekend, the Presidents of Armenia, Azerbaijan and Russia will meet in Kazan further to discuss the Madrid basic principles document, which aims to agree a starting point for eventual peace negotiations. In that regard, I fully support the recent statement of the co-chairs that urged the parties to avoid provocative actions or statements that might undermine the negotiating process during this critical period.

The line of contact has become the front line of this protracted conflict, and people tragically continue to die along it. The Minsk co-chairs have taken a significant, albeit symbolic, step towards opening up communication by crossing the line and travelling across no man’s land. They did this most recently earlier this month, as they did when they conducted a field assessment study in October not only in Nagorno-Karabakh but in the occupied territories that surround Nagorno-Karabakh. The parties have seen this report, and the Minsk Group’s assessment of the situation on the ground, but have agreed to keep the detailed contents to themselves in order to avoid heated media allegations of blame.

Does the process go far enough? Is it quick enough? These are always difficult questions, and in the circumstances everybody would like to push for more. However, the UK believes firmly that the process is making progress, albeit slowly, and it is important to back it as the most likely opportunity for peace. The peace process will need to address a number of sensitive issues. As was mentioned earlier, they include a mechanism for investigating any allegations of war crimes from both sides, a system for the return of displaced persons, and other issues. It will be no easy task, but it is right that we support Armenia and Azerbaijan in making the difficult decisions that are needed and in helping to create a conducive atmosphere to achieve peace.

I turn to the question of human rights. The hon. Member for Strangford mentioned the problems that he has discerned in that regard, and the hon. Member for Cheltenham made the connection with the Arab spring. Human rights are not the same as they used to be. It is not possible for any society to believe that these are purely internal matters in which the rest of the world is not concerned. They must address these matters on their own—they are sovereign issues—but regardless of whether it is about religious or media freedoms, the fact that the world pays interest is likely to be a fact of life. I am sure that the comments of the hon. Gentleman will have been noted. We raise these issues in our bilateral conversations, and we will continue to do so. The particular issues picked up by the hon. Gentlemen will form part of our next discussion with them.

Much more could be said; however, as the right hon. Member for Warley said, the fact that a delegation is able to go to Azerbaijan and come back well informed is of immense importance to Parliament—and to Ministers, who cannot be everywhere. The debate will be reported to my right hon. Friend the Minister for Europe, who I know cares about the area very much. I am indebted to colleagues for their advice and views, and I hope that I have answered some of their questions. I know that my right hon. Friend will pick up others in due course.

[Mr Philip Hollobone (in the Chair)]

I congratulate the hon. Member for Harrow East (Bob Blackman) on securing the debate, and I thank all who have taken part. Their contributions were most interesting and informative, and the debate was a real credit to the House.