Azerbaijan and the South Caucasus

Alistair Burt Excerpts

Wednesday 22nd June 2011 Westminster Hall

[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.