As often in oil-producing countries, Azerbaijan’s oil dollars have been converted into real estate and luxury cars and, according to western diplomats, have largely benefited a small elite. In Baku, glassy five-star hotels and office buildings mirror beautifully renovated palaces from the capital’s first oil boom, which spanned the 19th and 20th centuries, and a shabby, Soviet-style Caspian shoreline has been turned into a shiny boulevard.

However, some changes are less evident to the visitor. Compared with 17 years ago, when major oil companies negotiated the oil deals that have brought Azerbaijan its riches,  Azerbaijan has developed a group of much more sophisticated negotiators now that it is being wooed by European buyers of its natural gas, as we report today. Read More »