Review of new political risks for the multinational energy corporations in the Caspian basin: a study for Azerbaijan

Abstract

Azerbaijan is known for its rich oil and natural gas resources and transit location in the Caspian basin. This article explores current political risks for the energy Multinational Corporations (MNC’s) in Azerbaijan. In order to identify a political risk, a literature review is conducted, highlighting four categories proposed by Fitzpatrick as the main framework to understand the conditions giving rise to them. The findings focus on oil price fluctuations, COVID-19 pandemic, war with Armenia, climate change and environmental issues, digitalisation and technology and possible developments in Iran as the new political risks for the energy MNC’s in Azerbaijan enforcing foreign investors to reconsider their risk analysis in this country.

Keywords:

• Azerbaijan
• COVID-19 pandemic
• energy MNC’s
• political risks

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Notes on contributors

Ulviyye Sanili Aydin

Ulviyye Sanili Aydin holds MSc from Baku State University (Azerbaijan) and PhD from Dokuz Eylul University (Turkey). Currently she is a lecturer at Manisa Celal Bayar University, Department of Political Sciences and International Relations. Her main research interests focus on energy geopolitics, energy security, renewable energy sources, logistics and transportation.

Ahmet Nazmi Uste

Ahmet Nazmi Uste holds both MSc and PhD from Dokuz Eylul University (Turkey). Currently he is a lecturer at Dokuz Eylul University, Department of Public Administration. His main research interests focus on political science and public administration.