Azerbaijani president signs decree to establish State Agency for Reserves (UPDATE)

Politics Materials 7 October 2021 16:53 (UTC +04:00)

Details added, first version posted 14:35

BAKU, Azerbaijan, Oct.7


President of Azerbaijan Ilham Aliyev signed a decree on October 7 on the establishment of the State Agency for Reserves, Trend reports.

In accordance with the decree, on the basis of the State Agency for Material Reserves of the Ministry of Emergency Situations, a public legal entity ‘State Agency of Reserves’ is created.

The state grain fund is transferred under the management of the Agency.

The Agency is a legal entity of public law, participating in the preparation and implementation of state policy in the field of creating state and mobilization reserves, exercising regulation and control in this area, as well as taking measures to ensure the sustainability of the supply of goods of strategic importance and suppress short-term price surges for these goods for the domestic market.

The costs of organizing and supporting the activities of the Agency are financed from the state budget and other sources not prohibited by law.

To carry out general management and control over the activities of the Agency, its board is created, consisting of a chairman and two deputies.

The President of Azerbaijan appoints and dismisses the chairman and deputy board members of the Agency.

The exercise of the powers of the founder of the Agency is entrusted to:

President of Azerbaijan:

- approval of the charter and determination of the size of the statutory fund of the Agency, their change;

- approval of the structure of the Agency;

- creation of a governing body of the Agency, appointment and dismissal of its head and members;

- abolition and reorganization of the Agency;

- adoption of a decision provided for in paragraph 3.3 of the Law of Azerbaijan "On Legal Entities of Public Law".

Cabinet of Ministers:

- approval of annual financial statements;

- creation and / or participation in business entities, giving consent to the creation of departments, branches and representative offices of the Agency;

- giving consent to conclude a transaction in an amount exceeding 25 percent of the value of the Agency's net assets (transactions of special significance) and a transaction with a relevant person, the value of which is five or more percent of the Agency's assets;


- approval, in agreement with the President of Azerbaijan, of the wage fund, the number of employees and the size of wages (salary, salary increments, bonuses and other payments);

- determination of development directions.

The Cabinet of Ministers of Azerbaijan was instructed to prepare and submit to the President of Azerbaijan a draft statute and structure of the Agency, including proposals on the size of the statutory fund, within two months; within two months, prepare and submit to the President of Azerbaijan proposals for improving the regulatory legal acts of Azerbaijan in connection with the establishment of the Agency; within three days after the approval of the charter of the Agency for its state registration, take measures in accordance with the law of Azerbaijan "On state registration and state register of legal entities"; within one month from the date of state registration of the Agency, ensure the transfer to its balance sheet of state property, which is on the balance sheet of the State Agency for Material Reserves of the Ministry of Emergency Situations, as well as on the balance sheet of Azercontract OJSC State Contract Corporation, and state property necessary for the activities of the Agency; within one month from the date of state registration, take measures to resolve issues of material and technical support of the Agency and inform the President of Azerbaijan; resolve other issues arising from this decree.

The State Agency for Material Reserves of the Ministry of Emergency Situations will continue to operate until the Agency passes state registration in the manner prescribed by the Azerbaijani law "On State Registration and State Register of Legal Entities."

State Contract Corporation Azercontract OJSC will take the necessary measures to resolve other issues arising from this decree.