Since discovering of oil deposits Baku became a special place where various economic and political interests of international coalitions, industrial clans and leaders of countries concentrated and clashed. VK begins publication of chapters of the book by Ismail Agakishiyev “History of Baku oil industry and the second oil boom (second half of the XIXth – the early XXIst century).” The book presents a historic analysis of the appearance and modern conditions of the Azerbaijani oil industry.
Most foreigners were attracted by the opportunity to master cheap Baku oil, which quickly brings profit. In addition, the large foreign corporations that came to Baku had similar interests in many other countries. A characteristic example is the penetration of the French Rothschild bankers and businessmen into the Baku oil industry. Jewish by birth, the Rothschilds under Russian law did not have the right to buy or rent land in Russia. But when the initiators of construction of the Baku-Tbilisi railway in search of funds turned to Rothschild, who was looking for crude oil for his oil-processing plant on the Adriatic coast, he overcame all obstacles and in 1893 bought land in the Baku Region and started oil production. At the same time, he established a large company "The Caspian-Black Sea Oil Industry Society."
The American "Standard Oil Company" also showed great interest in Baku oil. Some Russian scholars believe that the "Partnership of the Nobel Brothers" in the pre-revolutionary years even fell under the financial impact of Rockefeller (head of "Standard Oil ") and under his pressure "had to become a barrier both in the development of geological explorations and creation of new oil production regions, and in the application of the achievements of science and technology in the oil industry." In any case, indeed, foreign companies could press Russia on domestic and world markets. Thus, for example, in 1894 the Nobels had to sign a contract with Rothschild, which set the order of differentiation of trade in world markets between companies. For many years there were negotiations between Baku oil industrialists and "Standard Oil" on cooperation on world markets. In 1894 the parties signed a contract, which sharply limited the possibilities of Baku. According to Azerbaijani scholar Ch. Sultanov, it was an unequal treaty, which became the reason for the sharp reduction in exports of Russian oil products, particularly kerosene, to foreign markets. Regarding the nature of the negotiations held in those years, the researcher of the history of Nobel companies Osbrink says: "Arrangements and deceptions, the price war, bribes, gossip and industry espionage in the struggle for new European markets - all the tools were used."
The English firms demonstrated great effort in the Baku oil industry. The Azerbaijani researcher E. B. Murdaliyev also believes that "English capital played the leading role in the overall capital invested in the Baku oil industry." From 1897 until 1901, ten associations for the exploitation of oil fields on Apsheron with a registered capital of 53 million rubles were founded in England. Among them were the "Society for Extraction of Russian Oil and Fuel Oil," "The Baku Society of Russian Oil," "The Kalanarov (Baku) Oil Company" and others. By 1903 there were twelve English companies in the Baku region with a registered capital of 60 million rubles, which amounted to one third of the overall capital invested in the field. The ambitions of English capital had not only financial, but also political reasons. Great Britain demonstrated particular zeal in fighting for the sphere of influence in the markets for raw materials and sales areas in those years, since one of its main objectives was to drive Russia out ofthe geographical areas where Russia had apparent interests. The efforts of the British aimed at buying stocks of Russian firms were indicative. In 1897 a group of British entrepreneurs bought one of the largest Baku firms, the "G. Z. A. Tagiyev" company. The factories of the firm served as basis for the foundation of the "Oleum" joint-stock company. By the twentieth century the British had acquired a number of Russian firms. In the future the expansion of foreign businesses intensified. Moreover, foreign firms often conflicted with each other. Thus, the largest English-Dutch company, "Royal Dutch Shell", a significant part of which was owned by English capital, headed by Deterding, worked hard on acquiring oil trading and oil industry enterprises. In 1912 English businesses bought 80 % of the "Caspian-Black Sea Society" and the majority of stock from another large society, "Mazut." The new corporation was enlarged by the oil industry companies "S. M. Shibayev and Co." and "I.G. Tumayev and Co", which had been purchased by English entrepreneurs earlier. Thus, even before the First World War, foreign capital had managed to occupy positions in the Baku oil industry.
