Chapters from the book by Ismail Agakishiyev
After the discovery of oil fields, Baku became a special place, where various economic and political interests of international coalitions, industrial clans and leaders were concentrated and clashed. VK begins publishing chapters from the book by Ismail Agakishiev "History of the Baku Oil Industry and the Second Oil Boom (second half of the 19th century - beginning of the 20thcentury)" The book presents a historical analysis of the emergence and current state of the Azerbaijani oil industry.
In early December 1991 the representatives of the central oil and gas bodies came to Baku from Moscow to conclude a contract on economic cooperation for 1992. The Azerbaijani leadership, however, under the influence of the "democratic" forces, refused to sign the contract. This meant the stop of supplies of necessary materials. The absence of the economic connections with the other republics would have led to the liquidation of Aznefetemash and the other plants in the sector. At the same time it would have dramatically hit the plants across the former USSR, because 90% of Azneftemash's production was sent to the other Soviet republics, Russia first of all, and some of the machines were not produced elsewhere.
The constant problems with the supplies of equipment led to a decree on de-monopolization and Russia started to produce its own oil machines on the basis of conversion plants. In our opinion, Azerbaijan needed to strengthen these relations and develop them to organize the partnership with the foreign companies specializing in oil machines. These negotiations started by Azneftemash had to be stopped because the republic did not join the economic community. Producers refused to understand "romantic democrats" claiming that Azerbaijan is independent of all the obligations of Soviet times. When evaluating this state of Azerbaijani history, Sbir Kuliyev said: "We fully support the separate development and independence of Azerbaijan. But the economy is a living organism. It requires time to readjust. You cannot cut it without preparation".
It should be noted that Russia was interested in developing relations with Azneftemash. While the politicians were negotiating, the production stopped, tens of thousands lost their jobs and the budget of the country lost potentialyl millions. Industrialists wanted to cooperate with the foreign companies and were ready to invest in the technological modernization and reconstruction of the machine-building plants with a guarantee of stable supplies of necessary materials. The active position of the producers forced the Azerbaijani government to conclude the contracts restoring economic relations. The experienced leaders were particularly aware of this need. One of them was the prime-minister, Gasan Gasanov. On December 18th 1991 in Moscow Russia and Azerbaijan concluded a treaty on the principles of trade and economic partnership between the two states. It was signed by Gasanov and the vice-head of the Russian government, Gennady Burbulis.
