The foreign policy and national interests of any state are a delicate balance upon which its sovereignty depends. Following recent statements by Azerbaijan’s Foreign Minister Jeyhun Bayramov regarding the intention to terminate USAID’s activities in the country, this balance appears to have been disrupted. Why did Azerbaijan decide to take such a serious step, and what lies behind the diplomatic language?
In September 2023, Azerbaijan conducted a successful 23-hour counterterrorism operation, regaining control over its sovereign territories. This move received mixed reactions on the international stage. In particular, the United States voiced criticism and refrained from suspending the “Section 907” amendment to the Freedom Support Act. Adopted back in 1992, this amendment restricts direct assistance to Azerbaijan, and its suspension over the past two decades was seen as a diplomatic gesture of trust.
Now, however, as Bayramov noted, the restoration of territorial integrity has become a kind of “punishment” for Azerbaijan.
Complaints Against USAID
USAID, operating in Azerbaijan as part of international aid, has become embroiled in scandal. The previous cooperation agreement expired, but no new agreement was signed. The reasons? Azerbaijan’s demands for full transparency in the use of allocated funds. The country has openly pointed to suspicions of financial misconduct by local organizations, which allegedly misused funds while cloaking themselves in opposition rhetoric. Against the backdrop of investigations into some media outlets, including Abzas Media, Toplum TV, and Meydan TV, these accusations have gained increasing weight.
It is also noteworthy that Bayramov’s statement coincided with the start of a trial in Baku, already dubbed the “Azerbaijani Nuremberg.” The main defendant is Ruben Vardanyan, who renounced his Russian citizenship in September 2022 and moved to Karabakh, where he assumed the post of State Minister of the so-called Nagorno-Karabakh Republic in November of the same year. After Azerbaijan’s military operation in September 2023, which restored its control over Nagorno-Karabakh, Vardanyan was detained by Azerbaijani authorities while trying to leave the region. He has been charged under 42 articles of Azerbaijan’s Criminal Code, including financing terrorism, creating illegal armed groups, and illegal border crossings.
Ruben Vardanyan is a Russian-Armenian businessman best known as the founder and former chairman of the investment bank Troika Dialog. Under his leadership, the company became one of the leading players in the Russian financial market, offering investment banking, asset management, and brokerage services. In 2011, Troika Dialog was acquired by Sberbank for $1.4 billion, providing Vardanyan and his partners with significant financial resources. After the sale, he continued to engage actively in investment and philanthropy, including founding the Moscow School of Management Skolkovo and participating in various international projects.
However, in March 2019, the Organized Crime and Corruption Reporting Project (OCCRP) published an investigation claiming that Troika Dialog managed a network of 76 offshore companies through which approximately $4.6 billion flowed from 2006 to 2013. Journalists suggested that these funds may have been used to move capital out of Russia and other countries.
Importantly, Vardanyan was not only a participant in the conflicts in the South Caucasus but also the founder of the Aurora Humanitarian Initiative, associated with promoting Armenian agendas. This initiative brought Samantha Power, the current director of USAID, into its orbit, as she served on the prize committee. The initiative, which employs Armenian symbolism and historical narratives, is seen by Azerbaijan as a conflict of interest, especially in light of Power’s position on the Karabakh region.
Conclusions
Analyzing the situation, several key aspects can be highlighted. First, the decision to cease USAID’s operations is directly tied to the need to protect Azerbaijan’s sovereignty. Any foreign organizations operating in the country must adhere to transparent mechanisms and avoid posing a threat to national interests. Azerbaijan’s complaints against USAID are based on objective suspicions that funding has been used to support organizations potentially involved in subversive activities.
Second, the situation surrounding Ruben Vardanyan and his connections to various international projects underscores the complexity of issues related to interference in the internal affairs of states through humanitarian or public initiatives. The trial of Vardanyan demonstrates that Azerbaijan is determined to pursue justice and protect its territorial integrity not only through diplomacy but also via legal procedures.
Third, the international reaction to Azerbaijan’s decision may be mixed, but the country consistently emphasizes that any form of assistance must be based on respect for its national sovereignty. Azerbaijan’s demands for full transparency from USAID are logical and align with the standards that Western countries themselves declare as the foundation of international relations.
