ABSTRACT
Introduction The state capture in Azerbaijan is the result of manipulating with informal networks in administration. The business opportunities for foreign investors become very much unsafe and shaky under these conditions. With the way state rules engender uncertainties for private business, the interests of the power holder take precedence, and power holders also use the vague conditions for private entrepreneurs in their blackmailing strategies (Wheatley, 2013, pp. 321-323). First of all, one has to consider that Azerbaijani business environment is with slight exceptions almost not participated in by international investors. Their activities are mostly shrunken to oil production, as the domestic economy is basically preserved for the pro-governmental investors and the decision to let an outsider enter the Azerbaijani market is under the exclusive and unofficial authority of the regime’s top-ranking officials. This results in Azerbaijan’s specificity from the perspective of comparatively freer markets of other countries in the Black Sea Region.
