BAKU, Azerbaijan, August 25. President of the
Republic of Azerbaijan, Ilham Aliyev, has signed a decree on
additional measures to develop sericulture and carpetmaking, as
well as preserve and promote the country’s national handicraft
heritage.
The decree was published on the official website of the
President of Azerbaijan.
The decree states:
“Sericulture and carpetmaking are traditional handicraft sectors
that occupy an important place in Azerbaijan’s rich historical and
cultural heritage and have developed in close connection with
agriculture and light industry. The development of these sectors
makes an important contribution to diversifying the non-oil and gas
sector, increasing employment in the regions, expanding local
production and export potential, as well as preserving and
promoting national cultural heritage.
“To ensure the sustainable development of sericulture and
carpetmaking, it is necessary to improve management mechanisms,
strengthen coordination across all stages of the production chain
and reinforce the raw material base. At the same time,
comprehensive measures to improve product quality, preserve and
develop handicraft traditions and weaving schools, expand
scientific research and professional training, and increase the
competitiveness of local products in foreign markets are of
particular importance.”
Under the decree, Azerkhalcha Open Joint Stock Company will be
reorganized through the merger of Azeripek Open Joint Stock Company
into it.
The Gakh District Breeding Sericulture Station, currently
subordinate to Azerbaijan’s Ministry of Agriculture, will be
transferred to Azerkhalcha along with its property to organize
breeding activities in sericulture.
The privatization process of the state-owned shares of Azeripek
Open Joint Stock Company has been suspended.
It was established that:
Azerkhalcha will be a commercial legal entity responsible for
developing, promoting and supporting sericulture and carpetmaking
in Azerbaijan; carrying out production, processing, sales and
export activities in these sectors; developing the raw material
base; preserving the national handicraft heritage; and coordinating
activities in these areas from a single center;
Azerkhalcha will be the legal successor of Azeripek Open Joint
Stock Company, with all rights, obligations and property of
Azeripek transferred to Azerkhalcha;
the company's day-to-day management will be carried out by a
three-member Management Board consisting of a chairperson and two
deputies.
The powers of the company's general meeting will be exercised by
the following authorities:
President of Azerbaijan:
reorganization and liquidation of the company;
establishment of the company's executive body;
appointment and dismissal of the chairperson and deputy
chairpersons of the Management Board.
Cabinet of Ministers of Azerbaijan:
approval of the company's charter, in coordination with the
President of Azerbaijan;
determination and amendment of the company's authorized capital,
in coordination with the President.
Ministry of Economy of Azerbaijan:
in coordination with the President, exercising matters assigned
under the Civil Code to the exclusive authority of the supreme
management body, except for those specified in Sections 5.1 and 5.2
of the decree;
exercising other powers assigned to the general meeting under
Azerbaijani regulatory legal acts and the company's charter.
The Cabinet of Ministers was instructed to prepare and submit
proposals to the President on the following:
within three months, improving regulatory legal acts, taking
into account Sections 1, 2 and 5 of the decree;
within six months, expanding domestic processing of fresh
cocoons produced in Azerbaijan, establishing a complete production
chain in sericulture and increasing the production of
high-value-added silk products;
approving the company's new charter, structure and authorized
capital within three months, in coordination with the
President;
taking the necessary measures within six months to transfer
Azeripək's property to Azerkhalcha's balance sheet;
resolving other issues arising from the decree.
The Ministry of Economy of Azerbaijan was instructed to:
submit to the Cabinet of Ministers, within two months, proposals
on the amount of the company's authorized capital, agreed with the
Ministry of Finance and taking into account Sections 1–3 of the
decree;
take measures to register the company in accordance with the Law
of Azerbaijan on State Registration of Legal Entities and the State
Register;
take the necessary measures to resolve other issues arising from
the decree.
Azerkhalcha, in coordination with the Ministry of Economy,
Ministry of Agriculture, State Tourism Agency and Shaki City
Executive Authority, is to prepare and submit to the President
within six months proposals to promote carpetmaking, cocoon
production and sericulture traditions in Azerbaijan and abroad, as
well as to brand and promote the export of relevant products.
The Agricultural Subsidy Council, established under the Rules
for Subsidizing the Production of Agricultural Products approved by
Presidential Decree No. 759 dated June 27, 2019, is to review, in
accordance with the relevant rules, the amount of subsidies
provided for fresh cocoons produced in Azerbaijan and delivered to
procurers, as well as for establishing mulberry orchards.
The Ministry of Finance is to ensure the allocation of the
financial resources necessary to finance measures arising from the
decree.
The Ministry of Economy and Azerkhalcha are to take the
necessary measures in accordance with the Law of Azerbaijan on the
Securities Market to ensure implementation of Sections 1 and 3 of
the decree.
