On February 24, 2026, President of the Republic of Azerbaijan Ilham Aliyev approved amendments to Article 13 of the Law “On Investment Activity.” These amendments, adopted by the National Assembly, more precisely define the state's oversight mechanism, particularly for strategically important investments.

Under the new rules, investments of strategic importance can be acquired by the state without the investor's consent in exceptional cases—if they are deemed to be contrary to the interests of the state or society. A provision added to the law states that such cases will not be legally considered discrimination.

The amendments also address the issue of compensation. Whereas previously these payments were determined in accordance with the Law on the Acquisition of Land for State Needs, under the new approach, compensation will now be calculated directly according to the procedure stipulated in the investment contract. If such a condition is not specified in the contract, the payment will be determined based on fair market value.

During the discussion of the bill, some deputies noted that the application of broad concepts without clear boundaries—such as “national interests” and “strategic importance”—could create legal uncertainty in the future. In their opinion, this could create additional risks for investors.

Meanwhile, Azər Əmiraslanov, chairman of the National Assembly's Committee on Economic Policy, Industry, and Entrepreneurship, stated that a similar approach has existed in legislation before and did not negatively affect the country's investment inflows. He emphasized that in international practice, expropriation is not considered a violation of rights as long as legal grounds and fair compensation are provided.

Overall, the amendments are aimed more at protecting the national and economic security interests of the state than at restricting the rights of investors. At the same time, the principle of protection of property rights and fair compensation is maintained.