Originally from World Arbitration Reporter (WAR) - 2nd Edition

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I.  INTRODUCTION: ARBITRATION IN AZERBAIJAN – HISTORY AND INFRASTRUCTURE
International and domestic arbitration as a means of alternative dispute resolution is allowed under the national legislation of the Republic of Azerbaijan. Since the independence of the country gained in 1991, a number of laws have been passed and a number of international conventions and agreements setting policies and rules for dispute settlement among nationals and enterprises of different countries were ratified by the Milli Majlis (Parliament) of the Republic. Since January 15, 1992, the Republic of Azerbaijan has been a party to the Washington Convention of 1966, which provides an arbitration forum for settlement of investment disputes among states and nationals of other states, as well as the European Convention on International Commercial Arbitration of 1961, and the New York Convention on Recognition and Enforcement of Foreign Arbitral Awards on November 9, 1999. Azerbaijan is also a party to the CIS Agreement on the Mutual Execution of Decisions of Arbitration, Commercial and Economic Courts in the Territory of States being Members of the Commonwealth of 1998 and the Energy Charter Treaty of 1994 which are also relevant to the subject of international arbitration. Nevertheless, the significant step has been taken with the adoption of the Law on International Arbitration on 18 November 1999 and the Civil Procedural Code in 28 December 1999, which regulates procedural issues in relation to the arbitration as well as recognition and enforcement of arbitral awards. 
Today there is a basic legal framework necessary for the development of the arbitration as a mean of alternative dispute resolution in the Republic of Azerbaijan. Nevertheless, arbitration remains an unpopular and rarely applied mean of dispute resolution as opposed to litigation in domestic transanctions. This can be explained by a shortage of local arbiters, which may professionally deliver necessary services in this area, and unfamiliarity of local enterprises and individuals with this type of dispute resolution. Moreover, a lack of trust in recognition and successful execution of arbitral awards discourages applications to arbitration tribunals.