International Institutional Integration of Azerbaijan’s Valuation Sector

An interview on the outcomes of the AQC delegation’s visit to the TEGOVA Spring General Assembly (Riga, Latvia)

An interview with Asif Yusubov, Head of the International Relations Department of the Azerbaijan Society of Appraisers (AQC), on the outcomes of the TEGOVA Spring General Assembly held in Riga, the bilateral negotiations conducted during the visit to Latvia, and the institutional significance of the cooperation instruments signed.

- Mr. Yusubov, on 21–23 May this year the AQC delegation took part in the TEGOVA (The European Group of Valuers’ Associations) Spring General Assembly held in Riga, the capital of Latvia. How would you characterise the strategic significance of this visit for the country’s valuation sector?

- The visit should be assessed, first and foremost, in terms of expanding the sector’s external relations on an institutional basis, systematically studying European methodological practice, and strengthening Azerbaijan’s standing within the international professional community. During the Assembly our delegation held meetings with the heads of leading valuation organisations from a number of countries, with the leadership of global bodies and professional associations, and with members of the diplomatic corps, and discussed avenues for cooperation.

The AQC was represented by a broad delegation. The delegation was led by Vugar Oruj, Chairman of the AQC Board, President of the Council of Appraisers’ Associations of the Turkic States, and an economist and expert. Its members included First Deputy Chairman Farid Rustamov, Deputy Chairman Nail Hashimov, Adviser to the Chairman Irada Shukurova, myself as Head of the International Relations Department, and Ellada Rustamova, a member of the AQC Council of Professional Appraisers.

During the sessions, partners were given detailed information on the results Azerbaijan has achieved in the field of valuation in recent years, on the work carried out to incorporate international standards at the legislative level, and on prospects for future cooperation.

- During the visit, an official cooperation agreement was signed with the Latvian Association of Property Appraisers (LIVA), and there were also contacts with other professional bodies. Could you comment on the outcomes of these meetings?

- One of the principal practical outcomes of the visit was the signing of an official cooperation agreement with the Latvian Association of Property Appraisers (LIVA), the leading professional body for property valuation in the Republic of Latvia. The document was signed by Vugar Oruj, Chairman of the AQC Board, and Mr. Vilis Juromskis, Chairman of the LIVA Board.

The bilateral meeting between the two sides was held in a constructive atmosphere. The LIVA leadership expressed its readiness to share with the AQC the experience it has accumulated at the regional and international levels, in particular the mechanisms for integrating European standards into the local market.

The agreement, concluded for a term of five years, sets out specific commitments for both parties. Under the document, the parties will work jointly to develop the methodological framework for the valuation of real estate, tangible assets and businesses. The introduction and application of European valuation standards in Azerbaijan, together with the establishment of mechanisms for the professional development and qualification certification of appraisers, have been identified as priority areas of the agreement. In addition, the parties will cooperate on the preparation of modern methodological guidelines and on the mutual exchange of experience.

The visit also included a bilateral meeting with Mr. Ivars Strautiņš, Chairman of the Board of “Biznesa Konsultantu Grupa” (BKG), one of Latvia’s consulting and corporate valuation firms. The discussion covered the methodology for valuing business consulting, investment projects and the assets of large holdings in Latvia and the Baltic states, and examined opportunities for partnership in future projects.

- Negotiations were also held with representatives of other countries during the General Assembly. What issues were discussed in the meetings with the Ukrainian, Romanian and Italian organisations?

- The TEGOVA Assembly serves as an important platform for direct contact with Europe’s leading national institutions. During the event, official negotiations were held with the National Association of Romanian Valuers (ANEVAR), one of the largest valuation bodies in Europe. The meeting was held with Mr. Ioan Bercu, President of ANEVAR, and Mr. Adrian Ioan Popa Bochiș, a member of the TEGOVA leadership.

The discussions covered the application of international valuation standards, professional development programmes, the sharing of the experience Romania has gained within the framework of the European Union, and the areas of training and institutional cooperation. The parties reached a preliminary understanding on developing official cooperation; with a view to continuing relations, the AQC delegation was invited to Romania and ANEVAR to Azerbaijan.

A separate meeting was held with Ms. Irina Ivanova, Chairwoman of the Ukrainian Society of Appraisers (UTO), with which the AQC already has established cooperation, and with the society’s representatives. The Ukrainian side was also represented by Mr. Vitali Gagauz, Director of the Valuation and Collateral Operations Department of Pivdenny Bank.

The meeting addressed the expansion of relations between the valuation organisations of the two countries, the organisation of joint events, professional training programmes, certification, the valuation of assets in the banking and financial sector, and prospects for international cooperation. The parties also reached agreement on the development of the valuation profession in the region, integration with international standards, and the strengthening of relations among professional organisations.

With regard to Italy, a meeting was held on digital innovation in valuation and the digital analytics of property markets with Mr. Luke Brucato, Head of Strategic Research at the “Immobiliare.it Insights” platform. The discussion examined the application of technological innovation in modern valuation processes, automated valuation models, and the scope for adapting Italian practice to the Azerbaijani property market.

- A meeting with the diplomatic corps also took place during the visit. Could you provide information on the official reception held at the Embassy?

- The delegation visited the Embassy of the Republic of Azerbaijan in Latvia. The meeting was held with Mr. Bakhtiyar Musayev, Consul of Azerbaijan in Latvia.

During the meeting, Vugar Oruj, Chairman of the AQC Board, provided information on the organisation’s activities, the reforms being implemented in Azerbaijan’s valuation sector, and the results achieved. The Chairman noted in particular that, with the support of President Ilham Aliyev, a new law on valuation activity has been adopted in the country, laying the foundation for a new stage in the sector’s development. He also reported on the holding of professional qualification examinations for appraisers by the State Examination Centre (DIM) and on the AQC’s involvement in this process.

The Chairman drew attention to the strengthening of the AQC’s international position, noting that the society has been admitted as a member of the International Valuation Standards Council (IVSC) and that an official application has been submitted for membership of The European Group of Valuers’ Associations (TEGOVA). Consul Bakhtiyar Musayev assessed the representation of Azerbaijan’s professional institutions at the international level, and in particular within Europe, as a positive development, and stated that the Embassy would provide all necessary support.

- Finally, how do you assess the overall outcome of the visit and its future prospects?

- As a result of the meetings and negotiations held, the AQC has become engaged in broader processes within the field of international professional activity and has established the contacts needed to form new cooperation platforms. These outcomes are significant for the international recognition of Azerbaijan’s valuation sector, the expansion of its relations with international bodies, and its integration into the professional cooperation network.

It should be noted that this was the first time Azerbaijani appraisers had taken part in a European event of this level. Over the past five years, the AQC has established relations not only across the post-Soviet space but also with the Turkic States (CAATS), the International Valuation Standards Council (IVSC) and The European Group of Valuers’ Associations (TEGOVA), evolving into a body that performs institutional functions in a systematic manner. The AQC will pursue this strategic course consistently.