Azerbaijan Tightens Grip on NGOs with New Laws and Stiffer Fines

President Ilham Aliyev

On August 1, Azerbaijani President Ilham Aliyev approved amendments to the law on non-governmental organizations (NGOs), which tighten the rules for financing the activities of the country's civil society institutions.

According to the new changes, it is forbidden to conduct banking and other operations for services provided based on funding from foreign sources under contracts not registered with Azerbaijani state authorities. Providing services under these contracts and accepting funding for them is prohibited and entails administrative liability.

Local observers believe that the new amendments are a continuation of measures taken in 2014, when NGOs were banned from receiving foreign grants without state registration. At the same time, authorities also required foreign donors to register. These measures severely restricted the activities of Azerbaijan's civil society, as in practice, the Ministry of Justice denied registration for projects from independent NGOs. However, the legislation still allowed for the possibility of obtaining funding through service contracts, which were concluded personally with the contractors, not with the organizations themselves.

The current changes eliminate this possibility as well, effectively completely depriving independent NGOs of the opportunity for legal activity.

The new amendments were adopted against the backdrop of the Prosecutor General's Office reopening a criminal case against NGOs that was first initiated in 2014. Since the beginning of 2025, dozens of activists have been brought under investigation, with more than 10 people arrested, placed under police supervision, or forced to leave the country. Some were interrogated, followed by restrictions on their right to leave the country.

This new wave of repression against NGOs in Azerbaijan coincided with the liquidation of USAID (U.S. Agency for International Development) by the administration of U.S. President Donald Trump. In the course of the new investigation by the Prosecutor General's Office, activists were interrogated and detained specifically on suspicion of receiving funding from USAID.

In a significant move targeting civil society, President Ilham Aliyev has approved new amendments to laws governing non-governmental organizations (NGOs) in Azerbaijan. The changes, which introduce severe financial penalties and administrative responsibility, come amidst an ongoing crackdown that has seen the re-opening of a criminal case against NGOs and the arrests of several prominent civil society figures.

The new legislation amends the laws "On Non-Governmental Organizations" and "On Combating the Legalization of Criminally Obtained Property and the Financing of Terrorism." The core of the changes prohibits NGOs from conducting bank transactions or other operations related to contracts for services that are funded by unregistered foreign sources. Providing services or accepting financial resources under such an unregistered contract now carries administrative responsibility.

The amendments also significantly stiffen the financial penalties for non-compliance. Officials who fail to submit foreign funding contracts for registration within the specified period now face fines of 1500-2500 manat, while legal entities can be fined 5000-7000 manat. The penalties are even more severe for those who receive funding or provide services based on an unregistered contract: officials will be fined 2500-5000 manat, and legal entities will face fines of 8000-15000 manat.

According to experts, these new restrictions are designed to increase the government's influence over NGOs and minimize their activities.

The new laws are being implemented while the government simultaneously pursues a long-dormant criminal case against NGOs. Legislation targeting independent NGOs was first adopted in 2014, leading to criminal cases against numerous organizations that year. Although the case was closed in 2023, it was reopened in March of this year amid a new wave of arrests against independent media and civil society.

In connection with the reopened case, several NGO leaders have been detained:

On March 14, Bashir Suleymanli, head of the "Institute for Civil Rights," and Mammad Alpay Mammadzade, head of the "Election Observation Alliance," were arrested.

Mehriban Rahimli, an advisor for Azerbaijan for the German Marshall Fund (GMF) of the USA, was prosecuted and placed under police supervision.

Hafiz Hasanov, head of the "Law and Development" Public Union, was recognized as an accused person and placed under house arrest.

A arrest warrant in absentia was issued for Subhan Hasanli, head of the Social Rights Center, and he was placed on a wanted list, as he was not in the country.

The combination of new, stricter laws and the renewed prosecution of existing cases signals a concerted effort by the government to further control and restrict the operations of NGOs in Azerbaijan.