“As you know, foreign companies have been illegally exploiting our gold and other mines for many years. This is a crime. I have already said this but I want to say it again. These companies have two options: either they will pay us compensation and accept our terms or face the other alternative of resolving this issue in the legal plain. I must also say that all the preparations are nearing completion. All our gold deposits illegally exploited by foreign companies in both Zangilan and Kalbajar districts have been analyzed. International consultants have been invited. I want to say again that they should reimburse the damage caused of their own free will, pay for the damages to the Azerbaijani state and only then can they live comfortably. Otherwise, these companies have operations in other places and their business reputation will be severely damaged. In any case, we have explicitly defined our position," President of Azerbaijan Ilham Aliyev said in an interview with the country's national television.

According to Azerbaijani lawyers, in accordance with international public law, the Republic of Armenia, as a subject of international law, bears international legal responsibility for the aggression and occupation of Azerbaijani territories. Companies carrying out illegal business activities in the occupied territories of Azerbaijan do not bear international legal responsibility, since they are not subjects of public international law. However, this does not mean that these companies and the persons who worked there cannot be held accountable for the offenses committed on the territory of Azerbaijan, accompanied by the violation of the territorial integrity of the country.

On July 23, 2019, the UN Economic and Social Council adopted [on the recommendation of the Commission on Crime Prevention and Criminal Justice (E/2019/30)] resolution 2019/23 “Combating transnational organized crime and its links to illicit trafficking in precious metals and illegal mining, including by enhancing the security of supply chains of previous metals."

According to paragraph 9 of this document, it also recommends that the member states, in accordance with their domestic legal framework and international obligations, provide each other with the broadest possible assistance, including on the basis of bilateral or multilateral agreements or agreements on law enforcement, and improve the effectiveness of law enforcement measures to combat crimes related to illegal trafficking in precious metals and illegal mining.

Paragraph 15 of the resolution invites the United Nations Office on Drugs and Crime to continue to provide, upon request, technical assistance to Member States and recommends to the United Nations Office on Drugs and Crime, the United Nations Interregional Crime and Justice Research Institute and other relevant international and regional organizations to closely coordinate and strengthen cooperation to support Member States in their efforts to combat illicit trafficking in precious metals and illegal mining.

Speaking about the "domestic legal framework and international commitments", it should be noted that in 1998 Azerbaijan adopted a law "On Subsoil."

"Article 48. Compensation for damage caused

The harm caused to the subsoil user as a result of the activities of enterprises, institutions, organizations, government bodies, officials and citizens guilty of violating the natural properties of the subsoil or creating conditions that partially or completely exclude the possibility of further subsoil use is subject to compensation at the expense of the perpetrators' own funds. Harm caused to the state as a result of the activities of a subsoil user guilty of selective mining of areas rich in mineral deposits, as well as other actions that led to damage to the deposit or the creation of conditions that partially or completely exclude the possibility of further use of subsoil, is subject to reimbursement at the expense of the user's own funds. The amount of damage and the procedure for its compensation are determined by the court. By agreement of the parties concerned, compensation for harm may be replaced by work to restore the disturbed natural properties of the subsoil. Unauthorized use of subsoil and unauthorized development of areas of occurrence of mineral resources shall be terminated without reimbursement of costs incurred during the illegal use of subsoil.

President of the Republic of Azerbaijan

Heydar Aliyev

Baku, February 13, 1998.”

In May 2021, the Azerbaijani Parliament adopted a law on amendments to the Land Code and the Code of Administrative Offenses of the Republic of Azerbaijan, and to the laws “On Antimonopoly Activity”, “On the Use of Energy Resources”, “On Subsoil”, “On Gas Supply”, “On Energy” , "On Licenses and Permits" and "On the Implementation of Investment Projects Related to Construction and Infrastructure Facilities Based on Special Financing."

The changes were made in connection with the results of the 44-day war.

On the basis of a court decision, the General Prosecutor's Office ensured the conduct of tax audits of a number of companies operating in the occupied territories of Azerbaijan, the General Prosecutor's Office reports.

“As a result of inspections in the occupied territories of Azerbaijan, companies were identified that are engaged in illegal mining, sturgeon catch, power generation, as well as illegal sale of watches and banking activities. It was decided to conduct tax audits in them. In total, according to the results of tax audits, 6 companies were identified that are engaged in illegal business activities and received income in the amount of 306.821 million manats ($180.5 million at the current exchange rate).

As a result, the necessary investigative measures were taken to arrest and extradite 12 suspects to the country. The General Prosecutor's Office also notes that legal instructions were sent to 35 countries in relation to 166 legal entities engaged in illegal economic activity.

In 2017, the Prosecutor General's Office of Azerbaijan opened a criminal case and launched an investigation into the facts of illegal economic activity in the occupied territories, large-scale damage and illegal income against companies from Switzerland, Bulgaria, Uruguay, Argentina, Romania and other countries.

The materials on these facts were handed over to the Prosecutor General's Office by the country's Foreign Ministry.

"The investigation revealed that the heads of a number of foreign companies, including Haik Watch and Jewelry Co, Rodino Haskovo JIC, Centro Ceibal, Deccan Gold Mines Ltd and Cosmote Romanian Mobile Telecommunications SA, in 1999 -2017, repeatedly illegally crossed the state border of Azerbaijan through the territory of Armenia, created enterprises without state registration in Azerbaijan in the cities of Khankendi, Shusha, Lachin, Kalbajar and other occupied territories,” the report says. According to the Prosecutor General's Office, these companies, using natural resources and minerals, caused large damage, received illegal income, and also supported the occupation and violation of the territorial integrity of Azerbaijan.

The words of the president of Azerbaijan about the harm that Baku’s bringing the issue to the international plane can cause to the reputation of the violator companies are well-founded.

In mid-December 2020, international media wrote that S&P Global Ratings might downgrade the credit rating of the Russian company GeoProMining (GPM, GeoProMining LLC) due to uncertainty over the main assets.

It is no coincidence that the GeoProMining company announced its readiness to start negotiations with Azerbaijan to continue the exploitation of the Zod field. The company said that GeoProMining is extracting gold at this mine, and of course they admit the mistake that they developed the deposit without the permission of Azerbaijan. "You know, it was our mistake that we got involved in the development of this field without prior agreement with Baku. But we believe that if Baku allows, we can start negotiations on the continuation of the operation of this field. Our company has some experience in the development of this field. We already know all the nuances of this deposit, so we want to come to an agreement with Azerbaijan on the continuation of our work at this mine,” said a company representative, who did not want to be named.

After the liberation of Kalbajar, the Azerbaijani military found a warehouse with gold sand at the Soyudlu (Zod) gold deposit, which was illegally mined by the Armenian invaders in a foreign land.

Making an "excursion" into illegal "production", a voice on the video says: "This is the vat in which the gold was washed, there is also something interesting, here is the control system... In general, they have thoroughly approached the matter," he notes.

"Here's another interesting place - a warehouse of gold samples. There are a lot of it on the shelves, but different samples are numbered. And here are cans of nitric and hydrochloric acid. If you mix them, you  "aqua regia", which dissolves gold,” the serviceman says.

GeoProMining is a Russian-owned company. Meanwhile, the law of the Russian Federation "On Subsoil" contains a provision that any unlicensed use of subsoil entails administrative, and in certain cases - criminal liability.

Persons illegally exploiting gold deposits in Karabakh have been put on the international wanted list, according to a statement on the official website of the General Prosecutor's Office of Azerbaijan.

Earlier, on the facts of illegal entrepreneurial activity of foreign citizens of Armenian origin in the territories of Lachin, Kalbajar and other occupied regions of Azerbaijan, the Investigation Department of the General Prosecutor's Office of Azerbaijan on October 21, 2015 and March 30, 2018, launched criminal cases under Articles 192.2.3 (illegal business) and 318.2 (illegal crossing of the state border) of the Criminal Code.

One of these criminal cases concerned the village of Vezhnali, Zangilan region, which was occupied but recently liberated as a result of successful operations by the Azerbaijani army. So, on the basis of the resolution of the Investigative Department of the Prosecutor General's Office of the Ministry of Taxes of the Republic of Azerbaijan, it was established that the Vallex Group branch of the Base Metals CJSC, officially registered in Switzerland, received illegal income in the amount of 301.918 million manats from the exploitation of precious metal deposits in 2009-2017 in the village of Vezhnali, Zangilan region.

Financial investor of Vallex Group, Swiss citizen Vartan Sirmakes, head of Vallex Group Valery Mejlumyan, as well as executive director of Base Metals Artur Mkrtumyan are charged under these articles. In relation to them, by court decisions, a measure of restraint in the form of arrest was chosen and all three were put on the international wanted list by the investigating authority.

The Prosecutor General's Office of Azerbaijan has applied to the competent authorities of Switzerland with a request for international legal assistance to carry out the necessary investigative actions in the criminal case.

As we noted above, such assistance is provided for by the resolution of the UN Economic and Social Council.

In March of this year, representatives of 51 foreign firms, which from 2014 to 2020 illegally worked in the occupied territories of Azerbaijan, apologized to the country. In a letter of apology addressed to the Azerbaijani government, they promised not to engage in such illegal activities in the future.