Turkish Company Alleges Funds Embezzlement, Asset Seizure, and Threats Over Reconstruction Work in Karabakh

The Turkish construction company Arenol Group has alleged that payments due for its work in Karabakh were embezzled, its factories in Azerbaijan were seized, and its director subjected to threats. These claims were made by Tolga Şahin, Director of Arenol Group, in a public video appeal addressed to Turkish President Recep Tayyip Erdoğan, which has since circulated widely on social media.

In his appeal, Şahin states that Arenol Group was invited to participate in construction and reconstruction projects in Azerbaijan’s liberated territories of Karabakh. According to him, the company received project orders—funded from the Azerbaijani state budget—through entities such as “Baku Abadlıq” and other affiliated contractors.

Over more than two years of activity in Karabakh, Arenol Group claims to have completed a total of 44 construction projects, including schools, factories, hotels, and dormitories for military personnel in the cities of Shusha, Lachin, and Kalbajar. Openings of some of these facilities were reportedly attended by President Ilham Aliyev and First Vice-President Mehriban Aliyeva.

Despite this, Şahin alleges that the company never received payment for the completed works and that property belonging to Arenol Group in Azerbaijan was confiscated. He further claims that when he attempted to demand the company’s rightful payments, he was threatened. According to his statement, a staged police raid was organized at his residence using individuals posing as police officers, during which weapons were allegedly planted.

In the video appeal, Şahin asserts that “all our factories and receivables were seized using the name of Leyla Aliyeva,” a claim he directs personally to President Erdoğan.

Şahin states that appeals to relevant Azerbaijani authorities have gone unanswered. He further claims that when he contacted Turkey’s Ambassador to Azerbaijan, Cahit Bağcı, he was reportedly advised to remain silent, with the ambassador allegedly stating: “They would tarnish me here—stay quiet.”

As a result, the director of Arenol Group says he felt compelled to appeal directly to the Turkish president. His video statement has since attracted significant public attention.

Observers note that Arenol Group is not the only company facing such difficulties. According to multiple reports, both Turkish and local Azerbaijani companies, as well as their workers, have been unable to receive payments for reconstruction projects in Karabakh. The problem is described as systemic, allegedly linked to large-scale embezzlement of state budget funds allocated for reconstruction. In some cases, misappropriation is claimed to have reached up to 90 percent of the allocated sums.

According to official budget figures, approximately AZN 32 billion was earmarked in Azerbaijan’s state budget for “Reconstruction and Restoration of Karabakh” for the period 2022–2026. Reports indicate that over AZN 23 billion of this amount was already spent during 2022–2025.

For background, Arenol Group is a Turkish-based company with 11 years of operational history, currently active in multiple countries. The company has been operating in Azerbaijan for nearly two years. Its core business specializes in the construction of A-frame structures, container buildings, and light steel frame constructions. A distinguishing feature of Arenol Group is that the construction profiles used in its projects are manufactured by the company itself.

The Azerbaijani authorities have not issued a public response to these allegations at the time of publication.