1.

THE SHAPE OF CAPITALIST

RELATIONS
1.1.OIL INDUSTRY
  THE 60S OF THE XIX CENTURY;

 THE ABUNDANCE OF THE CHEAP LABOR FORCE

IN AZERBAIJAN;

REASONS  THE ABUNDANCE OF OIL RESERVES, AND HIGH

QUALITY OF AZERBAIJANI OIL;
FOR RAPID
DEVELOPME  NON-DISCOVERY OF OIL DEPOSITS IN RUSSIA
ITSELF
NT IN OIL
INDUSTRY IN
AZERBAIJAN
 LEASING SYSTEM

In 1872, the government abolished the leasing system in the oil industry. After that, the
auctioning of oil fields resulted in the rapid development of this field

Since the Russian government realized that this field would bring a lot of income, it tried to
make the oil-producing lands belong to Russian industrialists.

In some cases, the tsarist government donated oil-rich lands to retired officials and soldiers.

The sale of land by auction allowed Azerbaijani businessmen to join the ranks of oil
industrialists.
NATIONAL CAPITAL IN THE OIL INDUSTRY WAS REPRESENTED
BY H.Z.TAGHIYEV, M. NAGHIYEV, S. ASADULLAYEV, M.
MUKHTAROV.
 HAJI ZEINALABDIN TAGHIYEV
:1823/1838-1924
 "Zeynalabdin's father was a poor shoemaker. Taghi barely supported his big family. That's
why Zeynalabdin started to work as a student next to stonemason from a very young age.

 In 1873, he partnered with two people and settled in Bibiheybet, and started drilling a well.
 The cost is increasing day by day, but the oil is nowhere to be seen. Haji Zeynalabdin’s
partners lose hope and want to sell their shares.
 Haji says that if you want to sell to someone, sell to me. Haji pays their money and owns
the land and the well.
 The oil does not come out. Haji invests all the money he earns from his business and
trade in this work. He pays the workers on time. In the end, money runs out.
 He gives his last penny and buys bread. He tells the workers truthfully: "I can't give you
money, I only have enough power for this bread, at least take this bread home so that your
children don't starve." The workers are moved by this sacrifice of haji and their eyes fill
with tears. They say, “Hajji, don't worry, even if we are hungry, we will finish the job."
Indeed, after a few days, the oil comes out. Zeynalabdin, son of shoemaker Tagi, becomes
millionaire Taghiyev."
 TAGHIYEV’S BIOGRAPHY

• HTTPS://WWW.YOUTUBE.COM/WATCH?V=KK2WNH139-G&LIST=WL&INDEX=1
 INDUSTRIAL
REVOLUTION IN
AZERBAIJAN

Nobel brothers,
(Sweden) Britain

1880s

1879 1890s

France
 DEVELOPMENT OF OIL INDUSTRY

• 1848 - the first oil well in the world was drilled by mechanical
drilling method in Baku
• 1863 - the cooling system in the oil production process was
created for the first time in the world by Javad Malikov at the
white oil plant in Baku
• 1864 - forced labor was abolished in the oil industry.
• 1878 - the pipeline from the oil mine to the refinery was first
built in Baku.
• 1878 – the tanker-type ship called Zoroaster was used for oil
transportation for the first time in the world in Baku.
At the end of the 19th century, Baku took first place in the
world in oil extraction, ahead of the united states. In Baku, the
bourgeoisie and the multinational working class, which are
considered the main layers of industrial capitalism, were
formed.
Local entrepreneurs - representatives of the national
bourgeoisie - played an important role in the oil industry. They
also opened a company, created a processing industry, and
competed with foreign entrepreneurs.
At the end of the 19th century, the oil industry entered the
monopoly stage.

In 1893, the entrepreneurs of Baku oil refineries united and

created the Baku white oil refinery owners' union. This
monopoly managed to divide the world’s white oil market by
signing an agreement with Rockefeller’s standard oil company.
 VOCABULARY:

•LEASE – ILTIZAM (ОТКУПНАЯ СИСТЕМА)

•ENTREPRENEUR – SAHIBKAR, (ПРЕДПРИНИМАТЕЛЬ)
•MASON – BƏNNA, (КАМЕНЩИК)
 CHRONOLOGY
1848 - The first oil well in the world was drilled by mechanical drilling method in in Baku.

1863 - The cooling system in the oil production process was created for the first time in the world by Javad Malikov at the white oil plant in
Baku.
1864 - The forced labor was abolished in oil industry.

1872 - Abolished the lease (iltizam, oткупная) system in the oil industry.

1878 - The pipeline from the oil mine to the refinery was first built in Baku.

1878 – the tanker-type ship called Zoroaster was used for oil transportation for the

first time in the world in in Baku.

1879, Nobels of Swedish origin created the "Nobel Brothers Company".

1880 - Tank wagons were introduced in Baku for railway transportation.

the 80s of the 19th century - French capital in the form of Rothschild

the 90s - English capitalists entered the Baku oil industry.

1893 - the entrepreneurs of Baku oil refineries united and created the Baku White Oil Refinery Owners' Union.