Trump Towers Azerbaijan: A Failed Venture And Its Legacy

The Trump International Hotel and Tower Baku was a planned hotel and condominium tower in Baku, Azerbaijan. The project was first announced in 2008 as an apartment building by the local company Baku XXI Century, which is affiliated with the Mammadov family. In 2012, businessman and future US President Donald Trump, through his company The Trump Organization, became involved with the project, announcing in 2014 that the building would be opened as a hotel and condominium property in 2015. However, the project was delayed and, following Trump's election as US President in 2016, The Trump Organization ended its affiliation with the project due to concerns about possible corruption involving the Mammadov family and their connections to the Iranian Revolutionary Guard Corps (IRGC). The building remains unfinished as of 2024, and has since caught fire on multiple occasions.

The Trump Tower in Baku, Azerbaijan, was never opened to the public

The building, located in the Nasimi District of Baku, was initially planned as an apartment building by local developers. Construction began in 2008, and the project was owned by Baku XXI Century, a company with ties to the influential Mammadov family, known for their reputation for corruption.

In 2012, businessman and future US President Donald Trump, through his company, The Trump Organization, became involved with the project. Trump announced his plans for the building in 2014, intending to open it as a luxury hotel and condominium property in June 2015. The project was to feature 72 luxury residences, 40 serviced apartments, 30 suites, and 119 hotel rooms.

However, construction delays plagued the project, and it never opened as planned. In 2015, The Trump Organization sent default notices to the Mammadov family due to late payments. The building was removed from the Trump Hotel Collection's website in September 2015, and in March 2016, The Trump Organization stated that the project was "held in abeyance and not being actively marketed" due to the developer falling behind on construction milestones.

The Trump Organization's involvement in the project became controversial after Trump announced his candidacy for US President in 2016. Several news organizations raised questions about possible corruption involving the Mammadov family and their connections to the Iranian Revolutionary Guard Corps (IRGC). Despite these concerns, The Trump Organization did not end its affiliation with the project until November 30, 2016, after Trump's election victory.

The un-opened building caught fire on two separate occasions in 2016 and 2018, causing significant damage. Despite plans and partial construction spanning over a decade, the Trump Tower in Baku never welcomed guests or residents, and the building remains unfinished.

The tower was linked to Iran's Revolutionary Guard

The Trump International Hotel and Tower Baku, an unfinished 33-floor hotel and condominium tower located in Baku, Azerbaijan, has been linked to Iran's Revolutionary Guard. The project was owned by Baku XXI Century, a company founded by Elton Mammadov, a member of the Azerbaijani parliament and brother of Azerbaijan's Transportation Minister, Ziya Mammadov. Ziya's son, Anar Mammadov, was also involved in the company and the project.

Anar Mammadov, a billionaire playboy, and his father, Ziya, were heavily involved in the Trump deal and had also awarded multimillion-dollar contracts to Iranian construction company Azarpassillo, whose chairman was Keyumars Darvishi. Darvishi is also the head of Raman, a firm controlled by Iran's Revolutionary Guard. The Revolutionary Guard is involved in drug trafficking, sponsoring terrorism abroad, and money laundering. With large sums of money, including over $200 million in cash transactions, the Revolutionary Guard would have been tempted to launder money through the Trump construction project.

The Mammadov family's reputation for corruption was well-known, as were their financial entanglements with an Iranian family tied to the Revolutionary Guard. Despite this, the Trump Organization signed and retained contracts with the family. In response to allegations of wrongdoing, the Trump Organization's chief legal officer, Alan Garten, argued that even if there was corruption, the Trump Organization did not violate the law because they "did not pay any money to anyone."

The Trump Organization's involvement with the Baku project and its association with the Mammadov family raised questions about possible corruption and the organization's potential exposure to the Iranian Revolutionary Guard. The deal for the hotel tower was a licensing and management agreement in which Trump would provide the use of his name for the tower in exchange for royalties, and the Trump Organization would manage the property in exchange for management fees. The deal appears to potentially violate the Foreign Corrupt Practices Act (FCPA), which makes it illegal for American companies to bribe foreign officials or benefit from a partner's corruption if it was possible to detect any illicit activity.

The Trump Organization's lack of due diligence in the Baku deal exposed the organization to notoriously corrupt Azerbaijani oligarchs and the Iranian Revolutionary Guard. Serious questions remain about the Trump Organization's potential criminal liability, and some experts believe that Trump may have violated the FCPA in his dealings with an Azeri official linked to the Revolutionary Guard.

The tower was a joint project between the Trump Organisation and Baku XXI Century

The Trump International Hotel and Tower Baku was a joint project between the Trump Organisation and Baku XXI Century. The 33-floor hotel and condominium tower was located in the Nasimi District of Baku, Azerbaijan.

The project was initially planned as an apartment building by Baku XXI Century, a company founded by Elton Mammadov, a member of the Azerbaijani parliament and the brother of Azerbaijan's Transportation Minister, Ziya Mammadov. Construction began in 2008, and the project's original budget was $195 million.

In May 2012, the Trump Organisation, owned by businessman Donald Trump, became involved with the project. Trump's company signed multiple contracts with Elton and Anar Mammadov (Ziya Mammadov's son) and planned to renovate the tower into an "ultra-luxury property." The Trump Organisation licensed the Trump name to the project, which would be named the Trump International Hotel & Tower Baku.

Ivanka Trump, Donald Trump's daughter, oversaw the project's overall development. The project was publicly announced in November 2014, with plans to open in June 2015. However, construction was delayed, and the project remained unfinished.

In 2015, the Trump Organisation sent the Mammadov family several default notices due to late payments. The Trump Organisation ended its affiliation with the project in November 2016, after Trump was elected US President. The project never opened to the public and faced several setbacks, including fires in 2016 and 2018.

The tower was designed by London-based architecture firm Mixity Design

The Trump International Hotel and Tower Baku was designed by London-based architecture firm Mixity Design, led by architect Pierre Baillargeon. The tower was initially planned as an apartment building, with a local architect designing the original concept. However, after businessman Donald Trump became involved with the project in 2012 through his company, The Trump Organization, the design was revised.

Mixity Design was brought on to redesign the tower, removing the original crown-roof aspect. Instead, they proposed a curved building that resembled a sail, similar to the Burj Al Arab in Dubai. This design aligned with Trump's vision for an "ultra-luxury property" and helped to distinguish the tower from the surrounding structures.

The redesign by Mixity Design transformed the tower's appearance, giving it a modern and elegant aesthetic. The curved shape of the building, inspired by the nearby Caspian Sea, created a unique silhouette on Baku's skyline. This design stood out against the backdrop of the decaying Soviet-era apartment blocks nearby.

Ivanka Trump, Donald Trump's daughter, played a significant role in overseeing the project's development and ensuring it met the Trump Organization's standards. She visited Baku in October 2014 to inspect the construction site and later shared a video on her Facebook page, showcasing the view from her room at the Four Seasons hotel.

The involvement of Mixity Design and Ivanka Trump in the redesign process was instrumental in shaping the final appearance of the Trump International Hotel and Tower Baku. The tower's distinctive design, with its curved structure, became a notable feature in the cityscape, even though the project ultimately faced delays and controversies that prevented its completion.

The tower was the subject of a federal investigation request by US senator Sherrod Brown

In March 2017, US senator Sherrod Brown called for a federal investigation into Trump's involvement with the Trump Tower Baku project. Brown, along with senators Dianne Feinstein and Ben Cardin, wrote a joint letter to several officials in the Trump Administration, requesting an investigation into whether The Trump Organization broke several laws during its dealings with the Mammadov family.

Brown argued that the Trump Organization's Baku project demonstrated a lack of "extreme vetting" on the part of Mr Trump when conducting business dealings in corruption-plagued regimes around the world. He emphasised the potential exposure of the President and his family to terrorist financing, sanctions, money laundering, and other imprudent associations through their business holdings and connections.

The letter highlighted the Trump Organization's lack of due diligence, which may have exposed them to notoriously corrupt Azerbaijani oligarchs and the Iranian Revolutionary Guard Corps (IRGC). Despite these concerns, the Trump Organization did not end its involvement with the Baku Tower deal immediately upon learning of the potential associations. Brown and his colleagues sought clarity on the Trump Organization's potential criminal liability in these dealings.

The federal investigation request underscored the seriousness of the concerns surrounding the Trump Tower Baku project and the potential legal implications for those involved. It reflected a bipartisan effort to scrutinise the business dealings of the President and his family, particularly in contexts where corruption and unethical associations were suspected.

The investigation sought to determine the extent of the Trump Organization's knowledge of their partners' reputations and associations, as well as their compliance with relevant laws and sanctions. It aimed to provide accountability and ensure that the President and his family's business interests did not compromise national security or engage in illegal activities.

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