On October 25, 2005, President Ilham Aliyev of the Republic of Azerbaijan issued an Executive Order “On Urgent Measures in Connection with Preparation and Conducting of Elections to Milli Majilis [Parliament] of the Republic of Azerbaijan,” in which, among other recommendations, the President called for the Milli Majilis to consider the question of removal of the ban on observation in the presidential, parliament and municipality elections for NGOs which generate more than 30% of funding from foreign persons or from joint ventures with a foreign share over 30% in the charter capital.

In November 2006, the Union Cabinet approved the revised Foreign Contribution Management and Control (FCMC) Bill that seeks to regulate NGOs and other organizations which receive foreign funding.