Thanks for the post , votes, and comments. We are aware of this limitation and are targeting sometime next year to improve this experience. In the meantime you can sign up for a new account in your desired country and transfer your assets to the new account via Support.
-Azure Billing TeamBrendan King commented
This is a complete **** up from Microsoft, and the "targeting sometime next year" is a lie. Nothing is being done about it at all. This issue has been around since at least 2012 from other posts, and this thread is getting onto 2 years old. I raised the issue with Microsoft support to get the azure account reset. The excuse was "however we did have this option to close your Azure account under our old platform, unfortunately we do not have the same in our current new platform". What is that supposed to mean, the system is going backwards?