Foreign Trade in Azerbaijan

Real rate on foreign currency deposits exceeds 107% in Azerbaijan by end of 2015

2016-03-23T17:55:00.001+04:00

Devaluation of the national currency triggered a giant surge of real rates on foreign currency deposits in Azerbaijan last year.

According to the CBA, by the end of 2015 the average deposit rate of the Azerbaijani banks made up 8.08% against 8.86% by the end of 2014 and the real deposit rate (minus annual inflation of 3.7%) reached 4.38% versus 7.46%.

The average deposit rate in foreign currency was equal to 8.06% by the end of 2015 against 9.24% by the end of 2014. The devaluation of the manat to the US dollar for 2015 made up 199%.

As deposits in euro and other currencies are small (compared to dollar assets), the real rate on currency deposits reached 107.06%.

The average rate of legal entities’ bank deposits in the national currency was equal to 5.82% against 5.51% and the real rate 2.12% against 4.41%.

The enterprises’ deposits rate in foreign currency made 4.81% against 6% and the real deposit rate – 93.81%.

The average rate of private persons’ deposits in the banks in national currency was equal to 9.14% against 9.45% and the real rate - 5.44% against 8.05%. The retail deposit rate in foreign currency made up 8.83% against 9.78% and the real rate – 107.83%.

Baku, Fineko/abc.az.

Inflation in Azerbaijan slows down to 0.4% a month

2016-03-23T17:52:00.003+04:00

Azerbaijan can expect a repeat of deflationary records of 2015.

The State Statistics Committee reports that in February 2016 it was registered a decline in the growth rate of the consumer price index (CPI) to 0.4% against a rise of 5.8% in January. As a result, for the current year consumer inflation of 6.2% was accumulated versus 7.6% for 2015.

In the second month of the current year the food prices rose by 0.6%, prices for services by 0.1%, while prices for nonfood goods by 0.6%.

Baku, Fineko/abc.az.

A total of 1,494 kg of gold was produced in Azerbaijan in January-October this year

2011-11-23T15:21:00.002+04:00

This constitutes a drop of 10.8% compared to the same period last year, the sources in the State Statistics Committee said.

The silver production increased 10.7% to settle at 1,063 kg over this period.

As of 1 November, the stocks of finished metal ores and concentrates totaled 50 kg with gold accounting for 29 kg and silver 21 kg of this volume.

Azerbaijan produced 1,965 tonnes of metal ore in January-October.

Gun.Az

Central Bank chief forecasts double-digit growth

2011-11-23T14:55:00.000+04:00

Central Bank Chairman Elman Rustamov is forecasting double-digit growth in Azerbaijan over the next 10 years.

He told parliament today that the balance of payments surplus would reach $14bn this year, while the country's total currency stocks are approaching $42bn, APA reported.

“We don’t see any macroeconomic risk for Azerbaijan’s economy in the medium term. According to our calculations, Azerbaijan will have a double-digit rate of development – 10-12% growth – in the next 10 years.”

He said that achieving this growth would require foreign investment and suggested reducing taxes in order to attract more investment.
"The flow of foreign investment to Azerbaijan requires a lower tax burden than than in the countries where the capital comes from. Azerbaijan is in 95th place in the world in this respect while Kazakhstan and Georgia lag behind. I think that the tax burden needs to be reduced and at the same time the tax burden should be redirected from production to consumption. In neighbouring Turkey there is a heavy tax burden on jewellery, decorative items and cars. Social taxes are high too. We think that social taxes should be competitive."
Commenting on the draft state budget for next year, Rustamov said that it had been drafted very well.
“It has resilience. Budget expenditure is 37% of national product and this is the G20 limit. The base price set for oil is conservative - the IMF is forecasting $102. Social programs are continuing. We are not stopping any social program or slowing the tempo."
Azerbaijan's draft budget for 2012 sets the price of oil at $80 per barrel.
The Central Banker told parliament it was important to keep a lid on inflation.
"We need to try to keep inflation no higher than 5%."
He said it was important to keep the manat exchange rate low to promote exports.
APA

Azerbaijan to submit answers to WTO questions until end of January

2010-01-13T11:03:00.000+04:00

Azerbaijan to submit to WTO answers to next questions of WTO members until end of January.

The Azerbaijani government continues the process of negotiations within the frames of process of reception by the country of full membership in the World Trade Organization (WTO).

Azerbaijani Deputy Foreign Minister Makhmud Mammadguliyev informed that preparation of answers to the questions, which members of working group for Azerbaijan had after the round of multilateral negotiations with WTO, took place in July, 2009, was finished practically at present.

“The answers will be presented to the WTO Secretariat until the end of January. As the result, we will have theoretical opportunity to hold a next meeting of the working group as early as in March- April.

Bilateral negotiations with members of WTO should precede it,” M. Mammadguliyev said.

The Azerbaijani government hopes that it will succeed in conducting the next event with WTO early 2010.

On July 21-22, bipartite negotiations were held on WTO membership conditions with the United States and the European Union. On July 23, negotiations concerning issues of internal support of farm producers took place and involved reps of the US, Canada, Australia, Turkey, other countries and the European Commission. In them Azerbaijan presented Table ACC/4.

Azerbaijan appreciated positively the first round of multilateral negotiations with the World Trade Organization (WTO) on inner support of agriculture, took place in Geneva on 23 June.

A meeting considered presented by Azerbaijan the table on inner support of agriculture on the basis of date for 2005-2007, which the WTO members did not remark, but asked to specify some issues.

Today, the issue on privileges, which the county will gain on “yellow’ basket of inner subsidization, becomes important. Referring itself to developing countries, Azerbaijan will claim for level of subsidies not less than 10% of goods cost of agriculture production. In addition, the country can rely on definite amount of AMC subsidies. In the government’s opinion, this sum could be more, than now. The country informed WTO of its position concerning this issue and expects reaction from its members.

Since 1997, Azerbaijan has observer status at WTO.

TRACECA announces big projects for 2010

2010-01-12T11:08:00.002+04:00

TRACECA (Transport Corridor Europe-Caucasus-Asia), international transport program has unveiled the major projects to be implemented in 2010.

The projects include construction of the new Baku-Tbilisi-Kars railway and Baku International Trade Seaport, logistics center.

The action plan also highlights air and railway security, drop in transport tariffs.

The international program will embark on two more projects in 2011. Introduction of new standards in the air and sea transport is one of these projects.

Technical projects will be followed by a number of huge investment programs.

The largest ones will be realized in Azerbaijan. The European Commission has already set aside ?15 million to fund these projects.

A total of 60 projects worth ?160 million are planned to be implemented in the TRACECA member countries.

1.9 million tons of Kazakh oil transported via BTC pipeline in 2009

2010-01-12T11:07:00.002+04:00

Transportation of Kazakh oil via Baku-Tbilisi-Ceyhan (BTC) launched in Oct. 2008 stabilized in Dec. 2009.

The Azerbaijani State Statistics Committee (SSC) said Kazakh oil transportation via BTC pipeline totaled about 1.8 million tons in Jan.-Nov. 2009.

In Dec., 175,300 tons were transported compared to 188,700 tons in Nov., 187,300 tons in Oct., 100,000 tons in Sept., 200,000 tons in Aug., 92,300 tons in July, 152,900 in June, 163,000 tons in May, 137,700 tons in April, 152,800 tons in March, 240,200 tons in February and 161,100 tons in Jan. 2009.

“From Oct. 2008 to 1 Jan. 2008, Kazakh oil transit via BTC pipeline totaled 2.2 million tons,” it was reported.

In Oct.-Dec. 2008, Kazakh oil transit via BTC pipeline totaled 285,100 tons.

36.2 million tons of Azerbaijani oil transported via BTC in 2009

2010-01-12T11:06:00.002+04:00

The State Oil Company of Azerbaijan Republic (SOCAR) has renewed statistical data on Azerbaijani oil export via the major pipeline Baku-Tbilisi-Ceyhan (BTC) named after Heydar Aliyev.

SOCAR said that 2.8 million tons of Azeri oil was delivered via BTC to Turkey’s Ceyhan port in Dec. 2009.

“In 2009, transport of Azerbaijani oil totaled 36.2 million tons,” SOCAR said.

Roughly 106.5 million tons were supplied via BTC to Ceyhan port of Turkey since the pipeline was launched.

BTC transportation totaled 3.1 million tons in March, a little less than 3 million tons in April, 3.3 million tons in May, 3.3 million in June, 3.193 million tons in July, 3.28 million tons in Aug., 3.07 million tons in Sept., 3.2 million tons in Oct. and 2.9 million tons in Nov.

Azerbaijan launches gas export to Russia on January 1, 2010

2010-01-12T11:03:00.000+04:00

Azerbaijan has launched natural gas export to Russia from 11.00am on January 1, 2010.

Head of Gas Export Department of the State Oil Company of Azerbaijan Republic (SOCAR), and Qasan Abdurrakhmanov , Deputy Director of Dagestan Regional Office of Russia’s Gazprom attended the ceremony to launch export in bordering Shirvanovka village in Gusar region of Azerbaijan. Gas will be exported via the Mozdok-Gazmammad pipeline.

Kamal Abbasov told that under the agreement, Azerbaijan will pump at least 500 million cubic meters of gas a year at the initial phase, with supplies expected to increase to 1 billion cubic meters a year soon in the future. The probability of further increase is not ruled out either.

On October 14, Rovnag Abdullayev, President of the State Oil Company of Azerbaijan (SOCAR), and Alexei Miller, chief executive of Gazprom of Russia, have today signed an agreement on the export of Azeri gas to Russia.
According to the agreement, the price will be based on a special formula which Azerbaijan said “is normal and suits us”.

Gazprom to purchase as much gas as Azerbaijani side can supply

2010-01-12T11:02:00.000+04:00

Last year we managed to hold constructive negotiations with the Azerbaijani counterparts, chairman of Gazprom said.

The beginning of 2010 was marked by a very important event- for the first time Gazprom started to purchase natural gas in Azerbaijan, said chairman of the gas concern Alexei Miller, according to the official website for Gazprom.

“Last year we managed to hold constructive negotiations with the Azerbaijani counterparts and the gas entered our system within just several months after signing the contract”, Miller said.

He noted that he had no doubts that these agreements will be reached.

“Gazprom offered more competitive provisions of gas supplies in Azerbaijan, as we have everything for this: the border between our countries and the working gas transportation infrastructure”, said he.

According to Miller, the specific feature of the signed contract is that the upper margin of gas purchase has not yet been set.

“We will purchase as much as the Azerbaijani side will be able to supply. There are not such provisions in any other agreement of Gazprom which proves the high level of our partner relations”, Miller noted.

Russia become's Azerbaijan's second trade partner, behind Italy

2009-12-24T11:21:00.000+04:00

Russia is now Azerbaijan's second largest trading partner, ahead of the USA, following the release of November's trade figures.
Azerbaijan still has by far the highest trade turnover with Italy, $3.547bn, in the year to November, the State Statistics Committee reported on Monday.
Over the reporting period Russia had trade of $1.65bn.
In January to November Italy was Azerbaijan’s key export trade partner ($3.425bn or 26.02% of all exports) while the USA had $1.59 bn of exports (12.09%) and France $1.1 bn (8.38%).
Israel was in fourth position, importing $1.015m of goods from Azerbaijan (7.71%), Russia $686.03m (5.21%), Taiwan $680.39m (5.17%), Canada $507.077m (3.85%), Indonesia $505.8m (3.84%), Malaysia $387.557m (2.94%) and Georgia $364.02m (2.76%).

Russia remained Azerbaijan's leading import partner in the reporting period with Azerbaijan importing Russian goods worth $966.06m, 17.73% of all imports.

Turkey was Azerbaijan's second import partner with $791.3m (14.52%) of goods, Germany had $501.69m (9.21%), Ukraine $469.407m (8.62%) and China $410.75m (7.54%). Azerbaijan imported just $122.2m worth of goods from Italy, its key export partner.
In January to November Azerbaijan's foreign trade turnover with CIS countries totalled $3.2bn or 17.2% of all foreign trade, compared to 7.21% in 2008.

In the first 11 months of the year, Azerbaijan exported to the CIS countries commodities for $1.5 bn (31.08% of all exports) and imported goods for $1.69 bn (31.08% of all imports).

Exports to the CIS countries were mainly mineral fuel, oil, petroleum products and bitumen materials (51.41%), maritime and other vessels (10.11%), animal and vegetable oils (7.38%), fruit (6.2%) and ferrous metals (5.39%).
Animal and vegetable oils dominated imports from the CIS (11.28%), electronic equipment (8.65%), ground transport vehicles (8.06%), equipment (7.96%) and planes (6.77%).

Azerbaijan’s foreign trade turnover with non-CIS countries totaled $15.4bn in the reporting period or 82.8% of foreign trade turnover of the country.
Trade with non-CIS countries was $1.76bn in November. In the first 11 months of the year, exports to non-CIS countries totalled $11.65bn (88.51% of all exports) and imports $3.755bn (68.92% of all imports), giving a positive balance of trade of $7.897bn.

Exports outside the CIS were mainly mineral fuel, oil and petroleum products, bitumen minerals (98.18%), polymers and polymer products (0.36%), fruit (0.23%), jewels and semi-precious stones, precious metals, ornaments (0.2%) and sugar and sugar products (0.19%).
Imports were mainly equipment and mechanical appliances (24.18% of all imports), electronic equipment and devices (19.45%), ground transport vehicles (9.93%) and ferrous metal goods (7.3%).

Azerbaijan exported oil products for $1.4 bn in 2009

2009-12-21T11:49:00.000+04:00

For Jan-Nov 2009 Azerbaijan imported oil products for $49.8 million and exported for $1.4 bn.
For Jan-Nov 2009 Azerbaijan imported 55,948 tons of petroleum products for $49.837 million versus 78,855 tons for $96.78 million in 2008. This November import totaled 2,385 tons for $3.36 million against 2,455 tons for $2.38 million in October, 1,777 tons for $1.95 million in September, 8,476 tons for $6.58 million in August, 11.192 million tons for $6.772 million in June and 3.689 million tons for $3.397 million in May.

The State Customs Committee has informed for Jan-Nov 2009 the share of oil products in country’s overall import made only 0.91%.

For Jan-Nov 2009, as well as in 2008, Azerbaijan did not import oil gas and other gas hydrocarbons, while their import in 2007 reached 470.118 million cu m for $52.086 bn (0.91% of 2007 overall import).

For Jan-Nov 2009 export of oil products from Azerbaijan totaled 2.88 million tons for $1.36 bn (10.35% of country’s overall export with 30.54% decline versus Jan-Nov 2008). The past year’s export of oil products from Azerbaijan totaled 2.847 million tons for $2.05 bn, and for November 2009 – 179,171 tons for $97.119 bn.

For Jan-Nov 2009 it was exported 2.09 million tons of petroleum products for $879.37 million in freely convertible currency in accordance with the contracts versus 2.8 million tons of petroleum products for $2.02 bn in 2008.

For Jan-Nov of the year sales in accord with contracts in national currency totaled 767,580 tons for $471.475 million, and registration for export in accord with conventional declarations was passed by 128,546 tons versus 37.505 tons for $31.668 million for the 2008 same term.

For Jan-Nov 2009 the SOCAR Department of Marketing & Economic Operations exported 1.916 million tons (66,53%) of petroleum products, Department AZAL Oil CJSC of Azerbaijani Airlines AZAL 767,580 tons (26.64%), oil-processing plant Azneftyag 114,259 tons (3.97%), and Ilqar Firm 50,916 tons (1.77%).

In 2008, the SOCAR Department of Marketing & Economic Operations exported 2.47 million tons (86.89%) of petroleum products, QKSSS LLC 98,274 tons (3.45%), Azneftyag 92,333 tons (3.24%), Caspian Petrol-1 69,210 tons (2.43%).

For Jan-Nov 2009 foreign trade turnover of Azerbaijan totaled $18.614 bn, including import of $5.448 million and export of $13.165 bn.

Azerbaijani foreign trade turnover exceeded $18.6 bn in 2009

2009-12-21T11:46:00.000+04:00

For Jan-Nov 2009 country’s foreign trade turnover reached $18.6 bn versus $54.9 bn for 2008.
This November the figure totaled $2.096 bn against $2.16 bn in October.

The State Customs Committee (SCC) informs that between January and November of 2009 Azerbaijan exported commodities of 935 names in the amount of $13.165 bn (-71.97% or $33.807 bn versus Jan-Nov 2008) against $47.756 bn in 2008 and imported goods of 4,801 names in the amount of $5.448 bn (-16.17% or $1.05 bn versus Jan-Nov 2008) against $7.16 bn in 2008.

Positive balance on import and export operations amounted to $7.716 bn against $40.59 bn for 2008.

In 2009, the biggest export was registered in October ($1.568 bn) and the least export in January ($694.489 million) with average monthly growth of export by $91.056 million. The largest import was registered in October ($579.539 million) and the least one in March ($395.8 million) with average monthly fall of $2.506 million.

This November export operations dropped by $36.4 million versus October and import operations by $90.827 million.

For Jan-Nov 2009 Azerbaijan’s resident and non-residents conducted trade operations with 138 countries of the world. Foreign trade operations involved totally 8,753 legal entities and individuals (3,938 and 4,815 respectively).

The share of state sector in export operations made up 93.5% or $12.309 bn, private sector - 5.4% or $715.156 million, individuals 1.07% or $140.46 million.

The share of state sector in import operations made up 32.63% ($1.78 bn), private sector 62.51% ($3.406 bn) and individuals 4.86% or $264.8 million.

AZƏRBAYCAN RESPUBLİKASININ GÖMRÜK MƏCƏLLƏSİndə Malların İxracı Rejimi ilə əlaqəli maddələr

2009-12-04T11:59:00.000+04:00

14-cü fəsil

Malların İxracı

Maddə 96. Gömrük rejiminin məzmunu

Malların ixracı — malların Azərbaycan Respublikasının gömrük ərazisindən bu əraziyə qaytarılmaq haqqında öhdəlik götürülmədən aparılmasından ibarət gömrük rejimidir.

Maddə 97. Malların ixracı zamanı qoyulan tələblər

Malların ixracı, ixrac gömrük rüsumlarına, vergilərinə, digər gömrük ödənişlərinə əməl olunması, iqtisadi siyasət tədbirlərinə riayət edilməsi, bu Məcəllədə və gömrük işi sahəsində Azərbaycan Respublikasının digər qanunvericilik aktlarında nəzərdə tutulan tələblərin yerinə yetirilməsi şərtilə həyata keçirilir.

Azərbaycan Respublikasının vergi qanunvericiliyinə uyğun olaraq ixrac zamanı mallar vergidən azad edilə və ya ödənilən vergi məbləğləri qaytarıla bilər.

Maddə 98. İxrac gömrük rejimində malların buraxılışı

Təbii aşınma nəticəsində dəyişikliklər və ya normal şəraitdə daşınma və saxlanc itkiləri istisna edilməklə, ixrac gömrük rejimi ilə buraxılan mallar Azərbaycan Respublikasının gömrük ərazisindən kənara çıxarılarkən gömrük bəyannaməsinin qəbul edildiyi andakı vəziyyətdə olmalıdır.

Azerbaijan and World Bank sign agreements on rail mega project

2009-12-04T11:26:00.000+04:00

Azerbaijan and the World Bank have accomplished renewal of the draft agreement on Rail Trade and Transport Facilitation Project.

The Azerbaijani government and the World Bank (WB) have accomplished renewal of the draft agreement on Rail Trade and Transport Facilitation Project in connection with transformation of Azerbaijan State Railway Company (Azeri acronym: ADDY) into Azerbaijani Railway CJSC (ADY).

The Baku-based WB resident office reports that today the Azerbaijani government has been submitted an updated version of the draft agreements within the project.

“The renewal touched confirmation of ADY status and change of the implementation dates indicated in the draft agreements,” the WB office emphasized.

Earlier finance minister Samir Sharifov was authorized for signing of a loan agreement with WB and transport minister Ziya Mammadov for signing of project agreement.

"Gerald Olivier supervising the project is to visit Baku from 13 to 17 December. We hope that the package of agreements will be signed in the course of his Baku visit,” the WB office said.

In spring 2008 the WBG Board of Directors endorsed a $450 million loan for Rail Trade and Transport Facilitation Project that has become the WBG biggest one since 1995 when WBG opened financing for Azerbaijan. The loan will be disbursed through International Bank of Reconstruction & Development (IBRD) for 17-year period with 4-year grace term.

The project targets to improve railway services in Azerbaijan, as well as the competitiveness, financial sustainability, operating and cost efficiency and capacity of ADDY. The project with $795 million budget was focused on development of corridor toward to Georgia. 90% of the budget will be directed for transport and 10% for industry and trade.

In spring 2008 ADDY chief engineer Gurban Nazirov said that ADDY intended to upgrade its locomotive fleet and replace equipment fully in this line by buying 50 locomotives as the project stipulates transfer to alternating current when supplying power for Baku – Beyuk Kesik railway line.

Alternating current will allow increase of speed of trains.

Population incomes increase in Azerbaijan

2009-12-03T15:05:00.000+04:00

Incomes of the Azerbaijani population made 18 bn AZN within 10 months of this year which is a 7.8% growth over the same period of this year.
According to the State Statistical Committee, in 10 months of 2009 the incomes of the population made 16.5 bn AZN. In this period GDP made 34.4 bn AZN which means that the incomes of the population made 48% of the gross domestic product.

Azerbaijan leads CIS on GDP and industrial output

2009-12-03T14:57:00.000+04:00

Azerbaijan recorded the highest GDP of the CIS countries in January to October this year, 8.2%.

The figures were announced by the CIS Interstate Statistics Committee.
Uzbekistan had the next highest GDP in the reporting period, 8%, followed by Kyrgyzstan, 3.2% and Tajikistan, 2.9%.
In the first 10 months of the year, GDP in the CIS countries fell 9% overall in comparison with the same period last year. Armenia had the highest fall, around 17.5 percent, while GDP fell 15.9% in Ukraine and 9.6% in Russia.
Azerbaijan is the only CIS country to have achieved growth in industrial production. In January to October industrial output increased 7.4% compared with the same period in 2008.
During the reporting period, industrial output in Moldova fell 24.1%, Kyrgyzstan – 13.9%, Russia – for 13.3%, Armenia – 11.4%, Tajikistan – 8.6%, Belarus – 4.5% and Kazakhstan 0.2%.

Azerbaijan predicts growth in cargo transportation

2009-12-02T10:34:00.002+04:00

Azerbaijan predicts 28% growth in cargo transportations for 2014 up to 249.3 mln tons, as compared to the expected indicator for 2009.

Under the forecasts, cargo transportations will make 193.9 mln tons in 2009, 209.6 mln tons in 2010, 223 mln tons in 2011, 233 mln tons in 2012.

The highest volume of cargo will be transported by cars in 2010-2013.

In particular, according to forecasts, transportations by cars will reach 129.7 mln tons in 2013 (36.5% growth, as compared to the indicator expected for 2009).

Railway transportations in 2013 will make 30 mln tons (25% growth), sea transportation will equal 15.4 mln (16.6% growth) and air transportations will amount to 0.07 mln (2.3 times). The volume of transportations via pipelines in 2013 must reach 74.2 mln tons (20.2% growth).

At the same time, oil transportation via BTC pipeline in 2013 is predicted at 40.9 mln tons (12.9% growth) in 2013. In 2010 the BTC pipeline will transport 40.2 mln tons of oil, in 2011-42.4 mln tons and in 2013-38.1 mln tons.

Shipping volume increased by 14,6 percent

2009-12-02T10:31:00.000+04:00

Shipping volume in January-October 2009 has increased by 14,6 percent and reached 11,1 million tons, the State Stats Committee said.
Three-fourth of ship freight was oil products, while one-fourth was dry cargo. All goods were transported abroad. In the mentioned period, marine transportation cargo turnover has increased by 6,4 percent and made up 268,4 bln ton-km.
Baku International Sea Trade Port has realized loading-unloading operations of 4,3 mln tons. Currently, the remained export goods in the Port make 2,1 times less than that of the same period of previous year.

Russia interested in privatization of Azerbaijani telecommunication operators

2009-12-02T10:24:00.000+04:00

Russia's Rostelecom and Sistema have expressed interest in bidding for the privatization of the two state-run telecommunication operators of Azertelekom and Bakı Telefon Rabitesi in Azerbaijan.

Rostelecom plans to construct a backbone network in the CIS (former USSR) countries and intends to acquire any operators that meet its requirements.

Systema is expected to confirm its intention after the target companies announce their privatization terms and conditions.

Azerbaijan’s Minister of Communications and Information Technologies Ali Abbasov said on the sidelines of the RCC meeting in Minsk that the two above-mentioned operators will be privatized next year.

The both companies are wholly state-owned, and valuations thereof are still ongoing.

Azerbaijan-Belgium Business Forum held in Baku

2009-11-25T17:25:00.002+04:00

Baku hosted the Azerbaijan-Belgium business forum with participation of companies based in Flandria of Belgium on Nov. 23.

The forum was attended by about 15 Belgian and 40 Azerbaijani businessmen.

Samir Valiyev, Officer of the Ministry of Economic Development, said that the participants include companies specialized in the areas of agriculture, industry, transportation, and consulting.

He spoke about the economic potential of Azerbaijan and public policy.

He hailed the development of bilateral relations between Azerbaijan and Belgium a 46 percent year-on-year rise in the trade turnover during January-September 2009 despite the global economic crisis.

Azerbaijani Ambassador to Belgium Emin Eyubov told the foreign businessmen that the tourism, industry and agriculture are the priority areas in Azerbaijan.

Belgian Ambassador to Azerbaijan Phillip Jettard noted that this is the first Belgian trade mission to Azerbaijan, adding that Belgium supports Azerbaijan’s WTO accession.

The Belgian businessmen were also told about the activities and projects of Azerbaijan Exports and Investment Promotion Foundation (AZPROMO) and Azerbaijan Investment Company.

U.S. company sells its stake in largest oil project in Azerbaijan

2009-11-25T17:23:00.000+04:00

The U.S. company Devon Energy is selling its share in the development of the Azeri-Chirag-Guneshli (ACG) offshore unit in Azerbaijan, hoping to focus on mining projects in the U.S.

"We will sell our stake in the ACG project, as well as all our international assets, including assets in the Gulf of Mexico," Devon Energy Spokesman Chip Minty wrote Trend Capital in an e-mail today.

According to the company official, Devon Energy has decided to focus its activities on onshore projects in North America, "where the company has more opportunities to drill."

According to some reports, Devon Energy will sell its share in the first quarter of 2010.

Devon Energy has a 5.62-percent equity share in the ACG project. Its total reserves of oil deposits exceed 900 million tons.

ACG participating interests are: BP (operator - 34.1 percent), Chevron (10.2 percent), SOCAR (10 percent), INPEX (10 percent), StatoilHydro (8.6 percent), ExxonMobil (8 percent), TPAO (6.8 percent), Devon (5.6 percent), ITOCHU (3.9 percent), and Delta Hess (2.7 percent).

In the first three quarters of 2009, BP produced roughly 224 million barrels of oil from the ACG fields, which on average is over 822,100 bpd, BP reported earlier.

The Baku-Supsa pipeline on the Black Sea coast of Georgia transports Azeri Light oil varieties produced from the field. The project partners, not including ExxonMobil and Devon Energy, transport major volumes of oil via the Baku-Tbilisi-Ceyhan on the Mediterranean coast of Turkey. ExxonMobil and Devon Energy, not being members of the Baku-Tbilisi-Ceyhan oil pipeline, transport their energy by rail in the direction of the Georgian Black Sea ports.

Home trade turnover topped $11.8 bn in Azerbaijan

2009-11-25T17:19:00.000+04:00

For Jan-Oct of the year domestic trade turnover in Azerbaijan reached $11.814 bn at the rate by early November that makes up 87.1% of the 2008 trade turnover (AZN 10.9 bn or $13.608 bn).

In 2007 the turnover was AZN 7.6 bn or $8.99 bn.

The State Statistics Committee reports that for the last 10 months domestic commodity turnover totaled AZN 9.489 bn with growth by 8.7% compared to the 2008 relevant term. Legal entities provided 15.5% of trade turnover, fairs and markets 41.98%, and sole proprietors 42.48%.

“Turnover on food rose by 10.6% up to AZN 6.15 bn versus 7 bn in 2008 and on manufactured goods by 4.3% up to AZN 3.339 bn versus AZN 3.9 bn in 2008,” the Committee reports.

For Jan-Oct 2009 volume of paid services to the population made AZN 3.203 bn (rise: 12.6%) versus AZN 3.4 bn (+29.7%) in 2008. Individual employers provided 20.03% of services and legal entities 79.97% with rise of 11.3% and 12.9% respectively.

This October trade turnover totaled AZN 1.024 bn (AZN +29.1 million against this September’s index), including on foods AZN 643 million (AZN +36 million) and AZN 382 million (+AZN 25 million) on non-foods.

Volume of services reached AZN 397.9 million with rise of AZN 16.7 million versus September of the year.

For Jan-Oct 2009 average trade turnover per resident made AZN 143.3 ($178.41) that exceeds last year’s same period figure by AZN 13.4.

Before this August this year’s average trade turnover per resident was AZN 138.5 ($172.2) that exceeds last year’s same period figure by AZN 14.3.

For Jan-Apr 2009 average trade turnover per resident totaled AZN 138.4 ($172.25) that exceeded last year’s same period figure by AZN 18.7.

Oil Fund assets topped $14.2 bn by this November

2009-11-25T17:16:00.000+04:00

This October assets of the State Oil Fund of Azerbaijan (SOFAZ) grew by over $900 million.
Fund’s executive director Shakhmar Movsumov says that by late October SOFAZ assets reached $14.2 bn.

“As of 31st October SOFAZ’s transfer to State Budget totaled AZN 4.1 bn ($5.1 bn) out of AZN 4.9 bn ($6.1 bn) targeted for 2009,” Mvsumov said.

As of 1st October 2009 Fund’s assets were $13.337 bn.

“As of 31st October 2009 Fund’s revenues from assets management made up AZN 595 million against the forecast of AZN 211.4 million for this year,” he emphasized.

All the SOFAZ finances are placed abroad.

Russia is one of the key foreign trade partners of Azerbaijan

2009-11-25T17:13:00.000+04:00

Russia almost gets up to US on volume of trade with Azerbaijan.
This October Russia with mutual goods turnover for на $1.512 bn has not only strengthened its positions in the trio of key foreign trade partners of Azerbaijan but also almost gets up to the US ($1.569 bn).

While Italy’s leading position ($3.06 bn) is simply indisputable.

The State Customs Committee (SCC) informs that for Jan-Oct 2009 foreign trade turnover of Azerbaijan with CIS countries totaled $2.87 bn or 17.9% of overall foreign trade turnover of the country ($16.5 bn) versus 7.21% for 2008.

This October trade turnover with these countries made up $331.186 million.

For Jan-Oct of the year Azerbaijan exported to the CIS countries commodities for $1.3 bn (11.46% of whole export) and imported goods for $1.547 bn (31.22% of whole import). Azerbaijan had $222.766 million of negative balance in trade with these countries.

Export to the CIS countries included mainly mineral fuel, oil, petroleum products and bitumen materials (50.19%), vessels and other swimming facilities (11.53%), animal and vegetable oils (7.58%), ferrous metals (6.09%).

In import such kinds of goods dominated as animal and vegetable oils (11.09%), electric machines and equipment (9.26%), ground transport means (8.16%), equipment and mechanisms (8.02%) and flying machines (6.58%).

Azerbaijan’s foreign trade turnover with non-CIS countries totaled $13.645 bn or 82.61% of foreign trade turnover of the country.

This October trade turnover with them made up $1.8 bn. For 10 months export to non-CIS countries totaled $10.236 bn (88.54% of whole export), import - $3.4 bn (68.78% of entire import) and the country had $6.827 bn of positive balance with them.

Export consisted of mainly mineral fuel, oil and petroleum products, bitumen minerals (98.16%), polymers and products made of them (0.37%), fruits (0.21%), jewels and semi-precious stones, precious metals and wares, made of them, bijouterie, ornamentals (0.21%), sugar and products made of it (0.19%).

And import included mainly equipment and mechanical appliances (24.45% of whole import), electric equipment and devices (18.91%), ground transport vehicles (10.06%) and wares made of ferrous metal (7.53%).

For Jan-Oct 2009 Italy became Azerbaijan’s key export trade partner ($2.948 bn or 25.51% of whole export) and the USA with $1.37 bn (25.51%) and France with $1.017 bn (8.8%) entered the trio.

Then follow Israel $856.9 million (7.41%), Taiwan $680.39 million (5.89%), Russia $617.748 million (5.34%), Canada $433.355 million (3.75%), Indonesia $431.89 million (3.74%), Malaysia $387.557 million (3.35%) and Georgia $335.066 million (2.9%).

Russia remained the leader on import operations with $894.4 million (18.04% of whole import).

Then follow Turkey with $722.576 million (14.58%), Germany $468.99 million (14.46%), Ukraine $423.88 million (8.55%) and China with $355.5 million (7.17%). For comparison, Italy had $115.288 million (2.33%).

In 2008, the trio consisted of Italy, the United States and Israel.