Baku, Azerbaijan, Feb. 28
By Maksim Tsurkov – Trend:
The State Oil Fund of Azerbaijan (SOFAZ) has allocated $960.2 million as of Jan. 1, 2017 to finance the Star oil refinery’s construction in Turkey, SOFAZ told Trend.
The Star refinery belongs to Azerbaijan’s state oil company SOCAR.
In accordance with the decree of Azerbaijani President Ilham Aliyev on additional measures to support the participation of Azerbaijan in the construction of the Star refinery in Turkey, SOCAR Turkey Yatirim Joint Stock Company was established with an authorized capital of $1.9 billion and with 40 percent share held by the state. Under the decree, the state share in the joint stock company will be financed through SOFAZ funds.
SOFAZ allocated $200.2 million for the project in 2016, according to the Fund.
The total cost of the refinery’s construction exceeds $5 billion.
SOFAZ was established in 1999 with assets of $271 million.
As of Jan. 1, 2017, SOFAZ assets amounted to $33.147 billion, which is 1.27 percent less than in early 2016.
Based on SOFAZ's regulations, its funds may be used for the construction and reconstruction of strategically important infrastructure facilities, as well as solving important national problems.
The main goals of the State Oil Fund include: accumulation of resources and placement of the Fund's assets abroad in order to minimize the negative effect on the economy, prevention of "Dutch disease" to some extent, promotion of resource accumulation for future generations and support of current social and economic processes in Azerbaijan.