Foreign trade of Azerbaijan (January-October 2014)

The foreign trade turnover with 146 world countries amounted to $26.56 billion in January-October 2014, or 7.78 percent less than in January-October 2013. The volume of exports decreased by 3.65 percent and amounted to $19.19 billion compared to January-October 2013. The volume of import decreased by 17.06 percent and amounted to $7.36 billion. Azerbaijan exported 2,007 goods and imported 5,861 different goods. As of January-October 2014, the nominal index of export exceeded import. This formed the foreign trade surplus to the amount of over $11.83 billion.

The country's foreign trade surplus amounted to $11.04 billion for the same period of last year and $998.38 billion as of October 2014.

As in previous periods, oil, gas and oil products were mainly exported from Azerbaijan in January-October 2014.

Main products exported from Azerbaijan

Source: Azerbaijani state customs committee

Most of Azerbaijan's exports as of January-October 2014 (84.89 percent) fell to the export of crude oil. The exports of crude oil decreased by 3.38 percent compared to January-October 2013. The export of oil products increased by 20.44 percent during this period. Around 6.17 percent of total exports from the country fell to the oil products in January-October 2014.

The export of gas from Azerbaijan (data obtained from the control devices) hit 121.2 percent ​​in January-October compared to the ten months of last year. It increased by 8.21 percent as of 2013. As of January-October, the share of gas in a total export volume amounted to 1.34 percent compared to 2.93 percent in 2013.

The gas supply for export from Azerbaijan (data obtained from the control devices) hit 6.94 billion cubic meters ​​in January-October compared to 7.3 billion cubic meters in 2013. In October, the exports amounted to 757.091 million cubic meters compared to 712.678 million cubic meters in September.

Around 1.5 billion cubic meters of gas in the amount of $257.1 million were formalized upon the cargo customs declarations in January-October compared to 3.03 billion cubic meters of gas in the amount of $702 million for the entire 2013. In January-October, the physical exports of gas reduced by 40.1 percent, while revenues - by 57.15 percent compared to the ten months of last year.

Gas exports decreased because SOCAR (State Oil Company of Azerbaijan) temporarily suspended gas exports to Russia in connection with the repair and construction work.

Gas exports to Russia were suspended in connection with the construction of the remaining section of the highway Baku-Quba-Russian border, as well as repair of the gas transportation infrastructure. The timing of gas supply restoration is not called.

Azerbaijan exported 498 million kilowatt / hours of electricity in January-October 2014 upon a customs declaration compared to 517.93 million kilowatt / hours in the same period of 2013.

According to the State Customs Committee's report, Azerbaijan exported electricity worth $25.54 million in January-October compared to $21.4 million for the same period of last year.

The export volume of fruits and vegetables, which is the basis of the agricultural exports of Azerbaijan, has greatly increased. According to the committee, exports of Azerbaijan's agricultural products increased by 23.95 percent in January-October 2014 compared to the same period of last year.

Its supplies to Russia's markets increased. The logistics centers are built in Azerbaijan and outside the country for storage, transportation, export and sale of agricultural products.

In this period, the highest amount of export fell on Italy. Thus, during this period Azerbaijan exported goods totaling $4.372 billion to Italy which makes up 22.78 percent of a total export volume. Mainly oil and oil products are exported to this country. Indonesia ($1.947 billion) and Germany ($1.711 billion) hold leading positions. Italy has maintained its leading position since 2008 excluding early three months. Turkey took a lead in January and U.S. in February and March 2008.

Russia ranks first on largest import volume ($1.037 billion) in January-October 2014. About 14.1 percent of the Azerbaijani imports fell to it. Turkey ranks second - $1.036 billion and Great Britain - third ($835.37 million).

The Russian Federation regained the status of a major supplier of goods to Azerbaijan in October. Turkey had this status in September.

Most of Azerbaijan's imports or 27.95 percent in the reporting period fell to the import of machinery, equipment, electrical equipment and spare parts. The machinery and equipment worth $2.057 billion were imported in January-October 2014 or by 7.84 percent less than in January-October 2013.

A lot of vehicles and parts worth $579.22 million (a share in total imports - 8.88 percent) were brought to the country. However, car imports reduced by 48.31 percent compared to the same period of last year.

Euro-4 ecological standard has been used in the country since April 1. This caused the sharp decline in imports in this category. The import of the vehicles not conforming to this standard has been banned in Azerbaijan. The restrictions on the import of the cars that do not meet Euro 4 standard in Azerbaijan is primarily connected with the measures of improving the environmental situation in the country. Moreover, the operations are underway in the country. The introduction of a mechanism of gradual taking old vehicles that do not meet the highest environmental standards out of service is being discussed.

According to the State Customs Committee, the country imported 52,086 cars in January-October compared to 84,791 cars in the same period of 2013.

Around 47,379 cars of the total import volume for the period accounted for the passenger cars and motor cars. Around 76,956 cars and motor cars were imported into the country in January-October 2013.

Moreover, during the reporting period, the country imported 4,125 trucks compared to 6,408 trucks in January-October 2013.

Thus, the import of ferrous metals ranks second in terms of an import volume in the country during the period. The share of these products in a total import volume of the country hit 10.5 percent in January-October, while this volume was 773.26 million AZN in nominal terms.

The import of butter and meat significantly increased in January-October (by 36.66 percent and 15.68 percent, accordingly compared to January-October 2013) which is related to insufficient domestic production.

Main products imported to Azerbaijan

Source: Azerbaijani state customs committee

According to the Azerbaijani State Customs Committee, the countries outside the EU and CIS did not restore their status as the main trading partners of the country in January-October. These countries formed the foreign trade turnover of Azerbaijan only by 42.92 percent or $11.4 billion, while the EU countries - by 48.16 percent ($12.8 billion). Only 8.923 percent or $2.368 billion accounted for the CIS.

Azerbaijan's exports to the EU countries amounted to $10.24 billion in January-October 2014, or 53.39 percent of a total export volume amid a 9.1 percent growth. Imports from EU ($2.540 billion) dropped by 15.64 percent and amounted to 34.52 percent of a total import volume. As a result, the country had a black ink of trade balance with the EU at the level of $7.707 billion or 65.14 percent of the country's foreign trade surplus.

The exports to the countries outside the EU and CIS dropped by 11.65 percent - to $8.232 billion in January-October or 42.89 percent of a total export volume, while imports - by 15.14 percent to $3.166 billion or 43.01 percent of the total import volume. As a result, Azerbaijan received a $ 5.066 billion trade surplus with these countries.

The exports to the CIS countries for the period totaled $713.821 million (3.72 percent of the total export volume) by decreasing by 40.95 percent and imports - $1.654 billion (25.48 percent) by decreasing by 22.44 percent. As a result, the country had a red ink in trading with them to the amount of $0.941 billion.

During this period, about 5,666 legal and physical entities were involved in foreign trade operations, including 3,489 - legal entities and 2,177 - physical entities.

The share of public sector in exports totaled $18.08 billion, private sector - $944.65 million, the share of physical entities - $167.48 million.

The share of public sector in import operations amounted to $1.94 billion, the private sector - $5.13 billion, physical entities -$294.86 million.

Azerbaijan's trade operations with foreign countries in January-October 2014

source: Azerbaijani state customs committee