Azerbaijani State Oil Fund concludes second deal with Russian VTB bank

Azerbaijan, Baku, May 20 / Trend, E. Ismayilov /

The State Oil Fund of Azerbaijan (SOFAZ) has become a shareholder of the Russian bank VTB, Chairman of the Board of VTB Bank (Azerbaijan) Alexander Eremin told Trend on Friday.

"This testifies to the fact that Russo-Azerbaijani integration has also affected the banking sector," he said. "This action is significant from political and economic points of view. It shows that the two countries are willing to cooperate in the financial markets, and that this cooperation originates at the state level. Moreover, a partner as successful and reliable as SOFAZ is a very good shareholder for VTB. We are always glad to expand cooperation with such a partner." He added that the deal is economically advantageous for SOFAZ. Investing in a group such as VTB, one of Europe's largest groups today, is an interesting investments in terms of the diversification of its asset portfolio.

"This is not the only deal," he said. "SOFAZ's latest acquisition was Gallery Actor, mixed-use office and retail complex located on Pushkin Square in Moscow. The transaction was valued at $133 million. It was owned by VTB. We are actively cooperating with major Azerbaijani clients who are supported at the state level. We cooperate with the International Bank of Azerbaijan. The spheres of cooperation has expanded significantly since the middle of 2012. The business volume, measured in billions of dollars may become a very real figure for cooperation between VTB Group and Azerbaijan in the near future."

At present, VTB group's investment amount in Azerbaijan hits hundreds of millions of dollars.

SOFAZ told Trend that SOFAZ signed an agreement on subscribing for VTB bank's shares from additional issue on April 26, 2013.

About three percent of the shares of the new issue will be purchased for this amount at a market value.

Earlier, the State Oil Fund has announced the bank its intention to purchase shares from VTB Bank's new issue prospectus, proposing to acquire shares of the package worth the equivalent of $500 million.

According to the bank's statement, the Supervisory Board of VTB Bank announced that it had resolved to attract new capital in amount of up to Rub 102.5 billion ($ 3.23 billion) through the issuance of 2.5 trillion new ordinary shares by way of an open subscription at a price of Rub 0.041 per share.

Bank of Russia registered the decision to issue additional shares and the emission prospectus on April 26, 2013.

SOFAZ was established in 1999 with assets of $271 million. As of April 1, 2013, SOFAZ's assets amounted to over $34.325 million, or 0.6 percent more compared with the beginning of the year.

The main purposes of the fund are the accumulation of funds and the placement of these fund's assets abroad to minimize negative trends in the economy by preventing 'Dutch disease'. This ensures savings for future generations and the continuity of the country's current socio-economic standard.

The projected total cost (average amount) of SOFAZ's investment portfolio for 2013 was set at 25.2 billion manat, while as of late 2012 it was projected at 23 billion manat.

According to SOFAZ's investment strategy, for the first time since last year up to five per cent of the fund's total investment portfolio may be invested in stocks, up to five percent - in real estate, and five percent - in gold.

The official exchange rate on May 20 is 0.7847 AZN / USD.

Subscribe to Trend in Google News! Subscribe
Azerbaijan-donated 100,000 doses of Sinovac vaccine delivered to Burkina Faso (UPDATE)
Azerbaijan-donated 100,000 doses of Sinovac vaccine delivered to Burkina Faso (UPDATE)
Cost of cargo transported via trains up in Azerbaijan
Cost of cargo transported via trains up in Azerbaijan
International Court of Justice grants Azerbaijan's request for temporary measures against Armenia
International Court of Justice grants Azerbaijan's request for temporary measures against Armenia
Loading Bars
WHO donates 260k packs of intravenous solutions to Iran
Cost of cargo transported via trains up in Azerbaijan
International Court of Justice grants Azerbaijan's request for temporary measures against Armenia
Western media shows neutral approach to Azerbaijan’s Zangazur corridor - Head of Trend News Agency’s Foreign Projects Directorate
Azerbaijan donates 100,000 doses of Sinovac vaccine against COVID-19 to Burkina Faso (PHOTO)
Information spread in Armenian media about killing of illegal militant on territory of Azerbaijan is baseless – MoD
Azerbaijani MFA comments on statement of Armenian foreign ministry
International Court of Justice urges Armenia to take urgent measures against groups and individuals making violent calls on ethnic grounds
International Court of Justice refused to secure Armenia's claim for immediate return of so-called POWs
Azerbaijan completes over half of construction of Barda-Aghdam highway
Azerbaijan building new high-speed road in Shusha city
Azerbaijan-Iran plan to build new bridge to increase traffic
Iran Securities and Exchange Organization focusing on strengthening Capital Market Stabilization Fund
Iran looks to expand agricultural ties with Romania
EIB, EBRD touch on Georgia’s economic growth
Price indexes of industrial, trade sectors at Uzbek stock exchange fall
Georgia shortens terms of COVID-19 booster vaccination
Azerbaijan shares data on 10M2021 oil exports to Vietnam
Uzbekistan shares stats on export of textile products for 10M2021
Kazakhstan's KMG talks project of new gas processing plant in Mangistau
Iran's Bahar Azadi gold coin price increases
Azerbaijan sees decrease in import of vehicles, spare parts over 10M2021
Volume of loaded/unloaded cargo in Iran’s Qeshm port up
Value of Azerbaijan's export to Turkmenistan up for 10M2021
Azerbaijan’s energy ministry opens tender to buy technical support services
Azerbaijan-Iran to take steps to increase trade turnover – Iranian ambassador
Shootout occurs on border between Azerbaijan and Iran - offender neutralized
Baku Int'l Sea Trade Port reveals details of dev’t strategy until 2035
First harvest gathered in mushroom greenhouse in Turkmenistan’s Mary region
Azerbaijan-Iran implementing agreements on joint cooperation – ambassador
Germany's next finance minister stresses price stability
SOFAZ shares estimates of budget revenues for 2022
Iran opens office for cargo barter with Pakistan
Number of legal entities restoring activity in Azerbaijan slightly increases in 11M2021
President Ilham Aliyev receives President for Exploration and Production of TotalEnergies (VIDEO)
Indian embassy in Baku holds webinar on electronic and computer hardware/software products (PHOTO)
Sport in Azerbaijan - integral part of state policy, deputy minister says
Bank of Israel bought $4 bln of FX in Nov, hits $34 bln in 2021
India's Rajnath Singh attends maiden 2+2 Dialogue with Russia
Less urgent need to rebuild stocks to weigh on coal demand
Omicron poses a major risk to global oil demand
Azerbaijan shares data on number of vaccinated citizens
Azerbaijan confirms 1,530 more COVID-19 cases, 1,864 recoveries
Azerbaijan, Russia’s Astrakhan sign action program to develop co-op (PHOTO)
Georgia shares data on cigarettes turnover in 10M2021
President Ilham Aliyev signs order appointing new chairman of State Insurance Commerce Company
Georgia’s imports of fuel and lubricants from Kazakhstan plummet
EU health bodies recommend mix-and-match of COVID-19 vaccines
Georgian apple exports on rise
Number of taxpayers increases in Azerbaijan over 11M2021
Kazakhstan increases volume of production of crude oil and oil products
Kazakhstan shares data on coal production
Turkmenistan becomes top oil exporter to Georgia
Armenia should fulfill requirements of documents signed after Second Karabakh War – Turkish official
Google Pay begins operating in Israel
Volume of electricity production in Uzbekistan for 10M2021 unveiled
Azerbaijan records growth in cost of air cargo transport for 10M2021
Iran reveals COVID-19 data for December 7
Central Bank of Azerbaijan reveals amount of foreign currency sold via auction
Non-oil exports in Azerbaijan to reach record high – minister
Opening of Azerbaijan’s Zangazur corridor may reduce transportation time from China to Europe
Azerbaijan to auction several mineral deposits
Epsilon obtains industrial gas inflow from new well at field in Uzbekistan
bp to develop best barrels, make portfolio higher value, says CEO
Azerbaijani State Tourism Agency talks about prices for air tickets (Exclusive)
Iran’s IMPASCO aims to transfer shares of some mining complexes to private sector
bp going to invest 10 times more in low carbon by 2030 - Bernard Looney
What does gas swap deal between Azerbaijan, Turkmenistan and Iran promise?
Baku Stock Exchange talks priorities in trade turnover until 2023
Turkey, Iran trade turnover grows in October 2021
Georgia shares top importers of its hazelnuts
bp achieves increase in productivity in Azerbaijan with new agile organizational structure
Russia’s new daily coronavirus cases below 32,000 for first time since October 14
Iran pins big hopes on gas swap contract, aims for European exports in near future, says ambassador (Exclusive)
Turkmen agriculture ministry opens tender for purchase of veterinary vaccines
Iran eyes increase in flights via Rasht International Airport
Kazakh oilfield construction company opens tender to buy pipes
Kazakhstan eyes diversifying trade flows with ECO countries
Azerbaijan’s Baku Int’l Sea Trade Port expects increase in flow of goods
Georgia’s spice exports to Central Asia down
Uzbekistan reveals volume of exports and imports for 10M2021
Volume of foreign trade turnover increases in Uzbekistan
Kazakhstan sees multifold decrease in trade with South Korea
Eurostat discloses Azerbaijan’s petroleum exports to Italy
Bank of Georgia to begin offering preferential agro-credit
Georgia’s export of spices remains steady - Geostat
Azerbaijan’s oil exports to Romania for 10M2021revealed
Baku port reveals cargo shipment capability of Ro-Ro terminal
Azerbaijan shares forecast on total cargo shipment via Baku int'l trade port for 2021 (PHOTO)
Kazakh Ulba Metallurgical Plant opens tender for cargo transportation services
Azerbaijan may potentially develop transit communications with int’l transport corridors - Russian analyst
Iran continues work on Chabahar – Zahedan railway project
Eurostat reveals Spain’s petroleum oils import from Azerbaijan
Azerbaijan talks impact of border restrictions on tourism due to COVID-19
Germany’s petroleum oil imports from Azerbaijan disclosed
Iran Metafo exhibition showcasing country's steel, mining industries
Azerbaijan discloses oil exports to Indonesia for 10M2021
NATO’s Mobile Training Team conducts courses - Azerbaijani MoD (PHOTO)
Iran’s SPGC launches final turbo compressor in 12th refinery at South Pars gas field
UAE announces move to Saturday-Sunday weekend
All news