Baku, Azerbaijan, Oct. 20
By Azad Hasanli - Trend:
Third quarter budget revenues of the State Oil Fund of Azerbaijan (SOFAZ) reached 10.131 billion AZN, while budget expenditures constituted 8.041 billion AZN, according to a message from the SOFAZ Oct.20.
The official exchange rate is 0.7843 AZN/USD as of October 20.
Revenue of 9.969 billion AZN was received from the implementation of oil and gas agreements, including 9.947 billion AZN from the sale of profit oil and gas, 6.8 million AZN as transit payments, 13.3 million AZN as bonus payments. Revenues from payments per acre in the first half of 2014 amounted to 1.7 million AZN.
Income of the fund from the management of its own funds amounted to 162.3 million AZN during the reporting period.
The fund's extra-budgetary revenues related to the revaluation of foreign exchange totalled 962.7 million AZN. SOFAZ's extra-budgetary revenues related to price changes of gold amounted to 3.7 million AZN while extra-budgetary expenses related to price changes of USD, EURO, GBP and other currencies totalled 966.4 million AZN.
Starting from the first quarter of 2012, the Oil Fund has begun purchase of gold and the amount of purchased gold was 30.175 metric tons (970,146 ounces).
The expenditures in the amount of 254.2 million AZN were directed to financing the improvement of social-economic condition of refugees and internally displaced persons, 24.8 million AZN were used for financing the reconstruction of the Samur-Absheron irrigation system.
Some 47.5 million AZN were directed to financing Baku-Tbilisi-Kars railway construction and 18 million AZN were directed to financing "The state program on the education of Azerbaijan youth abroad in the years 2007-2015". The fund's transfers to the state budget were 7.400 billion AZN. Expenditures of the fund to finance the state's share in the joint-stock company established under the TANAP and TAP projects in order to ensure the supply of Azerbaijani gas to Europe amounted to 40 million AZN for the first 9 months of 2014, and some 223.5 million AZN were allocated for the construction of the STAR refinery complex.
The costs of administering the fund were equal to 33.5 million AZN.
The assets of SOFAZ as of October 1, 2014 have grown by 3.98 percent compared to early 2014 ($35.877 billion) and stood at $37.305 billion
SOFAZ was established in 1999 with assets of $271 million.
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 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.