SOFAZ assets increase over 3% in 2014
Baku, Azerbaijan, Feb. 9
By Emil Ismayilov - Trend:
As of January 1, 2015, assets of the State Oil Fund of Azerbaijan (SOFAZ) increased by 3.42 percent compared to early 2014 ($35.877, 5 million) and amounted to $37.104, 1 billion, according to a message from the SOFAZ Feb.9.
The SOFAZ revenues totaled 12.731 million AZN while budget expenditures constituted 10.117, 2 billion AZN.
The official exchange rate is 0.7844 AZN/USD as of Feb. 9.
Revenue of 12.343, 8 billion AZN was received from the implementation of oil and gas agreements, including 12.319, 8 billion AZN from the sale of profit oil and gas, 8.9 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, revenues from the sale of assets transferred by foreign investors stood at 0.1 million AZN.
Income of the fund from the management of its own funds amounted to 387.2 million AZN during the reporting period.
The fund's extra-budgetary revenues related to the revaluation of foreign exchange totaled 1.611, 9 billion AZN.
The expenditures in the amount of 300 million AZN were directed to financing the improvement of social-economic condition of refugees and internally displaced persons, 80.2 million AZN were used for financing the reconstruction of the Samur-Absheron irrigation system.
Some 57.1 million AZN were directed to financing Baku-Tbilisi-Kars railway construction and 33.5 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 9.337 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 in 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 45.9 million AZN.
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.
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