Azerbaijani State Oil Fund’s assets hit $36B
Baku, Azerbaijan, July 24
By Maksim Tsurkov - Trend:
As of July 1, 2015, the assets of the State Oil Fund of Azerbaijan (SOFAZ) decreased by 3.56 percent compared to early 2015 ($37.104 billion) and amounted to $35.783 billion, SOFAZ's report as of January-June said July 23.
SOFAZ's revenues totaled 4.054 billion manat, while budget expenditures - 4.042 billion manat.
The revenues worth 3.812 billion manat were received as a result of the implementation of oil and gas agreements, including 3.802 billion manat from the sale of profit oil and gas, 5.7 million manat as transit payments.
SOFAZ's income from the management of its own funds amounted to 241.9 million manat during the reporting period.
SOFAZ's extra-budgetary revenues related to the revaluation of foreign exchange totaled 8.013 billion manat.
SOFAZ's transfers to the state budget hit 3.562 billion manat.
The expenditures in the amount of 89.8 million manat were directed to improve the social-economic condition of refugees and internally displaced persons, 46.5 million manat were directed to finance the reconstruction of the Samur-Absheron irrigation system.
Some 17.2 million manat were directed to finance the Baku-Tbilisi-Kars new railway construction project and 5.9 million manat were directed for Azerbaijani students to study as part of the state program for 2007-2015.
SOFAZ's expenditures to finance the state's share in the Southern Gas Corridor joint-stock company established as part of TANAP and TAP projects to ensure Azerbaijani gas supply to Europe amounted to 307.4 million manat in January-June.
SOFAZ's management expenditures hit 13.7 million manat.
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.
The official exchange rate is 1.0495 AZN/USD on July 24.
Edited by CN
Follow the author on Twitter: @MaksimTsurkov