Azerbaijan, Baku, 7 November/ Trend , corr I. Khalilova/ "Drop in oil prices in global markets do not threaten Azerbaijan's 2009 state budget," Minister of Finance Samir Sharifov said at the discussions over draft of 2009 state budget in the parliamentary commission.
"Though Azerbaijan's economy still much depends on oil sector and we can not change it in a day, measures are being taken to develop non-oil sector which will reduce dependence on oil," minister said.
Minister said the State Oil Fund of Azerbaijan (SOFAZ) fulfils stabilized functions and carried out transfers to the state budget in national currency which is expected to total to AZN 4.915bln. It allows to reduce negative impact of falling oil prices on budget.
Initially, while developing 2008 budget forecast, oil prices were fixed at $50 a barrel. Later the price was fixed at $70 a barrel when crude prices reached $145. Oil prices were fixed at $70 in 2009 state budget. "However, I think drop in oil prices for the past two-three weeks below $70 should not cause anxiety for Azerbaijan," minister said.
Azerbaijan will also feel impact of all global processes, including financial crisis, drop in oil prices, food security problem as they have already emerged in neighboring countries.
"However, reforms, financial and economic potential enables to reduce this impact," minister said.
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