SOFAZ assets exceed $30 billion
Azerbaijan, Baku, July 6 / Trend /
The State Oil Fund of the Republic of Azerbaijan announces that as of June 28, 2011 current assets of the State Oil Fund reached $30.2 billion having for the first time exceeded $30 billion level, SOFAZ said.
"Increasing SOFAZ's assets is the result of successful implementation of National Oil Strategy, created by national leader Heydar Aliyev. As a result of implementation of this strategy export of hydrocarbon reserves is expanding and Fund's assets increased from $22.8 billion at the beginning of 2011 up to $30 billion. Increase of reserves of Azerbaijan should be regarded as strengthening of the economic power of the country, as well as, accelerating of development of the country in all spheres.
The State Oil Fund was established in 1999 and had assets of $271 million at the time.
Based on SOFAZ's regulations, the funds may be used for the construction and reconstruction of strategically important infrastructure facilities, as well as solving important national problems. In 2001-2009 special attention was drawn to the development of the oil and infrastructure sectors, as well as the non-oil sector of the country. At the moment, a number of important projects in irrigation and transportation are financed at the expense of the funds.
The main purposes of the fund are: accumulation of funds and placement of the fund's assets abroad to minimize the negative impact on the economy, preventing a "Dutch syndrome" to ensure savings for future generations and to maintain the current socio-economic standard in the country.