Azerbaijan, Baku, July 23 /Trend E.Ismayilov/
Total assets of the State Oil Fund of Azerbaijan (SOFAZ) are projected at $34-35 billion at the end 2012, head of SOFAZ Shahmar Movsumov said at a press conference.
He noted that, according to the investment policy of the State Oil Fund for 2012 up to five percent of its funds can be invested in stocks. Such companies as UBS Global Asset Management and State Street Global Advisors have been chosen as managers of investment in shares
Investing in shares is scheduled for September. The volume of investments in shares of the State Oil Fund is projected at $600 million.
It is planned to invest $400-500 million in short-term deposits in Russian rubles.
"Deposits will be opened in major banks with high ratings," Movsumov said.
SOFAZ assets increased by 9.6 percent as of July 1, 2012 compared to the beginning of this year (29.8 billion), amounted to $32,666 million.
State Oil Fund was established in 1999 and at that time, its assets amounted to $271 million.
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.