SOFAZ’s assets increased by over 14% in 2012
Azerbaijan, Baku, Jan. 21 / Trend E.Ismayilov /
Budget revenues of the State Oil Fund of the Republic of Azerbaijan (SOFAZ) in 2012 reached 13.673 billion manat, while budget expenditures constituted 10.573 billion manat, the statement released by the Fund on Monday says.
Revenue of 13.130 billion manat was received from implementation of oil and gas agreements, including 13.117 billion manat from the sale of profit oil and gas, 7.9 million manat as transit payments and 0.2 million manat from sale of assets received from foreign companies.
The revenues from managing assets of the Fund for the reporting period amounted to 543.6 million manat. Bonus payments amounted to 1.6 million manat and acreage payments - 3.0 million manat. The Fund's extra-budgetary revenues related to the revaluation of foreign exchange totaled 253.8 million manat.
The expenditures in the amount of 300.0 million manat were directed to financing of improvement of social condition of refugees and internally displaced persons, 200.0 million manat were used for financing the reconstruction of the Samur-Absheron irrigation system.
As per 2012 budget of the Fund, 9.905 billion manat were transferred to the state budget. 20.0 million manat were directed to financing "The state program on the education of Azerbaijan youth abroad in the years 2007-2015". 119.0 million manat were directed to financing Baku-Tbilisi-Kars railway. The Fund's administrative and operational expenses in this period were 29.6 million manat.
The assets of SOFAZ as of January 1, 2013, have grown by 14.5 percent compared to early 2012 ($29,8 million) and stood at $ 34.129 billion.
Starting from the first quarter of 2012, the Oil Fund has begun the purchase of gold and the amount of purchased gold as of January 1, 2013 was 14 tons 934 kg (480 146 ounces).
SOFAZ was established in 1999 when its assets amounted to $271 million. As of Dec. 1, 2012, SOFAZ's assets hit $33.895 billion.
Under the policy of SOFAZ, the funds may be used for construction and reconstruction of strategically important infrastructure projects, as well as for settlement of important national issues. In 2001-2009, special attention was focused on the development of both the oil sector, and the infrastructure of the non-oil sector of the country as well. At present, SOFAZ funds a number of strategic projects in the field of irrigation and transport.
The main purposes of the fund are the 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.
The official exchange rate for January 21 is 0,7848 AZN / USD.