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Crisis in Greece has no effect on Azerbaijani State Oil Fund’s revenues

Oil&Gas Materials 8 July 2015 17:06 (UTC +04:00)

Baku, Azerbaijan, July 8

By Maksim Tsurkov - Trend:

The economic crisis in Greece does not affect the profitability of the assets of the State Oil Fund of Azerbaijan (SOFAZ), SOFAZ Executive Director Shahmar Movsumov told Trend July 6.

He said that SOFAZ has no assets in Greece.

"According to SOFAZ's asset management rules, the funds from SOFAZ's investment portfolio may be invested in assets of the countries with a certain level of international credit rating for long-term liabilities," he said. "Greece's rating did not meet our requirements, so SOFAZ has not invested in this country's assets. For this reason, the crisis in Greece has no effect on SOFAZ's activity."

SOFAZ's revenues amounted to 2.028 million manat, expenses - 2.336 million manat in January-March 2015.

During this period the revenues obtained from the implementation of oil and gas contracts hit 1.939 billion manat, including the proceeds from the sale of profit oil and gas amounted hit 1.937 billion manat, from transit operations - 2.6 million manat.

SOFAZ's revenues obtained as a result of managing own funds totaled 89.1 million manat during this period. SOFAZ's off-budget revenues obtained from the foreign exchange gain in the first quarter amounted to 7.489 billion manat.

The State Oil Fund was created in 1999 and its assets were equal to $271 million that time.
Under 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 goals of the State Oil Fund include: accumulation of resources and the placement of the fund's assets abroad in order to minimize the negative affect on the economy, the prevention of "Dutch disease" to some extent, promotion of resource accumulation for future generations and support of current social and economic processes in Azerbaijan.

The official exchange rate is 1.049 AZN/USD July 7.

Edited by CN

follow the author on Twitter: @MaksimTsurkov

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