The State Budget Statement 2007 envisages putting indirect subsidies for the fuel and energy complex of the country at the volume of AZN 330 mln., Azer Bayramov, Deputy Azerbaijan`s Finance Minister told Trend. According to him, indirect subsidies are envisaged for Azerenerji JSC as in 2006.
Three alternative subsidies were preliminarily envisaged, but finally the volume of subsidies was fixed, dependant upon the existing price of gas imported from Russia, stated the Deputy Minister.
The second alternative envisaged the gas volumes given its increase in view of the fact that the Russian party`s announcements is to increase the gas price in 2007. And the last one envisaged no subsidies at all, which is quite possibly due to an increase of electric power rates.
As a result of the forecasts review on State Budget 2006, indirect subsidies for Azerenerji were brought from AZN 103.1 mln. to AZN 438.5 mln.
The necessity for this modification was linked with the increase in the price of gas which Azerbaijan imports from Russia. The subsidies were put on the gas price of $60 per 1.000 cubic meters; however, Azerbaijan is paying $110 per 1.000 cubic meters to Russia.
Due to indirect subsidies, Р° mutual calculation between liabilities of Azerenerji to SOCAR (State Oil Company) and SOCAR`s liabilities to the State Budget are carried out