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BP Azerbaijan Pledged to Solve Problem with Allocation on Social Insurance to Foreigners Engaged in Oil Contracts till End of 2006

Oil&Gas Materials 9 October 2006 21:13 (UTC +04:00)

The State Population Social Protection Fund has registered some 2.000 foreign citizens working in Azerbaijan in the system of individual registration, since starting from January 1, 2006; they had to allocate means on the obligatory social insurance as well. According to the Migration Department of the Labour Ministry, some 20.000 foreign citizens work in Azerbaijan now, Trend reports referring to Salim Muslimov, Chairman of the State Fund

The most part of the remaining 18.000 foreigners are engaged in the oil consortiums, pointed out Mr. Muslimov. In order to attract them to pay the obligatory social insurance, negotiations with BP Azerbaijan is being held now. I met the Company`s Vice-President on Financial Issues. We came to an agreement on the terms when this issue to be solved. It is expected to be solved till the end of 2006. After that, we shall begin the declarations reception, and they pledged to give us their answer. On the contrary, we shall begin to fine, pointed out Mr. Muslimov.

The problem is that the contractors have advantages in some oil contracts. In other ones subcontractors do. According to BP-Azerbaijan, both the contractors who actually have privileges, and subcontractors are to be free from payments on social insurance.

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