Azerbaijan, Baku / corr. Trend U.Ismaylova / The Head of the Public Finance Monitoring Center (PFMC), Ingilab Ahmadov, said that the unprofitability of the chemical production due to the increase of prices for energy resources is unbelievable and is not the key reason to discontinue the activities of the enterprises of the Azerkimya State Company (SC).
A meeting is planned at the Cabinet of Ministers of Azerbaijan on 13 March regarding the termination of Azerkimya enterprises activities. According to information provided by Azerkimya, the work of the chemical enterprises has been paralyzed due to terminated energy supply which resulted from payment problems of electricity after the increase of electricity prices on 8 January 2007.
According to Ahmadov, in 2006 Azerkimya offered to increase the production of almost all chemical products. In particular there was increased production of hydrate of sodium (by 26.1%), propylene (by 31.9%), nitrogen (by 12%), ethylene (by 32%), polyethylene (by 32.8%). "These are not small figures, especially the enterprise also exported products abroad," he said.
Ahmadov said that most likely there are more fundamental structural problems concerning the corporative management of the State Company. "Most probably there are problems in the management and structure. This incident obviously confirms that the economy of Azerbaijan is not ready for world market principles," he said. The Finance Ministry of Azerbaijan does not support the idea to return to the system of indirect financing, the purchase of naphtha and natural gas by Azerkimya on privileged terms. Until 2005 Azerkimya was financed from the State budget, but the Government has refused indirect financing over the next few years.