Government of Azerbaijan to Provide Financial Assistance to Chemical Enterprises

Oil&Gas Materials 13 March 2007 19:30 (UTC +04:00)

Azerbaijan, Baku / corr. Trend I.Khalilova / Chaired by the Prime Minister of Azerbaijan, Artur Rasizade, a meeting took place at the Cabinet of Ministers of Azerbaijan on 13 March. The meeting focused on the problems due to the termination of the activities of the enterprises of the State Company Azerkimya. During the meeting, a decision was made to restore the activities of the companies in the near days and pay off the salaries in connection with the upcoming Novruz Bayrami (National Holiday of Azerbaijan), a Government source stated.

The relevant State organizations were charged to resolve the problems of the State Company and the State stands ready to provide financial assistance for the effective activities of the enterprises. The issues with the energy supply of Azerkimya should be resolved although Sumgayt Electricity Network states that the electricity supply has not been stopped, but the Cabinet of Ministers denies this fact. "It is impossible to ensure the work of all chemical enterprises with one phase," the same source stated.

The Head of the State Company asked to restructure the old debts of the enterprises at least until 2011.

"However, it is not intended to liquidate the debts, they should be paid off. Therefore, providing delay is the real settlement of the problems of the Company in this stage," the same source stated. Various measures will be taken to support the activities of the Company. It is not excluded that the suggestions of Azerkimya will also be taken into consideration.

Attracting investments into the chemical industry would provide an opportunity to increase the quality of the production and ensure full production capacity of the enterprises. However due to the old equipments, presently the enterprises cover 20-25% of the design capacity. The high prices for the energy resources also decrease the profitability of the production. In addition, there are not laboratories in the Country to inspect the quality of the products in accordance with the international standards.

Presently more than 100 enterprises function in the Country, 70-80% out of total are owned by the State. As a result of such problems, the growth rates in the chemical industry decreased by 3.4% in 2006, 3.7% - 2005, 4.7% - 2004, 3.9% - 2003, 3.4% - 2000, 3% - 1995. However, the chemical production in January 2007 decreased by 43.6%.