Foreign trade of azerbaijan

Analysis Materials 12 October 2010 11:08 (UTC +04:00)

In January-August 2010, Azerbaijan's foreign trade turnover with 139 countries comprised $17971.4 million. The amount of export increased by 62.46% as compared to last year and comprised $13948.8mln, while import increased 4.11%, totaling $4022.5mln. Azerbaijan exported 1,822 types of goods and imported 5,533. During the reported period, the indicator of export exceeded the indicator of import and thus, the black ink of import-export operations amounted to $9926.3mln.

In January-August 2010, the highest level of export fell on June - $2068.4mln and the lowest on March - $1287.9mln. As to import operations the highest level of import was observed in May ($640.5mln) and the lowest in February ($345.3mln).

In January to August 2010, increase was recorded in all types of exported products of the country, except vegetable, fruits and aluminum. However, the decrease in exports of aluminum is not associated with a reduction in the production of aluminum in the country, but vice-versa, the production of this product has grown and will grow each year thanks to a loan from the Central Bank of Azerbaijan for development of aluminum industry. Aluminium has a high export potential and reduction resulted from the fact that during the global crisis, the purchasing capacity in importing countries has decreased. And the decrease in the export of vegetables and fruits is seasonal.

In August 2010, Azerbaijan did not resume export of cotton completely stopped in June.

Structure of export in January-August 2010

Product Percentage in export (%) As compared to 2009, in %
Crude oil 86,41 176,11
Oil products 6,05 76,93
Aluminum 0,01 16,31
Fruits and vegetables 0,43 77,34
Ferrous metal and wares of them 0,55 154,39
Chemical products 0,23 214,34
Cotton 0,02 21,98
Alcohol and alcohol free drinks 0,07 153,36
Tobacco and tobacco products 0,03 105,37
Others 5,54
Source: State Statistics Committee

In this period the highest amount of export fell on Italy. Thus, in 2010 Azerbaijan exported commodities to Italy totaling $4605.1mln which makes up 33.01% of total exports. Mainly oil and oil products are exported to this country. Italy is followed by Israel ($1331.3mln) and USA ($1284.7mln). Italy has maintained its leading position since 2008 excluding early three months. Turkey took a lead in January and U.S. in February and March 2008.

The share of public sector in exports made up $13192.2mln (94.58%), private sector held $699.8mln (5.02%). The share of export operations by physical entities comprised $56.7mln (0.41%).

Main types of products exported from Azerbaijan,
January-August 2010

Products January-August 2010 Compared to January- August 2009, in %
Quantity Price
(ths. USD) Quantity
Tea, ton 4873,5 18929,6 132,8
Vegetable and animal oil, ton 56473,3 138405,7 172,0
Tobacco, ton 1276,8 3046,3 102,7
Cigarettes, mln units 89,1 715,7 63,6
Crude oil, ton 21153276,0 12053357,1
Oil products, ton 1469142,5 814034,8
Alcohol drinks, liter 6056007,2 9345,1 135,0
Aluminium, ton 2695,7 1847,0 22,0
Ferrous metal, ton 112748,9 52335,8 422,0
Row cotton, ton 1866,6 2248,9 17,5
Source: State Customs Committee

In import of goods in January-August 2010, the greatest growth was observed in imported consumer goods, timber, foodstuffs, furniture, and the lowest - in machinery and equipment and pharmaceutical products.

Structure of import in January-August 2010

Product Percentage in exports (%) As compared to 2009, in%
Machine and equipment 25,90 77,54
Ferrous metal and wares of them 12,89 155,58
Foodstuffs 14,26 124,78
Consumer goods 0,74 113,72
Transport conveyances and spare parts to it 13,16 99,92
Furniture 0,81 125,15
Forest products 2,45 206,14
Pharmaceutical products 2,30 95,30
Other 27,48
Source: State Statistics Committee

The traditional domination of three countries in import seems to be as: Russia ($695.1mln), Turkey ($460.9mln) and China ($346.8mln).

Some 26.60% of import operations, or $1071.8mln fell on public sector, 68.21% or $2743.7mln - private sector, while 5.15% or $207.0mln - on physical entities.

Main types of products imported into Azerbaijan
January-August 2010

Products January-August 2010 Compared to January-August 2009, in %
Quantity Price
(ths. USD) Quantity
Meat, ton 12541,5 11744,5 101,7
Flour, ton 3478,7 983,3 11,5
Butter, ton, including. 80613,4 80820,0 114,6
Vegetable oil, ton 72308,6 60580,4
Butter, ton 8304,8 20239,6
Tea, ton 5715,1 12203,8 112,0
Grain, ton 699605,4 140643,0 108,5
Sugar, ton 219522,7 112814,0 104,7
Alcohol drinks, liter 3834268,9 6346,3 71,6
Tobacco, ton 1271,2 4078,6 78,2
Cigarettes, mln units 7212496,8 141600,7 100,4
Ferrous metal, ton 280205,8 140813,0 88,2
Oil products, ton 28086,8 41742,5
Cars, units 17762 164228,2 96,4

Source: State Customs Committee

In total, 6,072 legal entities (3,149) and physical entities (2,923) participated in the foreign trade operations.

In January-August 2010, Azerbaijan imported goods amounting to $1252.3mln (31.13% out of the total volume of the country's import) from the CIS countries. CIS exported to Azerbaijan grains (12.30%), ferrous metal (7.31%), equipment and mechanical rigs (10.68%).

Amount of the Azerbaijani goods exported to CIS countries totaled $1303.7mln (9.35% out of the total volume of the country's export). Azerbaijan exported to CIS fuel, oil products, bitumen minerals (56.09%), vegetables (2.78%), animal and vegetable oil (10.07%) and other.

The black ink in import-export operations with CIS countries totaled $51.4mln.