Foreign trade of Azerbaijan (Jan.-May 2012)

The foreign trade turnover with 133 world countries amounted to $14.41 billion in Jan.-May 2012, or 2.54 percent more than last year. The volume of exports increased by 1.43 percent to $10.735 billion compared to Jan.-May 2011. The volume of import increased by 5.92 percent and hit $3.375 billion. Azerbaijan exported 1,414 products, and imported 5,403 different goods. The index of export exceeded import as of Jan.-May 2012. This formed the foreign trade surplus to the amount of $7.06 billion.

As in previous periods, oil and oil products are mainly exported from Azerbaijan.

Export of oil and oil products, natural gas and electric power in Jan.-May

2012

Source: state customs committee

Most of Azerbaijan's exports for Jan.-April of 2012 (86.45 percent) falls to crude oil. In Jan.-March 2012, crude oil worth $9.279.8 billion was exported, exceeding the figure for the same period of last year by 2.07 percent.

During the reporting period, oil products were exported to amount of $524.3 million (decreased by 8.83 percent per year), accounting for 4.88 percent of total exports.

Azerbaijan remains a net exporter of electricity for the fourth year running. In May it reduced the financial cost of electricity exports resumed in February. According to the State Customs Committee, in January-May 2012, according to the meters, supply of electricity supplied for export from the country amounted to 250.2 million kWh, including 382.1 million kWh in January, 766.1 kWh in February, 107.5 kWh in March, 147.9 kWh in April and 141.1 million kWh in May.

Registration on customs declarations (electricity exports) in January-May amounted to 393.1 million kWh worth $19.2 million, including 11.9 million kWh in the amount of $702,100 in February (in January, there was no clearance), 38.2 million kWh at $2.7 million in March and 327.8 million kWh at $14.792 million in April and 653.3 million kWh at $990,880 in May. As a result, in 2012 the country exported electricity at the price $0.0489 per 1 kWh, including $0.0152 per kWh in May. The March price ($0.07195 per kWh) is highest for 2011-2012.

Azerbaijan in May reduced its gas exports by 1.85 percent (registration at customs) compared to April, and its share in total exports reached 2.37 percent compared to 2.61 percent in 2011.

According to the State Customs Committee, in January-May exports of gas from the country amounted to 303.1 m3, according to the meters, including 378.9 million m3 in May, 476.2 million m3 in April. About 114.6 million m3 of gas to the amount of $254.7 million were formalized on cargo customs declarations, including 163.1 million m3 to the amount of $343.1million in May, 302.3 m3 to the amount of $578.9 in April. The export price as of 2012 is still $222.24 per 1,000 m3, including $210.45 in May, $191.47 in April.

In Jan.-May 2012, Azerbaijan exported chemical products worth $82.36 million. Compared to the same period of last year, exports of chemical products increased by 2.5 times (251.50 percent). The share of chemical products amounted to 0.77 percent in total exports in January-April. It should be noted that the "Azerkimya" production association increased exports of the main kinds of products: polyethylene, propylene, isopropyl alcohol, propylene glycol, and others to Turkey. Thus, over 50 percent of all exports of "Azerkimya" are exported to the Turkish market.

The success of the country in exports of aluminum and its products should be stressed. As of Jan.-May, 2012, Azerbaijan increased export of aluminum by over 20 times.

In total, about $43.097 million were sold abroad or 21.2 times more than the same period of last year. At the same time, the share of exports of aluminum and its products in the country's total exports amounted to 0.4 percent as of June 1, 2012.

Azerbaijan has two aluminum plants in Sumgait and Ganja, as well as its own raw material base (alunite). A new aluminum plant opened in Ganja produces 50,000 tons of high quality aluminum per year. It is capable of producing 100,000-200,000 tons. In this regard, the Azerbaijani government announced the plans to cease importing finished aluminum products.

Main kinds of products exported from Azerbaijan

Source: state customs committee

In this period, the highest amount of export fell to Italy in Jan.-May 2012. Thus, during the reported period Azerbaijan exported commodities to Italy totaling $2.212.9 bln which makes up 20.62 percent of total exports. Mainly oil and oil products are exported to this country. Italy is followed by France ($1.073.3 mln) and Israel ($976.4 million). Italy has maintained its leading position since 2008 excluding the first three months. Turkey took a lead in January 2008 and U.S. in February and March 2008.

Turkey ranks first on largest import volume ($588.6 million) in Jan.-May, 2012. The Azerbaijani imports hit 16.02 percent. Russia ranks second - $523.7 million and Germany - third ($293.7 million).

Most of Azerbaijan's imports (27.82 percent) in Jan.-May accounted for the imports of cars, equipment, mechanisms, electric equipment and their spare parts.

The import of vehicles and spare parts ranks second in terms of the share volume in the country's import (14.03 percent). The import of ferrous metals ranks third. The imports of ferrous metals and its products as of June 1, 2012 hit $494. 6 compared to $ 439.6 million for the five months of last year (increased by 12.51 percent). Ferrous metals and its products hit 13.46 percent of total imports (3.674 billion), while on May 1 this figure was 13.62 percent.

According to the Azerbaijani State Customs Committee, the number of imported cars increased by 6,353 or 71.56 percent compared to the same period of 2011. In January-May 2012 Azerbaijan imported 15,230 cars worth $115.4 million at an average cost of a car - $7,576 on customs order.

The largest increase in imports in January-May 2012 was observed in transporting the furniture into the country compared to the same period of last year (by 77.34 percent) although its share in imports is only 1.0 percent. The import of flour significantly reduced by 97.52 percent. This testifies to the increase in grain crops in Azerbaijan.

Main products imported to Azerbaijan

According to the State Customs Committee, Azerbaijan's foreign trade turnover with CIS countries in Jan.-May amounted to $1.377.1 billion or 9.55 percent of total volume of Azerbaijan's foreign trade turnover compared to 15.1 percent in 2011. Exports to CIS countries for the period totaled $442.7 million (4.12 percent of total export) and imports - $934.3 million (24.43 percent of total import). Thus, the red ink of import-export operations with CIS countries amounted to $491.6 million compared to surplus at $351.6 million in 2011.

About $13.032.5 billion fell to the countries outside the CIS or 90.45 percent of the foreign trade turnover of the country. Exports to the countries outside the CIS amounted to $10.292.1 billion (95.88 percent of total exports) and import - $2.740.4 billion (75.57 percent of total imports). The country had black ink worth $7.551.6 billion in trade with them compared to $16.463.3 billion dollars for 2011.

During this period, about 4,763 legal and physical entities were involved in foreign trade operations, including 2,638 - legal entities and 2,125 - physical entities.

The share of public sector in exports totaled $8.033 billion (95.26 percent), private - $378 million (4.48 percent), the share of physical entities - $21.76 million (0.26 percent).

The share of public sector in import operations amounted to $636.4 million (21.93 percent), the private sector - $2.12 million (73.05 percent), physical entities -$142.1 million (4.9 percent).

Azerbaijan's trade operations with foreign countries in Jan.-May 2012

Source: state customs committee