Foreign trade of Azerbaijan (Jan-Sept. 2014)

The foreign trade turnover with 141 world countries amounted to $23.88 billion in January-September 2014, or 8.6 percent less than in January-September 2013. The volume of exports decreased by 3.88 percent and amounted to $17.35 billion compared to January-September 2013. The volume of import decreased by 19.16 percent and amounted to $6.52 billion. Azerbaijan exported 1,914 goods and imported 5,724 different goods. As of January-September 2014, the nominal index of export exceeded import. This formed the foreign trade surplus to the amount of over $10.834 billion.

The country's foreign trade surplus amounted to $9.99 billion for the same period of last year and $2 billion as of September 2014.

As in previous periods, oil, gas and oil products were mainly exported from Azerbaijan in January-September 2014.

Main products exported from Azerbaijan

Source: Azerbaijani state customs committee

Most of Azerbaijan's exports as of January-September 2014 (85.38 percent) fell to the export of crude oil. The exports of crude oil decreased by 3.18 percent compared to January-September 2013. The export of oil products increased by 15.76 percent during this period. Around 5.96 percent of total exports from the country fell to the oil products in January-September 2014.

Some 20.757 million tons of oil were transported via the Heydar Aliyev Baku-Tbilisi-Ceyhan (BTC) pipeline, 3.187 million tons - the Baku-Supsa pipeline, 763,600 tons - via the Baku-Novorossiysk pipeline and 719,300 tons were shipped by rail to Baku-Batumi in January-September.

The export of gas from Azerbaijan (data obtained from the control devices) hit 122.2 percent ​​in January-September compared to the nine months of last year. It increased by 8.21 percent as of 2013. As of January-September, the share of gas in a total export volume amounted to 1.37 percent compared to 2.93 percent in 2013.

According to the gas meters, gas supply for export amounted to 6.188 billion cubic meters in January-September compared to 7.294 billion cubic meters as of 2013. In September, the export amounted to 712.678 million cubic meters compared to 617.076 million cubic meters in August, the State Customs Committee said.

Gas exports decreased because SOCAR (State Oil Company of Azerbaijan) temporarily suspended gas exports to Russia in connection with the repair and construction work.

Gas exports to Russia were suspended in connection with the construction of the remaining section of the highway Baku-Quba-Russian border, as well as repair of the gas transportation infrastructure. The date of gas supply restoration is not called.

According to the Azerbaijani State Customs Committee's report, electricity exports from Azerbaijan slightly increased in September. Nevertheless, exports of electricity provided the country with only 0.115 percent of export earnings ($17.356 billion) in January-September.

According to the meters, as of January-September 2014, the supply of electricity for export amounted to 259.359 million kilowatt / hours compared to 95.652 million kilowatt / hours the previous year. The supplies hit 42.214 million kWh / in September compared to 83.121 million kW / h in August (the best index of this year).

Around 407.448 million kWh worth $ 19.885 million were formalized in the customs declarations (electricity exports) in January-September compared to 595.674 million kWh worth $24.848 million in 2013.

The export volume of fruits and vegetables, which is the basis of the agricultural exports of Azerbaijan, has greatly increased. According to the committee, exports of Azerbaijan's agricultural products increased by 34.26 percent in January-September 2014 compared to the same period of last year.

In this period, the highest amount of export fell on Italy. Thus, during this period Azerbaijan exported goods totaling $4.030 billion to Italy which makes up 23.22 percent of a total export volume. Mainly oil and oil products are exported to this country. Indonesia ($1.868 billion) and Germany ($1.462 billion) hold leading positions. 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.

Turkey ranks first on largest import volume ($915.45 million) in January-September 2014. About 14.04 percent of the Azerbaijani imports fell to it. Russia ranks second - $897.79 million and Great Britain - third ($679.17 million).

Most of Azerbaijan's imports or 28.61 percent in the reporting period fell to the import of machinery, equipment, electrical equipment and spare parts. The machinery and equipment worth $1.866 billion were imported in January-September 2014 or by 6.97 percent less than in January-September 2013.

A lot of vehicles and parts worth $579.22 million (a share in total imports - 8.88 percent) were brought to the country. However, car imports reduced by 48.31 percent compared to the same period of last year.

Euro-4 ecological standard has been used in the country since April 1. This caused the sharp decline in imports in this category. The import of the vehicles not conforming to this standard has been banned in Azerbaijan. The restrictions on the import of the cars that do not meet Euro 4 standard in Azerbaijan is primarily connected with the measures of improving the environmental situation in the country. Moreover, the operations are underway in the country. The introduction of a mechanism of gradual taking old vehicles that do not meet the highest environmental standards out of service is being discussed.

According to the State Customs Committee, the country imported 47,984 cars in January-September compared to 75,502 cars in the same period of 2013.

Around 43,496 cars of the total import volume for the period accounted for the passenger cars and motor cars. Around 68,487 cars and motor cars were imported into the country in January-September 2013.

Thus, the import of ferrous metals ranks second in terms of an import volume in the country during the period. The share of these products in a total import volume of the country hit 10.67 percent in January-September, while this volume was 696.08 million AZN in nominal terms.

The import of butter and meat significantly increased in January-September (by 34.17 percent and 41.14 percent, accordingly compared to January-September 2013) which is related to insufficient domestic production.

Main products imported to Azerbaijan

Source: Azerbaijani state customs committee

According to the Azerbaijani State Customs Committee, the countries outside the EU and CIS did not restore their status as the main trading partners of the country in January-September. These countries formed the foreign trade turnover of Azerbaijan only by 43.19 percent or $10.315 billion, while the EU countries - by 48.08 percent ($11.482 billion). Only 8.73 percent or $2.081 billion accounted for the CIS.

Azerbaijan's exports to the EU countries amounted to $9.254 billion in January-September 2014, or 53.32 percent of a total export volume amid a 8.26 percent growth. Imports from EU ($2.228 billion) dropped by 18.15 percent and amounted to 34.16 percent of a total import volume. As a result, the country had a black ink of trade balance with the EU at the level of $7.026 billion or 64.85 percent of the country's foreign trade surplus.

The exports to the countries outside the EU and CIS dropped by 12.62 percent - to $7.479 billion in January-September or 43.09 percent of a total export volume, while imports - by 16.51 percent to $2.835 billion or 43.42 percent of the total import volume. As a result, Azerbaijan received a $ 4.644 billion trade surplus with these countries.

The exports to the CIS countries for the period totaled $622.790 million (3.59 percent of the total export volume) by decreasing by 34.41 percent and imports - $1.458 billion (25.2 percent) by decreasing by 34.16 percent. As a result, the country had a red ink in trading with them to the amount of $0.835 billion.

During this period, about 5,371 legal and physical entities were involved in foreign trade operations, including 3,371 - legal entities and 2,000 - physical entities.

The share of public sector in exports totaled $16.391 billion, private sector - $832.2 million, the share of physical entities - $133.537 million.

The share of public sector in import operations amounted to $1.690 billion, the private sector - $4.57 billion, physical entities -$261.3 million.

Azerbaijan's trade operations with foreign countries in January-September 2014

source: Azerbaijani state customs committee