Foreign trade of Azerbaijan (january-june 2015)

The foreign trade turnover with 138 world countries amounted to $10.9 billion in January-June 2015, or 28.94 percent less than in January-June 2014. The volume of exports decreased by 44.59 percent and amounted to $6.23 billion compared to January-June 2014. The volume of import increased by 13.64 percent and amounted to $4.69 billion.

Azerbaijan exported 1,647 goods and imported 5,480 different goods.

As of January-June 2015, the nominal index of export exceeded import. This formed the foreign trade surplus to the amount of $1.5 billion compared to $12.6 billion in the same period of 2014.

There was not the foreign trade balance deficit in Azerbaijan in June. For the first time for 10 years it was fixed in February and reoccurred in April 2015.

As in previous periods, oil, gas and oil products were mainly exported from Azerbaijan in January-June 2015.

Main products exported from Azerbaijan

Source: Azerbaijani state customs committee

Most of Azerbaijan's exports as of January-June 2015 (76.7 percent) fell to the export of crude oil. During the reporting period, the country exported oil worth $4.78 billion. The cost of exports of crude oil decreased by 50.7 percent compared to January-June 2014. This is connected with the decrease in world oil prices.

Currently, SOCAR supplies oil from Azerbaijan to about 30 countries in Europe, Asia and America. Among its biggest European importers are Italy (23 percent), Germany (11 percent), France (nine percent). SOCAR's share in total exports of Azerbaijani oil is about 70 percent.

The value of exports of Azerbaijani oil products also reduced by 16.4 percent in the first half of 2015. The export of oil products is 595,500 tons in 2015, including 491,800 tons of diesel fuel, 103,500 tons of jet fuel and 0,178 tons of fuel oil. According to the statistics, the exports of oil products, conducted by SOCAR's Department of Marketing & Economic Operations, in June, it reduced export of oil products by 9.7 times compared to May 2015.

The export of gas from Azerbaijan (the meters) increased by 6.76 percent in January-June from year to year. According to the meters, the gas export from the country totaled 4.547 billion cubic meters in January-June 2015 compared to 4.259 billion cubic meters in January-June 2014. Some 895.927 million cubic meters worth $143.9 million were registered upon the cargo customs declarations in January-June compared to 1.145.606 million cubic meters in the amount of $196.333 million in January-June 2014. As a result, the physical gas exports reduced by 21.8 percent and revenues - 26.71 percent.

Azerbaijan exported 192.25 million kilowatt / hours of electricity by customs declarations in January-June 2015 compared to 360.1 million kilowatts / hours, exported in the same period in 2014. Azerbaijan exported electricity worth $11.71 million in January-June 2015 compared to $17.18 million for the same period in 2014.

The exports of chemical products reached $63.096 million in January-June or 1.01 percent of total exports. It increased by 2.6 times compared to the same period of 2014, when it amounted $24.033 million.

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 1.81 percent in January-June 2015 compared to January-June 2014.

Its supplies to Russia's markets increased. The logistics centers are built in Azerbaijan and outside the country for storage, transportation, export and sale of agricultural products.

In this period, the largest amount of export fell on Italy in January-June 2015. Thus, during this period Azerbaijan exported goods totaling $1.32 billion to Italy which makes up 21.23 percent of a total export volume. Oil and oil products are mainly exported to this country.

Thus, Italy was the main buyer of oil produced in Azerbaijan in 2014. Some 23 percent of the total oil exports accounted for this country.

Germany ($769.73 million) and France $410.89 million) 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.

Russia ranks first on largest import volume ($777.51 million) in January-June 2015. About $16.55 percent of the Azerbaijani imports fell to it. Turkey ranks second - $599.13 million and the US - third ($593.09 million).

Most of Azerbaijan's imports or 19.99 percent in the reporting period fell to the import of vehicles and spare parts. They were imported to the amount of $939.08 million in January-June 2015 or by 3 times more than in 2014.

This kind of import ranked first.

However, despite an increase in the value of imports of these products, the physical import of cars to Azerbaijan in January-June 2015 decreased by 1.95 times from year to year.

The tendency of 2014 intensified. The physical import of cars decreased by 39.3 percent. The country imported 17,640 cars in January-June 2015 (2,605 cars in May and 2,145 cars). Some 15,745 cars, 1,126 trucks, 590 buses and 179 special vehicles were imported. For comparison, some 34,359 vehicles, including 30,917 cars were imported in January-June 2014.

According to the Georgian National Statistics Service's foreign trade report, as of the first six months of this year, car imports from Georgia dropped fivefold. During this period, vehicles worth $41.4 million were exported from Georgia to Azerbaijan. The share of this category of goods in the total volume of Georgian exports to Azerbaijan for the six months of this year amounted to 31.66 percent. The share of Azerbaijan in the country's total exports in this category amounted to 41.61 percent.

Azerbaijan passed to Euro-4 standard and the supply of cars to Azerbaijan declined. This standard has been used since April 1, 2014. Euro 4 greatly limits the import of used vehicles into the country. Most of used cars are imported from Georgia to Azerbaijan.

A lot of cars, mechanisms, electrical goods, equipment worth $1.008 billion (a share in total imports - 21.46 percent) were imported into the country.

The share of ferrous metals in the country's total imports amounted to 17.26 percent in January-June 2015. In nominal terms, this volume amounted to 811.19 million manat.

The imports of grain increased by twofold in January-June 2015.

Main products imported to Azerbaijan

source: Azerbaijani state customs committee

According to the Azerbaijani State Customs Committee, the countries-non-EU and CIS members did not restore their status as the main trading partners of the country in January-June. These countries formed the foreign trade turnover of Azerbaijan by 41.4 percent or $4.522 billion, while the EU countries - by 46.9 percent ($5.131 billion). Only 11.7 percent or $1.278 billion accounted for the CIS.

Azerbaijan's exports to the EU countries amounted to $3.805 billion in January-June, or 61.06 percent of a total export volume amid a 35.2 percent decrease. Imports from EU ($1.325 billion) increased by 3.1 percent and amounted to 28.2 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 $2.5 billion. This exceeded the country's foreign trade surplus ($1.533 billion).

The exports to the countries-non-EU and CIS members dropped by 56 percent - to $2.181 billion in January-June or 35 percent of a total export volume, while imports increased by 25.9 percent and hit $2.341 billion or 49.8 percent of the total import volume. As a result, Azerbaijan received a $0.261 billion red ink with these countries.

The exports to the CIS countries for the period totaled $0.246 billion (3.9 percent of the total export volume) by decreasing by 42.1 percent and imports - $1.032 billion (22 percent) by increasing by 3.5 percent. As a result, the country had a red ink in trading with them to the amount of $0.786 billion.

During this period, about 4,823 legal and physical entities were involved in foreign trade operations, including 2,803 - legal entities and 2,020 - physical entities.

The share of public sector in exports totaled $5.51 billion, private sector - $619.67 million, the share of physical entities - $97.37 million.

The share of public sector in import operations amounted to $929.59 million, the private sector - $3.6 billion, physical entities -$166.64 million.

Azerbaijan's trade operations with foreign countries in January-June 2015

source: Azerbaijani state customs committee