Foreign trade of Azerbaijan (January 2016)

The foreign trade turnover with 114 world countries amounted to $1.1 billion in January 2016, or 40.62 percent less than in January 2015. The volume of exports decreased by 48.57 percent and amounted to $657.08 million compared to January 2015. The volume of import decreased by 22.95 percent and amounted to $442.81 billion.

Azerbaijan exported 543 goods and imported 3,299 different goods.As of January 2016, the nominal index of export exceeded import. This formed the foreign trade surplus to the amount of $214.27 million.

As in previous periods, oil, gas and oil products were mainly exported from Azerbaijan in January 2016.

Main products exported from Azerbaijan

Source: Azerbaijani state customs committee

Most of Azerbaijan's exports as of January 2016 (83.3 percent) accounted for the export of crude oil. During the reporting period, the country exported oil worth $547.34 million. The cost of crude oil exports decreased by 48.63 percent compared to January 2015. This is connected with a decrease in the world oil prices.

Currently, SOCAR supplies oil from Azerbaijan to about 30 countries in Europe, Asia and America. Among its largest European importers are Italy (23 percent), Germany (11 percent), France (9 percent).

SOCAR's share in total exports of Azerbaijani oil is about 70 percent.

The physical export of oil products from the country and export proceeds decreased in January 2016 compared to January 2015. The export of oil products from the country amounted to 159,650 tons worth $31.1 million. This is by 43.5 percent less than the export for January 2015 ($55.06 million).

The export decreased by 10.6 percent from year to year. The export of oil products ensured 4.73 percent of the country's total exports in January 2016.

The export of gas from Azerbaijan (according to the meters) increased by 4.9 percent in January 2016 compared to January 2015. As of January 2016, the gas supplied for export, according to the meters, amounted to 885.57 million cubic meters compared to 844.1 million cubic meters in January 2015.

Some 91.99 million cubic meters in the amount of $17.3 million were registered upon the cargo customs declarations in January 2016 compared to 195.6 million cubic meters in the amount of $31.6 million in January 2015. As a result, the physical gas exports dropped by 53 percent, and its revenues - by 1.8 times.

The export price $188.5 was highly effective in January 2016 (compared to domestic prices). As of of January 2016, the share of gas in total exports amounted to 2.64 percent compared to 1.76 percent as of 2015.

The export of electricity from Azerbaijan in January 2016 decreased by 0.28 percent compared to January 2015. As of January 2016, according to the meters, the supply of electricity for export from the country amounted to 10,402,590 kW / h or 82.8 percent less than in January 2015 (60.5223 million kW / h).

As of January 2016, some 276,784,880 kW / h worth $870,420 were registered upon customs declarations compared to 17,515,180 kW / h worth $943,960 in January 2015. As of January 2016, the country exported electricity at the "customs" price of $ 0.05 per 1 kW / h. The "customs" price has no relation to the export contract prices. In fact, the price points to the balance in mutual supplies of electricity.

The growth was observed in exports of ferrous metals in January. The export of ferrous metals increased by more than threefold amounting to $6.03 million or 0.92 percent of total exports in January 2016.

The volume of exports of fruits and vegetables which are the basis of agricultural exports of Azerbaijan greatly increased. The exports of agricultural products in Azerbaijan increased by 9.62 percent in January 2016 compared to January 2015.The agricultural products are mainly supplied to the Russian markets. The logistics centers are being 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 2016. Thus, during this period Azerbaijan exported goods totaling $177.1 million to Italy which makes up 26.95 percent of a total export volume. Oil and oil products are mainly exported to this country.

Germany ($126.95 billion) and Israel $98.54 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 ($60.83 million) in January 2016. Some 13.74 percent of the Azerbaijani imports fell to it. The UK ranks second - $48.23 million and Turkey - third ($43.54 million). The UK ranked second as a supplier of goods to Azerbaijan in January.

Most of Azerbaijan's imports or 35.06 percent in the reporting period accounted for the import of machinery, mechanisms, equipment, electrical equipment and spare parts. The machinery and equipment worth $155.22 million were imported in January 2016, which is by 5.91 percent less than in January 2015.

The import of ferrous metals consolidated its positions in the country's foreign trade. The share of these products in a total import volume of the country hit 17.05 percent in January 2016, while this volume was 75.51 million manat in nominal terms or by 9.46 percent less than in January 2015.

Many vehicles and spare parts worth $11.92 million (a share in total imports - 2.69 percent) were supplied to the country. The car imports decreased by 77.61 percent compared to January 2015.

Some 437 cars were imported to Azerbaijan in January 2016 compared to 4,090 cars imported in the same period of 2015.

Some 401 vehicles of the total number of vehicles imported during this period accounted for the cars and motor vehicles. Some 3,870 cars and motor vehicles were imported into the country in January 2015. Moreover, some 26 trucks were imported to Azerbaijan in January (146 trucks in January 2015). The rest import accounted for other types of vehicles.

Azerbaijan passed to the Euro-4 ecological standard. That's why, the car supply volumes declined. It has been used since April 1, 2014. The introduction of Euro 4 standard greatly limits the import of used vehicles. Most of vehicles imported from Georgia to Azerbaijan accounted for the used cars.

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-November. These countries formed the foreign trade turnover of Azerbaijan by 39.4 percent or $0.434 billion, while the EU countries - by 50.4 percent ($0.554 billion). Only 10.25 percent or $0.112 billion accounted for the CIS.

Azerbaijan's exports to the EU countries amounted to $0.409 billion in January, or 62.3 percent of a total export volume amid a 53.6 percent decrease. Imports from EU ($0.144 billion) decreased by 24.81 percent and amounted to 32.65 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 $0.265 billion compared to the country's total trade surplus by $0.214 billion.

The exports to the countries-non-EU and CIS members dropped by 37.8 percent - to $0.224 billion in January or 34.07 percent of a total export volume, while imports - by 14.54 percent and hit $0.210 billion or 47.37 percent of the total import volume. As a result, Azerbaijan received a $0.024 billion black ink with these countries.

The exports to the CIS countries for the period totaled $0.024 billion (3.6 percent of the total export volume) by decreasing by 43 percent and imports - $0.088 billion (19.98 percent) by decreasing by 35.4 percent. As a result, the country had a red ink in trading with them to the amount of $0.065 billion.

During this period, about 2,011 legal and physical entities were involved in foreign trade operations, including 1,333 - legal entities and 678 - physical entities.

The share of public sector in exports totaled over $604.87 million, private sector - $42.34 million, the share of physical entities - $9.86 million.

The share of public sector in import operations amounted to $40.36 billion, the private sector - $382.66 million, physical entities -$19.79 million.

Azerbaijan's trade operations with foreign countries in Jan. 2016

source: Azerbaijani state customs committee