Foreign trade of Azerbaijan (January-May 2016)

The foreign trade turnover with 155 world countries amounted to $6.38 billion in January-May 2016, or 31.78 percent less than in January-May 2015. The volume of exports decreased by 42.26 percent and amounted to $3.05 billion compared to January-May 2015. The volume of import decreased by 18.19 percent and amounted to $3.33 billion.

Azerbaijan exported 1,826 goods and imported 6,297 different goods.

Red ink worth $281.47 million was in Azerbaijan’s foreign trade operations during this period.

For comparison: the foreign trade surplus reached $1.2 billion in January-May 2015.

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

Main products exported from Azerbaijan

Source: Azerbaijani state customs committee

Most of Azerbaijan’s exports as of January-May 2016 (75.91 percent) accounted for the export of crude oil. During the reporting period, the country exported oil worth $2.31 billion. The cost of crude oil exports decreased by 42.62 percent compared to January-May 2015. This is connected with a decrease in the world oil prices. Currently, SOCAR supplies oil from Azerbaijan to more than 30 countries in Europe, Asia and America. The largest importers are Italy (25 percent), Germany (13 percent), Indonesia (10 percent), Israel (9 percent) and France (8 percent).

According to the Azerbaijani State Customs Committee, the revenues obtained as a result of the export of oil products from Azerbaijan in May 2016 decreased threefold compared to May 2015. The revenues obtained as a result of the export of oil products amounted to $31,006,750 in May 2016 compared to $93,590,290 in May 2015. The physical volume of export of oil products amounted to 729,455 tons for five months of 2016 compared to 1,064,386 tons in January-May 2015. In financial terms, some $156,217,540 were obtained as a result of the export of oil products in January-May 2016 compared to $378,560,460 in January-May 2015. Some 5.12 percent of the country’s total export volume accounted for the export of oil products in January-May 2016.

The export of gas from Azerbaijan decreased by 10.2 percent in physical terms in January-May 2016 and 10.5 percent in financial terms from year to year. The volume of gas supplied for export, has amounted to 714,396,480 cubic meters since early 2016 compared to 795,560,040 cubic meters a year earlier, while revenues reached $113,972,560 compared to $127,346,090. The revenues worth $13,643,740 were obtained as a result of gas exports in May 2016 compared to $20,320,720 in May 2015. The share of gas in the total export was estimated at 3.74 percent in January-May 2016 compared to 1.76 percent for 2015.

The growth was observed in exports of ferrous metals in January-May. The export of ferrous metals increased by more than fourfold, amounting to $3924 million or 1.29 percent of total exports in January-May 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 58.01 percent in January-May 2016 compared to January-May 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 accounted for Italy in January-May 2016. Thus, during this period Azerbaijan exported goods totaling $603.14 million to Italy which makes up 19.78 percent of a total export volume. Oil and oil products are mainly exported to this country.

France ($300.26 million) and Germany $280.57 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 the largest import volume ($609.59 million) in January-May 2016. Some 18.3 percent of the Azerbaijani imports accounted for it. Turkey ranks second - $414.13 million and the UK - third ($209.42 million).

Most of Azerbaijan’s imports or 23.42 percent in the reporting period accounted for the import of machinery, mechanisms, equipment, electrical equipment and spare parts. The machinery and equipment worth $780.32 million were imported in January-May 2016, which is by 9.19 percent less than in January-May 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 reached 14.39 percent in January-May 2016, while this volume was 479.27 million manat in nominal terms or by 30.05 percent less than in January-May 2015.

Vehicles and spare parts worth $469.17 million (a share in total imports – 14.08 percent) were supplied to the country. The car imports decreased by 46.29 percent compared to January-May 2015.

Some 2,233 cars were imported to Azerbaijan in January-May 2016 compared to 15,495 cars imported in the same period of 2015.

Some 1,939 vehicles of the total number of vehicles imported during this period accounted for the cars and motor vehicles. Some 13,912 cars and motor vehicles were imported into the country in January-May 2015. Moreover, some 204 trucks were imported to Azerbaijan in January-May (952 trucks in January-May 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. The standard 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 kept their status as the main trading partners of the country in January-May. These countries formed the foreign trade turnover of Azerbaijan by 44.01 percent or $2.809 billion, while the EU countries - by 40.03 percent ($2.064 billion). Only 15.96 percent or $1.018 billion accounted for the CIS.

Azerbaijan’s exports to the EU countries amounted to $1.647 billion in January-May, or 54.02 percent of a total export volume ($3.050 billion) amid a 50.12 percent decrease. Imports from EU ($0.907 billion) decreased by 20.93 percent and amounted to 27.21 percent of a total import volume ($3.331 billion). As a result, the country had a black ink of trade balance with the EU at the level of $0.741 billion compared to the country's total trade deficit - $0.281 billion.

The exports to the countries-non-EU and CIS members dropped by 35.26 percent - to $1.170 billion in January-May or 38.37 percent of a total export volume, while imports - by 19.77 percent and reached $1.638 billion or 49.18 percent of the total import volume. As a result, the deficit worth $0.568 billion was observed in Azerbaijan’s trade relations with these countries.

The exports to the CIS countries for the period totaled $0.232 billion (7.6 percent of the total export volume) by increasing by 1.36 times and imports - $0.786 billion (23.61 percent) by decreasing by 10.98 percent. As a result, the country had a red ink in trading with them to the amount of $0.555 billion.

During this period, about 7,506 legal and physical entities were involved in foreign trade operations, including 3,597 - legal entities and 3,909 - physical entities.

The share of public sector in exports totaled $2.65 billion, private sector – $323.61 million, the share of physical entities - $78.06 million.

The share of public sector in import operations amounted to $568.15 million, the private sector - $2.57 billion, physical entities -$189.76 million.

Azerbaijan’s trade operations with foreign countries in Jan.-May 2016

source: Azerbaijani state customs committee