Foreign trade of Azerbaijan (January-June 2016)

Azerbaijan’s foreign trade turnover decreased by 28 percent and totalled $7.87 billion in H1 2016, as compared to the same period in 2015. The volume of export decreased by 38.65 percent and stood at $3.8 billion, as compared to January-June 2015. The volume of import decreased by 13.98 percent and totaled $4.05 billion. Azerbaijan exported 2,060 types of goods and imported 6,520 different goods.

The first half of 2016 ended with negative balance in the amount of $225.77 million, while $1.5 billion worth surplus was recorded as of June 2015.

As in previous periods, oil, gas and oil products were the main products exported from Azerbaijan in January-June 2016.

Main products exported from Azerbaijan

Source: Azerbaijan’s State Customs Committee

The major part of Azerbaijan’s export in January-June 2016 (76.15 percent) accounted for the export of crude oil. During the reporting period, the country exported oil worth $2.91 billion. The cost of crude oil export decreased by 39.11 percent compared to January-June 2015 due to the decrease in world oil prices.

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).

The export of oil products stood at around 878,158 tons in January-June 2016, or 25.54 percent less than in the same period in 2015 (1,179,424 tons), according to Azerbaijan’s State Customs Committee.

The revenues from this export were estimated at $203.618 million as compared to $425.532 million (-52.15 percent) a year earlier. The export was estimated at 148,702 tons worth $47.400 million in June 2016. The oil products export accounted for 5.33 percent of the total volume of export from Azerbaijan as of H1 2016.

The export of gas from Azerbaijan decreased by 25.54 percent in physical terms in January-June 2016 and 52.15 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 895,927,620 cubic meters a year earlier, while revenues reached $113,972,560 compared to $43883,900. The share of gas in the total export was estimated at 2.98 percent in January-June 2016 compared to 1.76 percent for 2015.

The growth was observed in exports of ferrous metals in January-June. The export of ferrous metals increased by nearly fourfold, amounting to $44 million or 1.15 percent of total exports in January-June 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 32.66 percent in January-June 2016 compared to January-June 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-June 2016. Thus, during this period Azerbaijan exported goods totaling $760.84 million to Italy which makes up 19.91 percent of a total export volume. Oil and oil products are mainly exported to this country.

France ($344.71 million) and Germany $332.27 million) hold leading positions. Italy has maintained its leading position since 2008 excluding early three months. Turkey took a lead in January and the US in February and March 2008.

Russia ranks first on the largest import volume ($742.75 million) in January-June 2016. Some 18.35 percent of the Azerbaijani imports accounted for it. Turkey ranks second - $526.83 million and China - third ($257.88 million).

Most of Azerbaijan’s imports or 23.02 percent in the reporting period accounted for the import of machinery, mechanisms, equipment, electrical equipment and spare parts. The machinery and equipment worth $931.72 million were imported in January-June 2016, which is by 7.4 percent less than in January-June 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 14.27 percent in January-June 2016, while this volume was 577.60 million manat in nominal terms or by 28.8 percent less than in January-June 2015.

Vehicles and spare parts worth $507.50 million (a share in total imports – 12.54 percent) were supplied to the country. The car imports decreased by 45.96 percent compared to January-June 2015.

In the first half of 2016, Azerbaijan reduced import of cars by nearly 7 times. Some 2,573 cars were imported to Azerbaijan in January-June 2016 compared to 17,640 cars imported in the same period of 2015.

Some 2,222 vehicles of the total number of vehicles imported during this period accounted for the cars and motor vehicles. Some 15,745 cars and motor vehicles were imported into the country in January-June 2015. Moreover, some 252 trucks were imported to Azerbaijan in January-June (1,126 trucks in January-June 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-June. These countries formed the foreign trade turnover of Azerbaijan by 43.50 percent or $3.423 billion, while the EU countries - by 39.99 percent ($3.147 billion). Only 16.13 percent or $1.270 billion accounted for the CIS.

Azerbaijan’s exports to the EU countries amounted to $2.046 billion in January-June, or 53.54 percent of a total export volume ($3.821 billion) amid a 46.23 percent decrease. Imports from EU ($1.101 billion) decreased by 17.21 percent and amounted to 27.2 percent of a total import volume ($4.047 billion). As a result, the country had a black ink of trade balance with the EU at the level of $0.945 billion compared to the country's total trade deficit - $0.226 billion.

The exports to the countries-non-EU and CIS members dropped by 32.97 percent - to $1.462 billion in January-June or 38.25 percent of a total export volume, while imports - by 16.24 percent and reached $1.961 billion or 48.46 percent of the total import volume. As a result, the deficit worth $0.342 billion was observed in Azerbaijan’s trade relations with these countries.

The exports to the CIS countries for the period totaled $0.314 billion (8.21 percent of the total export volume) by increasing by 1.27 times and imports - $0.985 billion (24.34 percent) by decreasing by 4.72 percent. As a result, the country had a red ink in trading with them to the amount of $0.641 billion.

During this period, about 8,760 legal and physical entities were involved in foreign trade operations, including 4,002 - legal entities and 4,758 - physical entities.

The share of public sector in exports totaled $3.3 billion, private sector – $390.8 million, the share of physical entities - $123.15 million.

The share of public sector in import operations amounted to $660.9 million, the private sector - $3.14 billion, physical entities -$242.06 million.

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

source: Azerbaijani state customs committee