Foreign trade of Azerbaijan (January-May 2017)

The foreign trade turnover with 155 countries amounted to $7.26 billion in January-May 2017, or by 13.18 percent more than in the same period of 2016.

The volume of exports increased by 44.05 percent and amounted to $4.45 billion in January-May 2017 compared to January-May 2016. The volume of import decreased by 15.44 percent and reached $2.81 billion.

Azerbaijan exported 2,183 goods and imported 6,604 goods.

The black ink was estimated at $1.63 billion in January-May 2017, while red ink worth $281.5 million was observed in January-May 2016.

As in previous periods, oil, gas and oil products were mainly exported from Azerbaijan in January-May 2017.

Main products exported from Azerbaijan

Source: Azerbaijani state customs committee

Growth was observed in almost all main types of products exported from Azerbaijan in January-May 2017.

Most of Azerbaijan’s exports as of January-May 2017 (72.59 percent) accounted for the export of crude oil. During the reporting period, the country exported oil worth $3.23 billion. The cost of crude oil exports increased by 35.37 percent in January-May 2017 compared to January-May 2016. This is connected with a slight increase in the world oil prices. Currently, SOCAR supplies oil from Azerbaijan to more than 30 countries in Europe, Asia and America.

According to the Azerbaijani State Customs Committee, as of January-May 2017, the export of oil products from Azerbaijan decreased from year to year.

The export of oil products amounted to $133.58 million in January-May 2017, which is by 14.49 percent less than in January-May 2016.

As of 2017, three percent of the country's total export accounted for the export of oil products. A decrease in exports of oil products from the country is associated with the reconstruction of oil refineries in the country.

The positive dynamics is also observed in electricity exports in January-May 2017. Despite the share of electricity exports in Azerbaijan’s total exports was 0.38 percent, the index increased by more than fourfold compared to the same period of 2016. Thus, 393.4 million kW / h of electricity was sold to the foreign countries.

During the reporting period, the cost of export of natural gas increased by sixfold. Azerbaijan exported 3.09 billion cubic meters of natural gas in January-May 2017. The cost of these volumes of natural gas was $515.14 million.

The state measures of increasing the cotton production in the country have yielded results.

Cotton fiber was exported in the amount of $22.77 million in January-May 2017 or by over eightfold more than in January-May 2016.

An increase in the export of alcoholic and non-alcoholic beverages was observed in Azerbaijan, which was the result of state support for encouraging the best domestic producers to export their products, especially wines, under ‘Made in Azerbaijan’ brand to the foreign markets.

So, the country exported alcoholic and non-alcoholic beverages worth 10.15 million manat in January-May 2017, which is by 20.05 percent more than in January-May 2016.

The exports of aluminum and aluminum products also increased. In January-May 2017 aluminum was exported by 33.44 percent more than in January-May 2016. Some 1.08 percent of total export accounted for aluminum.

The volume of exports of fruits and vegetables which are the basis of agricultural exports of Azerbaijan continues to increase.

The exports of Azerbaijani agricultural products increased by 34.91 percent in January-May 2017 compared to January-May 2016.

Tomatoes and cucumbers, as well as walnuts and hazelnuts, cotton, tobacco are exported in big volumes from Azerbaijan.

Agrarian products were exported to Russia, as well as to other countries, for example, Ukraine and Kazakhstan.

The export of Azerbaijani chemical products has also increased since early 2017. So, export of chemical products increased by 6.5 percent and amounted to $21.26 million in January-May 2017 compared to January-May 2016. The share of chemical products was 0.48 percent in the total volume of export in January-May 2017.

The biggest volume of export accounted for Italy in January-May 2017. Thus, during this period Azerbaijan exported goods totaling $944.62 million to Italy which makes up 21.23 percent of a total export volume. Oil and oil products are mainly exported to this country.

Turkey ($590.8 million) and Portugal $210.6 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.

Italy and Azerbaijan have excellent bilateral and economic ties. Italy has remained the main trading partner of Azerbaijan, the fourth exporter and the first energy consumer for eight years. As for other sectors, Italy is also represented well in the metallurgical sector of Azerbaijan. The recent agreement signed between Danieli and Baku Steel Company testifies to it. Italian products are valued in Azerbaijan and it concerns not only fashion, furniture, food but also the products in such sectors as mechanics, engineering and technology.

Russia ranks first on the biggest import volume ($542.4 million) in January-May 2017. Some 19.26 percent of the Azerbaijani imports accounted for it. Turkey ranks second - $473.41 million and China - third ($274.56 million).

Most of Azerbaijan’s imports or 21.57 percent in the reporting period accounted for the import of machinery, mechanisms, equipment, electrical equipment and spare parts.

The machinery and equipment worth $607.65 million were imported in January-May 2017, which is by 22.1 percent less than in January-May 2016.

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 10.09 percent in January-May 2017, while this volume was 284.21 million manat in nominal terms or by 40.7 percent less than in January-May 2016.

Vehicles and spare parts worth $180.76 million (a share in total imports – 6.42 percent) were supplied to the country. The car imports decreased by 61.51 percent in January-May 2017 compared to January-May 2016.

Some 2,657 vehicles were imported into the country in January-May 2017.

Some 2,240 cars, 347 trucks, 36 buses and 34 special vehicles were supplied. Some 2,223 vehicles, including 1,939 cars, were imported in January-May 2016.

The import of butter, meat and dairy products greatly increased for the reporting period.

In particular, the cost of imports of meat increased by over twofold, milk – by 77.4 percent and butter - by 4.25 percent in January-May 2017 compared to January-May 2016.

Main products imported to Azerbaijan

source: Azerbaijani state customs committee

According to the Azerbaijani State Customs Committee, non-EU and non-CIS countries formed the foreign trade turnover of Azerbaijan at 46.51 percent or by $3.380 billion, while the EU countries - at 37.66 percent ($2.737 billion). Some 15.83 percent or $1.151 billion accounted for the CIS.

The export of Azerbaijani goods to the EU countries amounted to $2.076 billion in January-May 2017, which is 46.66 percent of a total export volume amid 1.21 times growth.

The import from EU by Azerbaijan decreased by 27.17 percent ($0.66 billion) and amounted to 23.44 percent of a total import volume. As a result, Azerbaijan had a black ink of trade balance with the EU at the level of $1.416 billion, which is slightly less than the country's total black ink ($1.633 billion).

The exports to the non-EU and non-CIS countries increased by 1.79 times up to $2.04 billion in January-May 2017 or 45.85 percent of a total export volume, while imports decreased by 18.25 percent and reached $1.339 billion or 47.54 percent of the total import volume.

As a result, the black ink worth $0.711 billion was observed in Azerbaijan’s trade relations with these countries.

The exports to the CIS countries for the reporting period totaled $0.333 billion (7.49 percent of the total export volume) by increasing by 1.44 times, and imports - $0.817 billion (29.04 percent) by increasing by 3.93 percent. As a result, the country had a red ink worth $0.484 billion in trading with the CIS countries.

During this period, about 7,873 legal and physical entities were involved in foreign trade operations, including 4,099 - legal entities and 3,774 - physical entities.

The share of public sector in exports totaled $3.57 billion, private sector –$783.5 million, the share of physical entities - $95.61 million.

The share of public sector in import operations amounted to $329.93 million, the private sector –$2.32 billion, physical entities – $168.49 million.

Azerbaijan’s trade operations with foreign countries in January-May 2017

source: Azerbaijani state customs committee