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President Aliyev approves SOFAZ budget

25 June 2015 11:45 (UTC+04:00)
President Aliyev approves SOFAZ budget

By Aynur Karimova

President Ilham Aliyev has signed a decree on the budget of Azerbaijan's state oil fund SOFAZ for 2014.

According to the document signed on June 24, the president approved the implementation of the SOFAZ budget with its revenues at over 12.731 billion manats and expenditures at over 10.117 billion manats.

The revenues of the budget were fulfilled at 109.5 percent wile the expenditures at 95.5 percent.

SOFAZ, an entity that accumulates and manages Azerbaijan's oil and gas revenues, was established in 1999 with assets worth $271 million.

The main purposes of the fund are accumulation of funds and placement of assets abroad to minimize negative impacts on economy, prevention of the 'Dutch disease', ensuring savings for future generations, and maintaining the current social and economic standards in the country.

SOFAZ assets are placed partly in securities, money market instruments (deposits, bank accounts).

According to SOFAZ's investment strategy, up to five percent of the investment portfolio may be invested in stock, up to five percent in real estate and up to five percent in gold.

SOFAZ's revenues in the first quarter amounted to 2,028 million Azerbaijani manats, while expenses stood at 2,335.6 million manats.

The revenues from realization of oil and gas contracts stood at 1,938.9 million manats, including the revenues from the sale of the profit oil and gas - 1,936.3 million manats, and the revenues from transit operations - 2.6 million manats.

SOFAZ’s revenues in the reporting period from the management of its own funds totalled 89.1 million manats.

SOFAZ spent 307.4 million manat on the Southern Gas Corridor project to pipe natgas from BP-led Shah Deniz field in the Caspian Sea to Turkey and Europe. Also 3.9 million manats were directed to finance the construction project of the new Baku-Tbilisi-Kars railway.

In SOFAZ’s expenses, transfers to the state budget amounted to 1,941.7 million manats.

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Aynur Karimova is AzerNews’ staff journalist, follow her on Twitter: @Aynur_Karimova

Follow us on Twitter @AzerNewsAz

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