Azernews.Az

By Aynur Jafarova

Budget revenues of Azerbaijan's state oil fund SOFAZ in January-September 2013 exceeded 10 billion manats, while budget expenditure constituted over 8.7 billion manats, SOFAZ said on October 21.

As of October 1, the fund's assets increased by 4.9 percent and stood at $35.8 billion.

According to SOFAZ, revenue worth over 9.77 billion manats was received from the implementation of oil and gas agreements.

During the reporting period the revenues from managing the fund's assets amounted to 311.2 million manats.

In January-September 2013, the fund transferred over 8.3 billion manats to the state budget.

The spending worth 249.3 million manats was directed to financing the improvement of social conditions of the refugees and internally displaced persons, while 106.4 million manats were spent on financing the reconstruction of the Samur-Absheron irrigation system, 10.9 million manats on financing the construction of the Baku-Tbilisi-Kars regional railway and 12.4 million manats on financing the state program on the education of Azerbaijan youth abroad in 2007-2015.

SOFAZ's administrative and operational expenses for the reporting period made up 27.8 million manats, while its extra-budgetary expenditures related to the revaluation of foreign exchange totaled 38.7 million manats.

The gold reserves purchased by SOFAZ amounted to 26 tons and 442 kg (850,146 ounces) as of October 1.

SOFAZ, an entity that accumulates and manages Azerbaijan's oil and gas revenues, was established in 1999 with assets of $271 million. The main purposes of the fund are the accumulation of funds and placement of assets abroad to minimize the negative impact on the economy, preventing the "Dutch disease", to ensure savings for future generations, and to maintain the current social and economic standards in the country.

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