Foreign Trade in Azerbaijan

A total of 1,494 kg of gold was produced in Azerbaijan in January-October this year

2011-11-23T15:21:00.002+04:00

This constitutes a drop of 10.8% compared to the same period last year, the sources in the State Statistics Committee said.

The silver production increased 10.7% to settle at 1,063 kg over this period.

As of 1 November, the stocks of finished metal ores and concentrates totaled 50 kg with gold accounting for 29 kg and silver 21 kg of this volume.

Azerbaijan produced 1,965 tonnes of metal ore in January-October.

Gun.Az

Central Bank chief forecasts double-digit growth

2011-11-23T14:55:00.000+04:00

Central Bank Chairman Elman Rustamov is forecasting double-digit growth in Azerbaijan over the next 10 years.

He told parliament today that the balance of payments surplus would reach $14bn this year, while the country's total currency stocks are approaching $42bn, APA reported.

“We don’t see any macroeconomic risk for Azerbaijan’s economy in the medium term. According to our calculations, Azerbaijan will have a double-digit rate of development – 10-12% growth – in the next 10 years.”

He said that achieving this growth would require foreign investment and suggested reducing taxes in order to attract more investment.
"The flow of foreign investment to Azerbaijan requires a lower tax burden than than in the countries where the capital comes from. Azerbaijan is in 95th place in the world in this respect while Kazakhstan and Georgia lag behind. I think that the tax burden needs to be reduced and at the same time the tax burden should be redirected from production to consumption. In neighbouring Turkey there is a heavy tax burden on jewellery, decorative items and cars. Social taxes are high too. We think that social taxes should be competitive."
Commenting on the draft state budget for next year, Rustamov said that it had been drafted very well.
“It has resilience. Budget expenditure is 37% of national product and this is the G20 limit. The base price set for oil is conservative - the IMF is forecasting $102. Social programs are continuing. We are not stopping any social program or slowing the tempo."
Azerbaijan's draft budget for 2012 sets the price of oil at $80 per barrel.
The Central Banker told parliament it was important to keep a lid on inflation.
"We need to try to keep inflation no higher than 5%."
He said it was important to keep the manat exchange rate low to promote exports.
APA

Azerbaijan to submit answers to WTO questions until end of January

2010-01-13T11:03:00.000+04:00

Azerbaijan to submit to WTO answers to next questions of WTO members until end of January.

The Azerbaijani government continues the process of negotiations within the frames of process of reception by the country of full membership in the World Trade Organization (WTO).

Azerbaijani Deputy Foreign Minister Makhmud Mammadguliyev informed that preparation of answers to the questions, which members of working group for Azerbaijan had after the round of multilateral negotiations with WTO, took place in July, 2009, was finished practically at present.

“The answers will be presented to the WTO Secretariat until the end of January. As the result, we will have theoretical opportunity to hold a next meeting of the working group as early as in March- April.

Bilateral negotiations with members of WTO should precede it,” M. Mammadguliyev said.

The Azerbaijani government hopes that it will succeed in conducting the next event with WTO early 2010.

On July 21-22, bipartite negotiations were held on WTO membership conditions with the United States and the European Union. On July 23, negotiations concerning issues of internal support of farm producers took place and involved reps of the US, Canada, Australia, Turkey, other countries and the European Commission. In them Azerbaijan presented Table ACC/4.

Azerbaijan appreciated positively the first round of multilateral negotiations with the World Trade Organization (WTO) on inner support of agriculture, took place in Geneva on 23 June.

A meeting considered presented by Azerbaijan the table on inner support of agriculture on the basis of date for 2005-2007, which the WTO members did not remark, but asked to specify some issues.

Today, the issue on privileges, which the county will gain on “yellow’ basket of inner subsidization, becomes important. Referring itself to developing countries, Azerbaijan will claim for level of subsidies not less than 10% of goods cost of agriculture production. In addition, the country can rely on definite amount of AMC subsidies. In the government’s opinion, this sum could be more, than now. The country informed WTO of its position concerning this issue and expects reaction from its members.

Since 1997, Azerbaijan has observer status at WTO.

TRACECA announces big projects for 2010

2010-01-12T11:08:00.002+04:00

TRACECA (Transport Corridor Europe-Caucasus-Asia), international transport program has unveiled the major projects to be implemented in 2010.

The projects include construction of the new Baku-Tbilisi-Kars railway and Baku International Trade Seaport, logistics center.

The action plan also highlights air and railway security, drop in transport tariffs.

The international program will embark on two more projects in 2011. Introduction of new standards in the air and sea transport is one of these projects.

Technical projects will be followed by a number of huge investment programs.

The largest ones will be realized in Azerbaijan. The European Commission has already set aside ?15 million to fund these projects.

A total of 60 projects worth ?160 million are planned to be implemented in the TRACECA member countries.

1.9 million tons of Kazakh oil transported via BTC pipeline in 2009

2010-01-12T11:07:00.002+04:00

Transportation of Kazakh oil via Baku-Tbilisi-Ceyhan (BTC) launched in Oct. 2008 stabilized in Dec. 2009.

The Azerbaijani State Statistics Committee (SSC) said Kazakh oil transportation via BTC pipeline totaled about 1.8 million tons in Jan.-Nov. 2009.

In Dec., 175,300 tons were transported compared to 188,700 tons in Nov., 187,300 tons in Oct., 100,000 tons in Sept., 200,000 tons in Aug., 92,300 tons in July, 152,900 in June, 163,000 tons in May, 137,700 tons in April, 152,800 tons in March, 240,200 tons in February and 161,100 tons in Jan. 2009.

“From Oct. 2008 to 1 Jan. 2008, Kazakh oil transit via BTC pipeline totaled 2.2 million tons,” it was reported.

In Oct.-Dec. 2008, Kazakh oil transit via BTC pipeline totaled 285,100 tons.

36.2 million tons of Azerbaijani oil transported via BTC in 2009

2010-01-12T11:06:00.002+04:00

The State Oil Company of Azerbaijan Republic (SOCAR) has renewed statistical data on Azerbaijani oil export via the major pipeline Baku-Tbilisi-Ceyhan (BTC) named after Heydar Aliyev.

SOCAR said that 2.8 million tons of Azeri oil was delivered via BTC to Turkey’s Ceyhan port in Dec. 2009.

“In 2009, transport of Azerbaijani oil totaled 36.2 million tons,” SOCAR said.

Roughly 106.5 million tons were supplied via BTC to Ceyhan port of Turkey since the pipeline was launched.

BTC transportation totaled 3.1 million tons in March, a little less than 3 million tons in April, 3.3 million tons in May, 3.3 million in June, 3.193 million tons in July, 3.28 million tons in Aug., 3.07 million tons in Sept., 3.2 million tons in Oct. and 2.9 million tons in Nov.

Azerbaijan launches gas export to Russia on January 1, 2010

2010-01-12T11:03:00.000+04:00

Azerbaijan has launched natural gas export to Russia from 11.00am on January 1, 2010.

Head of Gas Export Department of the State Oil Company of Azerbaijan Republic (SOCAR), and Qasan Abdurrakhmanov , Deputy Director of Dagestan Regional Office of Russia’s Gazprom attended the ceremony to launch export in bordering Shirvanovka village in Gusar region of Azerbaijan. Gas will be exported via the Mozdok-Gazmammad pipeline.

Kamal Abbasov told that under the agreement, Azerbaijan will pump at least 500 million cubic meters of gas a year at the initial phase, with supplies expected to increase to 1 billion cubic meters a year soon in the future. The probability of further increase is not ruled out either.

On October 14, Rovnag Abdullayev, President of the State Oil Company of Azerbaijan (SOCAR), and Alexei Miller, chief executive of Gazprom of Russia, have today signed an agreement on the export of Azeri gas to Russia.
According to the agreement, the price will be based on a special formula which Azerbaijan said “is normal and suits us”.

Gazprom to purchase as much gas as Azerbaijani side can supply

2010-01-12T11:02:00.000+04:00

Last year we managed to hold constructive negotiations with the Azerbaijani counterparts, chairman of Gazprom said.

The beginning of 2010 was marked by a very important event- for the first time Gazprom started to purchase natural gas in Azerbaijan, said chairman of the gas concern Alexei Miller, according to the official website for Gazprom.

“Last year we managed to hold constructive negotiations with the Azerbaijani counterparts and the gas entered our system within just several months after signing the contract”, Miller said.

He noted that he had no doubts that these agreements will be reached.

“Gazprom offered more competitive provisions of gas supplies in Azerbaijan, as we have everything for this: the border between our countries and the working gas transportation infrastructure”, said he.

According to Miller, the specific feature of the signed contract is that the upper margin of gas purchase has not yet been set.

“We will purchase as much as the Azerbaijani side will be able to supply. There are not such provisions in any other agreement of Gazprom which proves the high level of our partner relations”, Miller noted.

Russia become's Azerbaijan's second trade partner, behind Italy

2009-12-24T11:21:00.000+04:00

Russia is now Azerbaijan's second largest trading partner, ahead of the USA, following the release of November's trade figures.
Azerbaijan still has by far the highest trade turnover with Italy, $3.547bn, in the year to November, the State Statistics Committee reported on Monday.
Over the reporting period Russia had trade of $1.65bn.
In January to November Italy was Azerbaijan’s key export trade partner ($3.425bn or 26.02% of all exports) while the USA had $1.59 bn of exports (12.09%) and France $1.1 bn (8.38%).
Israel was in fourth position, importing $1.015m of goods from Azerbaijan (7.71%), Russia $686.03m (5.21%), Taiwan $680.39m (5.17%), Canada $507.077m (3.85%), Indonesia $505.8m (3.84%), Malaysia $387.557m (2.94%) and Georgia $364.02m (2.76%).

Russia remained Azerbaijan's leading import partner in the reporting period with Azerbaijan importing Russian goods worth $966.06m, 17.73% of all imports.

Turkey was Azerbaijan's second import partner with $791.3m (14.52%) of goods, Germany had $501.69m (9.21%), Ukraine $469.407m (8.62%) and China $410.75m (7.54%). Azerbaijan imported just $122.2m worth of goods from Italy, its key export partner.
In January to November Azerbaijan's foreign trade turnover with CIS countries totalled $3.2bn or 17.2% of all foreign trade, compared to 7.21% in 2008.

In the first 11 months of the year, Azerbaijan exported to the CIS countries commodities for $1.5 bn (31.08% of all exports) and imported goods for $1.69 bn (31.08% of all imports).

Exports to the CIS countries were mainly mineral fuel, oil, petroleum products and bitumen materials (51.41%), maritime and other vessels (10.11%), animal and vegetable oils (7.38%), fruit (6.2%) and ferrous metals (5.39%).
Animal and vegetable oils dominated imports from the CIS (11.28%), electronic equipment (8.65%), ground transport vehicles (8.06%), equipment (7.96%) and planes (6.77%).

Azerbaijan’s foreign trade turnover with non-CIS countries totaled $15.4bn in the reporting period or 82.8% of foreign trade turnover of the country.
Trade with non-CIS countries was $1.76bn in November. In the first 11 months of the year, exports to non-CIS countries totalled $11.65bn (88.51% of all exports) and imports $3.755bn (68.92% of all imports), giving a positive balance of trade of $7.897bn.

Exports outside the CIS were mainly mineral fuel, oil and petroleum products, bitumen minerals (98.18%), polymers and polymer products (0.36%), fruit (0.23%), jewels and semi-precious stones, precious metals, ornaments (0.2%) and sugar and sugar products (0.19%).
Imports were mainly equipment and mechanical appliances (24.18% of all imports), electronic equipment and devices (19.45%), ground transport vehicles (9.93%) and ferrous metal goods (7.3%).

Azerbaijan exported oil products for $1.4 bn in 2009

2009-12-21T11:49:00.000+04:00

For Jan-Nov 2009 Azerbaijan imported oil products for $49.8 million and exported for $1.4 bn.
For Jan-Nov 2009 Azerbaijan imported 55,948 tons of petroleum products for $49.837 million versus 78,855 tons for $96.78 million in 2008. This November import totaled 2,385 tons for $3.36 million against 2,455 tons for $2.38 million in October, 1,777 tons for $1.95 million in September, 8,476 tons for $6.58 million in August, 11.192 million tons for $6.772 million in June and 3.689 million tons for $3.397 million in May.

The State Customs Committee has informed for Jan-Nov 2009 the share of oil products in country’s overall import made only 0.91%.

For Jan-Nov 2009, as well as in 2008, Azerbaijan did not import oil gas and other gas hydrocarbons, while their import in 2007 reached 470.118 million cu m for $52.086 bn (0.91% of 2007 overall import).

For Jan-Nov 2009 export of oil products from Azerbaijan totaled 2.88 million tons for $1.36 bn (10.35% of country’s overall export with 30.54% decline versus Jan-Nov 2008). The past year’s export of oil products from Azerbaijan totaled 2.847 million tons for $2.05 bn, and for November 2009 – 179,171 tons for $97.119 bn.

For Jan-Nov 2009 it was exported 2.09 million tons of petroleum products for $879.37 million in freely convertible currency in accordance with the contracts versus 2.8 million tons of petroleum products for $2.02 bn in 2008.

For Jan-Nov of the year sales in accord with contracts in national currency totaled 767,580 tons for $471.475 million, and registration for export in accord with conventional declarations was passed by 128,546 tons versus 37.505 tons for $31.668 million for the 2008 same term.

For Jan-Nov 2009 the SOCAR Department of Marketing & Economic Operations exported 1.916 million tons (66,53%) of petroleum products, Department AZAL Oil CJSC of Azerbaijani Airlines AZAL 767,580 tons (26.64%), oil-processing plant Azneftyag 114,259 tons (3.97%), and Ilqar Firm 50,916 tons (1.77%).

In 2008, the SOCAR Department of Marketing & Economic Operations exported 2.47 million tons (86.89%) of petroleum products, QKSSS LLC 98,274 tons (3.45%), Azneftyag 92,333 tons (3.24%), Caspian Petrol-1 69,210 tons (2.43%).

For Jan-Nov 2009 foreign trade turnover of Azerbaijan totaled $18.614 bn, including import of $5.448 million and export of $13.165 bn.

Azerbaijani foreign trade turnover exceeded $18.6 bn in 2009

2009-12-21T11:46:00.000+04:00

For Jan-Nov 2009 country’s foreign trade turnover reached $18.6 bn versus $54.9 bn for 2008.
This November the figure totaled $2.096 bn against $2.16 bn in October.

The State Customs Committee (SCC) informs that between January and November of 2009 Azerbaijan exported commodities of 935 names in the amount of $13.165 bn (-71.97% or $33.807 bn versus Jan-Nov 2008) against $47.756 bn in 2008 and imported goods of 4,801 names in the amount of $5.448 bn (-16.17% or $1.05 bn versus Jan-Nov 2008) against $7.16 bn in 2008.

Positive balance on import and export operations amounted to $7.716 bn against $40.59 bn for 2008.

In 2009, the biggest export was registered in October ($1.568 bn) and the least export in January ($694.489 million) with average monthly growth of export by $91.056 million. The largest import was registered in October ($579.539 million) and the least one in March ($395.8 million) with average monthly fall of $2.506 million.

This November export operations dropped by $36.4 million versus October and import operations by $90.827 million.

For Jan-Nov 2009 Azerbaijan’s resident and non-residents conducted trade operations with 138 countries of the world. Foreign trade operations involved totally 8,753 legal entities and individuals (3,938 and 4,815 respectively).

The share of state sector in export operations made up 93.5% or $12.309 bn, private sector - 5.4% or $715.156 million, individuals 1.07% or $140.46 million.

The share of state sector in import operations made up 32.63% ($1.78 bn), private sector 62.51% ($3.406 bn) and individuals 4.86% or $264.8 million.

AZƏRBAYCAN RESPUBLİKASININ GÖMRÜK MƏCƏLLƏSİndə Malların İxracı Rejimi ilə əlaqəli maddələr

2009-12-04T11:59:00.000+04:00

14-cü fəsil

Malların İxracı

Maddə 96. Gömrük rejiminin məzmunu

Malların ixracı — malların Azərbaycan Respublikasının gömrük ərazisindən bu əraziyə qaytarılmaq haqqında öhdəlik götürülmədən aparılmasından ibarət gömrük rejimidir.

Maddə 97. Malların ixracı zamanı qoyulan tələblər

Malların ixracı, ixrac gömrük rüsumlarına, vergilərinə, digər gömrük ödənişlərinə əməl olunması, iqtisadi siyasət tədbirlərinə riayət edilməsi, bu Məcəllədə və gömrük işi sahəsində Azərbaycan Respublikasının digər qanunvericilik aktlarında nəzərdə tutulan tələblərin yerinə yetirilməsi şərtilə həyata keçirilir.

Azərbaycan Respublikasının vergi qanunvericiliyinə uyğun olaraq ixrac zamanı mallar vergidən azad edilə və ya ödənilən vergi məbləğləri qaytarıla bilər.

Maddə 98. İxrac gömrük rejimində malların buraxılışı

Təbii aşınma nəticəsində dəyişikliklər və ya normal şəraitdə daşınma və saxlanc itkiləri istisna edilməklə, ixrac gömrük rejimi ilə buraxılan mallar Azərbaycan Respublikasının gömrük ərazisindən kənara çıxarılarkən gömrük bəyannaməsinin qəbul edildiyi andakı vəziyyətdə olmalıdır.

Azerbaijan and World Bank sign agreements on rail mega project

2009-12-04T11:26:00.000+04:00

Azerbaijan and the World Bank have accomplished renewal of the draft agreement on Rail Trade and Transport Facilitation Project.

The Azerbaijani government and the World Bank (WB) have accomplished renewal of the draft agreement on Rail Trade and Transport Facilitation Project in connection with transformation of Azerbaijan State Railway Company (Azeri acronym: ADDY) into Azerbaijani Railway CJSC (ADY).

The Baku-based WB resident office reports that today the Azerbaijani government has been submitted an updated version of the draft agreements within the project.

“The renewal touched confirmation of ADY status and change of the implementation dates indicated in the draft agreements,” the WB office emphasized.

Earlier finance minister Samir Sharifov was authorized for signing of a loan agreement with WB and transport minister Ziya Mammadov for signing of project agreement.

"Gerald Olivier supervising the project is to visit Baku from 13 to 17 December. We hope that the package of agreements will be signed in the course of his Baku visit,” the WB office said.

In spring 2008 the WBG Board of Directors endorsed a $450 million loan for Rail Trade and Transport Facilitation Project that has become the WBG biggest one since 1995 when WBG opened financing for Azerbaijan. The loan will be disbursed through International Bank of Reconstruction & Development (IBRD) for 17-year period with 4-year grace term.

The project targets to improve railway services in Azerbaijan, as well as the competitiveness, financial sustainability, operating and cost efficiency and capacity of ADDY. The project with $795 million budget was focused on development of corridor toward to Georgia. 90% of the budget will be directed for transport and 10% for industry and trade.

In spring 2008 ADDY chief engineer Gurban Nazirov said that ADDY intended to upgrade its locomotive fleet and replace equipment fully in this line by buying 50 locomotives as the project stipulates transfer to alternating current when supplying power for Baku – Beyuk Kesik railway line.

Alternating current will allow increase of speed of trains.

Population incomes increase in Azerbaijan

2009-12-03T15:05:00.000+04:00

Incomes of the Azerbaijani population made 18 bn AZN within 10 months of this year which is a 7.8% growth over the same period of this year.
According to the State Statistical Committee, in 10 months of 2009 the incomes of the population made 16.5 bn AZN. In this period GDP made 34.4 bn AZN which means that the incomes of the population made 48% of the gross domestic product.

Azerbaijan leads CIS on GDP and industrial output

2009-12-03T14:57:00.000+04:00

Azerbaijan recorded the highest GDP of the CIS countries in January to October this year, 8.2%.

The figures were announced by the CIS Interstate Statistics Committee.
Uzbekistan had the next highest GDP in the reporting period, 8%, followed by Kyrgyzstan, 3.2% and Tajikistan, 2.9%.
In the first 10 months of the year, GDP in the CIS countries fell 9% overall in comparison with the same period last year. Armenia had the highest fall, around 17.5 percent, while GDP fell 15.9% in Ukraine and 9.6% in Russia.
Azerbaijan is the only CIS country to have achieved growth in industrial production. In January to October industrial output increased 7.4% compared with the same period in 2008.
During the reporting period, industrial output in Moldova fell 24.1%, Kyrgyzstan – 13.9%, Russia – for 13.3%, Armenia – 11.4%, Tajikistan – 8.6%, Belarus – 4.5% and Kazakhstan 0.2%.

Azerbaijan predicts growth in cargo transportation

2009-12-02T10:34:00.002+04:00

Azerbaijan predicts 28% growth in cargo transportations for 2014 up to 249.3 mln tons, as compared to the expected indicator for 2009.

Under the forecasts, cargo transportations will make 193.9 mln tons in 2009, 209.6 mln tons in 2010, 223 mln tons in 2011, 233 mln tons in 2012.

The highest volume of cargo will be transported by cars in 2010-2013.

In particular, according to forecasts, transportations by cars will reach 129.7 mln tons in 2013 (36.5% growth, as compared to the indicator expected for 2009).

Railway transportations in 2013 will make 30 mln tons (25% growth), sea transportation will equal 15.4 mln (16.6% growth) and air transportations will amount to 0.07 mln (2.3 times). The volume of transportations via pipelines in 2013 must reach 74.2 mln tons (20.2% growth).

At the same time, oil transportation via BTC pipeline in 2013 is predicted at 40.9 mln tons (12.9% growth) in 2013. In 2010 the BTC pipeline will transport 40.2 mln tons of oil, in 2011-42.4 mln tons and in 2013-38.1 mln tons.

Shipping volume increased by 14,6 percent

2009-12-02T10:31:00.000+04:00

Shipping volume in January-October 2009 has increased by 14,6 percent and reached 11,1 million tons, the State Stats Committee said.
Three-fourth of ship freight was oil products, while one-fourth was dry cargo. All goods were transported abroad. In the mentioned period, marine transportation cargo turnover has increased by 6,4 percent and made up 268,4 bln ton-km.
Baku International Sea Trade Port has realized loading-unloading operations of 4,3 mln tons. Currently, the remained export goods in the Port make 2,1 times less than that of the same period of previous year.

Russia interested in privatization of Azerbaijani telecommunication operators

2009-12-02T10:24:00.000+04:00

Russia's Rostelecom and Sistema have expressed interest in bidding for the privatization of the two state-run telecommunication operators of Azertelekom and Bakı Telefon Rabitesi in Azerbaijan.

Rostelecom plans to construct a backbone network in the CIS (former USSR) countries and intends to acquire any operators that meet its requirements.

Systema is expected to confirm its intention after the target companies announce their privatization terms and conditions.

Azerbaijan’s Minister of Communications and Information Technologies Ali Abbasov said on the sidelines of the RCC meeting in Minsk that the two above-mentioned operators will be privatized next year.

The both companies are wholly state-owned, and valuations thereof are still ongoing.

Azerbaijan-Belgium Business Forum held in Baku

2009-11-25T17:25:00.002+04:00

Baku hosted the Azerbaijan-Belgium business forum with participation of companies based in Flandria of Belgium on Nov. 23.

The forum was attended by about 15 Belgian and 40 Azerbaijani businessmen.

Samir Valiyev, Officer of the Ministry of Economic Development, said that the participants include companies specialized in the areas of agriculture, industry, transportation, and consulting.

He spoke about the economic potential of Azerbaijan and public policy.

He hailed the development of bilateral relations between Azerbaijan and Belgium a 46 percent year-on-year rise in the trade turnover during January-September 2009 despite the global economic crisis.

Azerbaijani Ambassador to Belgium Emin Eyubov told the foreign businessmen that the tourism, industry and agriculture are the priority areas in Azerbaijan.

Belgian Ambassador to Azerbaijan Phillip Jettard noted that this is the first Belgian trade mission to Azerbaijan, adding that Belgium supports Azerbaijan’s WTO accession.

The Belgian businessmen were also told about the activities and projects of Azerbaijan Exports and Investment Promotion Foundation (AZPROMO) and Azerbaijan Investment Company.

U.S. company sells its stake in largest oil project in Azerbaijan

2009-11-25T17:23:00.000+04:00

The U.S. company Devon Energy is selling its share in the development of the Azeri-Chirag-Guneshli (ACG) offshore unit in Azerbaijan, hoping to focus on mining projects in the U.S.

"We will sell our stake in the ACG project, as well as all our international assets, including assets in the Gulf of Mexico," Devon Energy Spokesman Chip Minty wrote Trend Capital in an e-mail today.

According to the company official, Devon Energy has decided to focus its activities on onshore projects in North America, "where the company has more opportunities to drill."

According to some reports, Devon Energy will sell its share in the first quarter of 2010.

Devon Energy has a 5.62-percent equity share in the ACG project. Its total reserves of oil deposits exceed 900 million tons.

ACG participating interests are: BP (operator - 34.1 percent), Chevron (10.2 percent), SOCAR (10 percent), INPEX (10 percent), StatoilHydro (8.6 percent), ExxonMobil (8 percent), TPAO (6.8 percent), Devon (5.6 percent), ITOCHU (3.9 percent), and Delta Hess (2.7 percent).

In the first three quarters of 2009, BP produced roughly 224 million barrels of oil from the ACG fields, which on average is over 822,100 bpd, BP reported earlier.

The Baku-Supsa pipeline on the Black Sea coast of Georgia transports Azeri Light oil varieties produced from the field. The project partners, not including ExxonMobil and Devon Energy, transport major volumes of oil via the Baku-Tbilisi-Ceyhan on the Mediterranean coast of Turkey. ExxonMobil and Devon Energy, not being members of the Baku-Tbilisi-Ceyhan oil pipeline, transport their energy by rail in the direction of the Georgian Black Sea ports.

Home trade turnover topped $11.8 bn in Azerbaijan

2009-11-25T17:19:00.000+04:00

For Jan-Oct of the year domestic trade turnover in Azerbaijan reached $11.814 bn at the rate by early November that makes up 87.1% of the 2008 trade turnover (AZN 10.9 bn or $13.608 bn).

In 2007 the turnover was AZN 7.6 bn or $8.99 bn.

The State Statistics Committee reports that for the last 10 months domestic commodity turnover totaled AZN 9.489 bn with growth by 8.7% compared to the 2008 relevant term. Legal entities provided 15.5% of trade turnover, fairs and markets 41.98%, and sole proprietors 42.48%.

“Turnover on food rose by 10.6% up to AZN 6.15 bn versus 7 bn in 2008 and on manufactured goods by 4.3% up to AZN 3.339 bn versus AZN 3.9 bn in 2008,” the Committee reports.

For Jan-Oct 2009 volume of paid services to the population made AZN 3.203 bn (rise: 12.6%) versus AZN 3.4 bn (+29.7%) in 2008. Individual employers provided 20.03% of services and legal entities 79.97% with rise of 11.3% and 12.9% respectively.

This October trade turnover totaled AZN 1.024 bn (AZN +29.1 million against this September’s index), including on foods AZN 643 million (AZN +36 million) and AZN 382 million (+AZN 25 million) on non-foods.

Volume of services reached AZN 397.9 million with rise of AZN 16.7 million versus September of the year.

For Jan-Oct 2009 average trade turnover per resident made AZN 143.3 ($178.41) that exceeds last year’s same period figure by AZN 13.4.

Before this August this year’s average trade turnover per resident was AZN 138.5 ($172.2) that exceeds last year’s same period figure by AZN 14.3.

For Jan-Apr 2009 average trade turnover per resident totaled AZN 138.4 ($172.25) that exceeded last year’s same period figure by AZN 18.7.

Oil Fund assets topped $14.2 bn by this November

2009-11-25T17:16:00.000+04:00

This October assets of the State Oil Fund of Azerbaijan (SOFAZ) grew by over $900 million.
Fund’s executive director Shakhmar Movsumov says that by late October SOFAZ assets reached $14.2 bn.

“As of 31st October SOFAZ’s transfer to State Budget totaled AZN 4.1 bn ($5.1 bn) out of AZN 4.9 bn ($6.1 bn) targeted for 2009,” Mvsumov said.

As of 1st October 2009 Fund’s assets were $13.337 bn.

“As of 31st October 2009 Fund’s revenues from assets management made up AZN 595 million against the forecast of AZN 211.4 million for this year,” he emphasized.

All the SOFAZ finances are placed abroad.

Russia is one of the key foreign trade partners of Azerbaijan

2009-11-25T17:13:00.000+04:00

Russia almost gets up to US on volume of trade with Azerbaijan.
This October Russia with mutual goods turnover for на $1.512 bn has not only strengthened its positions in the trio of key foreign trade partners of Azerbaijan but also almost gets up to the US ($1.569 bn).

While Italy’s leading position ($3.06 bn) is simply indisputable.

The State Customs Committee (SCC) informs that for Jan-Oct 2009 foreign trade turnover of Azerbaijan with CIS countries totaled $2.87 bn or 17.9% of overall foreign trade turnover of the country ($16.5 bn) versus 7.21% for 2008.

This October trade turnover with these countries made up $331.186 million.

For Jan-Oct of the year Azerbaijan exported to the CIS countries commodities for $1.3 bn (11.46% of whole export) and imported goods for $1.547 bn (31.22% of whole import). Azerbaijan had $222.766 million of negative balance in trade with these countries.

Export to the CIS countries included mainly mineral fuel, oil, petroleum products and bitumen materials (50.19%), vessels and other swimming facilities (11.53%), animal and vegetable oils (7.58%), ferrous metals (6.09%).

In import such kinds of goods dominated as animal and vegetable oils (11.09%), electric machines and equipment (9.26%), ground transport means (8.16%), equipment and mechanisms (8.02%) and flying machines (6.58%).

Azerbaijan’s foreign trade turnover with non-CIS countries totaled $13.645 bn or 82.61% of foreign trade turnover of the country.

This October trade turnover with them made up $1.8 bn. For 10 months export to non-CIS countries totaled $10.236 bn (88.54% of whole export), import - $3.4 bn (68.78% of entire import) and the country had $6.827 bn of positive balance with them.

Export consisted of mainly mineral fuel, oil and petroleum products, bitumen minerals (98.16%), polymers and products made of them (0.37%), fruits (0.21%), jewels and semi-precious stones, precious metals and wares, made of them, bijouterie, ornamentals (0.21%), sugar and products made of it (0.19%).

And import included mainly equipment and mechanical appliances (24.45% of whole import), electric equipment and devices (18.91%), ground transport vehicles (10.06%) and wares made of ferrous metal (7.53%).

For Jan-Oct 2009 Italy became Azerbaijan’s key export trade partner ($2.948 bn or 25.51% of whole export) and the USA with $1.37 bn (25.51%) and France with $1.017 bn (8.8%) entered the trio.

Then follow Israel $856.9 million (7.41%), Taiwan $680.39 million (5.89%), Russia $617.748 million (5.34%), Canada $433.355 million (3.75%), Indonesia $431.89 million (3.74%), Malaysia $387.557 million (3.35%) and Georgia $335.066 million (2.9%).

Russia remained the leader on import operations with $894.4 million (18.04% of whole import).

Then follow Turkey with $722.576 million (14.58%), Germany $468.99 million (14.46%), Ukraine $423.88 million (8.55%) and China with $355.5 million (7.17%). For comparison, Italy had $115.288 million (2.33%).

In 2008, the trio consisted of Italy, the United States and Israel.

Azerbaijan exported oil products for $1.27 bn in 2009

2009-11-23T16:55:00.000+04:00

For Jan-Oct 2009 Azerbaijan imported 53,563 tons of petroleum products for $46.475 million versus 78,855 tons of petroleum products for $96.78 million in 2008.
This October import totaled 2,455 tons for $2.38 million against 1,777 tons for $1.95 million in September, 8,476 tons for $6.58 million in August, 11.192 million tons for $6.772 million in June and 3.689 million tons for $3.397 million in May.

The State Customs Committee has informed for Jan-Oct 2009 the share of oil products in country’s overall import made only 0.94%.

For Jan-Oct 2009, as well as in 2008, Azerbaijan did not import oil gas and other gas hydrocarbons, while their import in 2007 reached 470.118 million cu m for $52.086 bn (0.91% of 2007 overall import).

For Jan-Oct 2009 export of oil products from Azerbaijan totaled 2.7 million tons for $1.266 bn (10.95% of country’s overall export with 27.78% decline versus Jan-Oct 2008). The past year’s export of oil products from Azerbaijan totaled 2.847 million tons for $2.05 bn, and for October 2009 – 203,897 tons for $102.047 bn.

For Jan-Oct 2009 it was exported 1.917 million tons of petroleum products for $786.18 million in freely convertible currency in accordance with the contracts versus 2.8 million tons of petroleum products for $2.02 bn in 2008.

For Jan-Oct of the year sales in accord with contracts in national currency totaled 761,568 tons for $467.5 million, and registration for export in accord with conventional declarations was passed by 22,349 tons versus 37.505 tons for $31.668 million for the 2008 same term.

For Jan-Oct 2009 the SOCAR Department of Marketing & Economic Operations exported 1.758 million tons (65,1%) of petroleum products, Department AZAL Oil CJSC of Azerbaijani Airlines AZAL 761,568 tons (28.19%), oil-processing plant Azneftyag 101,215 tons (3.75%), and Ilqar Firm 50,916 tons (1.88%).

In 2008, the SOCAR Department of Marketing & Economic Operations exported 2.47 million tons (86.89%) of petroleum products, QKSSS LLC 98,274 tons (3.45%), Azneftyag 92,333 tons (3.24%), Caspian Petrol-1 69,210 tons (2.43%).

For Jan-Aug 2009 foreign trade turnover of Azerbaijan totaled $12.407 bn, including import of $3.8 bn and export of $8.58 bn.

Azerbaijan's active population tops 4,330 million

2009-11-23T13:58:00.000+04:00

As of Nov. 1, Azerbaijan’s economically active population reached 4,330,000, of which 4, 069,600 are employed, the State Statistical Committee said.

The number of contract workers reached 1,375,400.

The number of foreigners working in Azerbaijan reached about 5,000 according to official statistics.

About 1,400 foreigners are employed in industry, 1,500 in construction, 700 in real estate market, 500 in wholesale and retail trade, repair of motor vehicles, household appliances and personal effects, 400 in education and 500 in other areas.

Foreign nationals employed by enterprises and organizations make up only 0.1 percent of the economically active population in the country.

Employment agencies listed 42,200 people as jobless, of which 44.4 percent were women.

French companies ‘keen’ to invest in Azerbaijan’s economy

2009-11-23T13:52:00.000+04:00

Azerbaijan`s Minister of Economic Development Shahin Mustafayev met a delegation of MEDEF, Movement of the French Enterprises led by Mrs. Pascale Jeannin-Perez.

Mr. Mustafayev briefed about achievements gained in Azerbaijan`s economy. He said in January-October 2009, the country`s GDP stood at 8,3 %, industrial production at 7,4%, agriculture at 3,6%, income of the population at 6,4%, strategic currency reserves at 19,1 bln dollars.

Currently, 45 companies with French capital are functioning in Azerbaijan, Mustafayev said.

Minister invited the French businessmen to make investments in Azerbaijan`s economy.

Mrs. Pascale Jeannin-Perez praised Azerbaijan`s support to French businessmen. She said MEDEF unites French companies engaged in various areas. Visit of French delegation to Baku is evidence of high interest to Azerbaijan`s economy.

The French businessmen updated the activity of the companies and expressed readiness to cooperate with Azerbaijani entrepreneurs.

Gold prices hit all-time high

2009-11-07T11:16:00.002+04:00

Gold prices surged to a record high Tuesday after the International Monetary Fund said it had sold 200 metric tons of the precious metal to India’s central bank, CNNMoney reported.

November gold rose $30.90 to settle at $1,084.90 an ounce, after climbing to a high of $1,085.20. The previous intraday record was set Oct. 13, when gold rose to $1,069.70 an ounce.

The IMF said Monday that it had sold 200 metric tons of gold to the Reserve Bank of India for $6.7 billion. The sale was part of an ongoing IMF plan aimed at selling over 400 metric tons of gold.

The move eased some concerns that such a big influx of supply could weigh on prices. It also raised speculation that China, which many analysts had expected to be the main buyer, will absorb much of the remaining gold in the IMF’s stockpiles.

"The market was expecting the sale to happen over several years," said Tom Pawlicki, a precious metals analyst at MF Global in Chicago. "It’s pushing gold higher because it means that gold won’t come onto the open market."

Gold prices were also supported by news that Barrick Gold Corp. bought back 1 million ounces of gold in its hedge book during October.
The mining company said Monday it expects to unwind its remaining gold hedges, totaling 1.9 million ounces, by September 2010.

The rally came despite a slightly stronger U.S. dollar. The dollar index, which measures the dollar’s value against a basket of currencies, rose to a one-month high earlier Tuesday.

Gold and other commodities that are priced in dollars often fall when the greenback strengthens. But demand for gold remained firm Tuesday as investors focused on the IMF sale.

15th Anniversary Azerbaijan International “Telecommunication and Information Technologies” Exhibition

2009-10-30T16:41:00.000+04:00

Iteca Caspian, the exclusive partner of ITE Group, will organize the 15th Anniversary Azerbaijan International Telecommunication and Information Technologies” Exhibition and Conference dubbed as BakuTel 2009 from November 4-7.

BakuTel 2009 will gather over 100 companies from 15 countries worldwide. The regular participants of the exhibition include mobile operators of Azerbaijan Azercell, Azerfon, Bakcell; and the telecommunication and IT companies Aztelecom, BTRIB, Delta Telecom, Iskratel, Microsoft, Ultra, Nokia Siemens Networks, Caspel, Bestcomp Group, R.I.S.K., Sinam, Smart Systems Technology and others. New exhibitors include: ZTE Corporation (China), Caspian Navtel (Azerbaijan), Idrak Technology Transfer (Azerbaijan), Headtechnology (Azerbaijan), IT Solutions (Azerbaijan), Azedunet (Azerbaijan), Connect (Azerbaijan), Azlanit (UK-Azerbaijan), Silverkey Azerbaijan (USA), Pirelli Broadband Solutions (Italy), Ozkabel (Uzbekistan) and others.
Traditionally, a group of Korean companies takes part in the exhibition, as well as five companies from Turkey, including the major telecom operator Turk Telekomunikasyon A.S.

Windows 7 will be available in Azerbaijani language

2009-10-29T10:45:00.000+04:00

Microsoft Azerbaijan Company has launched localization of operational system Windows 7 into the Azerbaijani language, the company said.

Windows 7 will be presented at a stand of Microsoft Azerbaijan during the Azerbaijani international exhibition BakuTel-2009, Microsoft Azerbaijan director general Teymur Akhundov said.

Windows 7 was created during close cooperation of Microsoft engineers and designers with end users. They shared their thoughts over operation system with each other.

First, Windows 7 was demonstrated at the conference of Microsoft developers on Oct. 28, 2008.

A new taskbar appeared in Windows 7. It was not rather changed since appearing of Windows 95. Windows 7 was seriously changed.

There are many new opportunities connected with naturalization of user's interface in Windows 7. Microsoft provided support of multi-touch technology in a new operational system.

There is also XP regime in Windows 7 Professional and Windows 7 Ultimate.

This regime ensures operation with applications not update specially for new operational systems.

Users have opportunity to choose among several releases of Windows 7. They are the following: Windows 7 Starter, Windows 7 Home Basic, Windows 7 Home Premium, Windows 7 Professional, Windows 7 Ultimate. Corporative users concluded the Enterprise Agreement with Microsoft, will be able to install expanded version of Windows 7 Enterprise.

Azerbaijan's Central Bank will be participant of Organized Interbank Credit Market

2009-10-29T10:22:00.002+04:00

The Baku Interbank Currency Exchange (BBVB) has announced a new stage in development of Organized Interbank Credit Market (OICM) operating in its e-trading system BEST.

BBVB reports that on Oct. 21 the Central Bank of Azerbaijan, BBVB and a range of market-makers (Azerdemiryolbank, ?GBank, investment & commercial bank Nikoil, Bank Standard, Pashabank, Unibank and Bank of Baku) signed an agreement that is a legal base for new segment of the money market.

The agreement contains mechanism of CBA participation in it that will allow diminishing essentially credit and estimated risks.

“Due to reduction of risks the money market should increase its liquidity. In its turn, the Azerbaijan’s financial market that bases itself first of all on Azeri manat will receive a new impulse in development,” it was reported.

The initiative of creation of new segment of the money market and mechanism of CBA’s involvement in it was suggested by the Exchange and the market makers.

“For a range of causes the global financial crisis made funding hard-to-reach for developing countries’ banks.

The issue of fast formation of internal reliable high-liquid money market has activated much. The CBA and BBVB develop purposefully OICM operating in the country since March 2002 as a BEST BBVB segment.

For the purpose of further money market development a range of commercial banks and BBVB reached in 2005 an agreement that allowed creation of the institute of market-making of the money market. By the present quantity of market maker banks reached 10.

The market maker banks place daily their orders in BEST to raise and place credit resources in both national and foreign currency, thereby forming money market indicators (BakiBID, BakiBOR). The CBA and the money market-makers undertake joint efforts aimed at developing the money market based on national currency,” it was reported.

Besides, the banks which signed the agreement with the CBA, the market-makers are also Bank Respublika, AtaBank and Kapital Bank. BakIBID - Baku Interbank Bid Rate (rate of raising), BakIBOR - Baku Interbank Offer Rate (rate of placement).

Turkey will buy Azerbaijani gas at a new price

2009-10-29T10:20:00.000+04:00

Turkey will pay the difference between the old price it has paid for Azerbaijani gas since April 2008 after the gas agreement expired and the new price to be agreed on with Azerbaijan, said Turkish Energy Minister Taner Yilldiz.

He said Turkey has continued to import natural gas from Azerbaijan although the gas supply agreement expired in April 2008.

"Today we no longer buy low-priced gas from Azerbaijan. In accordance with the new price to be agreed upon, we will pay the difference", he said, adding that Turkey is continuing talks with Azerbaijan’s SOCAR on natural gas, and hopes to reach an agreement soon.

Turkish media report that Turkey will have to pay at least $1.1 billion to Azerbaijan as price difference compensation if the new gas price is around $250 per 1,000 cubic meters, compared to the current price of $120.

EBRD releases forecast for economic growth in Azerbaijan in 2010

2009-10-16T11:20:00.000+05:00

Growth of the Azerbaijani economy in 2010 is expected to reach 7.1 percent, said the statement of the European Bank for Reconstruction and Development (EBRD).

According to the chief economist of the Bank, Anita Taci, the main indicators of the expected growth of economic development is caused by the growing prices worldwide and demand for oil exports.

Experts of the bank say that the economies of Central and Eastern Europe after the sharp decline in production in the first half of 2009 are expected to increase by an average of 6.3 percent.

The Bank believes that the financial systems of Azerbaijan, Mongolia, Turkmenistan and Uzbekistan were less affected by the crisis.

SOCAR, Gazprom sign gas deal

2009-10-16T11:09:00.000+05:00

On Oct. 14, the State Oil Company of Azerbaijan Republic (SOCAR) and Russia's Gazprom signed a medium-term contract to supply of Azerbaijani gas to Russia.

From Azerbaijan, the contract was signed by SOCAR President Rovnag Abdullayev and from Russia by Gazprom CEO Aleksei Miller.

The contract envisages supplying at least 500 million cubic meters of own gas of SOCAR per year beginning from 2010.

Medium-term contract signed between SOCAR and Gazprom envisages prolongation as well, the head of Gazprom Alexei Miller said after signing the document in Baku.

"That's why, we call it [contract] long-term," said Miller.

During the signing ceremony, SOCAR President Rovnag Abdullayev said that signing the contract provides great opportunities to develop relations between Azerbaijan and Russia in this sphere, deepen cooperation both in their own markets and the markets of Europe and Asia.

Abdullayev said the contract involves the sale of "any gas produced in Azerbaijan."

"There are plans to transport 500 million cubic meters of gas in 2010, but "this figure could be higher," said Abdullayev.

Azerbaijan has four directions of gas transport - Turkey, Georgia, Iran (swap), and after the signing of a contract between SOCAR and Gazprom today, SOCAR will be able to quickly export the excess volumes of gas to Russia, said Abdullayev.

He said that gas exports to Russia will create a possibility for SOCAR to expand its own gas program, as well as develop gas infrastructure.

"The cost of gas [for Gazprom] is determined on the basis of a formula that is available for SOCAR," said Abdullayev.

Miller said the cooperation between the sides will contribute to the economic development of Azerbaijan.

Georgia-Azerbaijan trade turnover hits $365 million

2009-10-16T11:07:00.000+05:00

Trade turnover between Georgia and Azerbaijan totaled $365 million in January-August 2009, which makes up 65 percent of last year’s indicator.
According to the Statistics Department of Georgia, the share of trade turnover with Azerbaijan in the total turnover remains 10.5 percent as before.
Compared to the same period of last year, during this period, exports to Azerbaijan decreased by $25million and imports by $170 million.

Bank System of Azerbaijan

2009-10-16T07:41:00.003+05:00

Bank system is considered an important element of financial system of Azerbaijan. Today banks leave behind other financial mediators for volume of their assets and capital, as well regional coverage.

At present day developed two-stepped bank system, which is based on market principles, (in the first step is National Bank of the Republic of Azerbaijan, in the second one commercial banks and other non-bank credit organizations) functions in republic. In the first stage of reforms, measures of restructuring and recovery of state banks were taken, institutional formation of private bank system ensured. In this phase low requirements concerning capital, very liberal terms for entering the system were determined and soft regulating instruments were applied to regulate the bank activity. As a result of these processes bank system started to be enlarged in institutional manner and number of private banks increased rapidly.

Measures of intensive recovery of private banks implemented since 2000 in the next stage of bank reforms contributed to consolidation of durability of bank system and improvement of the financial mediation function.

Regular growth of demand of private banks to minimal capital by National Bank and propaganda of consolidation process strengthened capital base of private bank system, ensured enlargement of bank system.

Since 2002 important stage of restructuring of bank system started to be carried out. Taking into consideration entry of big oil revenues in the country, as a logical result of successful oil strategy, and in this base, as the banks were ready to an effective transfer of their financial resources to the strategic goals, development strategy was made for 2002-2005.

Major goals of strategy are effective and safe transformation of oil revenues to non-oil sector, to increase chances of access of population and regions to bank services and in this base to develop financial mediation function of bank system for poverty reduction, strengthen durability and reliability of bank system, ensure free and healthy competition atmosphere in bank services market. Finance-bank sector plays exceptional role in formation of economy diversified in base of great economic power and financial resources of the country and directing resources to capitalization of non-oil sector.

To get strategic targets determined certain duties have been set such as improvement and adaptation to international standards of legislation base of banking, increasing reliability and health of bank system, enlarging possibilities of access to bank services, lifting the level of transparency in bank system and strengthening the market discipline, organizing an effective bank control.

Radical reforms and institutional development in all directions of the bank system have brought to deep quantity and quality changes in the sector. The total result of reforms is formation of the bank system fully conforming to the international standards in financial stability parameters, risk management practice and services spectra.

Banks offer wide range of services and retail bank services rapidly develop. Bank products are offered to customers via the latest technologic means as internet-bank, mobile-bank, automated bank corners.

The radical network of bank system and accesses to financial services are intensively enlarged, banks begin actively operating in the international financial market. Only in 2007, 2 new banks were opened, representations of influential financial institutions of the world – Commerzbank and Citi Bank opened in the country which will bring to application of the most advanced banking technologies in Azerbaijan.

Successful realization of the determined duties kept positive tendencies of development of bank system, further strengthened the role of banks in financial mediation.

Works are underway to develop a new concept for development and modernization of banking.

At present, 45 banks, 530 bank branches function in Azerbaijan. 1 of acting banks was founded with participation of state capital, 23 of foreign capital.

For January 1, 2008, 96 non-bank credit organizations act in republic along with banks, 77 of which are credit allies.

Growth of real money incomes of population, development of trust in bank system, improving the legal bases of protection of interests of creditors and depositors, in particular launch of ‘Deposits Insurance Fund’ were the criteria characterizing rapid growth of deposits of population.

For January 1, 2008, bank deposits of population are 1468 mln AZN. 33% of them are long-term deposits (higher than 1 year).

Along with population, bank deposits of corporative customers increase dynamically. For January 1, 2008, bank deposits of corporative customers are 2 bn AZN.

Growth of confidence of population and economic subjects in bank system enabled improvement of cashless money turnover. At present, number of payments realized through banks is 1473 thousand AZN, sum of payments is 41 bn AZN.

Dynamic development of volume of special and involved funds of the banks has created effective conditions for enlargement of active operations. For January 1, 2008, volume of bank assets is 6727 mln AZN.

Crediting plays special role in structure of bank assets. For January 1, 2008, banks credits to the customers are 4664 mln AZN, which makes 69% of bank assets. Special weight of private sector in structure of credit investments is higher than 86%.

For Investors in Azerbaijan

2009-10-16T07:38:00.001+05:00

In 2003 the foreign investments into the economics of the country increased by 46.5% (USD 1038.4 million) from the previous year and up to USD 3273.3 million. The direct investments made up 93.5 % (USD 3060.3 million) and credit investments-6.5% (USD 213 million). The investments into the oil industry of Azerbaijan have increased by 66% from that of 2002.

The due measures are undertaken for the development of the entrepreneurship in Azerbaijan and the patronage of the state in the said direction. Due to that a Council for Entrepreneurs and the Fund of Encouragement of Investments and Consulting in Azerbaijan were created under the President of the Republic of Azerbaijan.

The government of the Republic of Azerbaijan signed contracts with a number of contracts on the prevention of double taxing and the mutual encouragement and protection of investments.

The policy of open doors is conducted for the attraction of investments into the economics of the country. Due to that a number of measures are conducted for the attraction of foreign investments to the non-oil sectors as well.

The State Program for poverty reduction and economic development for 2003-2005 was worked out by the government of the Republic of Azerbaijan and approved by order of the President of the Republic of Azerbaijan of February 20, 03. The program stipulated for the conduction of reforms for the development of the important economic spheres, the undertaking of due steps for the improvement of the spheres of education and health, the improvement of the social state of the population. The draft state investment program for 2006-2009 has already been worked out. The program aims at the encouragement of investments to the countries' economics, their balanced inflow in all the spheres, the provision of the dynamic development of the economics, the acceleration of the socioeconomic development of the country, the creation of new jobs and the improvement of the living standards of the population.

The State Program for the Socioeconomic development of the regions of the Republic of Azerbaijan adopted on February 11, 2004 for 2004-2008 mainly aimed to increase of the production of agricultural goods through the effective utilization of regional reserves and natural conditions, to ensure the development of the non-oil sectors, including refining, services and other infrastructures, to increase the level of employment and to improve the living standards of the population.

The establishment of the tariff Council of the Republic of Azerbaijan by the order of the Cabinet of Ministers of January 31, 2002 was one of the most important steps for the improvement of the investment climate in the country, the conduction of the state control over the activity of natural monopoly establishments and the development of proposals on the tariffs of such establishments. The due secretariat and 12 work groups embracing different spheres within its bounds are operating within the Ministry of Economic Development in accordance with the Regulation of the Council for the purpose. ]

Moreover, the due measures are conducted for the improvement of the legislative basis for the improvement of the investment climate in the country. Due to that the draft laws on the investment activity and special economic areas have been worked out and are currently being considered.

The foreign investment enterprises may engage in any activity not prohibited by the legislative acts of the Republic of Azerbaijan.

Such enterprises are registered in the Ministry of Justice. The registration is carried out in accordance with the Law of the Republic of Azerbaijan "On the state registration of legal enterprises". The foreign investment enterprise gets the status of a legal enterprise since the registration by the state. The information on the state registration of the foreign investment enterprises is included into the republic register of the due state body. The registration may be declined in case the law of the Republic of Azerbaijan is violated in the establishment of the enterprise, or the documents developed do not correspond the defined requirements or the future activity is prohibited by the legislation of the Republic of Azerbaijan.

An enterprise may appeal to the court on the decline for the registration by the state.

The Ministry of Economic Development is the state body supporting the investors in the said procedures.

A number of laws regulating the tax relations -" On the field taxes" (1995), "On the property tax" (1995), "On the income tax of enterprises and organizations (1996) were adopted and a number of additions were introduced to existing laws ("On the VAP", "On income taxes of individuals and others). The Tax Code of the Republic of Azerbaijan came into effect on January 1 , 2001.

The following alterations will be introduced into the tax system for the dynamic development of entrepreneurs and the increase in the economic activity in the region:

- The transfer of income taxing of enterprises and organizations from the progressive to proportional system and the reduction of the tax rates on the said type of incomes from 35 down to 25%, the reduction of the VAT rate from 28 down to 18%, the elimination of the state road fund and a number of taxes, the reduction of the income taxes of individuals from 55% down to 35% (the increase of the monthly income not included into the taxes on the said type of taxing from AZM 60000 up to AZM 100 000);

-the reduction of social insurance transfers from 40% down to 27%;

- the reduction of the financial sanctions applied by the tax bodies by 2.5-7.7 and the reduction of usury by 2;

-the reduction of the number of taxes from 15 down to 9 with the effectiveness of the Tax Code;

-the release of the entrepreneurs engaged in the agricultural production from the taxes except for the taxes on lands for a period of 3 years since 2001.

Azerbaijan’s foreign trade turnover hits $6. 853 billion

2009-09-17T16:06:00.000+05:00

Azerbaijan reached $6.853 billion foreign trade turnover with 120 countries in January-May, 2009, the State Statistics Committee said.

Exports totaled $4.591 billion and imports $2.262 billion. Black ink totaled $2.329 billion.

Italy accounts for 19.8%, Russia 8.5%, the U.S. 8.4%, France 7.3%, Israel 5.4%, Turkey 4.9% and Germany 3.9% of the export-import operations.

About 88.1% of exchange of goods as well as 91.3% of export and 81.7% of import operations were carried out in hard currency.

Rise in cash income of Azerbaijani population

2009-09-16T11:24:00.000+05:00

Nominal cash incomes of Azerbaijan population totaled 14 billion manat in Jan.-Aug. 2009, a rise of 12.6 percent from the same period of 2008, the State Statistics Committee said.

Per capita nominal income increased 11.2 percent to settle at 1, 655 manat.

Nearly 66.9 percent of the total income was spent to purchase goods and miscellaneous services, 10.1 percent to pay taxes and 23 percent to increase volume of bank deposits and buy foreign currency.

After paying taxes and other obligatory fees the population had net income of 13 billion manat.

Azerbaijani government estimates population’s cash income to total 22 billion and expenditures 18 billion manat in 2009.

Geographic structure of import and export in 2003-2007

2009-08-17T16:21:00.007+05:00

Geographic structure of import in 2003-2007

(thsd USD)

Regions	2003	2004	2005	2006	2007
Total	2626181,1	3515930	4211222,0	5266743,7	5712170,7
Europe	1438909,4	2059524,2	2280175,4	3219270,7	3289446,8
Asia	1004541,6	1251063,1	1695911,3	1663111,8	1957467,5
America	167454,2	162883,1	171342,2	324257,2	433905,1
Africa	1517,7	25653,1	52800,8	47497,9	17583,4
Oceania	13758,2	16806,5	10992,3	12606,1	13767,9

(mln USD)

Geographic structure of export in 2003-2007

(thsd USD)

Regions	2003	2004	2005	2006	2007
Total	2590377,8	3615435,1	4347151,2	6372165,0	6058400,1
Europe	1991719,6	2306025,1	2753991,1	4038249,4	2283561,0
Asia	529899,5	1273395,9	1507981,1	2211266,4	3293073,9
America	66477,5	26970,2	44070,9	106940,8	477613,8
Africa	2178,3	8941,7	41091,0	15685,4	1511,3
Oceania	102,9	102,2	17,1	23,0	2640,1

(mln USD)

U.S. Trade in Goods (Imports, Exports and Trade Balance) with Azerbaijan 2008 and 2009

2009-08-08T11:39:00.002+05:00

Trade with Azerbaijan : 2009

NOTE: All figures are in millions of U.S. dollars, and not seasonally adjusted unless otherwise specified.

Month	Exports	Imports	Balance
January 2009	49.6	42.8	6.7
February 2009	23.3	89.1	-65.8
March 2009	19.3	95.7	-76.4
April 2009	11.0	211.6	-200.6
May 2009	25.6	37.5	-11.9
TOTAL	128.7	476.6	-347.9

Trade with Azerbaijan : 2008

NOTE: All figures are in millions of U.S. dollars, and not seasonally adjusted unless otherwise specified.

Month	Exports	Imports	Balance
January 2008	18.2	303.2	-285.0
February 2008	14.0	225.4	-211.4
March 2008	14.1	346.2	-332.1
April 2008	24.1	208.2	-184.1
May 2008	13.0	1.6	11.4
June 2008	19.0	725.1	-706.1
July 2008	15.0	687.7	-672.7
August 2008	18.7	786.6	-767.8
September 2008	17.2	118.9	-101.7
October 2008	20.3	597.8	-577.5
November 2008	13.6	79.1	-65.5
December 2008	51.7	281.1	-229.4
TOTAL	239.1	4,360.9	-4,121.8

2007-ci ildə mal qrupları üzrə xarici ticarət dövriyyəsi

2009-08-06T14:02:00.000+05:00

Group titles	Import, thsd USD	%	Export, thsd USD	%
Total	5708573.5	100	6058308.7	100
Alive animals and animal products	47787.6	0.8	1708.4	0.0
Vegetal products	376174.1	6.6	193249.3	3.2
Animal or vegetable oils and fats	48593.3	0.9	82953.9	1.4
Ready foodstuffs, alcohol and non-alcohol drinks, vinegar, tobacco	438823.2	7.7	229573.8	3.8
Mineral products	305116.1	5.3	4934815.6	81.5
Chemical industry products	335297.6	5.9	93039.0	1.5
Plastic mixtures, caoutchouc, rubber, wares made of them	177466.4	3.1	71456.8	1.2
Leather raw stuff, fur, wares made of them	1932.1	0.0	9730.0	0.2
Wood, plug, wares made of them	73311.2	1.3	1617.5	0.0
Paper weight, paper and carton, wares made of them	95014.3	1.7	2778.9	0.0
Textile materials and wares	56269.2	1.0	60578.3	1.0
Shoe, head-dresses, umbrella, hand-stick, artificial flowers	14108.2	0.2	192.0	0.0
Stone, gypsum, cement, asbestos, ceramics and glass wares	133928.6	2.3	813.9	0.0
Pearl, jewels and metal wares	1235.3	0.0	136.8	0.0
Metals of little value and wares made of them	705218.1	12.4	181724.8	3.0
Machines, mechanisms, electronic appliances	1725262	30.2	47859.7	0.8
Land, air and water transport means	882188.0	15.5	101360.2	1.7
Devices and apparatuses, medical and musical instruments	175435.8	3.1	13349.2	0.2
Various industrial goods	66030.9	1.2	9812.3	0.2
Works of art and antiques	30.6	0.0	261.9	0.0

Main trade partners of Azerbaijan in 2007

2009-08-06T13:55:00.002+05:00

(thsd USD)

Countries	Goods turnover	%	Import	%	Export	%	Trade balance
By countries	11766882.2	100	5708573.5	100	6058308.7	100	349735.2
Turkey	1680819.6	14.3	624496.6	10.9	1056323	17.4	431826.4
Russia	1529756.5	13.0	1002704.2	17.6	527052.3	8.7	-475651.9
Italy	1081761.3	9.2	140832.8	2.5	940928.5	15.5	800095.7
Iran	539966.8	4.6	105235.7	1.8	434731.1	7.2	329495.4
USA	496600.3	4.2	268404.2	4.7	228196.1	3.8	-40208.1
Ukraine	494742.3	4.2	465554.2	8.2	29188.1	0.5	-436366.1
Germany	490724.2	4.2	470993	8.3	19731.2	0.3	-451261.8
UK	413989.5	3.5	410906.1	7.2	3083.4	0.1	-407822.7
Georgia	406711.3	3.5	62930.8	1.1	343780.5	5.7	280849.7
Israel	400688.3	3.4	30842.5	0.5	369845.8	6.1	339003.3
Indonesia	396304	3.4	6011.3	0.1	390292.7	6.4	384281.4
France	362565.1	3.1	103722.4	1.8	258842.7	4.3	155120.3
Kazakhstan	349888.5	3.0	222294.2	3.9	127594.3	2.1	-94699.9
Japan	294955.7	2.5	294954.6	5.2	1.1	0.0	-294953.5
China	288894.5	2.5	278790.9	4.9	10103.6	0.2	-268687.3
India	216923.5	1.8	71975.6	1.3	144947.9	2.4	72972.3
The Republic of Korea	216269.8	1.8	91498.7	1.6	124771.1	2.1	33272.4
Brazil	186683.1	1.6	117508.2	2.1	69174.9	1.1	-48333.3
Finland	151566.6	1.3	151485.2	2.7	81.4	0.0	-151403.8
Greece	145857.8	1.2	30780.9	0.5	115076.9	1.9	84296.0
Malta	120111.8	1.0	475.1	0.0	119636.7	2	119161.6
Chili	114710.5	1.0	81.4	0.0	114629.1	1.9	114547.7
The Netherlands	108078.9	0.9	100726.8	1.8	7352.1	0.1	-93374.7
Romania	88425.9	0.8	3024.5	0.1	85401.4	1.4	82376.9
Belarus	79264.8	0.7	76940.5	1.3	2324.3	0.0	-74616.2
Other countries	1110621.6	9.4	575403.1	10.1	535218.5	8.8	-40184.6

FOREIGN TRADE RELATIONS

2009-08-06T13:44:00.000+05:00

Goods turnover indices in 2007
(thsd USD)

Country groups	Foreign trade turnover	Import	Export	Payment balance
Total	11766882.2	5708573.5	6058308.7	349735.2
Countries with transition period economy	3056249.7	1902822.6	1153427.1	-749395.5
CIS countries	3003454.4	1901089	1102365.4	-798723.6
Central and Eastern European countries	52795.3	1733.6	51061.7	49328.1
Countries with developed market economy	4674001.5	2362890.4	2311111.1	-51779.3
Western European countries	3439729.6	1731566.5	1708163.1	-23403.4
including:
EU	3347498.9	1673394.5	1674104.4	709.9
Other Western European countries	92230.7	58172	34058.7	-24113.3
Other countries with developed market economy	1234271.9	631323.9	602948	-28375.9
Developing countries	4036631	1442860.5	2593770.5	1150910
Countries with transition and centralized planned economy	306600.2	279132.7	27467.5	-251665.2
Other developing countries	3730030.8	1163727.8	2566303	1402575.2

Foreign Trade in Azerbaijan

2009-08-05T14:55:00.002+05:00

Major exportable commodities of the country are oil and gas, machinery and cotton.
The exports partners of the country are Germany, italy, Turkey, Russia, Georgia and France.

Important importable commodities in the country are fuel and energy, food and the capital goods. Important imports partners of the country are Russia, Germany, Turkey, China and Italy.

The following diagram shows the levels of exports and imports of the country.

İyun ayının 25 günü әzindә Türkiyədə ixracat həcmi 22 faiz artıb.

2009-08-05T10:35:00.000+05:00

Dövlət naziri Zəfər Çağlayan açıqlamasında ixracatda bu ilki hədəfin 100 milyard dolları aşmaq olduğunu bildirib.

İyun ayının 25 günü әzindә Türkiyədə ixracat həcmi 22 faiz artaraq 6,7 milyard dollar tәşkil edib.

Çin xalq cümhuriyyətindә səfərdә olan Dövlət naziri Zəfər Çağlayan açıqlamasında ixracatda bu ilki hədəfin 100 milyard dolları aşmaq olduğunu bildirib. Onun sözlәrinә görә, yeni təşviq sistemi Çində fәaliyyәt göstәrәn türk şirkətlərinin vətənə qayıtmalarına müsbәt tәsir göstәrәcәk.

İxracat vergisi haqqında Azərbaycan Respublikasının Qanunu

2009-08-05T10:27:00.002+05:00

İxracat vergisi haqqında

Azərbaycan Respublikasının Qanunu

Maddə 1. Vergi ödəyiciləri

Mülkiyyət və təşkilati-hüquqi formasından asılı olmayaraq Azərbaycan Respublikasının hüquqi şəxsləri strateji məhsulları Azərbaycan Respublikasının hüdudlarından kənara sərbəst dönərli valyuta ilə satarkən ixracat vergisini ödəyirlər.

Maddə 2. Vergitutma obyekti

Azərbaycan Respublikasında istehsal edilmiş strateji məhsulun kontrakt qiyməti ilə (ixrac xərcləri çıxılmaqla) respublikadaxili müəssisə topdansatış qiymətinin arasındakı fərq vergitutma obyektidir.

Maddə 3. Vergi üzrə güzəştlər

Azərbaycan Respublikasında xarici xammaldan emal və istehsal edilmiş məhsulu ixrac edən, həmçinin xarici kapitalın iştirakı ilə yaradılmış hüquqi şəxslər özlərinin istehsal etdikləri strateji məhsullar üzrə ixracat vergisini ödəməkdən azaddırlar.

Maddə 4. Vergi tutulan strateji məhsulların siyahısı və vergi dərəcələri

Strateji malların siyahısını müvafiq icra hakimiyyəti orqanı müəyyən edir.

İxracat vergisinin dərəcəsi 70 faizdir.

Maddə 5. Verginin hesablanması və ödənilməsi qaydası

Strateji mallara görə vergi, satışdan əldə olunan vəsait ixracatçıların hesabına daxil olduqdan sonra 10 gün ərzində ödənilir.

İxracatçılar strateji məhsulları Azərbaycan Respublikasının hüdudlarından kənara satarkən həmin məhsullar üzrə əlavə dəyər vergisini, aksiz vergisini, gömrük rüsumunu, Dövlət yol fonduna ayırmaları ödəmirlər. Verginin hesablanması qaydası bu qanuna dair təlimatda müəyyənləşdirilir.

Maddə 6. Ödəyicilərin məsuliyyəti və onlara nəzarət

Verginin düzgün hesablanmasına və vaxtında büdcəyə ödənilməsinə görə ödəyicilər və onların vəzifəli şəxsləri məsuliyyət daşıyırlar.

İxracat vergisinin düzgün hesablanmasına və vaxtında ödənilməsinə nəzarəti Azərbaycan Respublikasının qanunvericiliyinə uyğun olaraq vergi orqanları həyata keçirir.

Maddə 7. Qanunun tətbiqinə dair təlimat

Bu qanunun tətbiqinə dair təlimatı Azərbaycan Respublikasının Baş Dövlət Vergi Müfəttişliyi Azərbaycan Respublikasının Maliyyə Nazirliyi ilə razılaşdırmaqla hazırlayır.

Azərbaycan Respublikasının Prezidenti

Heydər ƏLİYEV.

Bakı şəhəri, 28 mart 1995-ci il.

№ 1002.

«Azərbaycan Respublikasının Ali Sovetinin Məlumatı»nda dərc edilmişdir (30 aprel 1995-ci il, № 8, maddə 163).

24 dekabr 1996-cı il tarixli 216-IQD saylı Qanuna əsasən əlavələr və dəyişikliklərlə .

13 iyun 1997-ci il tarixli 322-IQD saylı Qanunla qüvvədən düşmüşdür.