Transfers to state budget constitute 92% of Oil Fund’s expenses

By October 1, 2014 assets of the State Oil Fund of Azerbaijan (SOFAZ) totaled $37,305,300,000 (+3.98% by early year) and could be even higher.

            The report of the past three quarters reads that of total amount of costs (8,041,200,000 AZN) of the Fund the majority part (92%) fell to the transfers to the state budget – 7,399,700,000 AZN.

            The costs for improvement of refugees’ living conditions totaled 254.2 million AZN, for reconstruction of the Samur-Absheron irrigation system – 24.8 million AZN, for construction of Baku-Tbilisi-Kars railway – 47.5 million AZN, for training of Azerbaijani students abroad – 18 million AZN and funding of purchase of shares of the Southern Gas Corridor owned by the state – 40 million AZN.

            During 9 months 233.5 million AZN has been spent for construction of STAR oil refinery in Turkey, 33.5 million AZN for the administrative costs for the Fund management and the rest for other purposes.

            The extra-budgetary costs of the Fund related to change of currency rate totaled 962.7 million AZN, of which 966.4 million AZN fell to the losses from change of currency rate (USD, Euro, British pound) and 3.7 million AZN for change of gold prices.

            By October 1, 2014 total incomes of the Fund reached 10,131,900,000 AZN. Majority of them (9,969,600,000 AZN) are earnings from implementation of oil and gas contracts, including sale of profitable oil and gas (9,647,800,000 AZN), transit costs – 6.8 million AZN, bonus payments – 13.3 million AZN and per-acre payments – 1.7 million AZN. The incomes from management of the Fund’s resources during this period totaled 162.3 million AZN.