Deficit of Azerbaijan’s Oil Fund in January-September Reaches $ 1.44 Billion

The assets of the State Oil Fund of the Republic of Azerbaijan (SOFAZ) at the end of September 2020 amounted to $ 43 billion 288.6 million

As reported, at the end of 2019, SOFAZ’s assets amounted to $43 billion 323.3 million. Thus, the Fund’s assets in 9 months of 2020 decreased by 0.08%.

In the message of the Oil Fund, the decrease in assets is explained by the fact that in the SOFAZ budget expenditures exceeded revenues due to the fall in oil prices amid the recession in the global economy due to the consequences of the coronavirus pandemic.

SOFAZ’s revenues in January-September 2020 amounted to 6 billion 593.1 million manats. At the same time, the Fund’s revenues from the sale of profitable oil and gas amounted to 5 billion 445.5 million manats ($ 3.203 billion), transit revenues – 15 million manats, bonus payments – 767.8 million manats, and acre payments – 6.8 million manats.

Income from the Fund’s asset management for the reporting period amounted to 358 million manats. SOFAZ’s extra-budgetary revenues received from the exchange rate difference amounted to 2 billion 394 million manats.

In general, the Fund’s expenses in January-September 2020 amounted to 9 billion 46.3 million manats.

The deficit of the Oil Fund of Azerbaijan for 9 months of this year amounted to 2 billion 453.2 million manats ($1.443 billion).

In the structure of the Fund’s expenditures, transfers to the state budget amounted to 8 billion 852.5 million manats, expenditures for improving the living conditions of refugees – 178.5 million manats, for financing the State Program to improve the international competitiveness of the higher education system in Azerbaijan for 2019-2023 – 0.4 million manats, and administrative expenses for managing the Fund – 14.9 million manats.