The government has offered the parliament to amend the state budget for fiscal year 2016, because of the new situation at the world oil markets.
The current state budget of Azerbaijan, which was approved by President on December 7, 2015, was based on the average annual oil price of $50.00 per barrel. In January 2016 average export price of Azerbaijani oil was $32.00 per barrel and the international energy agencies have corrected the forecasts for this year – they reduced their average oil price from $53.00-57.00 down to $37.00-45.00. Therefore, the Azerbaijani government decided to amend the state budget for fiscal year for 2016 and base the budget on an average annual oil price of $25.00 per barrel.
According to the proposed amendments of the state budget of Azerbaijan, within the production sharing agreements (PSA) oil companies will pay only 370 million AZN (about $231 million at the current rate) to the state budget. Last year they paid about 670 million AZN. The payments of State Oil Company of Azerbaijan (SOCAR) were reduced to 1.24 billion AZN. In 2015 SOCAR paid 1.48 billion AZN to the state budget.—0—
Economics
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On July 26, the Ministry of Economy hosted a meeting with entrepreneurs from the non-oil industry to explore ways to stimulate local production and enhance export potential.
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Azerbaijani internet service providers Aztelekom and Baktelekom will introduce substantial changes to their pricing structure starting August 15, the companies announced today. Under the new tariffs, the minimum internet speed will rise to 100 Mbit/s, with the cost per Mbit/s decreasing from 0.45 AZN to 0.25 AZN. As a result, monthly charges will be set at 25 AZN for 100 Mbit/s, 30 AZN for 150 Mbit/s, and 36 AZN for 250 Mbit/s.
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Independent experts suggest that Azerbaijan may be on the verge of another devaluation of its currency, the manat, due to a shrinking trade and payment surplus. The anticipated economic adjustments come amidst a decline in foreign currency inflows and reduced oil production.
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Azerbaijan’s Foreign Minister Jeyhun Bayramov met today with Ahmed Moallim Figi, the Minister of Foreign Affairs and International Cooperation of Somalia, at the Azerbaijani Foreign Ministry. This meeting followed a discussion held the previous day between Figi and Azerbaijan’s Economy Minister Mikail Jabbarov.
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