The authorized capital of AzMeCo has been reduced to $ 550 thousand, as it is noted in the announcement of Azerbaijani Methanol Company.
The official reasons are not named, but the almost 200-fold decrease in the risk susceptibility level is most likely connected with the lawsuits of Agrocredit in connection with the credit debt of the International Bank of Azerbaijan, whose assets it deals with.
The authorized capital of $ 100 million cannot cover the full debt of the LLC to IBA at approximately $ 500 million and Nizami Piriyev, the owner of the LLC, is not able to pay off the debts. According to experts, AzMeCo assets are more likely to go into SOCAR management, as it is the only organization that can pay the debts of the LLC.
Recall AzMeCo with headquarters in Baku extends within Turkey, Russia, the Netherlands, Uzbekistan and even Afghanistan. Mainly public investment in the suspended methanol plant is approximately $ 500 million. --17D-
Economics
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Azerbaijan’s economy, which is heavily dependent on oil revenues, faces a stark warning in the 2021 report by Carbon Tracker titled “Beyond the Oil States: The Urgent Need to Reduce Dependence on Oil in the Context of the Energy Transition.” The report ranks Azerbaijan among the most vulnerable oil-dependent countries, placing it in the "5th group" — a category reserved for nations expected to experience a decline in oil and gas revenues exceeding 40% over the next decade. This group includes Angola, Bahrain, Timor-Leste, Equatorial Guinea, Oman, and South Sudan, highlighting shared economic risks for these states.
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Azerbaijan's non-oil and gas exports rose 3.5% year-on-year to $2.8 billion during the first ten months of 2024, the Center for Analysis of Economic Reforms and Communication (CAERC) reported in its November "Export Review."
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Azerbaijan Railways CJSC (ADY) will modify the schedules for commuter and domestic trains in line with the Cabinet of Ministers' decision to adjust work and rest days in November, aiming to ensure safe and comfortable travel during the COP29 event, the company announced.
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In Azerbaijan, the government has increasingly relied on tax exemptions for imported goods as a tool to stabilize domestic market prices. The exemption from the 18% VAT on wheat imports, extended this year, exemplifies this approach. New measures have also been introduced, including tax relief on imports of electric vehicle chargers, while exemptions for high-cost medications are currently under discussion. Notably, defense imports continue to be free from taxes and customs duties.
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