In 2015 incomes of SOFAZ from the Azeri-Chirag-Guneshli (ACG) project totaled $6.9 billion.
During 2014 Oil Fund received $15,118,000,000 from sale of profitable oil of the state. Therefore, during last year incomes of the Fund from the ACG project decreased by 54.4%.
The share of proceeds from the ACG in the total portfolio of incomes of the Oil Fund constitutes about 93%. Sharp reduction of SOFAZ’s incomes is connected with reduction of prices for Azerbaijani oil export by 47.5%. In 2014 average price of Azerbaijani oil was $100.9 per barrel and in 2015 – a little over $53.
From 2001 till 2015 SOFAZ received $117 billion from the ACG project implementation.
Azerbaijan received first profit from the ACG in December 1999. The Oil Fund was created at the same time. However, SOFAZ has started to work only in June 2001 and by that time its assets totaled $271 million.—0—
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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