Russia"s decision is not a surprise for SOCAR

The decision to stop transportation of Azerbaijani oil though the Baku-Novorossiysk pipeline is not political, but economic, reads the statement of SOCAR to the press.

The intergovernmental agreement signed on 14 February 1996 noted that if the parties do not take the initiative to suspend the validity, the document will be automatically prolonged for another year.

In the case of early warning on the termination of the agreement six months before the end of the calendar year, on January 1 it will come into force. In this sense, Russia's decision  meets the terms of the agreement. This issue was not a surprise to SOCAR.

Both sides in different periods raised a number of questions have not found a solution. It's about maintaining the quality of the  Azerbaijani oil when pumping, ensuring oil quality bank, increasing the volume of transportation, and  changing tariffs.

The decision of the Russian government will have no negative impact on the delivery of Azerbaijani oil to the world market. Azerbaijan has managed in a short time to create and diversify a reliable system of the export oil and gas pipelines.

SOCAR appreciates the historical mission of the Baku-Novrossiysk.

However, SOCAR considers that this does not mean the suspension of transportation of Azerbaijani oil through this pipeline.

SOCAR is ready to continue with the "Traneft" commercial negotiations on the matter.—06D—