This week Elshad Nasirov, Vice President of State Oil Company of Azerbaijan (SOCAR), has admitted possibility of sale of part of SOCAR’s share or participants of TAP project to Greece. What is going to happen if Greece buys part of the share in TAP?
The Centre of the Oil Studies of Azerbaijan said that “nothing is going to change if this happens.” Joining new company the TAP project will simply show another dynamics in the project, where one company sells its share, while another one buys it.
“Therefore, the main criteria here is not handing over of property of the government, as SOCAR Top Manager said, but sale to the Greek company on the commercial basis,” said the same source.
Nobody is going to present their share to the Greek company, it will be sold and then the company will be able to fund the project, a source from the Centre explained.
The trans-Adriatic gas pipeline (TAP) is part of the Southern Gas Corridor. The goal of the project is to transport gas from the Caspian Sea to the south of Italy through Greece and Albania. Total length of the pipeline will be 870 km. The construction is expected to begin in 2016.
TAP partners include BP (20%), SOCAR (20%), Statoil (20%), Fluxys (19%), Enagás (16%) and Axpo (5%). –12В--
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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