SOFAZ assets jump to $36 billion

Budget revenues of the State Oil Fund of the Republic of Azerbaijan (SOFAZ) for the period of January-September, 2013 reached 10 086.0 million manat, while budget expenditures constituted 8 746.7 million manats, a message from the State Oil Fund said.

According to the message, revenue of 9 774.8 million manat was received from implementation of oil and gas agreements, including 9 766.8 million manat from the sale of profit oil and gas, 1.7 million manat as acreage fees, 6.0 million manat as transit payments, 0.3 million manat as bonus payments and 0.06 million manat from the sale of assets received from foreign companies.

The expenditures in the amount of 249.3 million manat were directed to financing the improvement of social condition of refugees and internally displaced persons, 106.4 million manat were used for financing the reconstruction of the Samur-Absheron irrigation system.

As per 2013 budget of the Fund, some 8 339.9 million manat were transferred to the state budget. About 10.9 million manat were directed to financing Baku-Tbilisi-Kars railway construction and 12.4 million manat were directed to financing "The state program on the education of Azerbaijan youth abroad in the years 2007-2015".

The Fund's extra-budgetary expenditures related to the revaluation of foreign exchange totaled 38.7 million manat.

The Fund's administrative and operational expenses for the reporting period were 27.8 million manat.

The assets of SOFAZ as of October 1, 2013 has grown by 4.9% compared to the beginning of 2013 ($34 129.4 million) and stood at $35 809.2 million.

The fund began to buy gold from the first quarter of 2012 and as of October 1 2013, the volume of the purchased gold amounted to 26 tons and 442.5 kilograms (850,146 ounces).

The State Oil Fund was established in 1999, and at the moment its assets amounted to $271 million.

According to the regulations of the State Oil Fund, the funds may be used for the construction and reconstruction of strategically important infrastructure facilities, as well as to solve important national issues.

The main goals of the State Oil Fund include: accumulation of resources and the placement of the fund's assets abroad in order to minimize the negative affect on economy, the prevention of "Dutch disease" to some extent, promotion of resource accumulation for future generations and support of current social and economic processes in Azerbaijan.

The official exchange rate on October 21 is 0.7843 AZN/USD.


/Trend/