Page 16 - FSUOGM Week 43 2022

FSUOGM NEWS IN BRIEF FSUOGM

sovereign funds, SOFAZ funds mainly compared to other countries, providing make a realistic proposition of Vladimir
consist of stocks and bonds listed on the additional support to the demand for the Putin’s suggestion that Turkey should
stock exchange, denominated in various US dollar and, as a result, this caused a become a gas hub via which Russian gas
currencies (about 80% of the investment significant depreciation of the exchange could be supplied to European countries.
portfolio). Fluctuations in financial rates of other countries against to the Both the US and France last week
markets, along with these investors, in the dollar. "As in the investment portfolios rejected the idea—with French President
investment portfolio of SOFAZ are reflected of many institutional investors, including Emmanuel Macron responding that the
in the form of an unrealized temporary sovereign funds, SOFAZ funds mainly proposal “makes no sense”, given that
negative difference caused by short-term consist of stocks and bonds listed on the Europe is aiming to be independent from
price fluctuations," SOFAZ said. stock exchange, denominated in various Russian gas—and, on October 25, Czech
SOFAZ's revenues for January-September currencies (about 80% of the investment Minister of Industry and Trade Jozef Sikela
2022 amounted to AZN11.3bn. At the portfolio). Fluctuations in financial said on October 24 that Europe should not
same time, the fund's income from the markets, along with these investors, in the buy Russian energy via a Turkish gas hub.
sale of profitable oil and gas amounted to investment portfolio of SOFAZ are reflected That prompted Kremlin spokesman Dmitry
AZN15.1bn, transit income was AZN7.2mn, in the form of an unrealized temporary Peskov to say that the Czech Republic is not
bonus payments were AZN768.7mn, negative difference caused by short-term the only country in the EU, and that other
and per acre payments were AZN4.8mn. price fluctuations," SOFAZ said. European countries might take a different
According to the fund, the negative SOFAZ's revenues for January-September standpoint.
difference that arose in January-September 2022 amounted to AZN11.3bn. At the "Jozef Sikela, probably, knows that there
2022 as a result of short-term fluctuations same time, the fund's income from the are many more countries on the European
in the market value associated with the sale of profitable oil and gas amounted to continent than the Czech Republic, and
revaluation of SOFAZ assets amounted to AZN15.1bn, transit income was AZN7.2mn, they may have different positions, at
AZN4.521bn. Extra-budgetary expenses bonus payments were AZN768.7mn, different stages, at different moments,
of SOFAZ from exchange rate fluctuations and per acre payments were AZN4.8mn. different adequacy in the perception of
amounted to AZN4.18bn. In general, the According to the fund, the negative what is happening, and so on and so forth,"
Fund's expenses in the reporting period difference that arose in January-September Peskov told reporters.
amounted to AZN6.56bn. 2022 as a result of short-term fluctuations
In the structure of the fund's expenses, in the market value associated with the
transfers to the state budget amounted to revaluation of SOFAZ assets amounted to Azerbaijan plans increased
AZN6.54bn, while AZN8.1mn went to AZN4.521bn. Extra-budgetary expenses
financing the State Programme to increase of SOFAZ from exchange rate fluctuations energy exports via Georgia
the international competitiveness of the amounted to AZN4.18bn. In general, the
higher education system in Azerbaijan for Fund's expenses in the reporting period Azerbaijan plans to increase electricity and
2019-2023. Administrative expenses for amounted to AZN6.56bn. natural gas exports to Europe, with the
managing the fund were AZN16.8mn. In the structure of the fund's expenses, latter to use pipelines located in Georgia,
The Oil Fund of Azerbaijan accumulates transfers to the state budget amounted to the news outlet Agenda.ge reports.
income from the implementation of oil AZN6.54bn, while AZN8.1mn went to President Ilham Aliyev of Azerbaijan
and gas contracts, in particular from the financing the State Programme to increase revealed in a joint press conference with
sale of profitable oil and gas of the state, the international competitiveness of the Georgian Prime Minister Irakli Garibashvili
transit tariffs for the transportation of oil higher education system in Azerbaijan for that the move would increase the turnover
and gas through the country, the lease 2019-2023. Administrative expenses for of the Baku-Tbilisi-Ceyhan and Baku-Supsa
of state property, etc. The assets of the managing the fund were AZN16.8mn. oil pipelines.
State Oil Fund of Azerbaijan (SOFAZ) in The Oil Fund of Azerbaijan accumulates "Operationally, these projects are very
January-September 2022 increased by 0.8% income from the implementation of oil and successful and we look forward to launching
up to $45.38bn as of September 30, the gas contracts, in particular from the sale new projects to increase natural gas exports
SOFAZ press service said. "What happened of profitable oil and gas of the state, transit to international markets. We are going
during the three quarters of 2022 in the tariffs for the transportation of oil and to export 22mn tonnes and increase this
global financial markets also affected the gas through the country, the lease of state volume in the coming years,” said Aliyev.
investment portfolio of SOFAZ. Thus property, etc. Azerbaijan also plans to export electricity
the high inflation observed in the global to international markets through Georgia.
economy, the deepening of geopolitical “We have the opportunity to export
tensions and the incomplete recovery of Kremlin’s Turkey gas hub would 157 MW [...] As in other directions, we
the China-US trade chain are among the believe that Azerbaijan and Georgia will
leading risks in financial markets, and turn to European countries ready successfully co-operate in this direction
these factors have a negative impact on the as well. In general, the potential of our co-
value of financial assets," the fund said in a to accept Russian energy, says operation [and] prosperity will increase,”
statement. said Aliyev.
According to SOFAZ, the anti- Peskov The Azerbaijani president arrived in
inflationary measures of the US Central Tbilisi on October 24.
Bank, including a significant increase The Kremlin appears to be counting on
in interest rates, were larger and earlier divisions among countries in Europe to

P16 www. NEWSBASE .com Week 43 28•October•2022