SOFAZ assets drop 2%

Budget revenues of the State Oil Fund of the Republic of Azerbaijan (SOFAZ) for the period of January-March, 2021 reached AZN 3,182.1 million, while budget expenditures constituted AZN 2,519.9 million, Report informs, citing the Fund.

AZN 2,468.1 million was received from the implementation of oil and gas agreements, including AZN 1,696.6 million from the sale of profit oil and gas, AZN 765.9 million as bonus payments, and AZN 5.6 million as transit payments.

The revenues from managing SOFAZ’s assets for January-March 2021 amounted to AZN 714.0 million, which accounted for 22.44% of total revenues.

As per the 2021 budget of the Fund, AZN 2,513.7 million were transferred to the state budget, and AZN 0.7 million were allocated to the “State Program on Raising Competitiveness of Higher Education in Azerbaijan in 2019-2023” during January-March, 2021. SOFAZ’s administrative and operational expenses for the reporting period totaled AZN 5.5 million.

SOFAZ’s extra-budgetary expenditures related to the foreign exchange movements amounted to AZN 2,027.5 million.

As of 01 April 2021, the value of SOFAZ`s assets under management amounted to USD 42,761.3 million, decreasing by 1.84% compared to the start of the year (USD 43,564.3 million). Even though the budget revenues exceeded the budget expenses, a decrease in the gold price and depreciation of major portfolio currencies against the US dollar resulted in the decline of SOFAZ’s assets.