THE PROJECT "STRATEGY OF MANAGING THE OIL INCOMES HAS BEEN PREPARED IN AZERBAIJAN"
BAKU.18.02.2004.MEDIA-PRESS: The Ministry of Finances of Azerbaijan has developed the project of development of the strategy of development of incomes of incomes.
BAKU.18.02.2004.MEDIA-PRESS: Issues associated with realization of the project of increasing of inner prices for energy carriers in Azerbaijan will become main theme of negotiations of the IMF experts, which came to Baku today. This project has been developed by the government of Azerbaijan by insist of the IMF.
BAKU.18.02.2004.MEDIA-PRESS: The past year for illegal checking up of businessmen above 40 employees were retired from the Ministry of Taxes of Azerbaijan and above 200 officials were punished administratively. This data have been got from the Minister of Taxes Mr. Fazil Mamedov.
BAKU.18.02.2004.MEDIA-PRESS: This year the Ministry of Finances of Azerbaijan will conduct monitoring of finance activities of eight diplomatic representatives of Azerbaijan. The list of diplomatic missions, including Embassies in the Great Britain, USA, Uzbekistan, CNR and Office of Azerbaijan in the EC has been presented already to the Ministry of Foreign Affairs, the Minister of Finances of Azerbaian Mr. Avaz Alekperov has said.
BAKU.18.02.2004.MEDIA-PRESS: Today the International conference "10 years of Humanitarian Activity in Azerbaijan: Got Experience, Future Trends" completed its work in Baku. Officials of the Supreme Commissariat of UN on Refugees and 72 international humanitarian organizations, large foreign companies operating abroad took part in it.
BAKU.18.02.2004.MEDIA-PRESS: The Minister of Finance of Azerbaijan Mr. Avaz Alekperov has flied to Washington for participation in the sitting of the Azerbaijan-American working group on the economic cooperation.
BAKU.18.02.2004.MEDIA-PRESS: The training-seminar on the nuclear safety for officials of the State Frontier Guard Service of Azerbaijan (SFGS) will pass on February 19 - 20 in Baku.
BAKU.18.02.2004.MEDIA-PRESS: The American congressmen Grace Napitano sent inquiry to the State Secretary of the USA Mr. Collin Powell on cause of breaking the parity in rendering military aid to Azerbaijan and Armenia by the White House.
BAKU.18.02.2004.MEDIA-PRESS: Two teengares have blasted on a mine not far from a line of the Azerbaijan and Armenian troops separating line in Fizuli region of Azerbaijan, it has been informed in the National Agency of Mine Clearing (ANAMA).
BAKU.18.02.2004.MEDIA-PRESS: At the Azerbaijan Gas Purveying Company (AGPC), headed by the Norwegian Statoil conducts works within frameworks of "Stage-1" of full scaled development of the offshore field "Shakh-Deniz", - the President of Statoil - Azerbaijan Mr. Georg Gundersen has said.
BAKU.18.02.2004.MEDIA-PRESS: The government of Azerbaijan intends to increase gas import from the present 4 bn up to 6 bn cubic meters annually, however negotiations on this issue do not give concrete results for the present. The Premier of Azerbaijan Mr.Artur Rasizade has informed journalists about this.
BAKU.18.02.2004.MEDIA-PRESS: The State Oil Company of Azerbaijan (SOCAR) has started the seismic exploration works on the field "Govsani", the agency "Interfax-Azerbaijan" has been informed in the SOCAR.
BAKU.18.02.2004.MEDIA-PRESS: The problems with of passing of tankers by the straits of Bosporus and the Dardanelles as well the shipment of tankers in the Black Sea ports increase expenses for the transportation of the Azerbaijan oil to the Mediterranean Sea by $3.5 - 4 MM for each tanker.
BAKU.18.02.2004.MEDIA-PRESS: "For the present we have not concrete volume of total, which should be paid out by the Russian Company "LUKoil" in connection with selling its share in the project of the development of the field "Azeri - Chiraq - Guneshli". It may be determined only since that the company present us the relevant papers", the Minister of Taxes of Azerbaijan Mr. Fazil Mamedov has declared to journalists.
BAKU.18.02.2004.MEDIA-PRESS: The expenses for cleaning of oil contaminated lands in Azerbaijan may make about $10 bn. The Minister of Ecology and Natural Resources of the Republic Mr. Guseyn Bagirov has called this value in the interview to the agency Media-Press.
BAKU.18.02.2004.MEDIA-PRESS: The volume of GDP of Azerbaijan on January made 2.6497 trln manats and this is by 9.9% higher than on January of 2003.
BAKU.18.02.2004.MEDIA-PRESS: The volume of investments to the Azerbaijan economy has exceeded 2.025.3 trln.manats on January of 2004 and this exceeds the analogous rate of 2003 in 2 times.
As the Chief of the Ministry of Finances of Azerbaijan Mr. Avaz Alekperov has informed, this document will be presented for consideration of government in a case of approval will be presented to the President. The Minister did not start to concretize main trends of using of oil incomes as this issue should be agreed by the Ministry.
"Strategy of Oil Incomes Managing" was developed within frameworks of liabilities of Azerbaijan to the IMF. By the words of the Second European Department of the IMF Mr. John Weckman-Lynn, "in this strategy volume of means, trends of their spending and concrete terms of their execution should be showed". By his opinion, incomes got in account of the production and sales of oil should be better transferred to other fields - development of the infrastructure, including construction of schools, restoration of the electric power objects, irrigation systems, laying and repairs of car roads.
EXPERTS OF THE IMF WILL CONSIDER REALIZATION TERMS OF THE PROJECT OF AUTOMATIC INCREASE OF INNER PRICES FOR ENERGY CARRIERS
As the Minister of Finances of the Republic Mr. Avaz Alekperov has noted, in spite of the readiness of the project, there are not concrete terms of its realization. They will be determined during consultations with officials of the IMF.
The International Monetary Fund (IMF) has postponed the term of the execution of liabilities on increasing the internal prices for energetic carriers up to the world ones by the Government of Azerbaijan.
Earlier it has been planned to increase prices in the beginning of 2004. However this liability was associated with that the government of Azerbaijan and the World Bank should work out the relevant mechanism, which should allow to ensure the social protection of poor layers of the population.
The World Bank keeps a little other policy. For example, the official of the WB in Azerbaijan Mr. Akbar Nowman has announced that on given stage the WB considers improvement of gathering of payments for their consumption, but not increasing the prices for the energetic carriers. By his words, the situation when for the normal work of gas an energy distribution structures the supplementary state subsidies are required. However, he has emphasized that on the definite stage the state should decide to increase tariffs, however this is the issue of the future. However, the WB considers, that for this it should be necessary to work out measures on the social protection of the population.
Earlier the government of Azerbaijan agreed with the opinion of the experts of the WB. Else on September the Minister of the Economic Development of Azerbaijan Mr. Farkhad Aliyev has declared that the recommendations of the IMF are impracticable. "Inside the country the wholesale prices for power carriers were increased in the beginning of the year. In the next time the issue about increasing of the retail prices will not be considered. If we see that the Azerbaijan citizens will be able to pay out for the relevant services for the world prices, we shall return to the consideration of this issue", - the Minister has emphasized.
IN 2003 ABOVE 40 EMPLOYEES WERE RETIRED FOR ILLEGAL CHECKING UP OF BUSINESSMEN FROM THE MINISTRY OF TAXES OF AZERBAIJAN
At the same time the Minister has noted that a blame for illegal checks lays on businessmen who untimely present relevant documents and thus cause out of plan checks. "This problem has been discussed on the enlarged session of the ministry and control structures of the Ministry have received certain objects; meeting of the Ministry officials and businessmen of Baku and other regions of the country is planned", - the Ministry has informed.
We shall remind that in accordance with the Edict of the President of Azerbaijan "About improvement of the State Control System and liquidation of artificial barriers preventing to development of business", all enterprises and organizations independently on property forms should have so called control books. This document allows registering all checks, carried out by officials of tax service and thus revealing out of plan and illegal ones. Officials of tax services may carry out checks only after presenting of relevant admit and certain registration of the checking fact in the control book. Moreover, the official of the Ministry should present during all the process of checking up.
THE MINISTRY OF FINANCE WILL CONDUCT FINANCE ACTIVITY OF EIGHT DIPLOMATIC MISSIONS OF AZERBAIJAN
As to organization of the new diplomatic representations of the republic abroad, the Minister has noted that they most likely will be opened for means of the reserve fund provided by the budget of the country. Means by 70 bn manats were accumulated in the fund.
By the words of Mr. A. Alekperov, the maintenance of embassies in the European countries cost enough expensive. The first, in these countries our diplomats receive high salary, the second, payment for rent of offices for a diplomatic representation is high. In average maintenance of embassy in the European country costs $1 MM annually. And this value increases up to $1.5 MM taking account the rent.
THE INTERNATIONAL CONFERENCE DEVOTED TO THE 10TH ANNIVERSARY OF HUMANITARIAN AID TO AZERBAIJAN
For last 10 years a volume of humanitarian aid rendered to Azerbaijan by countries-donors, international organizations, and foreign and local companies made has made $600 MM. As the President of Azerbaijan Mr. Ilham Aliyev has noted in his speech on the conference, the main portion of these means has been transferred for improvement of life of refugees and forced migrants, which number above million people.
The Chief of the State has especially emphasized that each eighth resident of 8 million populated Azerbaijan is a refugee and this gas got scales of "the humanitarian emergency".
The President has noted that the state itself takes measures for improvement of life of refugees, victims of the Karabakh conflict. The past year $120 MM was spent from the state treasury for their needs. At the same time, by his words, limited finance capacities do not allow solve these problems on a desired level. "Azerbaijan needs in support of humanitarian organizations and I am sure that they will not reduce aid volumes to Azerbaijan", - Mr. I. Aliyev has said.
The President has noted that the Government of the Republic takes all necessary measures on adjustment of life of refugees and forced migrants. Mr. I. Aliyev has said that he has ordered to the executive power organs to create all conditions of activity of the international humanitarian organizations. "Unfortunately, sometimes problems emerge in this issue", - the President has emphasized.
At the same time Mr. Aliyev has said that the main cause of all humanitarian problems in Azerbaijan in occupation of 20% Azerbaijan lans by Armenia. In connection with this the Chief of the country called the international community to stop double standards applying and force Armenia to withdraw their troops from the occupied territories.
ON FEBRUARY 19 THE SITTING OF THE AZERBAIJAN - AMERICAN WORKING GROUP ON THE ECONOMIC COOPERATION WILL OPEN
The experts of two states will discuss issues of the development of the strategy of managing the oil incomes, rendering the American aid in the electric power, insurance, bank and finance sectors, business, improvement of investment climate, social protection.
The officials of the ministries of the economic development, foreign affairs, tax and National Bank have been included into the staff of the delegation.
Expectedly, the Chief of the Azerbaijan Minister of Finances will conduct also negotiations with officials of the International Monetary Fund and the WB.
THE USA WILL CONDUCT TRAINING ON NUCLEAR SAFETY FOR THE FRONTIER GUARD OF AZERBAIJAN
The agency "Interfax-Azerbaijan" has been informed in the press-service of the SFGS that the training is conducted at the organization support of the Government of the USA. "The improvement of skills of fight against distribution of mass destruction weapon distribution", - it has been informed in the press-service.
THE AMERICAN CONGRESSMEN DEMANDS EXPLANATIONS FROM COLLIN POWELL ON BREAKING PARITY BETWEEN BAKU AND YEREVAN
As the Agency "Rosbalt" has been informed in the press-service of "The Armenian Assembly of America" the offer of the Administration of Bush on allocation of 8.75 MM dollars to Azerbaijan in the next finance year meanwhile it is offered to allocate almost in 4 times less had been a cause of the inquiry.
By the works of Mrs. Grace Napolitano, the offer disagrees to the agreement between the Congress and White House, in accordance of which the parity between Azerbaijan and Armenia should be kept.
We shall remind that the new US budget offered by the Administration of Bush provides a military aid rendering to Georgia by a volume of 12 MM dollars, Azerbaijan - 8.75 MM dollars, Armenia - 2.75 MM dollars.
TOO TEENAGERS HAVE BLASTED ON A MINE
The incident has occurred on February 14 on the territory of the village Gazkhlilar. Two brothers - 11 and 12 years old were pasturing cattle when they blasted on a mine.
As it has been noted by officials of the ANAMA, this is the first case of ruin of civil persons from blasting of mines remained since the period of the Azerbaijan-Armenian war in this year. The past year 18 similar accidents occurred. 14 civil persons died then and the same number injured in various severety
THE AZERBAIJAN GAS PURVEYING COMPANY CONDUCTS DETAILED STUDYING OF THE GAS MARKET OF TURKEY
By his words, the given work is concluded in detailed study of gas market of Turkey for successful realization of the contract on gas purveys to this country from the field "Shakh-Deniz". "Sometimes, the next future develops not in accordance with as expected, so we should make all possible for realization of this contract up to the end.
Mr. G. Gundersen as emphasized that the project "Stage-1" should be realized in time for executes all liabilities for it. "The companies participating in this project make all possible. And we have all grounds to believe that Turkey also will execute its liabilities associated with the Azerbaijan gas purveys to the Turkish market" - he has noted.
As to the reexport of the Azerbaijan gas to the European market through Turkey, the chief of Statoil-Azerbaijan has emphasized that in the next future increasing of natural gas demand will increase in the next future and fall down of "blue fuel" production at the same time will take place. In connection with this the partners on the project "Shakh-Deniz" consider possibilities for further development of the field for widening of geography of the Azerbaijan gas deliveries from "Shakh-Deniz". Azerbaijan is not single country, which sees this. But for winning a competition, participation should be take place", - Mr. G. Gundersen has resumed.
THE GOVERNMENT OF AZERBAIJAN TRY TO AGREE WITH INCREASING OF GAS IMPORT VOLUMES
By his word, daily 15 MM cubic meters are delivered daily to the Republic and they do not cover country demands. Problems with increase of deliveries appear for the gas pipeline in Uzbekistan (operated in deliveries to Azerbaijan) does not allow transport more 4.5 bn cubic meters annually on one hand. And on the second hand it is associated with relations between "Itera" and "Gazprom", and contract on gas deliveries to Azerbaijan with has been signed with each of them.
We shall remind that since the beginning of the year, "Itera" has stopped gas deliveries to Azerbaijan for problems with permit to transport capacities in Uzbekistan. On January 2004 Azerbaijan has imported already 466 MM cubic meters of gas from the Russian "Gazprom" (about 15 MM cubic meters daily). From February it has been supposed to increase deliveries up to 19 - 20 MM cubic meters daily, however it is not managed to realize these plans for the present. Totally Azerbaijan plans to purchase 6 bn cubic meters of gas. The deliveries are carried out by a price of $52 for 1 thou cubic meters. The contract with "Gazexport" (branch company of "Gazprom") was signed in the end of December 2003 and provides delivery of as minimum 2.75 bn cubic meters of gas. In 2003 the SOCAR purchased 4 bn cubic meters of gas from the company "Itera".
THE SOCAR HAS STARTED THE SEISMIC EXPLORATION ON THE FIELD "GOVSANI"
"Mainly the special works on discovering of nontraditional types of fields, which may contain new hydrocarbon supplies", - the official of the State Oil Company has said and added that at the same time the drilling of new wells on the field is continued.
The field is within frameworks of the block, which should be developed in accordance with the contract signed with the Russian "LUKoil". Officials of the SOCAR noted that the Russian company has not started works for the present for the SOCAR continues the development of the field itself. Totally 300 tons of oil per a day is produced on "Govsani".
As it has been informed earlier, "LUKoil" has no objections against the participation of the SOCAR in drilling on this structure, as the oil contract has not entered into force up to date.
Entering into force of the contract on the field "Zikh-Govsani" is postponed for unsolved ecological issues. The realization of only ecological program on the block requires about $100 MM.
The contract on the development and rehabilitation of the structure "Zikh-Govsani" was signed on January 9, 2002 with equal sharing of the SOCAR and "LUKoil". The supposed volume of investments will make $250 MM. The fields are in the southern part of the Absheron Peninsula. The total contract area makes 128 sq.km including rehabilitation square by 52 sq. km. By preliminary information, the volume of remained suppliers on the field makes 20 MM tons of oil.
THE COST OF THE TRANSPORTATION OF THE AZERBAIJAN OIL FROM THE BLACK SEA TO THE MEDITERRANEAN SEA HAS INCREASED BY $4 MM FOR ONE TANKER FOR BAD WEATHER
As it is known, while all export Azerbaijan oil is transported to the Black Sea ports Supsa and Novorossiisk and then is delivered to the Mediterranean Sea from there through the Bosporus and Dardanelles and further to the world markets. The present hard winter in Turkey as well as bad weather conditions in the Russian and Georgian ports complicated significantly the shipment and oil transportation to assigned point. For example, it was managed to deliver the SOCAR's oil party by 140 thou tons, which should be shipped from Novorossiysk in the beginning of December, - the official of the SOCAR has said.
As it has been informed in the Marketing and External Economic Operations of the SOCAR, stopping of tankers loaded with the Azerbaijan oil in the straits makes 20 - 25 days in average and it affects in its turn on the contract cost for purchasing of oil party and income volume correspondingly, which is got by the SOCAR from the oil transportation. Only on January every day losses of the SOCAR have made $90 thou from the stop of tankers.
Every month the SOCAR exports 2 tankers of crude oil every month. In the first quarter of 2004 it is planned to export 6 tankers, and each tanker of three ones is loaded by 130 thou tons of Azerbaijan oil and three tankers are loaded by 80 thou tons in each one. Else from 3 up to 4 tankers with the Azerbaijan oil are delivered from the Georgian port Supsa. Thus, losses of Azerbaijan for bad weather conditions in the Black Sea reach $25 MM in a month.
With this, as it has been noted in the SOCAR, there are not delays in the Azerbaijan oil transportation schedule by the pipeline Baku - Novorossiysk at the present time. In the current year the State Oil Company intends to pump the same volume of oil by the "northern" pipeline as in 2003 (2.5 MM tons).
"LUKOIL" HAS DEBTS TO THE COUNTRY IN CONNECTION WITH SELLING OF ITS SHARE IN THE CONTRACT ON "ACG"
As to negotiations with the company, the Minister has noted that in accordance with the Production Sharing Agreement (PSA) all issues connected with the development of the oil fields are solved by the SOCAR. The MT has appealed to the SOCAR and it is intermediary in the negotiations with the "LUKoil", he has said.
We shall remind that the Ministry of Taxes called the fixed total earlier, which is as if a debt of "LUKoil" - 200 MM. In his turn the President of the Russian Company Mr V. Alekperov has informed journalists that the company has executed all liabilities to the budget of Azerbaijan. We have not any debts to the state budget of Azerbaijan", - he has said.
The Ministry of Finances of Azerbaijan maintains the same opinion. The Russian Oil Company "LUKoil" has not liabilities on transfers to the state budget of Azerbaijan in connection with sales of 10% share in the project of the development of ACG".
The contract on the development of the fields "Azeri, Chiraq" and deep water part of "Guneshli" was signed on September 20, 1994 and entered into force on December 12 of the same year.
The following companies are following shareholders of the project: BP (34,1367% - operator), American Unocal (10,2814%), ExxonMobil (8,0006%), Devon Energy (5,6262%) and Amerada Hess (1,0413%), Azerbaijan ÃÍÊÀÐ (10%), Japanese Inpex (10%) è ITOCHU Oil (3,9205%) Norwegian Statoil (8,5633%), Turkish TPAO (6,75%) è Saudi Delta Oil (1,68%).
THE EXPENSES FOR CLEANING OF OIL-CONTAMINATED LANDS IN AZERBAIJAN WOULD MAKE $10 BN - THE MINISTRY OF ECOLOGY INFORMS
For all soviet period the oil production and processing technology in the country including Azerbaijan was not perfect at all and especially in keeping of ecology regulations. As a result thousands of hectares of lands in the country appeared oil polluted and moreover in some places soil is contaminated by oil at a depth of some meters.
By the words of the Minister, it is necessary to solve the problem by only forces of private sector or state. The transferring of these lands to operation of large business on favorable conditions is one solving versions by opinion of M. G. Bagirov.
"It would be necessary to gather officials of large business, clear up a total to be allocated. Attraction of foreign contractor will cost significantly higher as this contractor will be interested in getting the additional income of soil clearing", - Mr. G. Bagirov has said.
The area of oil-contaminated territories of only the Absheron Peninsula, where the main oil and gas onshore fields are situated exceed 30 thou hectares and areas of highly contaminated lands make 10 thou hectares.
At the present time in Azerbaijan on project on cleaning of oil-contaminated lands financed in account of means is realized. This project by a cost of $5.1 MM provides cleaning of totally 10 hectares of lands on one of the lands fields of Absheron.
Moreover, a possibility of realization of else one project on cleaning of oil-contaminated territories of the WB is discussed. The WB is able to allocate $14 - 15 MM for his purposes.
THE GDP OF AZERBAIJAN HAS INCREASED BY 9.9% IN JANUARY
By the data of the State Statistic Company, the industry share wthin frameworks of the GDP made 40.3%, agiculture - 1.8%, the construction - 12.8%, transport - 8.4%, social and other services - 15.4%.
Totally 54.9% of the GDP have been formed in account of the industry.
The GDP volume per capita made 325.2 thou manats in the past month.
The inflation level for the same level made 2%. The cost of food goods including drinks and tobacco increased by 3.2% in comparison of December of 2003, cost of nonfood goods reduced by 0.1%, service tariffs remained unchanged. In 2003 the domestic goods prices grew by 2.2%.
The inflation level in Azerbaijan makes 2 - 3% for the current year.
The official level by February 16 makes 4938 manats/$1.
THE INVESTMENTS TO THE AZERBAIJAN ECONOMY HAVE GROWN IN 2 TIMES
By the data of the State Statistic Department, 98% of all investment were directed to the industrial field.
Investments to the construction have grown by 70.9% in comparison with the same period of the past year.
The share of foreign investments made 94% or more 1.904 trln. Manats (a growth in 2.2 times in comparison with January, 2003), a share of inner investments made 6% or 120.6 bn manats)
1trln. 882.6 bn manats were allocated to the economy in account of own means of enterprises and organizations (including foreign ones) - a growth by 96.8%; 17.5 bn of bank credits (a growth in 4 times), 6.8 bn of budget means - 6.8 bn (reduction by 35.9%), means of out of budget funds - 1.4 bn (reduction by 76.8%), own means of population - 17.4 bn (a growth by 2.9%) in account of other means - 99.6 bn manats (a growth in 20.5 times).
It is supposed that totally 18 trln 405.4 bn manats would be allocated to the economy of Azerbaijan and within frameworks of them the foreign investments made 14 trln 855.4 bn, inner investements made 3 trln 550 bn manats.
The official rate of exchange on February 18 makes 4938 manats/$1.
