SINCE THE BEGINNING OF THE YEAR 22 BN MANATS HAVE BEEN ALLOCATED FROM THE STATE BUDGET OF AZERBAIJAN FOR THE SUPPORT OF BUSINESS
BAKU.27.02.2004.MEDIA-PRESS: The Azerbaijan National Fund of the Business Support has received 22 bn manats from the state budget. The received means are allocated already to businessmen.
BAKU.27.02.2004.MEDIA-PRESS: By data of the National Bank of Azerbaijan (NBA) a total of means allocated to the economy of Azerbaijan up to February 1, 2004 made 3.356 trln manats. As Media-Press has been informed in press service of the NBA, credits by a total of 2.369 trln manats are short-term and by 986.7 bn manats - long-term.
BAKU.27.02.2004.MEDIA-PRESS: The volume of means and deposits attracted by the Azerbaijan banks up to February 1, 2004 made 3.245 trln manats. Deposits in the national currency made 585.9 bn manats and ones in foreign currency made 2.659 trln. Manats (81.9%).
BAKU.27.02.2004.MEDIA-PRESS: On February 1, 2004 the authorized capital AC of the Azerbaijan banks made 738 bn manats. As it has been informed in the National Bank of Azerbaijan, 81 bn manats from this total are of the state banks and 657 bn manats are of private ones.
BAKU.27.02.2004.MEDIA-PRESS: The volume of monetary mass turnover made 2.47 trln manats for February 1. As Media-Press has been informed in the press service of the National Bank, the growth in comparison with the analogous rate of 2003 made 25.3%.
BAKU.27.02.2004.MEDIA-PRESS: For January of 2004 the population of Azerbaijan purchased consumer goods by 1.7 trln manats. In comparison with the analogous period of the past year this rate has grown by 11.3%. More than 70% of all goods were sold to physical persons.
BAKU.27.02.2004.MEDIA-PRESS: Turkey is ready to assist to the peaceful adjustment of the Nagorny Karabakh conflict. The Vice-Premier of the Turkish government the Foreign Minister of Turkey Mr. Abdulla Gul has declared this in Moscow on press conference in the central office of "Interfax".
BAKU.27.02.2004.MEDIA-PRESS: Turkey is ready to assist to the peaceful adjustment of the Nagorny Karabakh conflict. The Vice-Premier of the Turkish government the Foreign Minister of Turkey Mr. Abdulla Gul has declared this in Moscow on press conference in the central office of "Interfax".
BAKU.27.02.2004.MEDIA-PRESS: "The oil companies investing means to Iran make a mistake. At the present time the investments to the oil field of Iran do not seem a clever step as approaches of Tehran on many issues have not changed still", - the official of the State Department of the USA Mr. Richard Bauer has said.
BAKU.27.02.2004.MEDIA-PRESS: The oil production on all onshore and partially offshore fields of the SOCAR is not profitable as it does not repay expenses for its extraction from the stratums.
BAKU.27.02.2004.MEDIA-PRESS: The supplies of gas to the Nakhcivan Autonomous Republic will not cause any difficulties as network of pipelines of the Azerbaijan autonomy is situated very closely from Iran and there will not be any problems on this. The Deputy Minister of Oil of the IRI Mr. Khadinejad Khoseniyan has expressed this opinion.
BAKU.27.02.2004.MEDIA-PRESS: Yesterday the direction of the Federal State Unitary Enterprise (FSUE) "Chechengazprom" warned again that since March 3 it stops the Russian gas transit to the South Caucasus countries - Georgia, Armenia and Azerbaijan. The Russian periodical "Nezavisimaya Gazeta" informs about this.
BAKU.27.02.2004.MEDIA-PRESS: The inner prices for energy carriers do not differ very much from the world ones. The Minister of the Economic Development of Azerbaijan Mr. Farkhad Aliyev has declared this commenting the demand of the International Currency Fund to Azerbaijan to increase the inner prices for energy carriers up to the world ones.
BAKU.27.02.2004.MEDIA-PRESS: The President of Ukraine Mr. Leonid Kuchma has given an order to the Vice-Premier Mr. Andrew Klyev to go to Kazakhstan for clearing up the situation around possible volumes of the Kazakhstan oil for transportation by the oil pipeline "Odessa-Brodi".
BAKU.27.02.2004.MEDIA-PRESS: Kazakhstan is not agreed with intensions of the Government of Russia to include the Caspian Pipeline Consortium in the list of natural monopolies and regulate its tariffs on oil transportation, the Managing Director of the Kazakhstan State Oil and Gas Company "KazMunayGaz" Mr. Kairgeldi Kabildin has said. "The intension to include the CTC in the list of natural monopolies disagrees with liabilities signed by the Russian Government in 1996 when the consortium has been created", - Mr. K. Kabildin has emphasized. By his words the agreement provides that Russia and Kazakhstan refuse of their sovereign rights on regulating and controlling the CTC activity.
BAKU.27.02.2004.MEDIA-PRESS: The information about negotiations of the Minister of Energy of Turkey with the Iranian side on reduction of price for imported Iranian gas are groundless, the Deputy Minister of Oil of Iran Mr. Mokhammad Mallaki has said in interview to the Information Agency "Pars".
BAKU.27.02.2004.MEDIA-PRESS: Today the enlarge sitting devoted to the realization of the state program of the social and economical development of regions has been held in 2004 - 2008.
BAKU.27.02.2004.MEDIA-PRESS: The Minister of Economic Development of Azerbaijan Mr. Farkhad Aliyev has declared that up to the end of this year 85 thou new job places will be founded in Azerbaijan. By his words this value was got on a base of opinion poll of businessmen and in accordance with this rate 45 thou job places would be founded supposedly up to the end of the year. And due to the support of the state a number of new job places will increase up to 85 thou.
As the Ministry of the Economic Development of Azerbaijan Mr. Farkhad Aliyev has informed, it is planned to reduce the rate of credits and liberalization of their allocation conditions. The state did not put a goal of getting profits when it had been preparing this program. The highest interest rate by today is 7% and it is planned to reduce this rate in the next future and taking into account that this credits are allocated by manats, they are interest-free, - he has noted.
Crediting is carried out by means of 14 banks-agents. However, in the next future credit organizations and other banks will be attracted to this deal.
We shall note that in the last year credits by a total of 50 bn manats were allocated from the Fund of Business Support. These means were transferred for financing of 273 business-projects in 49 cities and regions of the country. And a great attention was paid to the regions. So, 80% of the financed projects were realized out of the capital. Moreover, projects providing for production or processing of the production were preferred in choosing projects for further financing.
The Minister has also noted that in this year 100 bn manats for business supporting should be allocated in accordance with a schedule. And up to 2005 this value will increase to 250 bn manats. In previous five years by 13 bn manats were allocated annually to this sector from the state budget (totally 65 bn manats) and totally 6bn manats were spent for all this period.
CREDITS BY A TOTAL OF 3.356 TRLN MANATS HAVE BEEN ALLOCATED TO THE ECONOMY OF AZERBAIJAN
The share of the state banks made 1.505 trln manats; means of the private banks made 1.478 trln manats and means of out of bank organizations made 371.5 bn manats. Only a third part of credits was allocated in the national currency and the rest in the foreign one.
The credit volumes allocated to the different spheres of economy looks as follow: 21.03% of credits were allocated to trade and services field, 12.93% - development of transport and communications: 8.44% - energy and development of the natural resources: 6.24% - agricultural sector. 7.86% were allocated in heavy and light industry, 5.41% - in the construction; credits allocated to physical persons made 27.13% and 5.84% were allocated in the sphere of the state administration.
UP TO FEBRUARY 1 BANKS OF AZERBAIJAN ATTRACTED 3.245 TRLN MANATS
Deposits of the physical persons in banks made 1.301 trln manats and 1.203 trln of them were in the foreign currency. Deposits of the juridical persons made 1.944 trln manats (1.456 trln - in currency).
THE AUTHORIZED CAPITAL OF BANKS IN AZERBAIJAN HAS MADE 738 BN MANATS
The authorized capital of banks with sharing of foreign capital made 294.7 bn manats or 39.9% from all the AC of all banks of the country. In average, the average AC of each bank makes 16.4 bn manats.
By February 1, 2004 45 banks operated in Azerbaijan. 17 one of them were with the foreign sharing and it made 50 - 100% in 4 banks, less than 50% in 11 ones and else two banks nonresidents were included in this number.
THE VOLUME OF THE MONETARY MASS TURNOVER MADE 2.47 TRLN MANATS
1.884 trln manats are cash in the total monetary mass volume, 585.9 bn manats are cashless.
THE POPULATION OF AZERBAIJAN HAS PURCHASED CONSUMER GOODS BY 1.7 TRLN MANATS
As it has been informed in the State Statistic Committee of Azerbaijan, food goods made the major part of the expenses of the population. For the past period goods of this category were purchased by a total of 965.4 bn manats. Expenses for non-food goods made 479.8 bn manats. In comparison with the analogous period of the past year these rates have grown by 8.5% and 18.5% correspondingly.
In average each resident of Azerbaijan purchased goods by a total of 178.1 thou manats on January. This exceeds the rate of January of 2003 by 26.1 thou manats.
MR. ABDULLA GUL: TURKEY IS READY FOR PARTICIPATION IN THE PEACEFUL ADJUSTMENT OF THE KARABAKH CONFLICT
"At the present time the conflict is the "frozen" state and Turkey is ready to render an assistance in interests of adjustment of the Nagorny Karabakh conflict on a base of agreements between interested sides", - Mr. A. Gul has said.
He has italicized the availability of "good potential" of the Turkish side for rendering of this assistance. "We have good relations with all countries having relation to this conflict excluding Armenia", - he has emphasized and added that the assistance in the peaceful adjustment of the conflict would create conditions for normalization of relations between Turkey and Armenia.
MR. ABDULLA GUL: TURKEY IS READY FOR PARTICIPATION IN THE PEACEFUL ADJUSTMENT OF THE KARABAKH CONFLICT
"At the present time the conflict is the "frozen" state and Turkey is ready to render an assistance in interests of adjustment of the Nagorny Karabakh conflict on a base of agreements between interested sides", - Mr. A. Gul has said.
He has italicized the availability of "good potential" of the Turkish side for rendering of this assistance. "We have good relations with all countries having relation to this conflict excluding Armenia", - he has emphasized and added that the assistance in the peaceful adjustment of the conflict would create conditions for normalization of relations between Turkey and Armenia.
THE USA CONSIDER AN OPPORTUNITY OF INTRODUCTION OF SANCTIONS AGAINST COMPANIES INVESTING TO THE ECONOMY OF IRAN
This warning has been caused by that a day before the Iranian National Oil Company signed the contract by a total cost of 2 bn dollars with the French Total S.A. and Malaysian Petronas. And in the last week Tehran signed agreement on development of the oil field "Azadegan" with the Japanese Consortium and this has caused dissatisfaction of the USA.
Mr. Baucher has said that the USA consider the law on sanctions against Iran and Libya dated from 1996 in order to clear up whether sanctions against companies investing to Iran may be introduced or not. Paticularly, the official of the State Department has emphasized: "We do not stimulate any investments to the oil industry of Iran. We have laws, which will be applied in a case of such investments and now we are studying a possibility of this law operation", - the official of the SD has warned.
HE OIL PRODUCTION ON ALL ONSHORE AND PARTIALLY OFFSHORE FIELDS OF THE SOCAR IS NOT PROFITABLE
As Media-Press has been explained in the SOCAR, all expenses are formed in account of several factors. So the production of one ton of oil on the onshore fields of the SOCAR is accompanied by extraction of 13 tons of water and 5 tons of water are extracted on offshore fields. Oil as water is lifted up by means of pumps, and electric power is required for their operation. Calculations show that for the production of one ton of such mixture electric energy sufficient for production of 14 tons of oil is spent.
Besides, the majority of mentioned fields of the SOCAR are in the latest stage of the development and the production here requires much larger expenses and is not repaid by oil being produced. Particularly, for maintenance of the stratum pressure, pumping of water and gas would be necessary and it causes additional expenditures.
The situation on the shallow area of the offshore field "Guneshli" differs by that the oil production here is carried out by fountain method and does not require another equipment. These factors make oil from the field "Guneshli" cheapest.
We should note that today 12 oil and gas production offices are on the balance of the SOCAR. Seven of them are onshore and five are offshore.
THE IRANIAN GAS DELIVERIES TO AZERBAIJAN WILL START AFTER RECEIVING OF RELEVANT GUARANTEES
By the words of Mr. Khoseniyan, the agreement on deliveries of gas has achieved between Iran and Azerbaijan, however there are some disagreements. The main problem in realization of the agreement is associated with guarantees. It is supposed that the connection of pipelines of two countries will be realized in the next time. The Azerbaijan side should ensure guarantees of payments for the gas being delivered.
"CHECHENGAZPROM" WARNS AGAIN ABOUT STOPPING THE GAS TRANSIT TO THE SOUTH CAUCASUS
The direction of this enterprise notes in the letter on the name of Mr. Alexey Miller, the President of the Russian "Gazprom" that "Gazprom" has to pay out for transit of "the blue fuel" through the territory of Chechnya.
"Up to date you has not signed still the agreement on transit of gas being delivered to the Transcaucasian countries by you. For full ignoring of legal demands of "Chechengazprom" and in accordance with the regulations of gas deliveries we warn you about a start of reducing the oil transportation volumes up to its full stopping since 10.00 A.M. by Moscow on March 3, 2004", - the General Director of "Chechengzprom" Mr. Vakhid Bersanov tells in his letter.
As "Nezavisimay Gazeta" writes, these demands come out of frameworks of the normal economic policy by such degree that it would be very difficult to react on them adequately. But debts of Chechnya for consumed gas exceed very much a total of payments for transit. "There are two enterprises in Chechnya - "Chechengazprom" and "Chechengaz". During 5 years they ensured transit and get volumes of gas required for them.
Naturally, totals of transit cost and consumed gas one are not comparable. Up to date the total of dept for gas consumed by Chechnya makes about 5 bn roubles (by estimations of experts, a cost of transit on through the territory of Chechnya makes about 240 MM roubles totally). Up to the last time this situation satisfied "Chechengazprom".
Now this enterprise intends to continue to take gas and receive additionally cash money for transit. On Monday a sitting devoted to this issue is held and so they probably have decided to organize such "propaganda action", - the source in the direction of "Gazprom" has said.
We should note that in accordance with the real contracts, in 2004 up to 8 bn cubic meters of gas should be delivered to Georgia, Armenia and Azerbaijan. Tariff on transportation of the export gas makes slightly more than one dollar for pumping of 1 cubic meter per 100 km. Thus transit of necessary volume through the territory of Chechnya in normal conditions may cost $8 MM, and "Gazprom" would gifted them really to the direction of "Chechengazprom".
THE MINISTER OF ECONOMIC DEVELOPMENT: THE INNER PRICES FOR ENERGY CARRIERS IN AZERBAIAN DO NOT DIFFER VERY MUCH FROM THE WORLD ONES
By the words of the Minister it is supposed that the mechanism of increasing of the prices will be as follow: if during the quarter the prices for energy carriers increase by 20%, Azerbaijan will revise them also. Moreover terms of realization of this project have not been defined for the present. Mr. F.Aliyev has emphasized also that the government will made all possible for that would not affect on the population of the country.
We shall remind that the IMF postponed the terms of the execution of liabilities on increasing of inner prices for energy carriers up to the world ones by the government of Azerbaijan. Earlier it has been planned to make this already in the beginning of 2004.
MR. KUCHMA HAS GIVEN AN ORDER TO CLEAR UP POSSIBILITY FOR LOADING OF THE OIL PIPELINE "ODESSA-BRODI" BY THE KAZAKHSTAN OIL
"In the next time I send the Vice-Premier Mr. Kluyev to Kazakhstan, he has been in Azerbaijan, and we know capacities of Azerbaijan, - the President of Ukraine has said on the press conference in Kiev, - However the main oil should be of the Kazakhstan origin. And I do not know about an answer from there. And very much depends on it", - Mr. L. Kuchma has noted. At the same time he has not answered, whether somebody will be punished for staying idle of the oil pipeline.
Mr. Kuchma also noted that issue of oil transportation from Brod for the period of construction completion of the oil pipeline up to Plotsk has not been developed up to the end. By his words, he is not sure that on May oil deliveries to Poland by the pipeline "Odess-Brodi" will start. "And it is very difficult to say, when the oil pipeline works", - Mr. Kuchma has said. Semi-joking he has said, "Two small problems have remained for adjustment:" We (Ukraine) should find out oil and Poles should complete the construction oil pipeline up to Plotsk".
Three days earlier the Minister of Fuel and Energy of Ukraine Mr. Sergey Ermilov has informed that oil deliveries to Poland carried out by the railway transport will start on April - May of 2004 after filling up of the pipeline "Odessa-Brodi" by the Caspian oil. By the words of Mr. Ermilov, there is agreement, where the Polish side will be able to receive oil already on May by means of the railway transport from Brod up to the Polish oil processing plants.
As Yermilov had said, up to the end the government accounts to transport 4 - 5 MM tons of the Caspian oil from Azerbaijan and Kazakhstan.
We shall note that the issue of the Azerbaijan oil deliveries for the pipeline "Odessa-Brodi" will become one of the main ones during the negotiations, which would be conducted by the speaker of the Ukrainian Parliament Mr. Vladimir Litvin on February 27 - 28 in Baku.
As it is known, after long time thoughts and discussions Ukraine has refused of the Russian oil transportation in the reverse direction Brodi - Odessa. By the opinion of the Russian experts, Ukraine could earn $90 MM annually from the reverse of the oil pipeline "Odessa-Brodi". The Russian Company TNK - BP has offered to deliver 9 MM tons of oil annually from Brodi to Odessa. However, this offer was not approved and mainly for a pressure rendered by the USA and the EU.
The first turn of the oil and transport system "Odessa-Brodi" was put into operation in 2001, however the transportation of crude has not started still. The capacity of the system makes 9 - 14.5 MM tons of oil annually with the reservoir park of 200 thou cubic meters. Ukraine has allocated $500 MM in its construction.
KAZAKHSTAN IS NOT AGREED WITH INTENSIONS OF RUSSIA TO INCLUDE CTC IN THE LIST OF THE NATURAL MONOPOLIES
On December 2003 the Ministry of Energy of Russia agreed with arguments of the Federal Energy Commission (FEC) insisting on including CPC in the list of natural monopolies of the RF. This means that already in the first half of the next year tariffs on oil pumping for the Russian part of CPC will be established by the FEC.
The pipeline by a total length of 1580 km connects the fields of the Western Kazakhstan with the Russian coast of the Black Sea. Since the moment of launching on November 2001, about 1.3 MM t of oil per a month is pumped. The calculated capacity of the first turn of the first large private oil pipeline on the territory of the former USSR makes 28.2 MM tons of oil annually and should grow up to 67 MM tons. CTC belongs to governments of Russia, Kazakhstan and Oman and also to the companies Chevron Texaco, Agip, ExxonMobil and "LUKoil".
PRICE FOR THE IRANIAN GAS BEING IMPORTED TO TURKEY SHOULD NOT BE REVISED UP TO THE END OF THE YEAR
By his words, fixed price is provided in the agreement on deliveries of the Iranian natural gas to Turkey and it should not be revised up to the end of 2003. Besides, the Turkish side has not appealed at all to the Ministry of Oil of Iran on issue of gas price reduction.
At the same time Mr. M. Mallaki did not except that the Minister of Energy of Turkey could appeal to the Supreme Authorities of Iran on this issue, however he does not know anything about this.
In his turn the Executive Director of the National Iranian Gas Exporting Company Mr. Ruhoddin Javadi has declared that Tehran had rejected demands of Ankara to reduce prices for the natural gas deliveed by the gas pipeline from Iran to Turkey. "Demands of the Turkish side on reduction of price for the delivered Iranian gas is violation of the terms of the contract signed two years ago", - he has said.
He associates the demands of the Turkish side which emerge sometimes about reduction of prices for the Iranian gas for Ankara would be able to purchase it from Russia, which is the rival of Iran on the Turkish and European markets, by his words.
In 2003 Iran delivered 3.5 bn cubic meters of gas to Turkey. It is planned to increase volumes of deliveries up to 8.3 bn cubic meters of gas.
THE MINISTRY OF THE ECONOMIC DEVELOPMENT STARTS THE REALIZATION OF THE STATE PROGRAM "SOCIAL-ECONOMIC DEVELOPMENT OF REGIONS OF AZERBAIJAN FOR 2004 - 2008
Opening the sitting the Chief of the Ministry of the Economic Development Mr. Farkhad Aliyev has called such rates: in 2003 the GDP growth made 11.2%, investments to the economy of the county grew by 54.9% and made $17 bn, the growth of foreign trade turnover made 36.1% and average salary grew by 21.4% and pension by 40.8%.
Telling about a necessity of development of regions, Mr. F. Aliyev has noted that today the main economic potential of the country is in the country. So transfers of regions make totally 15% in the incomes of the state budget and a share of regions in direct investments - totally 20%.
The Minister has noted that in accordance with the forecasts already by 2008 the GDP volume will make 76.3 trln manats and increase in 2.3 times in comparison with 2003. The production of the GDP per capit will reach $1.578 thou, a share of the private sector in the GDP will grow up to 85%. During five years the agricultural production will increase by 62.5% and investments to the economy of the country will make $16.8 bn for this period.
UP TO THE END OF THE YEAR 85 THOU JOB PLACES WILL BE FOUNDED IN AZERBAIJAN
Particularly, in the agriculture new places will appear in account of foundation of agricultural service network. Besides, for the normal operation of the enterprises in regions the development of infrastructure, construction of electric power stations is conjectured.
As the Minister has noted, Mr. F. Aliyev has noted, redirection of investment flow from the center of the country to regions is one of the main goals of the state program of social-economic development of the regions for period up to 2008. "We plan to increase them up to 60%, however this a prediction and reality may differ. So during this period we shall be monitoring this process", - the Minister has said.
