THE ARMENIANS OF KARABAKH HAVE RAISED THE AZERBAIJAN FLAG AT THE MEETING IN KHANKENDI
BAKU.24.05.2004.MEDIA-PRESS:
By information of law-enforcement organs of Azerbaijan, in Khankendi, the capital of non-recognized Nagorno-Karabakh Republic intensity caused by meetings of opposition, which started on April is kept still.
BAKU.24.05.2004.MEDIA-PRESS:
Russia seems to agree on straits of Bosphorus and Dardanelle will not capable to serve its growing oil export in the next years. And Moscow starts to make measures for solve this problem. And it tries to direct its oil exportation roundabout the Black Sea straits. As Internet-site RusEnergy informs, the working group led by the officials of "Transneft" negotiates with the Turkish authorities on the construction of the oil pipeline roundabout the Bosphorus and Dardanelle.
BAKU.24.05.2004.MEDIA-PRESS:
On the onshore field "Muradkhanli-Jafarli-Zardob" the SOCAR of Azerbaijan has completed the drilling of the 101st well. As Media-Press has been informed in the SOCAR, the well has provided oil flow.
BAKU.24.05.2004.MEDIA-PRESS:
The specialists of the company "Caspigazprom" started restoration of 10 meters pipeline segment of gas pipeline Mozdok-Gazimagomed under Makhachkala on Monday in the morning.
BAKU.24.05.2004.MEDIA-PRESS:
The states entering into the OPEC are able to increase significantly oil production, the President and Executing Duties of the General Secretary of this organization Mr. Purnomo Yusgiantoro. He takes part in the International Energy Forum in the capital of Netherlands.
BAKU.24.05.2004.MEDIA-PRESS:
The RJC "EES Rossi" and the JC "Azerenerji" have signed memorandum on cooperation.
BAKU.24.05.2004.MEDIA-PRESS:
Measures, which will be taken in 2004 make a base of the state budget for the next year, just issues of improvement of taxation, levy of customs duties and effective spending of budget means. The Minister of Finance of Azerbaijan Mr. Avaz Alekperov has told this in the interview to the IA Regnum.
BAKU.24.05.2004.MEDIA-PRESS:
In the beginning of June the officials of the WB and government of Azerbaijan will discuss ways and details of the realization of the state program on reduction of poverty and economic development of Azerbaijan. As Media-Press has been informed in the Baku Office of the WB, experts of the Bank led by the leading economist on the South Caucasus Mr. Cristian Petersen will arrive in Baku for this goal.
BAKU.24.05.2004.MEDIA-PRESS:
A total of average salary in Azerbaijan in accordance of results of the current year made 440.81 thou manats (about $90). In comparison with the analogous period of 2003 this rate grew up by 19.2%.
BAKU.24.05.2004.MEDIA-PRESS:
The volume of toxic wastes in Azerbaijan made 26.861 thou tons in 2003: in 2.75 times more than in 2002. The report prepared by the Ministry of Ecology and Natural Resources of Azerbaijan shows this.
By information of the Baku newspaper "Echo", the demonstrators demanding stopping the Armenian-Azerbaijan conflict and improvement of social conditions, have raised the Azerbaijan flag near the flag of so called "NCR" at one of meetings as a sign of will to live being included in Azerbaijan.
Dissatisfaction of the Armenians of Nagorni Karabakh who are forced to live in hard conditions of military time, strengthens more as stability and growth of economy of Azerbaijan increases. The Karabakh Armenians are seriously worried by a possibility of renewing of war and wide spreading of drug addiction among servicemen, which spend total salary for illegal drugs.
A policy of Armenia, which forcibly settles and keeps migrants in Nagorni Karabakh as well unpublished agreement between Armenia and Georgia on arrest and returning of the Armenian servicemen and civilians migrating to other countries through Georgia, is mentioned as other cause of dissatisfaction.
RUSSIA AND TURKEY NEGOTIATE ON THE CONSTRUCTION OF THE PIPELINES ROUNDABOUT THE BOSPHORUS AND DARDANELLE
We shall remind that at the first time the President of the Russian pipeline monopoly "Transneft" Mr. Semen Vineshtock has offered this on the "Oil Week" in London. Then he has said to journalists that the company is ready for construction of the pipeline by a length of 193 km, which would be parallel to the straits.
The length of the pipe mentioned with accuracy up to kilometer shows clearly that the issue of the construction has not emerged spontaneously, but it has been worked out in some degree in "Transneft".
By the information of the journal "Oil Export" a question was about the oil pipeline Kiyikey - Iribakha by the territory of Turkey. The settlement Kiyikey (on the Black Sea coast) will receive tankers of deadweight by 150 000 tons and Ibrihaba will receive supertankers by 300 000 tons. By the information of the journal, the cost of the project with taking port terminals into account is estimated by $913 MM.
Just then on February the source close to "Transneft" has confirmed to the Russian newspaper "Vedomosti" that Mr. S. Vineshtock has mentioned just this project. Officials of the company have refused of commenting.
The other source close to the company declared then that "Transneft" would be able to finance the project independently in account of credit attraction. By estimate of the interviewer of "Vedomosti" the construction of the pipeline will take about half a year and the pipe will recoup itself possibly in a year and half already. "The attraction of the credit will bring to increase of transportation tariff, - the official of the Federal commission of the RF has said to "Vedomosti". It will not be a multiple increase, but significant one, because it includes interest rates of the credit.
By opinion of the General Director of the Shipping Company "Sovkomflot" Mr. Dimitry Skargi, if this project is realized, ship owners and oil workers will win. "In the straits tankers stay idle for 20 days in period of intensive navigation and cargo owners loose approximately $12 from each ton of oil and the pipe would help to escape delay; so even taking payments for two additional transhipments in ports this will be advantageous for oil workers", - he says. Ship owners will be able to use fleet more effectively by sharing in two pulls - in the Black Sea (tankers up to 150 000 tons) and Mediterranean Sea (tankers by 300 thou), he believes.
Then officials of the Ministry of Energy of Turkey have refused to comment the project of "Transneft". However already in the beginning of May the Minister of Energy and Natural Resources of Turkey Mr. Khilmi Guler has announced that Turkey will start the construction of two oil pipelines for reduction of loading Bosporus and Dardanelle.
"The first pipeline, - the Minister has said, - will be laid between the settlements Igneada and Saros". The second one will connect the Black Sea Samsun with the oil terminal Ceyhan in the Mediterranean Sea.
As we see, routes of oil pipelines of Russian and Turkish sides differ in some degree. However, most probably, the sides have achieved the preliminary agreement. As Mr. S. Vineshtock has informed recently on press conference, TNK-BP and "Tatneft" have allocated guarantees of oil pumping to the Turkish side within frameworks of the planning project of the construction of the oil pipeline roundabout Bosporus - Kiyikey (the Black Sea) - Ibrihaba through the territory of Turkey.
And he has not determined a volume of guarantees for pumping. The cost of the project is estimated by $900 MM and realized by the group of the Turkish companies Anadolu. By the words of Mr. S. Vineshtock, "Transneft" has received the offer to take part in this project.
The capacity of the route by a length of 193 km may make 50 - 60 MM tons a year. Russia has transported 62 MM tons of oil in 2003.
By the words of Mr. S. Vinestock, "Transneft" supposes that the cost of the oil transshipment on the route for period of payback may make $7.47 for a ton and then $3.04 for a ton.
At the same time the transport expenses by the new route may make by $1 higher than ones of the existing route through Bosphorus taking the double transshipment of oil at first to Kiyikey and then Ibrihaba.
THE SOCAR HAS COMPLETED THE DRILLING OF WELL ON THE FIELD "MURADKHANLI"
Officials of the SOCAR have also informed that a decision on drilling of else well on the field "Muradkhanli" has been taken. As to the well, which was not completed by the British company Ramco and later refused of the contract on this field, packer should be taken out of the well for drilling. To date there is not instrument for this operation, it should be ordered.
We shall remind that earlier the operating company Muradkhanli Operating Company (MOC) worked on this field, and the company Ramco was the operator in it. In accordance with the contract, Ramco should drill two exploration wells on the area. However it could not execute taken liabilities.
The agreement on "Muradkhanli - Jafarli - Zardob" was signed on July 21, 1988 and entered into force on November 27 of the same year. Specialists of the SOCAR estimate forecasted supplies of the field by 60 MM tons of oil and investments required for its development - $1.2 bn.
After Ramco leaving from the project, the Chinese oil companies started to display interest to this field. However further they refused of this idea and explained this by complex geological structure of the field.
GAS DELIVERIES TO AZERBAIJAN FROM DAGESTAN WILL RENEW ON TUESDAY IN THE MORNING
Gas did not fire during breaking of the pipeline. However a throwing out of condensate, which is harmful for environment in south of Makhachkala in region of suburbs settlement Noviy Khushet. Specialists of environmental protection organs should estimate the situation.
The accident on the main gas pipeline "Mozdok-Gazimagomed" emerged at night to Monday at about 21.55 of Moscow time in several km to southeast from the capital of Dagestan. Breaking of pipe by diameter of 1200 mm without firing emerged on air passage through ravine on approximately 600th km of transit gas pipeline in settlement Uitash.
As ITAR-TASS has been informed in Ministry of Emergency of Dagestan, there are not victims and injured in result of accident. Gas supplying to Azerbaijan and some populated settlements of Dagestan as well as the major part of Makhachkala has been stopped temporarily.
Gas deliveries to the north regions of Azerbaijan were restored by morning of Tuesday. The Chief Engineer of the company "KaspiiGazprom" Murad Abakarov has declared. By his words, the external examination of damaged 10 meters segment of pipe tells that accident emerged in result of external affect. For the present law-enforcement organs do not comment causes of the accident.
THE COUNTRIES OF THE OPEC ARE ABLE TO INCREASE SIGNIFICANTLY OIL PRODUCTION, THE PRESIDENT OF THE OPEC CONFIRMS
By the words of Mr. Yusgiantoro, at the present time the countries of OPEC use only 88% of its capacities on oil production. "So we have a space for maneuver if we decide to increase oil production", - the President of the OPEC has said.
On past Friday the Minister of Oil of the Saudi Arabia Mr. Ali bin Ibrahim al-Naimi suggested that OPEC would increase quotas on oil production by 6% (1.5 MM bbl per diem). Then he made new suggestion providing increasing quotas by 8 - 11% that is by 2 - 2.5 MM bbl per diem.
A concrete decision on this issue will be taken by consensus on the conference of the OPEC, which will be held on June 3 in Beirut. However not every country joining to the cartel is ready for supporting the offer of the Saudi Arabia.
In connection with this the Minister of Energy of the USA Mr. Spenser Abraham has stated on press conference held on Sunday within frameworks of the Amsterdam forum that in Beirut the countries of the OPEC should make a resolute step". He also informed that Naimi has confirmed his during the meeting that the Saudi Arabia is ready for increasing of oil production up to 10.5 MM bbl per diem.
Earlier the Saudi Minister said about the intension of his country to increase oil production up to 9 MM bbl per diem ad it would mean exceeding of quota of the OPEC by 18%.
On April 11 members of the OPEC including Iraq produced 28.1 MM bbl per diem and this was by 264 thou bbl less than on March (28.3 MM bbl).
Meanwhile the conjuncture on the world oil market depends not only on the OPEC. As well large oil producers, which do not join in the world cartel as Russia in the first turn, play sufficient role. As the Minister of Finance of Russia Mr. Alexey Kudrin, who took part in the meeting of ministers of finance of leading industrial countries of the world in New-York has declared that Russia supports opinion of G8 about necessity of increasing of oil deliveries to market.
"In total we share the opinion of G8 that additional oil volumes are required for market, the agency Bloomberg quotes words of Mr. Alexey Kudrin. - As well I has said that reduction in prices may accelerate economic growth and this is within our common interests.
He has said that Russia will follow to its own energy strategy, which provides growth in oil production independently from prices. Mr. A. Kudrin has declared that Russia intends to "support achieved rate" of growth in oil production, which makes 5 - 10% per annum.
After completion of the meeting on Sunday in New York the leading industrial countries of the world called countries-oil producers to increase oil production for promotion to reducing risks for the world economy. On May 17 price for oil reached $41.85 for barrel and this is the highest rate since 1988.
THE RJC "UES OF RUSSIA" AND THE JC "AZERENERJI" HAVE SIGNED MEMORANDUM ON COOPERATION IN BAKU
The delegation of the RJC "UES of Russia" led by Mr. Anatoli Chubais came today to the Azerbaijan capital and negotiated here with the authorized officials of the Ministry of Energy of the country and the Premier Mr. Rasul Rasizade. Mr Ilham Aliev, the President of Azerbaijan has received also Mr. A. Chubais and issues of the further extension of cooperation in electric power field were discussed.
On December of 2003 the agreement on technical ensuring parallel work of energetic systems of Azerbaijan and Russia was signed in Moscow. In the beginning of April of 2004 in Baku the eighth sitting of intergovernmental commission on the economic cooperation between the RF and Azerbaijan has passed in the beginning of April. It has been noted at the sitting that in the end of 2003 the RJC put into operation the high voltage line Vladikavkaz-2 - Grozni - Chiryurt on the area of the Azerbaijan - Russian interstate transit of electric power. This has increased stability of the work of the interstate transit and allowed to increase volumes of electric power deliveries from Russia to Azerbaijan. The Azerbaijan side has submitted the plan of the development of the electric power of the country up to 2010, and the Russian side has displayed its interest in it. Last two years the RJC "UES of Russia" exports annually 1.5 bn kWt/hour of electric energy by the line of electric transmission Derbent-Yashma. For increasing deliveries holding plans to construct new line with attraction of proper means. The realization of this project, particularly will allow Russia to increase electric power deliveries in Turkey, Iran and Georgia.
A TOTAL OF FOREIGN DEBT OF AZERBAIJAN IS EQUAL TO ITS STATE RESERVES
"The further reduction of the deficiency of the state budget, providing timely financing of stipulated expenses, financing expenses through the Treasury Office will make a base of our policy of expenses. It is possibly enough that in 2005 we plan the budget without deficiency. We conduct certain researches in this trend. The policy of the government has allowed keeping of deficiency of the state budget on a level of 0.8% to the GDP meanwhile in 1993 - 1994 this rate made 10 - 15%, inflation is regulated by the state and its volume does not exceed 2 - 3% a year. In 2005 the budget of Azerbaijan will be certainly accented on investments. There are Edicts of the President Mr. Ilham Aliyev, and the most serious of them is one on development of regions. In connection with this the means for creation of work places in regions will be provided", - the Minister has said.
By his words, preliminary figures on execution of the state budget for the first quarter of 2004 show that incomes were executed by 107.2% and the growth of the GDP will be on a level of 10 - 11%. All structures depending on earnings of the state budget including the Ministry of Taxes, Customs Committee, the Ministry of the Economic Development, have executed their liabilities. As compared to the first quarter of 2003 a growth of incomes has made about 24%.
Speaking about the external debt of Azerbaijan, the Minister of Finance has noted that its total does not causes fears. "In the first turn we want that the future generations have not problems on paying out external debt, - he has said. The external debt of Azerbaijan per capita is equal to $190 - 194 meanwhile in the neighbor countries this rate is higher in 3 - 4 times. In distinction from many states, Azerbaijan may pay out entirely these debts. A total of the external debt is equal in practice to the state reserves. The external debt makes about $1.6 bn. Nevertheless, we are interested in receiving very advantageous, cheap credits under interest rates of 0.75%, Mr. Alekperov has told in interview to the Agency REGNUM.
THE WB AND THE GOVERNMENT OF AZERBAIJAN WILL DISCUSS DETAILS OF THE STATE PROGRAM "REDUCTION OF POVERTY AND ECONOMIC DEVELOPMENT OF AZERBAIJAN"
The WB intends to allocate $60 MM for the realization of the state program on reduction of poverty and economic development of Azerbaijan. This year $20 MM should be allocated supposedly. And the received means will be transferred directly to the state budget of Azerbaijan. The International Development Association (IDA) will allocate means; this entity allocates usually credits on favorable conditions for period up to 35 years under 0.75% annual interest rate.
The program of poverty reduction provides three trends: development of non-oil sector and foundation of job vacancies here, quality improvement of social services and creation of common conditions for their reception (education, social protection, health) and rational consumption of resources of the State Oil Fund.
The first stage of the program accounted for 2002 - 2005 is estimated by $100 MM. Already Azebaijan has received two tranches by $10 MM of each one from the International Monetary Fund in 2001 - 2002 and the third tranche by $16 on May 2003. The credits were allocated for a period of 10 years with 5.5 years favorable period under 0.5% annual rate. Keeping of macroeconomic stability, annual inflation level within 2 - 2.5% ranges, ensuring currency reserves availability, which would be equal to 3 - 4 months import volumes, improvement of direct social support, introduction of individual social insurance, development of engagement strategy, creation of favorable conditions for business progress are main governmental responsibilities.
Totally $3 bn would be required for realization of the program for 2002 - 2005. Supposedly inner funds would make $1.3 bn from this total and $1.7 b would be allocated for realization of this program in account of foreign borrowings.
In the beginning of 2004 the government of the country determined the operation plan for poverty reduction in the country for the period up to 2015. 15 working groups are engaged in the development of this plan.
A TOTAL OF AVERAGE SALARY IN AZERBAIJAN MADE 440.81 THOU MANATS ($90)
By data of the State Statistic Committee, the highest level of salary is kept as before in the processing industry, construction, as well as in commercial and finance spheres. The lowest salary was registered in fishery, agriculture, medicine and social sphere.
The Edict of Azerbaijan dated from August 4, 2003 increased a minimum salary in the country from September 1 since 27.5 thou manats up to 45 thou manats and since January 2004 was increased up to 60 thou manats. A total of unemployment allowance is equal to 122.4 thou manats and makes 27.4% of average salary.
A number of able-bodied people in Azerbaijan makes to date 3.805 MM or 46.6% of all population. Only 55.1 thou persons have official unemployed status.
IN 2003 VOLUME OF TOXIC WASTES EXCEEDED 26 THOU TONS IN AZERBAIJAN
A share of the processing industry in contamination is the largest: 25.08 tons; a share of manufacturing industry made 970.8 tons; a share of enterprises of production and transmission of electric power, water and gas make 810.2 tons. And practically total toxic wastes are a result of activities of two industrial centers - Baku and Sumgait. In accordance with data of the Ministry of Ecology, 74.7% of total volume of wastes was produced in Sumgayit and 23.8% in Baku.
A growth of wastes is connected basically with appearance of wastes of metal-welding industry in Sumgayit. So in 2003 17.43 tons of wastes were made here, in 2002 they did not exist at all. In Baku a volume of toxic wastes reduced from 7.159 thou tons in 2002 to 6.392 thou tons in 2003.
Totally 2.97 MM tons of wastes were accumulated in the enterprises of the country to beginning of 2004 and 2.89 MM tons of it in the processing industry.
