Investments of Azerbaijan

In Azerbaijan, the years after independence can be divided into two main periods: the period from 1991–1995, which is characterized by economic chaos and regress, and the period after 1996 is known for the growth of macroeconomic stability and dynamic economic development. The acquisition of stability in the political environment has contributed to the inflow of FDI and economic growth. After attracting foreign investment, Azerbaijan began to act as an investor and now has a large field of activity. Azerbaijan was raised by 18 points and ranked 51st among 133 countries. As indicated in the report of the United Nations Conference on Trade and Development (UNCTAD), Azerbaijan’s direct investment abroad in 2016 amounted to $ 533 million. US, which significantly exceeds $ 232 million. USA in 2010. ^[one]

Azerbaijan as an investor in Europe and the CIS countries

The republic, located on the territory of the South Caucasus, has entered a new stage of economic development and began to act as an investor. Most of the investments were made in Turkey, Georgia, Russia, Uzbekistan, Ukraine, Romania and Switzerland. In 2010, Azerbaijan was among the eight largest oil suppliers to the EU countries with 9.46 billion Euros. The State Oil Fund of the Republic of Azerbaijan has allocated 258 million euros for the construction of a resort in Montenegro. The project provides for the construction of a resort in the area of ​​Boca Bay, which is considered one of the most beautiful places on the Montenegrin coast. The agreement on the long-term lease of the facility, located on the former military site 116 kilometers (72 miles) south-west of the capital of Montenegro, Podgorica, will be signed with SOCAR for 90 years. ^[2] Among other foreign operations of SOCAR, investments in the Swiss energy sector can be noted. The company also participates in the implementation of a gas project between Azerbaijan, Georgia and Romania (AGRI) on Romanian territory, as well as in the development of the fuel infrastructure of Greece, Ukraine and Moldova. ^[3] Over the past five years, Azerbaijan has invested $ 700 million in the economy of Georgia. In 2011, SOCAR, which invested $ 32 million in Georgia, became the largest investment company in the neighboring republic of the South Caucasus.

Azerbaijan as an investor in Switzerland

SOCAR Trading began operations in April 2008. In 2008, the SOCAR office was opened in Geneva. Part of the country's needs for oil is provided by Azerbaijan. On November 16, an agreement was signed between the State Oil Company of Azerbaijan (SOCAR) and Exxon Mobil Central Europe Holding GmbH in Zurich to buy and sell shares in the Exxon Mobil Swiss branch of Esso Schweiz GmbH. Under the transaction, SOCAR received over 170 filling stations, shares of aviation filling stations at airports in Geneva and Zurich, a fuel marketing network for industrial and wholesale customers, and a gas refueling plant in Wangen-Olten. ^[four]

Azerbaijan as an investor in Turkey

In addition to these projects, according to the Decree of the President, the Oil Fund will finance the participation of the Republic of Azerbaijan in the construction project of the Oil and Gas and Petrochemical Complex, the participation of the Republic of Azerbaijan in the construction of the Star refining complex in Turkey, and the participation of the Republic of Azerbaijan in the TANAP project. ^{[5] The} Ministry of Economic Development noted that 844 companies are working in Turkey, working with the Azerbaijani capital. These companies are mainly engaged in construction, tourism, real estate, energy and transport. The State Oil Company SOCAR and other Azerbaijani companies have invested about $ 4.5 billion in the Turkish economy. SOCAR plans to invest 17 billion dollars in Turkey until 2018. ^[6] According to SOCAR President R.Abdullayev, the Southern Gas Corridor is seeking to become a new and reliable supplier of natural gas for Europe. The TANAP project provides for the transportation of gas from the Azerbaijani Shah Deniz field to the western borders of Turkey. About six billion cubic meters of this gas will be supplied to Turkey, and the remaining volume will be supplied to Europe. Gas will be supplied to Turkey in 2018, and upon completion of the construction of the Trans-Adriatic Pipeline, gas will be supplied to Europe in early 2020. The shareholders of TANAP are State Oil Company of Azerbaijan SOCAR (58 percent), BOTAS (30 percent) and BP (12 percent). Azerbaijan was declared the best reformer on improving the business climate in the Doing Business 2009 report published by the World Bank and the International Finance Corporation, the creditor of the World Bank’s private sector. The country maintained its position in the Doing Business 2010 report, in which measures were taken to further improve the business environment, which were assessed as positive. ^[7]

Azerbaijan as an investor in Ukraine

A subsidiary of the State Oil Company SOCAR Energy Ukraine in Ukraine began its activities in 2008. Starting in 2010, the company began to develop its own network of premium-class petrol stations. ^[8] By 2011, it was planned to open 17 gas stations in Ukraine. According to the data of 2017, 60 gas stations functioned in Ukraine. Two oil tankers - Baku-1 in Kiev and Ganja in Odessa belong to SOCAR. SOCAR has commissioned two new refueling complexes in Kremenchug, Poltava region and in Kamyanets-Podilsky, Khmelnytsky region. Here certified non-oil products comply with Euro-5 standards from refineries in Poland, Lithuania and Belarus are sold. ^[9] From 2009 to 2013, SOCAR's investments in Ukraine amounted to more than $ 160 million. ^[ten]

Azerbaijan as an investor in West Africa

Gasol plc, a subsidiary of African Gas Development Corporation Limited, has concluded an agreement with Socar Trading SA (a subsidiary of SOCAR). Under the agreement, Gasol plc will receive a loan of $ 1 million for a period of two years at a rate of 4% per annum. In December 2012, the companies signed an agreement on a strategic alliance for a project to build a terminal for receiving liquefied gas in Benin. As part of the project, Gasol will provide SOCAR Trading with the necessary volumes of liquefied gas, floating storage facilities and gas liquefaction vessels in the port of Cotonou (Benin). The aim of the project is the re-gasification of liquefied gas and its supply to energy and industrial customers in Benin, Togo and Ghana. ^[eleven]