May 7
Kulevi oil terminal to increase handling power
The Kulevi oil terminal has begun to accept cars with oil cargo from the new railway station Part Tskali built in Georgia. The station, constructed in accordance with modern requirements, was connected to the four rail lines. These lines were also constructed in accordance with the contract signed between the terminal and the Georgian Railways. Construction of the new station has created conditions for the terminal to receive oil from a close distance.
Azerbaijan approves procedure of calculating customs debt on VAT
The Azerbaijani Cabinet of Ministers approved the procedure of calculating the amount of customs debt on value added tax (VAT). The procedure was approved by the Cabinet of Ministers' decision on May 7, 2012. As the text of the decision was released on Tuesday on its website, it shows that the calculation of customs debt on VAT with respect to imported goods starts from the day of crossing customs border. With respect to exported goods it is from the date of submission of the declaration of goods while the taken tax rate becomes effective on that day and is used as a basis.
The amount of VAT is calculated using the following formula:
VAT amount =(D + A + R) x V/100, where
D - customs value determined during customs clearance of goods;
A - excise tax;
R - customs duties;
V - effective tax rate.
VAT rate in Azerbaijan is 18 per cent.
May 8
ADB studies potential for new funding in Azerbaijani transport sector
A transport delegation from the Asian Development Bank (ADB) will visit Baku on May 8 in order to monitor the construction project of the Masalli-Astara road.
Multitranche Financing Facility (MFF) allocated $500 million for the road project, part of the Road Network Development Programme. The loan was approved in August 2007 and MFF allocated $400 million for the construction of the Masalli - Astara road.
ADB extended the term of the first loan ($200 million) for the reconstruction of the highway Masalli-Astara to December 31, 2013 due to delays in the implementation of the project.
At present the construction of the first section (A) of the road, which is being carried out by the Azerinsaatservis Construction Company is underway and it is planned to announce a new tender to determine contractors on the other two sites (B and C).
SOCAR announces plans on gas station network expansion in Ukraine
The total number of petrol stations under the brand SOCAR in Ukraine is projected to reach 50 until the end of the year. The source noted that currently there are 26 stations under SOCAR brand in Ukraine. The source added that two large gas stations in Kiev will be commissioned soon. One station will be located in the city center and the second - on the road from Boryspil airport.
AZPROMO, GIZ launch new project to support exporters in Azerbaijan
Courses under the program of training of exporters will begin for Azerbaijani entrepreneurs in June. Memorandum on the implementation of this project was signed on May 8 between the AZPROMO and German Society for International Cooperation (GIZ). According to the memorandum, AZPROMO, the German Federal Ministry for Economic Cooperation and GIZ will jointly organize the courses, which will continue until the end of the year. The purpose of this program is to inform local businesses about export procedures, foreign markets and export opportunities.
Central Asian countries approve plan for cooperation in water quality
Representatives of the five Central Asian states approved of the first comprehensive plan for cooperation in the field of water quality at a meeting in Almaty. A plan, entitled "Development of regional cooperation on ensuring water quality in Central Asia" has been developed under the project "Water quality in Central Asia", which is implemented by the United Nations Economic Commission for Europe (UNECE) and the Regional Environmental Centre for Central Asia. The plan provides for three strategic areas of work, including information exchange and harmonization of national policies on water quality, co-operation on water quality monitoring and data sharing, as well as the establishment of a regional body of experts on the subject.
Plan for future cooperation has been approved by 12 agencies of five states of Central Asia. Discussion and approval of it by regional organizations on cooperation is planned as the next step. Representatives of the States have agreed to continue the work of the Regional Working Group on Water Quality after project completion.
Other achievements include a demonstration coordinated project of water quality monitoring, including the exchange of information among participating countries and the training of experts on key issues of water quality management. Under the project, laboratories in the Central Asian countries receive the necessary equipment that will improve the water quality monitoring.
May 9
AZAL negotiates on Moscow-Gabala flights opening
The "Azerbaijan Airlines" negotiates with Russian partners on opening of new flights from Moscow to Azerbaijan's Gabala city. Askerov mentioned that AZAL recently experienced a significant increase in passenger traffic - while it transported 989,096 passengers in 2010, the number of passengers using AZAL's services increased to 1,352,871 in 2011, which corresponds to almost 37 percent growth.
May 10
Azerbaijan develops environmental standard Euro 3
The State Committee on Standardisation, Metrology and Patents of Azerbaijan has developed a standard Euro 3. Currently, the standard is at the consultation stage, but it will be adopted in the near future. Euro-3 is an environmental standard regulating the content of harmful substances in exhaust gases of vehicles with diesel and gasoline engines. It was introduced in the EU in 1999 and replaced by Euro-4 in 2005. Currently Euro 2 environmental standard is used in Azerbaijan. Modification of a car that meets the requirements of Euro 2 standard under the Euro-3 usually leads to a change in the exhaust system and engine management system. It often reduces the engine power of the vehicle and as a rule additional improvements that increase capacity, such as increasing the compression ratio are produced to compensate for this decline. Checks will affect fuel and lubricating oil produced in Azerbaijan and imported from abroad.
Standard Euro 3 will be used since this year and Euro 4 after 2015.
Ferry for Azerbaijan launched in Croatia
A ceremony to launch the Barda ferry, built for the Azerbaijan State Caspian Sea Shipping Company was held at the Croatian Uljanik shipyard. The ceremony was attended by a shipping company delegation headed by Aydin Bashirov, as well as Azerbaijan's ambassador to Croatia, Kamil Khasiyev. A second ferry, Balaken, built for the Caspian Sea Shipping Company, will be launched next month. Both ferries will arrive in the country by the end of the year.
Coordination center on network threats created in Azerbaijan
A coordination center on network threats and cybercrime has been created in Azerbaijan. The center was created in accordance with the convention on "Cybercrime". Azerbaijan joined it in late June 2008. The convention on "Cybercrime" was ratified by the Azerbaijani Parliament at the first plenary session in September 2009. The Azerbaijani Ministry of National Security is responsible for the activities of the Coordination Centre. The center rapidly obtains the information about cybercrime from other countries. They are informed of cyber threats coming from Azerbaijan.
Cargo transportation tariffs up in Azerbaijan
The cargo transportation tariffs in the transport sector increased by 4.5 percent in Azerbaijan in April compared to March. Passenger transportation tariffs decreased by 0.4 percent in April. Last month, the average tariffs for transportation of 10 tons of cargo per kilometer, exported from the country by railway reduced by 4.6 percent. The tariffs on goods imported into the country by railway, transit goods and cargo transported within the country have increased respectively by 3.9, 0.3 and 1 percent. The tariffs on international transportation of passengers by railway decreased by 13.4 percent in April. Transportation tariffs of one ton of cargo by air to the CIS countries increased by 0.1 percent. The tariffs on passenger transportation by air to the countries of far abroad reduced by 0.2 percent and increased by 13.3 percent in the CIS countries. Cargo transportation by sea during this period increased by 5.4 percent. The tariffs on oil transportation via pipelines increased by 7.2 percent in April compared to March.
May 11
SOCAR conducts regular control over gas pipelines in Azerbaijan
The State Oil Company of Azerbaijan (SOCAR) SOCAR has held monitoring over gas pipelines in Azerbaijan on a regular basis to provide export operations and to provide gas to customers in Azerbaijan. Inspection and timely detection of problems in the transportation system are among the most important activities of SOCAR. Special monitoring is carried out over a trunk gas pipelines, leading to the north (Russia), west (Georgia) and South (Iran). In this regard a program of activities to control the work of gas pipelines is created.
Fitch believes process of consolidation in banking sector of Azerbaijan to be inevitable
The gradual process of consolidation in the banking sector in Azerbaijan is inevitable, associate director of the banking analytical group Fitch Ratings Dmitry Abramov believes. "Business is usually built around the maintenance of shareholder interests at small banks which together with the small size of operations raises the question of their economic viability," he told Trend. Abramov noted that the relationship between the processes of consolidation and asset quality is quite remote. However, consolidation of banks has several advantages.
Fitch affirms Azerbaijan's investment rating at BBB-
International rating agency Fitch Ratings has affirmed the long term investment rating of Azerbaijan in local and foreign currency at "BBB-". "Maintaining Azerbaijan's rating at the investment level reflects a significant strengthening of the country's economic power, its dynamic socio-economic development and improving population's wellbeing," the Finance Ministry said with reference to the agency.
According to the report, oil revenues, as well as cautious and thought out budgetary policy have significantly improved the financial situation of the country and allowed it to create substantial foreign exchange reserves to keep inflation at a controllable level. 'The dynamic development in the non-oil sector of the country formed the basis for the formation of a competitive national economy, reducing poverty and addressing many issuesrelated to human capital', the report said. The Agency specially noted that Azerbaijan has become an integral part of the world economy and the country is resistant to any geopolitical risks.