Azerbaijan earned more then 84 billion profit from oil expert
Discussions on revenue management carried on at Azerbaijan University
The Economic Research Center continues the expert discussion at academic circles and universities on the topic of “ Management of oil revenues in Azerbaijan and Kazakshtan” with financial and methodical support of Revenue Watch Institute of USA. The next similar discussion on effective management of oil revenues conducted at Azerbaijan Universit on April. The rector of the University Eldar Gahramanov chaired the expert discussion and professor-teacher staff attended to this event. The rector talked about the importance of organizing such discussion at the universities and touched upon both success and challenges in this area. He underlined that these discussions will contribute to smooth implementation of “ The strategy over long-term management of oil-gas revenues” and “ Azerbaijan 2020: vision to the future” concept.
After his speech, the project coordinator and member of Management Board of Economic Research Center Gubad Ibadoglu presented the outcomes of conducted research. He stated that Azerbaijan has gained 84 billion dollar profit since realization of “ Contrac of Century” and other contracts and its 60 % - 50 billion has already been spent. Gubad Ibadoglu emphasized that 14 billion dollar is planned to be expended in current year and according to the official calculations, 1 barrel of oil will cost 80 dollars in 2024 and thus Azerbaijna will gain 145,3 billion dollar revenues from the sale of oil and gas. However, according to the official calculations done over all contracts based on various scenarios ( 1 barrel as 80,90 and 100 dollars), this year the country will acquire minimum 11 billion and maksimum 15 billion dollar profit.
By focusing on spending of oil revenues G.Ibadoglu underscored the importance of creation of institutes and applying fiscal rules as well. He stressed that it is also important to follow the existing rules: “ Despite the fact that amidst the peak period of “ The strategy of managing oil-gas revenues in the long-term” 25 % of oil revenues are expected to be saved for future generations, in fact 78 % of those revenues were spend last year”.
The expert considers that taking into account that more spending will force more borrowing in the future it would be logical to impose restrictions over spending of oil revenues. G.Ibadoglu also talked about the calculations conducted jointly with experts of Revenu Watch Institute of USA and mentioned its outcomes will be unveiled in the near future.
The professor- teacher staff of Azerbaijan University actively participated in this discussion.
Public Relations Department of ERC