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Enter Main - TURAN.AZ AZ ... RU

Economical news
Bulletine Economics 

2017 October 18 ( Wednesday )  17:41:09
Print version
Русский Azərbaycan


LLC with Foreign Capital to Be Registered in Electronic Mode

Baku / 18.10.17 / Turan: President Ilham Aliyev signed a law according to which foreign companies and foreigners can create limited liability companies in Azerbaijan by electronic appeal to the state registration authority.

For the state registration of a foreign LLC, an electronic appeal is required, confirmed by a strengthened electronic signature. The founders supplement the treatment of information on the planned form of entrepreneurial activity. They get acquainted with the system proposed by company"s charter and sign it. The founders also provide scanned information about the legal address of the company. The Ministry of Taxes sends all documents confirming the state registration of the company (certificate, extract from the state register of commercial entities and the charter) to the email address of the founders.

Prior to this, only local LLCs could use the electronic registration method. One day is required for state registration of companies. ---08D--

23rd International Building Exhibition Opens in Baku

Baku / 18.10.17 / Turan: On October 18, the 23rd Azerbaijan International Construction Exhibition World Build Baku 2017 was opened in Baku Expo Center. This year approximately one of every three companies participates in this exhibition for the first time.

"The exhibition clearly demonstrates that Azerbaijan is almost completely providing itself with building materials," Deputy Economy Minister Niyazi Safarov said at its opening.

The deputy head of the State Agency for Construction Safety Control under the Ministry of Emergency Situations, Elkhan Asadov, noted that thanks to the "construction boom" at the outset of the oil money flow, local companies successfully entered the global construction market.

310 companies from 28 countries of the world take part in this year"s construction exhibition, as well as other exhibitions held in parallel. Azerbaijan participants, among which there are manufacturers, distributors and companies providing construction services, account for 40% of the exhibitors. National pavilions are represented by Germany, Iran, and the United Arab Emirates. For the first time Poland participates. Turkish, Chinese, Russian and Czech producers are of a large composition.

The Caspian Construction Week includes the 10th International Exhibition Aquatherm Baku 2017 and the 10th Securika Caspian 2017.

The organizers of the exhibitions are the British company ITE Group and its partner Iteca Caspian. The exhibitions will end on October 21. -----08D--

Ministry of Culture and Tourism Taken Away 49 Official Vehicles

Baku / 18.10.17 / Turan: The number of official cars of the Ministry of Culture and Tourism has been reduced from 71 to 22. This decision was made by the Cabinet of Ministers on October 11.

The decision does not specify the reasons for the decision. It is noted only that the proposal came from the ministry itself, which was agreed with the Ministry of Finance.

This year the district and city departments of the Ministry of Culture and Tourism were abolished and 16 regional offices, including the city of Baku, were formed on their basis. The seizure of official cars concerns the lost work of 49 heads of territorial departments of the ministry. Six employees of the central office of the ministry retain their official cars.

A total of about 70 executive and judicial structures are served by about 1,200 cars, of which 350 are for Ministers, their deputies, heads of committees, judicial and other bodies. This does not include official vehicles of the President and his administration, the Cabinet of Ministers, the apparatus of the Milli Majlis and the heads of Parliament committees, etc. These cars are kept at the expense of the state budget and changed after a certain time. ------08D--

Branches of Three Foreign Companies Closed

Baku / 18.10.17 / Turan: Today, on October 18, three foreign companies announced closing of their branches in Baku.

Two companies registered in the UK (Quinterra Technologies AS and Altus Intervention AS) merged in September this year. The combined company became known as Altus Intervention. These service companies worked in Azerbaijan from 2016 to 2017. However no specific reasons for the closure of both branches are reported yet.

Altus Intervention belongs to the Swedish private equity fund EQT.

The departure of the Turkish wing of the world-famous German company Schnieder Elektrik Sanayi ve Ticaret AS from Azerbaijan can be considered strange. The company has successfully worked in Azerbaijan since 2011 and had good trade relations with both private and public entities.

The departure of many foreign companies is explained with the completion of the implementation of their contractual obligations. Some companies curtail their activities due to the deterioration of the economic situation in the country or various kinds of biased influences on their business. ----08D

Price of Butter Unrealistically High

Baku / 18.10.17 / Turan: The government explains the significant increase in butter prices observed recently with external circumstances, namely, the rise in oil prices in the world market.

In September, retail prices for butter in Azerbaijan grew by about 4 manat. For example, a kilogram of butter Anchor in retail chains is offered for 17.2 manat.

The head of State Customs Committee Aydin Aliyev told reporters that the rise in prices in the world market affects the products imported to Azerbaijan. "The main supplier of butter to Azerbaijan is New Zealand," he said.

However, as Turan found out, this is not true:

The state news agency AzerTaj also published an appeal of butter importers to Azerbaijan, which gives the same reasons. The appeal says the price of butter from New Zealand since the beginning of the year has risen more than 30%. Importers said that currently in the world market a kilogram of butter costs 5.20-5.45 dollars.

"Taking into account all expenses, the wholesale price for the sale of New Zealand butter is 15.02-15.97 manat, and the retail price is 15.90-17.10 manat."

It is interesting that the State Customs Committee in its report noted that this year butter is imported into Azerbaijan for $ 4.28.

The economist Natig Jafarli suggested customs explain the difference in the price of oil in Baku and Tbilisi. "Can the State Customs Committee explain why the New Zealand butter is sold in Baku for 18-19 manat, and in Tbilisi for 10-11 manat?" he wrote on his Facebook page.

Jafarli in his turn noted that if butter is imported into Azerbaijan for $ 4.28, or for 7.2 manat, then with the addition of logistics costs it should cost 9.75 manat per kilogram.

"Why is butter sold for 18 manat? Where is it seen that the trade mark-up was one hundred percent?" the expert wonders.

Touching upon 51 butter importing companies, Jafarli stressed that if these companies belong to 3-4 persons, then this is already a monopoly. He said that more than a thousand legal entities and individuals are engaged in importing butter in Georgia, as a result of which a competitive market is being formed.

Meanwhile, an independent analysis shows other wholesale prices for butter in the world market. This is not 5.20-5.45 dollars per kilogram, as the Azerbaijani importers assure, and not 4.28 dollars per kilogram, as customs says. Offers from various world exporters can be seen on specialized websites ( The price of a ton of butter from New Zealand or South Africa is 1.4-3.2 dollars per kilogram. That is, considering logistics costs, customs duties, profit of the wholesale and retail network, the price per kilogram of butter in stores should not exceed 8-10 manat.

Again, we have to repeat the question: Do consumers need to overpay up to 7 manat per kilogram of butter for monopoly and uncontrolled actions of Azerbaijani importers? -71D-

Azerbaijan Increases Export of Meat Products to Middle East

In 2017, the State Customs Committee of Azerbaijan for the first time in its report showed a significant growth in exports of Azerbaijani meat, meat products and even livestock. For the first six months of 2017, meat was exported in live weight, totaling $ 907 thousand, which is 384% more than for 6 months of 2016 ($ 236.5 thousand). Export of meat and meat products for the first half of the year 2017 was $ 159.8 thousand, which is 299% more than for the same period in 2016 ($ 53.4 thousand). For dairy products, eggs and honey, there was growth by 489% ($ 788.8 thousand for 6 months 2016 and $ 3,806.5 for 6 months 2017).

The main importers of Azerbaijani meat and dairy products in this period were the Arab Gulf countries. Director of Qatar Lulu Group International Mohammad Altaf said that, before the economic blockade of Qatar, the country's businessmen were not interested in importing food products from Azerbaijan and the neighboring countries because of the difficulties in delivering the goods. "However, at present Azerbaijan and the neighboring countries have access to the port of Bender Abbas with the consent of Iran. This allows delivery from the port to Qatar in less than 24 hours," added Altaf.

The head of the Livestock Development Department of the Ministry of Agriculture Halib Abdullayev confirms the interest of the Arabs in the Azerbaijani meat products.

The State Customs Committee does not give information on the name of goods exported to Arab countries, but there is reason to assert that the growth of Azerbaijani exports to these countries is caused by the big interest of Arab buyers to Azerbaijani meat products, vegetables and fruits. For 6 months of 2017, compared with the same period last year, Azerbaijan"s exports to Qatar grew 78 times! In the first half of 2016, Qatar imported for $ 23.67 thousand, and for the same period of 2017 - for $ 2 million 077.5 thousand. Azerbaijan's exports to the UAE grew from $ 6 million 110.44 thousand to $ 6 million 558.44 thousand. In the first six months (2016), Jordan imported goods from Azerbaijan for $ 1 million 403.8 thousand, and a year later this figure rose to $ 3 million 689.1 thousand (263%). Egypt increased imports from Azerbaijan by 479.5% (from $ 224.16 thousand to $ 1 million 075 thousand).

The push to increase the export of Azerbaijani meat products and livestock to the Arab countries was a sharp increase in the visits of Arab tourists to Azerbaijan, as they liked the taste of local mutton and beef. The state"s activity on increasing non-oil export potential also played its role. In an interview with the AzerTaj news agency, the Minister of Economy Shaheen Mustafayev noted the promotion of the Made in Azerbaijan brand in the foreign markets, the organization of export missions and other measures to increase the range of exported non-oil products. At the end of 2016, one export mission was organized in Dubai. Twenty companies that produce fruit juices, natural mineral waters, fruits and vegetables, meat and meat products, honey, milk and dairy products presented their products to customers.

Azerbaijan started exporting meat products abroad, but the production of meat products in the country has increased insignificantly. According to the Statistics Committee, meat production in the first half of 2017 increased by only 2.4%, reaching 312.6 thousand tons, which provides only 34% of the domestic market needs. -0-

Deposits in Khalg Bank Decreased by 1.3%

Baku / 18.10.17 / Turan: Khalg Bank"s assets in the third quarter of 2017 increased by 56 million 710 thousand manat or 3.2% in comparison with the same period of the previous year, amounting to 1,805,244,000 manat.

Over the reporting period, the bank"s liabilities reached 1,551,831,000 manat (growth of 32 million 462 thousand manat or 2.1%).

The volume of deposits in the bank for this period declined by 15 million 867 thousand manat or 1.3% and is 1,186,445,000 manat.

In particular, the call deposits of individuals decreased from 121 million 692 thousand manat to 104 million 734 thousand manat, while those of legal entities grew from 73 million 118 thousand manat to 101 million 558 thousand manat. The timed deposits of individuals decreased from 780 million 097 thousand manat to 670 million 111 thousand manat, and those of legal entities grew from 227 million 404 thousand manat to 300 million 040 thousand manat.

For the year, the debt of Khalg Bank to the Central Bank slightly decreased from 31 million 500 thousand manat to 31 million 491 thousand manat.

The bank"s capital amounted to 253 million 413 thousand manat (an increase of 24 million 249 thousand manat or 10.6%).

For three quarters of this year, Khalg Bank showed a net profit of 13 million 124 thousand manat. -71D-

Shareholders Meeting of AFB Bank

Baku / 18.10.17 / Turan: The shareholders meeting of AFB Bank will be held on December 1, 2017, the bank said.

The agenda of the meeting was not made public in the information. However, it is reported that the agenda was sent to the shareholders, together with the notification of the meeting.

The bank"s authorized capital is 70,393,455 manat.

99.64% of the bank"s shares belong to Gilan LLC, 0.18% to Tahir Jamil Oglu Muradov, the head of Gilan Holding LLC, and 0.18% to Akbar Hasan Oglu Abdullayev. -71D-

Yield on T-bills Increased by 0.6%

Baku / 18.10.17 / Turan: At the October 17 auction on placement of six-month state T-bills, the weighted average yield was set at 8.1%. This is 0.6% more than was recorded in September.

The Ministry of Finance offered investors securities worth 20 million manat. From 7 investors applications were received for a total of more than 51 million manat. Several investors expected a yield of 10.7% per annum. All the state T-bills were sold.

This year, the Ministry of Finance plans to place state T-bills and bonds with a maturity of two years for a total of 700 million manat to cover part of the budget deficit. So far only once, investors have not agreed with the Ministry of Finance on the level of profitability. The main buyers of government securities are commercial banks. ------08D--

Uber to Be Attracted to Taxation

Baku / 18.10.17 / Turan: The Association of Banks of Azerbaijan (ABA) held a meeting on October 17 dedicated to taxing the Uber taxi service.

The meeting was attended by representatives of the ABA, the Financial Markets Supervision Authority, and the Central Bank.

The issues of electronic payment for Uber taxi services, application of electronic payment for other taxi systems, as well as attraction of Uber to taxation were discussed. -71D-

Foreign currencies rates fixed by Central Bank

1 ABŞ dollarıUSD1.7001
1 AvroEUR2.0
1 Avstraliya dollarıAUD1.3342
1 Argentina pesosuARS0.0981
1 Belarus rubluBYN0.8683
1 Braziliya rialıBRL0.5384
1 BƏƏ dirhəmiAED0.4629
1 Cənubi Afrika randıZAR0.1269
100 Cənubi Korea vonuKRW0.1504
1 Çexiya kronuCZK0.0777
100 Çili pesosuCLP0.2735
1 Çin yuanıCNY0.2571
1 Danimarka kronuDKK0.2687
1 Gürcü larisiGEL0.6847
1 Honq Konq dollarıHKD0.2177
1 Hindistan rupisiINR0.0261
1 İngilis funt sterlinqiGBP2.2421
100 İndoneziya rupiasıIDR0.0126
100 İran rialıIRR0.0045
1 İsveç kronuSEK0.2085
1 İsveçrə frankıCHF1.7374
1 İsrail şekeliILS0.4842
1 Kanada dollarıCAD1.3597
1 Küveyt dinarıKWD5.6276
1 Qazaxıstan tengəsiKZT0.0051
1 Qırğız somuKGS0.0248
100 Livan funtuLBP0.1127
1 Malayziya rinqqitiMYR0.4025
1 Meksika pesosuMXN0.0905
1 Moldova leyiMDL0.098
1 Misir funtuEGP0.0963
1 Norveç kronuNOK0.2141
100 Özbək somuUZS0.0211
1 Polşa zlotasıPLN0.4723
1 Rusiya rubluRUB0.0297
1 Sinqapur dollarıSGD1.2546
1 Səudiyyə Ərəbistanı rialıSAR0.4534
1 SDR (BVF-nun xüsusi borcalma hüquqları)SDR2.3982
1 Türk lirəsiTRY0.4638
1 Tayvan dollarıTWD0.0563
1 Tacik somonisiTJS0.193
1 Yeni türkmən manatıTMT0.4857
1 Ukrayna qrivnasıUAH0.0643
100 Yapon yeniJPY1.5146
1 Yeni Zelandiya dollarıNZD1.2161