SOFAZ announces assets increase forecasts

Over the next 10-15 years, the State Oil Fund's (SOFAZ) assets will reach $ 200 billion, SOFAZ Chief Shahmar Movsumov said in an interview with The business year.

He said that, according to forecasts, SOFAZ assets will reach a level of $ 34 billion by the end of 2012, compared to $ 29.8 billion last year.

"This forecast is made based on the rate of $ 100 per barrel of oil," Movsumov said.

SOFAZ head noted that the amount of transfers to the state budget from the State Oil Fund this year will be $ 12.5 billion.

State Oil Fund was established in 1999 and at that time its assets amounted to $271 million.

Based on SOFAZ's regulations, the funds may be used for the construction and reconstruction of strategically important infrastructure facilities, as well as solving important national problems.

The main purpose of the fund is the accumulation of funds and placement of its assets abroad to minimise the negative impact on the economy, preventing a 'Dutch syndrome' to ensure savings for future generations and maintain the current socio-economic standard in the country.


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