Jump to content

State Oil Fund of Azerbaijan: Difference between revisions

From Wikipedia, the free encyclopedia
Browse history interactively
← Previous editNext edit →
Content deleted Content added
VisualWikitext
m clean up, typo(s) fixed: Supervisory Board → supervisory board
Tags: AWB Reverted
restore rs content and remove non-rs content (www.azerbaijans.com)
Line 68: Line 68:
}}
}}


The '''State Oil Fund of the Republic of Azerbaijan''' ({{lang-az|Azərbaycan Respublikasının Dövlət Neft Fondu}}), also known by its abbreviation '''SOFAZ''', is a [[sovereign wealth fund]] of Azerbaijan founded in December 1999.<ref>{{cite web |url=https://pressroom.ifc.org/all/pages/PressDetail.aspx?ID=21372 |title=IFC and Azerbaijan Support Private Sector Development in Emerging Markets |last= |first= |date= |website=pressroom.ifc.org |publisher= |access-date=October 28, 2021 |quote=}}</ref> Nearly all the fund's revenues come from Azerbaijan's [[oil]] and [[gas]] exports.<ref>{{Cite news |last=Curran |first=Enda |date=2013-02-13 |title=Azerbaijan to Buy Australian Real Estate |language=en-US |work=Wall Street Journal |url=http://online.wsj.com/article/SB10001424127887324162304578301463713013322.html |issn=0099-9660}}</ref><ref>{{Cite journal |last=Di Bonaventura Altuve |first=Leonardo |date=2023 |title=The demise of sovereign wealth funds |url=https://www.tandfonline.com/doi/full/10.1080/09692290.2023.2190601 |journal=Review of International Political Economy |language=en |doi=10.1080/09692290.2023.2190601 |issn=0969-2290}}</ref>
The '''State Oil Fund of the Republic of Azerbaijan''' ({{lang-az|Azərbaycan Respublikasının Dövlət Neft Fondu}}), also known by its abbreviation '''SOFAZ''', is a [[sovereign wealth fund]] of Azerbaijan founded in December 1999.<ref>{{cite web |url=https://pressroom.ifc.org/all/pages/PressDetail.aspx?ID=21372 |title=IFC and Azerbaijan Support Private Sector Development in Emerging Markets |last= |first= |date= |website=pressroom.ifc.org |publisher= |access-date=October 28, 2021 |quote=}}</ref> Nearly all the fund's revenues come from Azerbaijan's [[oil]] and [[gas]] exports.<ref>{{Cite news |last=Curran |first=Enda |date=2013-02-13 |title=Azerbaijan to Buy Australian Real Estate |language=en-US |work=Wall Street Journal |url=http://online.wsj.com/article/SB10001424127887324162304578301463713013322.html |issn=0099-9660}}</ref><ref>{{Cite journal |last=Di Bonaventura Altuve |first=Leonardo |date=2023 |title=The demise of sovereign wealth funds |url=https://www.tandfonline.com/doi/full/10.1080/09692290.2023.2190601 |journal=Review of International Political Economy |language=en |doi=10.1080/09692290.2023.2190601 |issn=0969-2290}}</ref> The fund has been criticized for its lack of transparency and for enriching Azerbaijan's political elites.<ref name=":1">{{Cite book |last=Altstadt |first=Audrey L. |url=https://books.google.com/books?id=RgbRDgAAQBAJ |title=Frustrated Democracy in Post-Soviet Azerbaijan |date=2017 |publisher=Columbia University Press |isbn=978-0-231-80141-6 |pages=24, 114-120 |language=en}}</ref><ref name=":2">{{Cite book |last=Waal |first=Thomas de |url=https://books.google.com/books?id=8dp1DwAAQBAJ |title=The Caucasus: An Introduction |date=2018-11-02 |publisher=Oxford University Press |isbn=978-0-19-068311-5 |pages=185 |language=en}}</ref>


== History and organization ==
== History and organization ==
The State Oil Fund of the Republic of Azerbaijan (SOFAZ) was established by [[Heydar Aliyev]]'s Decree No. 240 dated December 29, 1999.<ref>{{cite web |url=https://www.investopedia.com/terms/s/state-oil-fund.asp |title=State Oil Fund (Azerbaijan) |last= |first= |date= |website=www.investopedia.com |publisher= |access-date=October 28, 2021 |quote=}}</ref><ref>{{cite web |url=http://www.e-qanun.az/framework/5261 |title=Azərbaycan Respublikasının Dövlət Neft Fondunun yaradılması haqqında AZƏRBAYCAN RESPUBLİKASI PREZİDENTİNİN FƏRMANI |last= |first= |date=December 29, 1999 |website=www.e-qanun.az |publisher= |access-date=October 28, 2021 |quote=}}</ref> Statue of the State Oil Fund was approved by the Decree of the President of the Republic of Azerbaijan No. 434 dated December 29, 2000.<ref>{{cite web |url=http://www.e-qanun.az/framework/148 |title=Azərbaycan Respublikasının Dövlət Neft Fondu haqqında Əsasnamənin təsdiq edilməsi barədə AZƏRBAYCAN RESPUBLİKASI PREZİDENTİNİN FƏRMANI |last= |first= |date=December 29, 2000 |website=www.e-qanun.az |publisher= |access-date=October 28, 2021 |quote=}}</ref>
The State Oil Fund of the Republic of Azerbaijan (SOFAZ) was established by [[Heydar Aliyev]]'s Decree No. 240 dated December 29, 1999.<ref>{{cite web |url=https://www.investopedia.com/terms/s/state-oil-fund.asp |title=State Oil Fund (Azerbaijan) |last= |first= |date= |website=www.investopedia.com |publisher= |access-date=October 28, 2021 |quote=}}</ref><ref>{{cite web |url=http://www.e-qanun.az/framework/5261 |title=Azərbaycan Respublikasının Dövlət Neft Fondunun yaradılması haqqında AZƏRBAYCAN RESPUBLİKASI PREZİDENTİNİN FƏRMANI |last= |first= |date=December 29, 1999 |website=www.e-qanun.az |publisher= |access-date=October 28, 2021 |quote=}}</ref> Statue of the State Oil Fund was approved by the Decree of the President of the Republic of Azerbaijan No. 434 dated December 29, 2000.<ref>{{cite web |url=http://www.e-qanun.az/framework/148 |title=Azərbaycan Respublikasının Dövlət Neft Fondu haqqında Əsasnamənin təsdiq edilməsi barədə AZƏRBAYCAN RESPUBLİKASI PREZİDENTİNİN FƏRMANI |last= |first= |date=December 29, 2000 |website=www.e-qanun.az |publisher= |access-date=October 28, 2021 |quote=}}</ref>


SOFAZ has been criticized for lacking transparency in its finances and in its contracting, which has raised questions about corruption.<ref name=":1" /> Critics have described projects funded by SOFAZ as useless,<ref name=":2" /> and noted that contracts have been awarded to companies owned by the ruling Aliyev family in Azerbaijan.<ref name=":1" /> Funds from SOFAZ are frequently transferred to make up for state deficits.<ref name=":1" />
== Governance ==

=== Supervisory Board ===
=== Supervisory Board ===
The supervisory board, established with members appointed by the President, assumes comprehensive control over the Fund's fund formation and spending.<ref name="fa">{{cite web |url=https://e-qanun.az/framework/148 |title=Azərbaycan Respublikasının Dövlət Neft Fondu haqqında Əsasnamənin təsdiq edilməsi barədə Azərbaycan Respublikası Prezidentinin Fərmanı |date=July 19, 2019 |website=www.e-qanun.az |publisher= |access-date=August 23, 2023 }}</ref>
The President of Azerbaijan appoints the members of a Supervisory Board who control the Fund's fund formation and spending.<ref name="fa">{{cite web |url=https://e-qanun.az/framework/148 |title=Azərbaycan Respublikasının Dövlət Neft Fondu haqqında Əsasnamənin təsdiq edilməsi barədə Azərbaycan Respublikası Prezidentinin Fərmanı |date=July 19, 2019 |website=www.e-qanun.az |publisher= |access-date=August 23, 2023 }}</ref> The board comprises 7 key officials including the [[Prime Minister of Azerbaijan|Prime Minister]], Deputy [[Speaker of the National Assembly of Azerbaijan|Speaker of the National Assembly]], Assistants to the [[President of Azerbaijan]] – Head of Economic Affairs and Innovative Development Policy, and Head of Economic Policy and Industrial Affairs departments of the [[Presidential Administration of Azerbaijan|Presidential Administration]], [[Ministry of Economy (Azerbaijan)|Minister of Finance]], [[Ministry of Economy (Azerbaijan)|Minister of Economy]], and the Chairman of the [[Central Bank of Azerbaijan]].<ref>{{cite web |url=https://e-qanun.az/framework/39260|title=Azərbaycan Respublikası Dövlət Neft Fondu Müşahidə Şurasının yeni tərkibinin təsdiq edilməsi haqqında Azərbaycan Respublikası Prezidentinin Sərəncamı|date=December 9, 2019 |website=www.e-qanun.az |publisher= |access-date=August 23, 2023 }}</ref>

The board comprises 7 key officials including the [[Prime Minister of Azerbaijan|Prime Minister]], Deputy [[Speaker of the National Assembly of Azerbaijan|Speaker of the National Assembly]], Assistants to the [[President of Azerbaijan]] – Head of Economic Affairs and Innovative Development Policy, and Head of Economic Policy and Industrial Affairs departments of the [[Presidential Administration of Azerbaijan|Presidential Administration]], [[Ministry of Economy (Azerbaijan)|Minister of Finance]], [[Ministry of Economy (Azerbaijan)|Minister of Economy]], and the Chairman of the [[Central Bank of Azerbaijan]].<ref>{{cite web |url=https://e-qanun.az/framework/39260|title=Azərbaycan Respublikası Dövlət Neft Fondu Müşahidə Şurasının yeni tərkibinin təsdiq edilməsi haqqında Azərbaycan Respublikası Prezidentinin Sərəncamı|date=December 9, 2019 |website=www.e-qanun.az |publisher= |access-date=August 23, 2023 }}</ref>

=== Executive Director ===
=== Executive Director ===
The operational management of the Fund's activities is carried out by the Executive Director<ref name="fa"/> who is appointed and dismissed by the President. As of 2018, the executive director reports to the President.<ref name=":0">{{Citation |last=Altstadt |first=Audrey |title=Frustrated Democracy in Post-Soviet Azerbaijan |date=2018 |url=https://www.degruyter.com/document/doi/10.7312/alts70456/html |pages=114- |publisher=Columbia University Press |language=en |doi=10.7312/alts70456/html |isbn=978-0-231-80141-6}}</ref> There have been three executive directors since 2001:
The operational management of the Fund's activities is carried out by the Executive Director<ref name="fa"/> who is appointed and dismissed by the President. As of 2018, the executive director reports to the President.<ref name=":0">{{Citation |last=Altstadt |first=Audrey |title=Frustrated Democracy in Post-Soviet Azerbaijan |date=2018 |url=https://www.degruyter.com/document/doi/10.7312/alts70456/html |pages=114- |publisher=Columbia University Press |language=en |doi=10.7312/alts70456/html |isbn=978-0-231-80141-6}}</ref> There have been three executive directors since 2001:
Line 86: Line 84:


== Awards ==
== Awards ==
* [[United Nations Public Service Awards]] (2007)<ref>{{cite web |url=http://unpan1.un.org/intradoc/groups/public/documents/un/unpan026198.pdf |title=List of Winners and Finalists for the 2007 UN Public Service Awards |last= |first= |date= |website=unpan1.un.org |publisher= |access-date= |quote=|archive-url=https://web.archive.org/web/20160305130820/http://unpan1.un.org/intradoc/groups/public/documents/un/unpan026198.pdf |archive-date=March 5, 2016 }}</ref>
* [[United Nations Public Service Awards]] (2007)<ref>{{cite web |last= |first= |date= |title=List of Winners and Finalists for the 2007 UN Public Service Awards |url=http://unpan1.un.org/intradoc/groups/public/documents/un/unpan026198.pdf |archive-url=https://web.archive.org/web/20160305130820/http://unpan1.un.org/intradoc/groups/public/documents/un/unpan026198.pdf |archive-date=March 5, 2016 |access-date= |website=unpan1.un.org |publisher= |quote=}}</ref>
* [[Extractive Industries Transparency Initiative|EITI Award]] (2009)<ref>{{cite web |url=https://eiti.org/es/node/3912 |title=EITI Chairman's Awards presented in Doha |last= |first= |date=February 24, 2009 |website=eiti.org |publisher= [[EITI]]|access-date=October 28, 2021|archive-url= https://web.archive.org/web/20211030030114/https://eiti.org/es/node/3912 |archive-date= October 30, 2021|url-status= dead}}</ref>
* [[Extractive Industries Transparency Initiative|EITI Award]] (2009)<ref>{{cite web |last= |first= |date=February 24, 2009 |title=EITI Chairman's Awards presented in Doha |url=https://eiti.org/es/node/3912 |url-status=dead |archive-url=https://web.archive.org/web/20211030030114/https://eiti.org/es/node/3912 |archive-date=October 30, 2021 |access-date=October 28, 2021 |website=eiti.org |publisher=[[EITI]]}}</ref>

== Criticism ==
SOFAZ funds are regularly diverted to cover state deficits and this process is regulated by Azerbaijan's budget legislation.<ref>[https://www.azerbaijans.com/content_731_en.html Budget system of Azerbaijan Republic] — Azerbaijans.com</ref> British journalist [[Thomas de Waal]] has described some projects funded by SOFAZ as promotional projects.<ref>{{Cite book|last=Waal|first=Thomas de|author-link= Thomas de Waal|url=https://books.google.com/books?id=8dp1DwAAQBAJ|title=The Caucasus: An Introduction|date=2018-11-02|publisher=Oxford University Press|isbn=978-0-19-068311-5|pages=185|language=en}}</ref> On the other hand, in 2017 American historian specialised in politics [[Audrey Altstadt]] has criticized SOFAZ for its lack of transparency in financial matters and contracting practices, raising concerns about potential corruption. She highlighted instances where contracts were granted to entities linked to the high ranked beneficiaries in Azerbaijan.<ref name=":1">{{Cite book |last=Altstadt |first=Audrey L. |author-link= Audrey Altstadt|url=https://books.google.com/books?id=RgbRDgAAQBAJ |title=Frustrated Democracy in Post-Soviet Azerbaijan |date=2017 |publisher=Columbia University Press |isbn=978-0-231-80141-6 |pages=24, 114–120 |language=en}}</ref>


== References ==
== References ==
{{Reflist|2}}
{{Reflist|2}}


== Sources ==
== Source ==
⚫
* {{Cite journal |date=2015 |title=Fiscal sustainability and the State Oil Fund in Azerbaijan |journal=Journal of Eurasian Studies |language=en |volume=6 |issue=2 |pages=114–121 |doi=10.1016/j.euras.2015.03.004 |issn=1879-3665 |doi-access=free |last1=Aslanli |first1=Kenan}}
* {{cite web |url=https://www.thebusinessyear.com/azerbaijan-2014/far-we-go/interview |title=TBY talks to Shahmar Movsumov, Executive Director of the State Oil Fund of Azerbaijan Republic (SOFAZ), on highlights of 2013, the Year of Industry, and the international outreach. |last= |first= |date=2014 |website=www.thebusinessyear.com |publisher= |access-date=October 28, 2021 |quote=}}
⚫
* {{Cite journal|date=2015|title=Fiscal sustainability and the State Oil Fund in Azerbaijan|journal=Journal of Eurasian Studies|language=en|volume=6|issue=2|pages=114–121|doi=10.1016/j.euras.2015.03.004|issn=1879-3665|doi-access=free|last1=Aslanli|first1=Kenan}}
* {{cite web |url=https://www.thebusinessyear.com/azerbaijan-2013/the-new-asset-mix/interview |title=TBY talks to Shahmar Movsumov, Executive Director of the State Oil Fund of the Republic of Azerbaijan (SOFAZ), on the fund's growing and diversifying investment portfolio and its contribution to the evolution of wealth and development in Azerbaijan. |last= |first= |date=2013 |website=www.thebusinessyear.com |publisher= |access-date=October 28, 2021 |quote=}}
* {{cite web |url=https://azerbaijan.az/en/related-information/134 |title=STATE OIL FUND OF THE REPUBLIC OF AZERBAIJAN |last= |first= |date= |website=azerbaijan.az |publisher= |access-date=October 28, 2021 |quote=}}


[[Category:Government agencies of Azerbaijan]]
[[Category:Government agencies of Azerbaijan]]

Revision as of 19:17, 30 December 2023

The State Oil Fund of the Republic of Azerbaijan
Azərbaycan Respublikasının Dövlət Neft Fondu
AbbreviationSOFAZ
EstablishedDecember 29, 1999; 24 years ago (1999-12-29)
Founded atBaku, Azerbaijan
TypeSWF
Executive Director
Israfil Mammadov
Award(s)United Nations Public Service Awards
EITI Award
Websitewww.oilfund.az

The State Oil Fund of the Republic of Azerbaijan (Template:Lang-az), also known by its abbreviation SOFAZ, is a sovereign wealth fund of Azerbaijan founded in December 1999.[1] Nearly all the fund's revenues come from Azerbaijan's oil and gas exports.[2][3] The fund has been criticized for its lack of transparency and for enriching Azerbaijan's political elites.[4][5]

History and organization

The State Oil Fund of the Republic of Azerbaijan (SOFAZ) was established by Heydar Aliyev's Decree No. 240 dated December 29, 1999.[6][7] Statue of the State Oil Fund was approved by the Decree of the President of the Republic of Azerbaijan No. 434 dated December 29, 2000.[8]

SOFAZ has been criticized for lacking transparency in its finances and in its contracting, which has raised questions about corruption.[4] Critics have described projects funded by SOFAZ as useless,[5] and noted that contracts have been awarded to companies owned by the ruling Aliyev family in Azerbaijan.[4] Funds from SOFAZ are frequently transferred to make up for state deficits.[4]

Supervisory Board

The President of Azerbaijan appoints the members of a Supervisory Board who control the Fund's fund formation and spending.[9] The board comprises 7 key officials including the Prime Minister, Deputy Speaker of the National Assembly, Assistants to the President of Azerbaijan – Head of Economic Affairs and Innovative Development Policy, and Head of Economic Policy and Industrial Affairs departments of the Presidential Administration, Minister of Finance, Minister of Economy, and the Chairman of the Central Bank of Azerbaijan.[10]

Executive Director

The operational management of the Fund's activities is carried out by the Executive Director[9] who is appointed and dismissed by the President. As of 2018, the executive director reports to the President.[11] There have been three executive directors since 2001:

Awards

References

  1. ^ "IFC and Azerbaijan Support Private Sector Development in Emerging Markets". pressroom.ifc.org. Retrieved October 28, 2021.
  2. ^ Curran, Enda (2013-02-13). "Azerbaijan to Buy Australian Real Estate". Wall Street Journal. ISSN 0099-9660.
  3. ^ Di Bonaventura Altuve, Leonardo (2023). "The demise of sovereign wealth funds". Review of International Political Economy. doi:10.1080/09692290.2023.2190601. ISSN 0969-2290.
  4. ^ a b c d Altstadt, Audrey L. (2017). Frustrated Democracy in Post-Soviet Azerbaijan. Columbia University Press. pp. 24, 114–120. ISBN 978-0-231-80141-6.
  5. ^ a b Waal, Thomas de (2018-11-02). The Caucasus: An Introduction. Oxford University Press. p. 185. ISBN 978-0-19-068311-5.
  6. ^ "State Oil Fund (Azerbaijan)". www.investopedia.com. Retrieved October 28, 2021.
  7. ^ "Azərbaycan Respublikasının Dövlət Neft Fondunun yaradılması haqqında AZƏRBAYCAN RESPUBLİKASI PREZİDENTİNİN FƏRMANI". www.e-qanun.az. December 29, 1999. Retrieved October 28, 2021.
  8. ^ "Azərbaycan Respublikasının Dövlət Neft Fondu haqqında Əsasnamənin təsdiq edilməsi barədə AZƏRBAYCAN RESPUBLİKASI PREZİDENTİNİN FƏRMANI". www.e-qanun.az. December 29, 2000. Retrieved October 28, 2021.
  9. ^ a b "Azərbaycan Respublikasının Dövlət Neft Fondu haqqında Əsasnamənin təsdiq edilməsi barədə Azərbaycan Respublikası Prezidentinin Fərmanı". www.e-qanun.az. July 19, 2019. Retrieved August 23, 2023.
  10. ^ "Azərbaycan Respublikası Dövlət Neft Fondu Müşahidə Şurasının yeni tərkibinin təsdiq edilməsi haqqında Azərbaycan Respublikası Prezidentinin Sərəncamı". www.e-qanun.az. December 9, 2019. Retrieved August 23, 2023.
  11. ^ Altstadt, Audrey (2018), Frustrated Democracy in Post-Soviet Azerbaijan, Columbia University Press, pp. 114-, doi:10.7312/alts70456/html, ISBN 978-0-231-80141-6
  12. ^ "S. R. Şərifovun Azərbaycan Respublikası Dövlət Neft Fondunun İcraçı Direktoru təyin edilməsi haqqında Azərbaycan Respublikası Prezidentinin Sərəncamı". www.e-qanun.az. January 3, 2001. Retrieved October 28, 2021.
  13. ^ "S. R. Şərifovun Azərbaycan Respublikasının Dövlət Neft Fondunun İcraçı direktoru vəzifəsindən azad edilməsi haqqında Azərbaycan Respublikası Prezidentinin Sərəncamı". www.e-qanun.az. April 18, 2006. Retrieved October 28, 2021.
  14. ^ "Ş.A.Mövsümovun Azərbaycan Respublikası Dövlət Neft Fondunun İcraçı Direktoru təyin edilməsi haqqında Azərbaycan Respublikası Prezidentinin Sərəncamı". www.e-qanun.az. May 15, 2006. Retrieved October 28, 2021.
  15. ^ "Ş.A.Mövsümovun Azərbaycan Respublikası Dövlət Neft Fondunun İcraçı direktoru vəzifəsindən azad edilməsi haqqında Azərbaycan Respublikası Prezidentinin Sərəncamı". www.e-qanun.az. November 29, 2019. Retrieved October 28, 2021.
  16. ^ "İ.A.Məmmədovun Azərbaycan Respublikası Dövlət Neft Fondunun İcraçı direktoru təyin edilməsi haqqında Azərbaycan Respublikası Prezidentinin Sərəncamı". www.e-qanun.az. November 29, 2019. Retrieved October 28, 2021.
  17. ^ "List of Winners and Finalists for the 2007 UN Public Service Awards" (PDF). unpan1.un.org. Archived from the original (PDF) on March 5, 2016.
  18. ^ "EITI Chairman's Awards presented in Doha". eiti.org. EITI. February 24, 2009. Archived from the original on October 30, 2021. Retrieved October 28, 2021.

Source

Retrieved from "https://en.wikipedia.org/enwiki/w/index.php?title=State_Oil_Fund_of_Azerbaijan&oldid=1192681768"