Azerbaijan has seen a significant increase in oil and gas export income as a result of an agreement it struck with the European Union last year in the wake of Russia’s invasion of Ukraine and the ensuing sanctions, Eurasia Net reports.
According to the most recent statistics from Azerbaijan’s State Customs Committee, the nation earned $33.6 billion in the first 11 months of 2022 purely from oil and gas exports, which is 2.2 times more than earnings for the same period of 2021.
The same statistics confirmed the economy of Azerbaijan’s continued heavy reliance on oil and gas income, which accounted for 92.6 percent of the nation’s overall earnings during that time.
According to reports, Azerbaijan is benefiting from the energy agreement it signed with the EU in July. After Russia invaded Ukraine, the EU attempted to lessen its dependency on Russian gas and inked a deal with Azerbaijan that would ultimately see that country’s supply of gas to Europe treble.
The report projects that by 2027, Azerbaijan will have increased its yearly exports to Europe via the Southern Gas Corridor to 20 billion cubic meters.
The number of people who purchase Azerbaijani gas is nevertheless expanding. According to a June collaboration agreement, Serbia began constructing a pipeline for Azerbaijani gas last year. The last quarter of 2023 is the projected completion date for construction.
Additionally, in December, the government-owned oil corporation of Azerbaijan, SOCAR, inked a contract with Romgaz S.A. of Romania that called for the sale of 300 million cubic meters of Azerbaijani gas to that country beginning on January 1.
Political opponents and members of civil society in Azerbaijan have long maintained that the country’s oil and gas products do not increase social welfare for average Azerbaijanis and instead serve as fuel for corruption.
The State Statistics Committee reports that consumer prices increased 13.8% in the first eleven months of 2022. The 6.2 percent recorded the year prior was a significant increase from that.
