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SOFAZ unveils main reasons for decrease in its revenues from oil and gas transit

12 January 2026 12:50 (UTC +04:00)

Taking into account that SOFAZ's actual transit revenues for 2025 were significantly lower than forecast and the suspension of transit routes due to the Russia–Ukraine conflict, transit revenues for 2026 have been projected at the level of actual inflows, APA-Economics reports.

This is stated in the opinion of the Chamber of Accounts on SOFAZ’s 2026 budget.

It is noted that, as a result, this approach ensures the realism of the forecasts. Although revenues from the transportation of oil and gas through the territory of the Republic of Azerbaijan were forecast at 25.4 million manats for 2025, as of the reporting date only 0.004 million manats had been recorded. The Chamber's opinions for previous years also emphasized the need to base forecasts in this area on actual performance indicators.

In the Fund’s 2026 budget, revenues from the transit of oil and gas through the territory of the Republic of Azerbaijan are projected at USD 2.2 thousand or 3.7 thousand manats, which is 0.5 million manats less than the actual execution in 2024 in manat terms, 25.4 million manats lower than the approved 2025 forecast, and approximately at the same level as the expected inflow for 2025.

Due to the suspension of crude oil transportation via the Western export pipeline and the Black Sea route as a result of the continuation of the Russia–Ukraine conflict this year, the Operating Company has forecast no revenues under this item for the next year. In this context, it was considered appropriate to project the relevant revenue direction at the level of actual inflows of the Oil Fund as of August 31, 2025.