Azerbaijan’s State Oil Fund unveils details on assets invested in Russia

Advisor to Executive Director of the State Oil Fund of Azerbaijan (SOFAZ) Bahruz Bahramov has said that the share of investments in Russia in the total investment portfolio of the State Oil Fund of Azerbaijan (SOFAZ) amounted to 0.4 per cent by the end of the third quarter.

“The journalists and the public ask SOFAZ about the situation in the region amid the Russian-Ukrainian conflict,” Bahramov told Report while commenting on the steps to be taken in connection with the unrest in the region amid the Russian-Ukrainian conflict.

The advisor noted that as is known, SOFAZ made its first investments in the Gallery Actor commercial and business centre in Moscow in 2012. Then, it became the owner of a stake in the Russian VTB Bank in 2013.

“When making these investments, the corresponding risk, profitability profile, as well as the compliance of these investments with SOFAZ’s investment portfolio were taken into account. SOFAZ's investments in Russia consist only of those listed above,” Bahramov added.

As for plans for these investments, Bahramov noted that big short-term fluctuations in global financial markets affect institutional investors.

“This military-geological conflict, along with fluctuations in stock indices, has greatly affected the Russian financial markets, including VTB Bank,” he said.

The advisor said that SOFAZ’s diversified global investment portfolio meets its goals and objectives, it has been formed taking into account a number of risks, including regional, geopolitical risks, while insurance against such shocks is aimed at minimising the possible impact on the portfolio.

As for risky financial tools, he noted that according to the indicators at the end of the third quarter of 2022, 18.7 per cent of investments were made in shares, 6.4 per cent – in real estate and 12 per cent – in gold in SOFAZ’s investment portfolio.