SOCAR Trading gets fresh boost as Black Sea bank extends financing

The Black Sea Trade and Development Bank (BSTDB) has provided an additional $25 million in financing to SOCAR Trading.

The lender approved a new tranche under a previously issued loan facility to SOCAR Trading and signed the corresponding agreement, Caliber.Az reports via local media.

The original trade finance project, valued at $50 million, was approved in 2019. With the latest tranche, the total amount of financing extended by BSTDB to SOCAR Trading has reached $75 million.

According to the bank, the project aligns with its regional cooperation mandate outlined in the BSTDB Medium-Term Strategy and Business Plan for 2019–2022. It is expected to increase trade flows between Russia and Türkiye, while also indirectly supporting strategic development goals by securing supplies for a new oil refinery in Türkiye.

The transaction includes financing advance payments to SOCAR Trading, as well as export financing upon shipment of crude oil and petroleum products from Azerbaijan and Russia. The funds are being used to supply the new STAR Refinery in Izmir, in addition to supporting international markets for Caspian crude transported via the Baku-Tbilisi-Ceyhan pipeline.

Currently, BSTDB’s total approved portfolio for Azerbaijan stands at €430.794 million. Signed agreements account for €368.537 million, while total disbursements have reached €608.035 million.

By Vafa Guliyeva