According to thearticle 109, paragraph 32 of the AR Constitution it is hereby decreed:

To make the following amendments to the Decree No.511 dated June 19, 2001 (Compilation of the legislation acts of the Republic of Azerbaijan, 2001, №6, article 409, №12, article 753; 2005, №3, article 160) on “Rules on management of foreign currency assets of the State Oil Fund of the Republic of Azerbaijan”:

1.To read the subtitle 2.2.1. as follows:

“2.2.1. The Oil Fund may invest in assets denominated in currencies of:

• Member countries of the G7 (the United States of America, the Federal Republicof Germany, the United Kingdom of Great Britain and Northern Ireland, France,Italy, Canada and Japan);
• Member countries of the European Monetary Union;

• Russia and Turkey;

• Countries with a long-term credit rating (sovereign debt rating) of not less than“A” (Standard & Poor’s, Fitch) or “A2” (Moody’s).

The investments in assets denominated in the currencies of the countries not mentioned above may be made only after hedging against currency fluctuations with respect to USD. Relative weights of the currencies in the investment portfolio of the Oil Fund are defined by the Investment policy of the Oil Fund.”.

2. To replace the words “subtitle 2.2.1. of this Rules ” with the “Investment policy of the State Oil Fund”.

3.To add these sentences to the subtitle 3.1.3:

“An external manager or its parent company should meet one of the following requirements:
· Have an investment grade credit rating (Standard & Poor’s or Fitch or Moody’s)
· Have relevant experience of not less than 5 years in managing financial assets
· Have experience in managing financial assets in an amount equal to or exceeding USD 1 billion.”.

4.To cancel the word “minimum” in I paragraph of first subtitle of the item 3.2.

5.To read the item 3.3. as follows:

“3.3. By not prejudicing items 2.1 (excluding the occasions indicated in the last paragraph of the item 3.3.) and 3.4 of these Rules, the following assets may be included in the Investment Portfolio of the Oil Fund:

• Deposits in the central (national) banks, commercial banks and other financialinstitutions;
• Debt obligations issued by the governments, government agencies, internationalfinancial organizations, for profit organizations and other institutions with longterminvestment grade credit ratings (Standard & Poor’s or Fitch or Moody’s);
• Debt obligations with long-term investment grade credit ratings (Standard &Poor’s or Fitch or Moody’s) issued by governments, government agencies,international financial organizations, for profit organizations and other institutions;
• Investments in stocks included in major international equity indices;
• Shares of mutual and alternative investment funds.
• Gold bars conforming to the requirements of the London Bullion MarketAssociation;
• Real Estate;
• Non-investment grade debt obligations or deposits with credit rating of not lessthan “BB-” (Standard & Poor`s or Fitch) or “Ba3” (Moody`s). Maximum capital,allocated to those investments should not exceed 5% of the total value. In this case,the counterparty banks of the Oil Fund providing custodian (depositary) servicesand holding correspondent accounts for Oil Fund may have non-investment gradecredit rating (not less than BB-” (Standard & Poor`s, Fitch) or Ba3” ( Moody`s)).”.

6.To cancel the words “includingreal estate and precious metals and stones, goods” from the subtitle 3.4.1.

Ilham Aliyev,

The President of the Republic of Azerbaijan

Baku, October 27, 2011