The State Oil Fund of the Republic of Azerbaijan (SOFAZ) reports that on September 30, 2022, SOFAZ assets increased by 0.80% compared to the beginning of 2022 (45 025.1 million US dollars) and amounted to 45 386.4 million US dollars.

During the period of January-September 2022, the budget revenues of SOFAZ amounted to 11 365.9 million manats, and the budget expenses amounted to 6 566.9 million manats.

During the first nine months of 2022, the revenues of SOFAZ related to the implementation of oil and gas agreements are 15 886.9 million manats, including 15 106.2 million manats from oil and gas profits, bonus payments amounted to 768.7 million manats, transit revenues amounted to 7.2 million manats, acre account payments amounted to 4.8 million manats.

During the reporting period, 6 542.0 million manats have been transferred to the state budget within the 2022 SOFAZ budget implementation framework. 8.1 million manats have been directed to financing the "2019-2023 State Program on increasing the international competitiveness of the higher education system of Azerbaijan". From January-September 2022, the expenses related to the management of SOFAZ amounted to 16.8 million manats.

During the first nine months of 2022, the negative difference arising from the short-term market value fluctuation related to the revaluation of SOFAZ assets was equal to 4 521.0 million manats. The extra-budgetary expenses of SOFAZ amounted to 4 185.2 million manats due to the difference caused by the variation in exchange rates.

The current turbulence in the world economy, as well as in the international financial markets, didn't go without impact on the investment portfolio of SOFAZ.Thus, the high inflation observed in the global economies, the deepening of geo-political tension and the incomplete recovery of the China-US trade chain are among the leading risks of the financial markets, and these listed factors have a negative impact on the prices of financial assets. It should also be noted that the further decrease in optimism in economic forecasts compared to the 2nd quarter and the increase in recession expectations against this background, the failure to achieve the desired results on inflation indicators of the strict monetary policy of the central banks of several advanced economies, and the indecision in the fiscal policy of the authorities in Great Britain made investors in the last quarter characterized by additional calls, which led to declines in both stock and bond indices. At the same time, the US Central Bank's inflationary measures, including significant interest rate increases, were larger and earlier compared to other countries, providing additional support to the demand for the US dollar and, as a result, causing a significant depreciation of the exchange rates of other countries against the dollar. As in the investment portfolios of many institutional investors, including sovereign funds, SOFAZ mainly consist of stocks and bonds quoted on the stock exchange denominated in various currencies (about 80% of the investment portfolio). These fluctuations experienced in the financial markets were observed with unrealized temporary setbacks in the investment portfolio of SOFAZ along with the mentioned investors.