Azeris look to invest oil profit in Germany - AZƏRTAC (08.10.2007)

By Mark Schieritz in Baku

Published: October 8 2007. Financial Times

Azerbaijan plans to use its soaring oil revenues to buy stakes in German and other European companies, the country's president said.

"We will do our utmost to ensure that our money is invested safely and generates a high yield," Ilham Aliyev said in an interview with FT Deutschland, the Financial Times' German sister paper.

Azerbaijan's state oil fund currently runs to $2bn (€1.4bn, Ј1bn), though the government expects this to increase markedly in future.

Officials sought to allay concerns surrounding the investment power of state-owned funds that has prompted some countries, including Germany, to consider action limiting their activities.

"It is not a matter of politics. Our aim is a good rate of return," said Shahmar Movsumov, head of the Azeri oil fund.

The fund currently invests solely in government bonds. Deutsche Bank and Credit Suisse are charged with the management of the capital.

Mr Aliyev said his country was highly interested in supplying Europe with oil and gas.

"We have shown that we are a reliable producer. Commodities are a device to develop our economy. We do not want to use our resources for other ends", he said.