Azerbaijan

B

Mining

The rich mineral resources of the country include iron, zinc, and copper, but the most important to the economy is oil. It has been estimated that up to 60 per cent of the territory is capable of bearing oil and that reserves are potentially 1.2 billion to 1.5 billion tonnes, with known reserves of some 900 million tonnes. In 2004 production of crude petroleum was some 117 million barrels per year and production of natural gas some 5.13 billion cu m (181 billion cu ft). Construction has begun on a pipeline to transport oil from Azerbaijan to Turkey. The Caspian Sea region is rich in oil resources but the Caspian States (Azerbaijan, Iran, Kazakhstan, Russia, and Turkmenistan) are currently in dispute over the division of them.

C

Manufacturing

Sumqait is the centre of heavy industry that includes petrochemical products, metal-processing, textiles, and clothing. Since transition, finished metal goods, machine tools, and computers have made a significant contribution to export earnings. Manufacturing in 1995 was reported to be operating at 10 to 20 per cent of its capacity, but the economy showed signs of recovery in 1996.

Manufacturing of equipment for the oil and related industries represents about 20 per cent of potential, but because these industries are considered of strategic importance they have not been included in the privatization programme. Instead, foreign investment has been sought in joint ventures, but this initiative has been hampered by difficulties in harmonizing production of equipment with internationally recognized standards.

D

Energy

Electricity is produced by 88 per cent thermal and 12 per cent hydro generation; total production in 2003 was 20 billion kWh. Generating technology and plant is outdated, and it is estimated that about 40 per cent of plant needs to be replaced. Gas production still falls short of domestic needs and imports are necessary; in 1994 some 30 per cent of domestic gas used was imported from Turkmenistan.

E

Currency and Banking

The National Bank of Azerbaijan was founded in 1992 as the central bank and supervisory body. The monetary unit of Azerbaijan is the new manat of 100 gopik (0.85 manats equalled US$1; early 2008).

F

Labour

The total labour force in 2006 was about 4.29 million, with about 1.3 per cent registered as unemployed, although the real figure of those without work was thought to be as high as 15 per cent. Agriculture employs more than 35 per cent of the workforce and industry now only employs about 12 per cent.