Page 46 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.82, # 1, 2025, pp. 36-51

Azerbaijan ranks among Turkey’s largest investors. Enterprises operating abroad with
Azerbaijani capital play a vital role in bolstering the country’s economic growth. A
prominent example is the 'Star' oil refinery in İzmir, Turkey, inaugurated in October
2018 and fully funded by Azerbaijani capital. The State Oil Company of Azerbaijan
(SOCAR Turkey Energy AS) holds a 60% stake, with the remaining 40% owned by
Azerbaijan’s Ministry of Economy. This facility processes Azerbaijani crude oil and
serves as the primary supplier of raw materials for Turkey’s Petkim chemical
production plant.
Through these investments in Turkey’s economy, Azerbaijan gains value by
transforming its crude oil into finished products. The 'Star' refinery boasts an annual
processing capacity of 10 million tons of crude oil. Projections indicate that
Azerbaijan will generate $864 million in revenue during the refinery’s first five years
of operation and an additional $614 million over the subsequent ten years. Although
situated beyond Azerbaijan’s geographical borders, the refinery remains integral to its
economic sphere, exemplifying the expansion of its economic influence.
A key aspect of expanding the scope of economic activity in pursuit of economic
growth is the establishment of international transport corridors. A critical condition
for achieving this, even for landlocked countries, is securing access to open seas.
Notable examples of such corridors include the Bosporus Strait, the Panama Canal,
and the Gulf of Oman. Azerbaijan benefits from advantageous conditions—both in
terms of transit time and tariffs—for cargo movement along the East-West and North-
South routes. Goods can be transported from the Baku International Sea Trade Port to
Turkey via the Baku-Tbilisi-Kars railway, which revitalizes the historic Silk Road,
and onward to Europe, or in the reverse direction. This route offers economic
advantages for producers and consumers, including lower transportation costs,
reduced transit times, and enhanced safety.
Azerbaijan maintains cooperative ties with 176 countries worldwide. Its reputation as
a dependable partner has fostered mutual interest in strengthening these relationships.
The dynamics of foreign trade further demonstrate that these partnerships serve the
interests of all involved parties. In 2023, Azerbaijan’s foreign trade turnover totaled
$44.868 billion, with exports accounting for 61.5% and imports 38.5%, yielding a
positive trade balance of $10.298 billion. Notably, non-oil and gas exports grew by
9.8% in real terms compared to previous years, reaching $3.348 billion (People’s
Newspaper, March 16, 2024).
Global political tensions have disrupted supply chains, adversely affecting
international trade. In 2024, Azerbaijan’s foreign trade turnover totaled $ 47396,4
million, comprising $ 26338,4 million in exports and $ 21058,0 million in imports.
This resulted in a positive trade balance of $ 5280,4 million.

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