The August 2020 issue of the “Export Review” published by the Center for Analysis of Economic Reforms and Communication (CAERC) has been released. During the first seven months of 2020, Azerbaijan’s total exports amounted to USD 9.1 billion, while non-oil sector exports reached USD 1.035 billion.

Due to the situation caused by the coronavirus (COVID-19) pandemic, non-oil sector exports decreased by USD 98 million, or 8.6%, compared to the same period of the previous year.

During January–July of this year, non-oil goods worth USD 418.6 million were exported to Russia, USD 205 million to Türkiye, USD 107.6 million to Switzerland, USD 84.2 million to Georgia, and USD 31.7 million to China.

Compared to the same period in 2019, non-oil exports increased by 5.7% to Russia, 21.9% to Switzerland, and 60.9% to China over the seven months of 2020.

In January–July 2020, tomatoes ranked first among non-oil export goods with USD 166.5 million, gold (in unwrought, other semi-manufactured forms not used for coinage) ranked second with USD 96.5 million, and cotton lint ranked third with USD 70.6 million.

Overall, during the first seven months of 2020, exports included USD 359.6 million in fruits and vegetables, USD 71.6 million in cotton fiber, USD 51.3 million in aluminum and aluminum products, USD 46.5 million in chemical industry products, USD 27.4 million in ferrous metals and their products, USD 10.6 million in cotton yarn, USD 7.3 million in alcoholic and non-alcoholic beverages, USD 9.3 million in sugar, USD 13.7 million in animal and vegetable fats and oils, and USD 5.5 million in tea.

In July 2020 alone, non-oil sector exports amounted to USD 123 million. In the same month, non-oil goods were mainly exported to Russia (USD 48.3 million), Türkiye (USD 27.8 million), Switzerland (USD 11.5 million), Georgia (USD 7.5 million), and China (USD 3.4 million).

In July 2020, cherries and sour cherries ranked first in non-oil exports with USD 16.4 million, followed by cotton lint (USD 12.1 million) and gold in unwrought forms (USD 10.7 million).

The August issue of the “Export Review” also presents the ranking of leading non-state exporting companies in the non-oil sector. In the top ten of the ranking for January–July 2020 are: “SOCAR Polymer” LLC, “Land Logistic” LLC, the Azerbaijan branch of “Azerbaijan International Mining Company Limited”, “MKT Production Commercial” LLC, “Fruit Store” LLC, “Global Trade Group” LLC, “Sun Food” LLC, “Azagroexport 2017” LLC, “Baku Steel Company”, and “Aqrovest” LLC.

Among state-owned enterprises involved in non-oil export operations, the State Oil Company of the Republic of Azerbaijan’s “Marketing and Economic Operations Department” leads the list. It is followed by “AzerGold” CJSC, “Azeraluminium” LLC, “Azerenerji” JSC, “Azerpambig Agro-Industrial Complex” LLC, “Azerbaijan Airlines” CJSC, “AzerTütün Agro-Industrial Complex” LLC, “Azerbaijan Thermal Power Plant” LLC, the Nakhchivan Autonomous Republic State Energy Service, and the “Surakhani Machine-Building Plant” JSC.

The “Export Review” also provides information on services export. In January–July 2020, “Azercosmos” OJSC exported services worth USD 28.1 million (satellite telecommunications and optical satellite services) to 27 countries worldwide. This represents a 10.2% increase compared to the same period last year. Revenue from service exports accounted for 90% of the company’s total income. In July 2020 alone, “Azercosmos” exported services worth USD 6.5 million to 19 countries. The main destinations of its service exports during January–July 2020 were the USA, United Kingdom, France, Malaysia, and the UAE.

It was reported that, as in other countries, the COVID-19 pandemic negatively affected Azerbaijan’s tourism sector, with a decline observed starting from March. As a result, in July 2020, transactions made by foreign citizens using bank cards in Azerbaijan amounted to AZN 23 million. During January–July 2020, such transactions totaled AZN 302.7 million.

The “Export Review” also reports on export orders received via the Azexport.az portal. In January–July 2020, export orders worth USD 374.5 million were received through the portal. This represents an 8% increase compared to the same period of the previous year. In July 2020 alone, the value of export orders reached USD 55 million, a 26.4% increase compared to July of the previous year.

In July, the most frequently ordered products via Azexport.az included cotton lint and cotton oil, hazelnut kernels, tomatoes, tobacco, chicken meat, apples, chicken eggs, powdered milk, confectionery products, wine, construction materials, engine oil, cosmetics, garlic, pomegranate juice, baby diapers, Naftalan oil, and others. From January 2017 to July 31, 2020 (over 43 months), the total value of export orders received from 141 countries via Azexport.az reached USD 1.9593 billion.

The report also notes that in August 2020, non-oil exports facilitated through the “One-Stop Shop” Export Support Center amounted to USD 19.5 million. During January–August 2020, hundreds of entrepreneurs were issued relevant export certificates through the center, resulting in USD 312.8 million in non-oil exports.

It is noted that the purpose of the “Export Review” is to raise awareness among entrepreneurs about exports, expand opportunities for local products to enter traditional and new markets, and accelerate integration into international markets.