EXPERTS PREDICT AZERI ECONOMY CATASTROPHE DUE TO WORLD OIL CRISIS

PanARMENIAN.Net - The worst fears of Azeri economists became a reality - the Organization of Petroleum Exporting Countries confirmed its intention to lower world crude oil prices in order to punish Russia for refusal to curtail oil export. The OPEC new policy may bring to collapse of Azeri economy resting solely on oil. According to information of the State Oil Company of Azerbaijan the possibility of landslide of oil prices to 11 dollars is quite real in the near future, and according to OPEC experts forecasts they can decline to 5 dollars for a barrel. (Let us note, until recently crude oil prices fluctuated within the limits of 25-28 dollars.) It is easy to imagine what it means for the economy of the country, 34.7% of the budget revenue part of which are taxes for oil export. President of the State Oil Company of Azeri Republic Natig Aliyev frankly admitted that the current situation would very negatively tell on the company tax payments. The question of necessity of sequestration of the next year budget adopted just a few days ago is under serious consideration in Baku. In an interview given to one of the local newspapers prominent economist, Professor Nazim Imanov estimated the consequences of the crisis for the Azeri economy and entire society as a catastrophe.