The IMF Country Reports Series covers economic and financial developments and trends in member countries. Each report, prepared by a staff team after discussions with officials of the country, is published at the option of the member.
This Selected Issues paper on Azerbaijan Republic reports that the government has made substantial progress in dealing with energy-related subsidies. The domestic market for oil products has been tightly regulated by the government since Azerbaijan gained independence. Azerbaijan is largely self-sufficient in oil products because of its substantial endowment of exhaustible mineral deposits and existing refining capacity. Although Azerbaijan is self-sufficient in oil products, it needs to import about 3 billion cubic meters (bcm) of natural gas annually to meet its domestic consumption demand of 7 bcm.