Recent Trends in Energy and Oil Revenue Management Policy in Azerbaijan : Challenges & Future Scenarios

In November 1997, the first oil was extracted as a result of joint exploration activities conditioned by the “Contract of the Century” and a bit later Azerbaijan started to get her profit oil, and subsequently oil dollars, from those activities. But even before the oil money entered the country, IMF and World Bank were among the first involved in the long-term discussion for the efficient and transparent use of those monetary resources with the Government of Azerbaijan. The suggestion was to create a separate non-budgetary fund which would make it easier to monitor the entrance and management of the revenues. At the beginning the revenues from oil contracts were collected in the accounts of the National Bank (now Central Bank) and that made the public supervision of the revenues almost impossible