| Project Detail |
The project has the potential to meet the regional cooperation mandate outlined in the MTSBP 2019-22 by increasing trade between Russia and Turkey and indirectly developmental mandate of the Strategy by providing inputs for the newly built refinery in Turkey. Additionally, operation may have indirect development benefit for Azerbaijan as the beneficiary of the funds is state owned company of Azerbaijan, albeit based in Switzerland. Provision of funds to Azerbaijani State Oil Company can support the company from BSTDB member state to improve its competitiveness against global players in the field. Environmental Classification and Impact (summary): The operation involves financing of SOCAR Tradings advance payments and/or post shipment export financing of crudes and refined oil products originating from Azerbaijan and Russia to supply 1) the new STAR Refinery in Izmir, Turkey, and 2) the international market with crude from the Caspian Sea via BTC pipeline. SOCAR Trading is an integral part of SOCAR and is governed by the same corporate policies and standards, including those related to managing the environmental and social (E&S) issues associated with oil and gas sector. The E&S performance of SOCAR and some of its affiliates such as SOCAR Turkey and STAR Refinery (considered by the Bank in 2013 but not financed) was subject to in- depth E&S due diligence which concluded that its general performance was very good and that it has all the controls and mechanisms in place to safely manage the E&S risks and impacts. Considering the existing experience and taking into account the nature of the operation, which is a trade finance facility, no other due diligence is deemed necessary for the purpose of this operation. |
