BSTDB provided a USD 50 million revolving trade finance facility to SOCAR Trading S.A., to be used mainly for the purchase of Russian Ural oil for delivery to SOCAR’s new STAR Refinery in Turkey. SOCAR Trading is the international marketing and developing arm of SOCAR, the State Oil Company of Azerbaijan.

The operation has a strong regional cooperation and development impact, as it involves private and state-owned exporting entities from three BSTDB member countries (Azerbaijan, Russia and Turkey). It will contribute to increasing the trade turnover between Russia and Turkey, will support the state-owned oil company of Azerbaijan, the recipient of the BSTDB loan, and is due to contribute to the energy security of Turkey.

Fast-growing Turkey has been dependent on imported energy resources, leading to increased external deficit. Addressing this deficit has been an important challenge for Turkey. Besides creating new jobs, STAR refinery, the recipient of the Russian Ural oil financed with the BSTDB funding, is an important energy security cooperation project for Turkey, being expected to meet over 25% of the country’s demand for refined oil products.