The sharp decline in crude oil prices in the past few months was caused by US policies against Russia and Venezuela, according to Suleyman Qasimov, SOCAR vice president for economic affairs.

"It is my subjective view that the price decline was prompted by political reasons,” Qasimov told reporters in Baku on December 25. "This happened because of US policies against Russia and Venezuela.”

Qasimov said SOCAR would lose approximately 400 million manat next year if oil prices remain around $60 a barrel.

The company will not be affected that much as it uses most of its oil output for domestic consumption and exports only a small portion of it, he said.

SOCAR will not postpone its major transportation projects such as Tanap as the project is being funded from Azerbaijan’s State Oil Fund (Sofaz), Qasimov said.