The investment by the State Oil Fund of the Republic of Azerbaijan (SOFAZ) in Italy marks an important step toward diversifying the fund’s portfolio, Member of Parliament and economic expert Vugar Bayramov told AZERTAC.

As part of the agreement, SOFAZ acquired a 49% equity stake in a 402 MW portfolio of solar photovoltaic (PV) plants in Italy, further enhancing the fund’s investment structure and risk diversification.

Bayramov noted that this move is expected to increase SOFAZ’s profitability by mitigating financial risks through diversification.

“The growth of SOFAZ’s revenues plays a crucial role in strengthening Azerbaijan’s state budget, as the fund’s assets contribute to the country’s reserves. This investment is highly significant in that regard,” he said.

He also emphasized that the move reflects SOFAZ’s strategic focus on innovative sectors, particularly green energy - a global priority that continues to attract major investments.

“This strengthens SOFAZ’s position in the European market, helping to meet Europe’s energy demand and enabling the production and marketing of energy products through its EU-based investments,” Bayramov added.

He concluded that this investment will not only boost the fund’s income and diversify its assets, but also enhance Azerbaijan’s geopolitical influence and contribution to European energy security.