November 29, 2012 | 00:25

Azerbaijan, famous only for its caviar and petroleum, is buying
Australian government bonds, by joining a growing list of sovereign
investors acquiring debt in Australia, Wall Street Journal informs.

The State Oil Fund of Azerbaijan said it started buying Australian
bonds in July when market data show the Australian dollar gained
value for 3.4 percent over the month.

"The main purpose of these investments made within the company's
investment policy is diversification of its currency basket," the fund
said in written responses to questions from the Wall Street Journal.

The purchase of Australian dollar-denominated debt and assets by
sovereign investors such as Azerbaijan is blamed by analysts and the
central bank for helping to inflate the value of the currency

However, this activation by the Azerbaijani company regarding Australia
looks suspicious in the light of the political processes, including
quite warm relations between Yerevan and Canberra, as well as the
activity of the Armenian community.

Moreover, this October, the Legislative Council of the Australian
state of New South Wales adopted a resolution on the recognition
of Artsakh [Nagorno-Karabakh] and the right of the Karabakh people
to self-determination.

By adopting the resolution, the Legislative Council "called on the
Australian Government to formally recognize the independence of
Nagorno-Karabakh and Australia to deepen relations with the country
and its citizens."

Thus, it is likely that the steps by Azerbaijan are connected with
the desire to 'neutralize' the pro-Armenian trends in Australia.