The Administration of the President of Azerbaijan and the Turkish subsidiaries of the state oil company SOCAR have reportedly accumulated nearly $500,000 in debt for the purchase of expensive carpets ordered from Azerkhalcha OJSC. Meydan TV reported this, citing the company’s internal documents.

According to Azerkhalcha’s 2025 annual report, published on July 14, the Administration of the President of Azerbaijan owed 695,000 manats ($410,000) for carpets and related products. At the same time, the combined debt of SOCAR’s Turkish subsidiaries to Azerkhalcha for similar goods amounts to 107,000 manats ($63,000).

The presidential administration ranks first among Azerkhalcha’s debtors, followed by SOCAR’s subsidiary entities.

According to Azerkhalcha’s financial statements, the state company’s accounts receivable reached 1 million manats ($590,000), compared with 19,000 manats ($11,000) a year earlier, OC Media writes.

The document also notes that the increase in debt was caused both by a rise in the volume of orders from government agencies and companies and by the non-payment of part of those orders.

Apparently, such large debt amounts resulting from purchases by SOCAR and Azerbaijani state companies are a relatively new phenomenon and were not mentioned in annual reports for previous years.

Azerkhalcha OJSC was founded in 2016, and the company’s products were often used by high-ranking officials as official gifts.

In April 2026, Azerbaijan’s Vice President Mehriban Aliyeva, who is also the country’s first lady, visited the Georgian National Museum and presented it with five rare carpets produced by Azerkhalcha. The size and value of the carpets were not disclosed.

This is not the first time that Azerbaijani state companies or other official bodies have failed to meet their financial obligations on time.

In one recent episode, Azerbaijan’s Ministry of Foreign Affairs became the defendant in a lawsuit filed by a Kyrgyz construction company after the ministry failed to fully pay for the construction of a park in Kyrgyzstan’s capital, Bishkek. The ministry reportedly owes more than $3 million on that project.