BAKU, Azerbaijan, August 25. The Karabakh
Revival Fund has published its financial statements as at 31
December 2025, prepared in accordance with International Financial
Reporting Standards (IFRS), together with the report (opinion) of
the independent auditor PwC Azerbaijan on the audit carried out for
the relevant period.
The Fund's financial statements comprise the statement of
financial position as at 31 December 2025; the statements of profit
or loss and other comprehensive income, of changes in equity and of
cash flows for the year then ended; as well as the notes to the
financial statements, including material accounting policy
information and other explanatory information.
PwC Azerbaijan, appointed as external auditor by the relevant
decision of the Fund's Supervisory Board, stated in its opinion
dated 22 May 2026 on the Karabakh Revival Fund's financial
statements as at 31 December 2025: “In our opinion, the
accompanying financial statements present fairly, in all material
respects, the financial position of the “Karabakh Revival Fund”
(the “Fund”) as at 31 December 2025, and its financial performance
and its cash flows for the year then ended in accordance with IFRS
Accounting Standards”.
It should be noted that, by a further relevant decision of the
Supervisory Board, the auditor's opinion was accepted.
For reference, donations to the Karabakh Revival Fund amounted
to a total of AZN 53,868,439 in 2025. Following the decline
recorded in 2025, preliminary indicators for 2026 show that
donation inflows have returned to a growth trajectory. This trend
will be reflected in the audited financial statements for the
following year.
At the same time, it should be noted that, through its
investment activity, the Fund earned total financial income of AZN
96,911,491 in 2025. Of this amount, AZN 88,302,802 represents
interest income on debt securities and AZN 8,608,689 interest
income on funds placed in overnight bank accounts.
Financial income increased by 29.94% compared with the previous
year's figures. As a result, the share of financial income in the
Fund's total income for the year rose from 48.16% to 64.27%.
Accordingly, as at 31 December 2025 the Fund's total assets
increased by 7.5%, or AZN 122.1 million, reaching AZN
1,739,869,260.
The increase observed in general, administrative and other
operating expenses during 2025 is attributable to the expanded
volume of support directed to restoration and reconstruction works,
as well as to more intensive fundraising and communication
activity.
At the same time, it should be noted that the Fund's accrued
profit tax expense for 2025 amounted to AZN 19,180,494, which is
AZN 4,584,472 (31.41%) higher than in 2024. It should be noted that
donations are not subject to profit tax — the tax is charged solely
on income generated by the Fund's investment activity.
It should be recalled that, according to the lists published for
2025 by the State Tax Service under the Ministry of Economy, the
Karabakh Revival Fund is included among the country's 100 largest
taxpayers in both categories: the Fund ranks 43rd by assessed tax
liabilities excluding indirect taxes (VAT and excise duties) and
74th by the total amount of taxes paid.
The Fund's statements and the auditor's opinion are available in
Azerbaijani and English on the Fund's official website.
In Azerbaijani: https://qdf.gov.az/media/files/article/255/MHBS-uygun-Maliyye-Hesabatlari-ve-Musteqil-Auditorun-Hesabati-2025.pdf
In English: https://qdf.gov.az/media/files/article/513/IFRS-Financial-Statements-and-Independent-Auditor-s-Report-2025.pdf
It should be recalled that, in accordance with the Charter of
the Karabakh Revival Fund, which was established pursuant to the
Decree of the President of the Republic of Azerbaijan Ilham Aliyev
dated 4 January 2021, the Fund applies advanced corporate
governance standards in its activities and management. In line with
these standards, appointing the Fund's external auditor and
accepting the audit report is one of the principal responsibilities
of the Supervisory Board.
