To read the full version of this content please select one of the options below:

Russia and oil have mixed impact in Caucasus

Monday, January 26, 2015

Subject

Economic turmoil in the South Caucasus.

Significance

Economic performance has been affected by two major external factors: turmoil in Russia, which remains a significant economic partner, and declining oil prices. While lower imported fuel bills are positive for Armenia and Georgia, there are second-round negative implications, through the impact on economic activity in Russia.

Impacts

  • Lower oil prices will lead to some cuts on infrastructure spending in Azerbaijan but these will be limited.
  • Armenia will suffer the most from the Russian turmoil, but the positive impact of domestic factors will prevail in 2015.
  • Georgia's more diversified economic links make it more resilient to Russian shocks.
Expert Briefings Powered by Oxford Analytica
Stay up to date
Sign up to the Expert Daily Briefings email alert and receive up-to-the-minute analysis of global events as they happen.
*If your university does not have access to Expert Briefings, visit our information page to find out more.