By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
azemedia-new-logo
  • Donation
  • Who we are
  • Home
  • Opinion
  • News
    • Economy
    • Energy
    • Ecology
  • Culture
  • Diaspora
  • Interview
  • Science
  • Logistics-Transport
  • Gender
  • History
  • Defense
  • Karabakh
Aze.Media
Aa
Search
  • News
  • Economy
  • Ecology
  • Energy
  • Opinion
  • Culture
  • Gender
  • Interview
  • Science
  • Logistics-Transport
  • History
  • Defense
  • Karabakh
  • Diaspora
  • Who we are
Follow US
© 2021 Aze.Media – Daily Digest
Aze.Media > News > Economy > CESD Report: Mixed fortunes for Azerbaijani economy after western sanctions on Russia
Economy

CESD Report: Mixed fortunes for Azerbaijani economy after western sanctions on Russia

The Center for Economic & Social Development in Baku, Azerbaijan, has released a report on the initial impacts that western sanctions on Russia will have on the Azerbaijani economy, noting both positive and negative effects.

AzeMedia
By AzeMedia Published August 9, 2022 3 Min Read
azerbaijan-skyline-1200-1646317379

The study, “Assessment of Initial Impacts of Western Sanctions against Russia: Effects for Azerbaijani Economy”, was authored by CESD Researcher Emin Mammadov.

The report says that the Russian economy is facing particularly grim predictions as a result of western sanctions over its renewed invasion of Ukraine on 24th February 2022. This year, the International Monetary Fund predicts Russia’s economy will contract by 8.5%, inflation will reach 24%, and unemployment will double to 9.6%. The World Bank also estimates huge reductions in Russia’s trade of goods and services; imports and exports are predicted to decrease by 30.9% and 35.2% respectively.

These drastic figures will inevitably have implications for the Azerbaijani economy through numerous ‘spillover channels’. In Azerbaijan, these knock-on effects are likely to emerge in the form of ‘import-export and supply chain disruptions, additional inflationary pressures [and a] shortage of remittance flows’. On the other hand, increasing global energy prices have given Azerbaijan a welcome windfall.

The report notes that in 2021, Azerbaijan imported $2.74bn of goods from Russia, including $300m of wheat, $100m of timber, and $46m of vegetable oils. Supply chain shocks will drive up inflation in Azerbaijan as the country is unable to import the affected goods from elsewhere in the short term.

Meanwhile, Azerbaijani expats in Russia will likely be negatively affected by sanctions on business and rising unemployment, depriving Azerbaijani nationals in Russia of their jobs and income. This, as well as the devaluation of the Russian ruble, will result in a decreased value of remittances transferred to Azerbaijan.

Simultaneously, however, the report notes that increased global energy prices resulting from sanctions on Russia have provided Azerbaijan with a windfall, supporting and stabilising the national currency, and creating a ‘significant surplus’ in the nation’s current account. This surplus can be utilised to step up the ‘implementation of nationwide projects and reforms’ such as increasing defence spending and reconstructing areas in Nagorno-Karabakh.

Bildschirmfoto 2022-07-22 um 16.18.22

You Might Also Like

Azerbaijan’s positive balance on foreign trade declines by 24%

Kazakhstan-Azerbaijan economic cooperation moves to new level

Barzani, Aliyev discuss promoting Azerbaijani investments in Kurdistan Region

Azerbaijan establishes Working Group for inflation monitoring

Azerbaijan to house a new aluminium beverage can plant worth $211 million

AzeMedia August 9, 2022

New articles

279412_0
Important Statements by Hikmet Hajiyev
News September 22, 2023
379564367_630493965899258_5296033125048152371_n
When will Armenia’s new and old patrons realize who they got mixed up with?
Opinion September 22, 2023
110384
Hikmet Hajiyev: Some Karabakh militants continue to resist
News September 22, 2023
2d6302e1-84a1-3b44-8de3-dddc0501ed60
Amount of products included in aid sent to civilians living in Karabakh announced
Karabakh September 22, 2023
Orban
Hungary vetoed a joint EU statement condemning Azerbaijan.
News September 22, 2023
miroslav-jencha-oon
Azerbaijan prevented Armenian provocations, says UN Assistant Secretary-General
News September 22, 2023
bajramov-v-oon4
Bayramov called for rejecting Yerevan’s attempts to abuse the UN Security Council
News September 22, 2023
16952974913378055859_1200x630
The Aliyev Administration on the outcomes of the meeting in Yevlakh
Karabakh September 21, 2023
484765
Baku was left no other option but the military one
Opinion September 21, 2023
aliyev-putin
Aliyev and Putin held negotiations
News September 21, 2023

You Might Also Like

00c33b5f-01f8-35aa-a760-020dae5f5064_850

Azerbaijan’s positive balance on foreign trade declines by 24%

September 15, 2023 0 Min Read
230728201500045e

Kazakhstan-Azerbaijan economic cooperation moves to new level

July 29, 2023 4 Min Read
1689681059fffffffffffffffffffffffffff

Barzani, Aliyev discuss promoting Azerbaijani investments in Kurdistan Region

July 18, 2023 2 Min Read
inflation-2

Azerbaijan establishes Working Group for inflation monitoring

July 17, 2023 1 Min Read
Aluminium-Cans-for-Beverages

Azerbaijan to house a new aluminium beverage can plant worth $211 million

July 11, 2023 1 Min Read
Bildschirmfoto 2023-07-04 um 09.23.18

How will plummeting Turkish and Russian currencies affect Azerbaijan’s economy?

July 4, 2023 17 Min Read
tarim-aa-1632219

Azerbaijan: Import substitution in grain production

June 28, 2023 16 Min Read
411968343_0_0_1436_811_1920x0_80_0_0_9874d3ba33c67f11de108185aeafdd5d-1536x867

Akram Hasanov: Few banks will remain in the market, environment will be poor

May 19, 2023 9 Min Read

Useful links

c24a7d34-02d2-45a2-95ad-980aa8264ad5-pojkz9yv6xhhbce432wwxbxmnoy6uz3duxvaa480e8
426082d1-a9e4-4ac5-95d4-4e84024eb314-pojkz91103g6zqfh8kiacu662b2tn9znit7ssu9ekg
ab65ed96-2f4a-4220-91ac-f70a6daaf659-pojkz67iflcc0wjkp1aencvsa5gq06ogif9cd0dl34
96e40a2b-5fed-4332-83c6-60e4a89fd4d0-pojkz836t9ewo4gue23nscepgx7gfkvx6okbbkasqo
759bde00-a375-4fa1-bedc-f8e9580ceeca-pq8mvb9kwubqf6bcadpkq5mz16nayr162k3j2084cg
aze-media-logo-ag1

Aze.Media offers an independent and strategic insight on socio-cultural, political and economic life in Azerbaijan.

  • Privacy Policy
  • Terms and Conditions
  • Cookies Policy

Email: editor@aze.media

© 2023 Aze.Media – Daily Digest

Removed from reading list

Undo
aze-media-logo1 aze-media-logo-ag1
Welcome Back!

Sign in to your account

Lost your password?