BAKU, Azerbaijan, May 6. Azerbaijan’s economy may benefit from increased oil prices, and the decision of European countries to switch to alternative suppliers of oil and gas, the ISET Policy Institute (ISET-PI), Georgia’s independent economic policy think-tank, told Trend.
Amid the crisis between Russia and Ukraine, the subsequent disruptions in supply chains, suspended production, and economic sanctions imposed on Russia by the West countries add inflationary pressures, the think-tank said.
Azerbaijan has been a close economic partner with both Russia and Ukraine. Russia ranked as third largest Azerbaijan’s trading partner in 2021, while Ukraine ranked seventh, the source noted.
As ISET-PI explained, the crisis between the two countries supposed to affect the market and the economic development.
Moreover, the think-tank said the newly imposed sanctions on Russian oil have significantly affected the oil prices. Since high oil and gas prices benefit commodity exporters, Azerbaijan is poised to profit from a stronger growth more than expected.
“Despite increased food prices, decreased remittances and declining trade volumes Azerbaijan’s GDP economy could still expand in 2022,” the source said.
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