Oil price drop: How long can Azerbaijan reserves last? (video)
A new challenge awaits Russia’s economy by the end of the year: the country has to repay a huge amount of debt, says economist Vahagn Khachatryan. He reminds that the predictions about falling oil prices and the depreciation of the Russian ruble were done long ago. “Geopolitical developments simply accelerated the processes. Now Russia is seeking to fill the gap, i.e. to strengthen the country’s economy at the expense of its own products,” says Mr Khachatryan. The economist says it is not realistic to pin hopes on the sanctions imposed on Russia believing that Armenia and Azerbaijan can benefit from the situation and increase the volume of export. The Azerbaijan guest of the Red Bridge program, Sabit Bagirov disagreed with Khachatryan. The president of the Entrepreneurship Development Foundation says one should not miss the opportunity because it is not to create a market today. The economic situation in Russia affects Armenia more than Azerbaijan as many Armenians live on transfers coming from Russia. Sabit Bagirov admits that the decline in oil prices will have negative consequences on Azerbaijan. The country is losing money but the impact is not as great as the country relies on foreign exchange reserves. However, the reserve fund will last only two years.
