Matthew Bryza: Sanctions against Russia will not affect economy of Azerbaijan

Baku. 15 November. REPORT.AZ/ "Sanctions have already worked to deter a full-scale Russian invasion of Ukraine. Thanks in part to the sanctions, Russia’s economy is now entering a crisis, with investor confidence fading and the ruble exchange rate plummeting to the dollar, which imposes dangers for Russia’s banking system."

Report was told by the former US Ambassador to Azerbaijan, expert  Matthew Bryza, commenting on the issue in relation to the application of sanctions against Russia by a number of Western countries because of the situation in Ukraine.

According to him, while the drop in the price of oil to $84 per barrel is imposing a serious drag on the Russian economy, the economic pain will only grow, as sanctions prevent the transfer of technology required to develop the Arctic oil reserves that are crucial to Russia’s future economic growth. "Any further Russian military action in Ukraine risks sending the Russian economy into free fall."

M. Bryza also said that Russia had already created a new frozen conflict in Eastern Ukraine and the violence could be stopped if the EU and NATO sustain their sanctions against Russia.

Regarding Azerbaijan M. Bryza said that EU sanctions would not negatively affect Azerbaijan’s economy. "On the contrary, Russia will now grow more dependent on Azerbaijan’s agricultural exports. Meanwhile, Azerbaijan’s major source of export revenues, oil and natural gas, have nothing to do with Russia’s economy."