“Despite the fact that the Suez Canal, which connects the Mediterranean Sea to the Red Sea, was partly restored after the accident, the Canal does not work at full capacity. According to preliminary assessments, the closure of this canal for a week will cost the world economy about $10 billion. Suspension of the sea transport also made Europe’s LNG supply more difficult,” MP, an economist Vugar Bayramov said while commenting on the accident in the Suez Canal.
According to him, although the accident caused a 5 percent increase in the oil market, investors’ concern about the supply slowed down in recent days: “This resulted in 2% decline in the oil price today. Apparently, the oil price is still above $70 a barrel without fundamental grounds, and stabilization at that range does not seem realistic.
Along with this, the Suez accident will increase the significance of the North-South Transport Corridor, in which Azerbaijan actively participates. The corridor allows transportation of cargos from north to India through Azerbaijan. Azerbaijan provides support to the project in terms of both investment and infrastructure. The expansion of the project is important for Azerbaijan from the viewpoint of the increase of international freightage.