The war unleashed by Azerbaijan and Turkey will cost a lot for these countries. Azerbaijan has losses not only of human lives, military equipment but also suffers huge economic losses. On October 1 the price of Azerbaijan oil has fallen by 3,16% at the Oil Exchange becoming 42,93 US $ for 1 barrel, in the case that 2020 state budget of Azerbaijan was made by consideration of 55 US $ for 1 barrel.

Azerbaijan annually expօrts approximately 20 billion US $ goods, 90,9% of which is oil and gas.  The economy of Azerbaijan goes on depending on export of oil and gas. During this year the price of Azerbaijan oil hasn’t exceeded 55 US $, consequently the Government of Azerbaijan continues to squander reserve funds.

Because of this war the countries and organizations having  invested a great sum of money in Azerbaijan economy will lose their trust in Azerbaijan, there will be a new capital outflow and dramatical inflation of the Manat.

In these conditions military-political authorities of Azerbaijan can not guarantee the security of their infrastructures. Again, because of this condition, mainly ordinary Azeris will suffer by losing their workplace, having inflation, etc.

Suren Parsyan
Phd in economics
Head of ARF Bureau’s Economic Research Office,