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The economic impact of the Caucasus crisis

The weekly newspaper Republika analyses the economic impact of the Caucasus crisis on the region: "Despite all else, the most important question is how the war has affected Georgia's biggest strategic and economic trump: the oil and gas pipelines that steer clear of Russia and Iran by running through the Caucasus. This infrastructure has not been damaged, even if it was shut down temporarily. But that did not stop Azerbaijan from immediately joining forces with the Russian oil transporting company Transneft and planning talks for a longer-term bypassing of Georgia. It is entirely possible that the leadership in Baku, which never had particularly good relationships with Moscow, has been intimidated by Russia's military methods. The key reason for this is probably the unsolved conflict surrounding Nagorno-Karabakh, in which Armenia has become involved as Russia's closest ally in the region."

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