Implications of the EU’s Russian Oil Ban for Azerbaijan

The paper analyzes the impact of EU's ban on the import of russian oil for energy exporters in light of Azerbaijan. Although newly emerging tendencies in the form of high energy prices create a lucrative economic environment for Azerbaijan to generate increasing revenues in foreign currency reserves from the resource windfalls in the short-term, increasing production costs abroad due to the upsurge in energy prices and disrupted supply chains ramp up the pressure on the import inflation. The paper concludes that stable and sustainable oil prices are in the best interest of an energy exporter