The Assessment of Sanctions against Russia on the Bank Transfers and Business Transfers between Azerbaijan and Russia

This paper analyzes the possible effects of the sanctions imposed against Russia as a result of the Russia-Ukraine war on bank transfers and business transfers between the Republic of Azerbaijan and the Russian Federation. The existence of extensive economic relations between Azerbaijan and Russia as a country with more expats from Azerbaijan than any other, and being the main export country for Azerbaijan in the non-oil sector coupled with more than 50% of the volume of remittances of individual persons to the country makes this issue worth necessary. The article considers the period of 2018, 2019, 2020, 2021 and January-October 2022. This assessment identified more of the initial effects of the war as war still continues. Using the official statistics of recent years, the effects on these areas are investigated. It seems that the sanctions are already having an increasing effect. The statistics exhibit that there is a significant increase in investments and remittances of individuals from Russia to Azerbaijan, whereas a sharp decrease from Azerbaijan to Russia is observed. This growth will lead to positive dynamics for Azerbaijan in the short term. The situation in trade relations is variable. Although the situation in exports remains relatively stable, there is a significant increase in imports in the first 11 months of 2022 compared to the same period last year. There is also an increase in the total trade turnover compared to last year. In the short term, the sanctions have already had their effect on the banking and business spheres, and this effect has changed more against Russia in the banking sphere