Central Asian economies: The IMF today corroborated concerns voiced by the EBRD earlier this week that a combination of Russia’s economic slowdown and low oil prices were hampering growth across Eurasia. In its latest regional outlook report it is predicting that the average growth in the eight former Soviet states of Azerbaijan, Kazakhstan, Turkmenistan, Uzbekistan, Armenia, Georgia, Kyrgyzstan and Tajikistan would slow down to 3.2% this year from 5.3% in 2014.
Azeri arms deal: Dmitry Rogozin, the Deputy Prime Minister of Russia with responsibility for its defence industry last week made an unexpected visit to Baku to find out why President Ilham Aliyev’s government is refusing to pay for a shipment of weapons that it ordered several years ago, but which is now sitting in port waiting for payment.
The shipment (more…)
In a sign that Armenia may be regretting joining the Russian-led Eurasian Economic Union, its government has entered into a Trade and Investment Framework Agreement (TIFA) with the US. Signed in Washington on May 7, the objective of the deal is to create “favourable conditions for investments and trade between the two countries”, and an Armenian-American Council of Trade and Investment will be set up to work on ways to implement the goals outlined in the pact. The US only accounted 4.6% of Armenia’s foreign trade last year, prompting some Armenian analysts to see this as a political move rather then an economic one; Russia currently controls large swathes of the country’s energy, telecommunications and mining sectors and Yerevan acknowledged its economic dependency on its giant neighbour by joining the Eurasian Economic Union (EEU) at the beginning of the year.eurasianet Read More»