• NAME OF RESEARCH

    Limited Economic Impact from Russia-Ukraine Stand-Off

  • NAME OF AUTHOR

    Bank of Georgia Research

  • CATEGORY

    Economy

  • YEAR

    2014-03-07

  • Download PDF

The tensions in Crimea and the possibility of a marked deterioration in Ukraine-Russia relations raise a number of questions about the impact on the Georgian economy. Georgia’s advantage lies in the relative diversification of trade flows and other external channels, partly thanks to the Russian-imposed trade embargo in 2006. With the exception of wine, Georgian exports are more geared towards Azerbaijan, Armenia, and the EU rather than Ukraine and Russia, and imports can be substituted relatively easily.

The paper discusses the following topics: The substitutability of imports, Tourism, FDI and money transfers and Stress-testing the impact on the Georgian lari.