Rising oil and gas prices to have positive effect on Azerbaijan's economy, Russian expert says

According to the expert, the state of the world economy, contrary to public opinion, is not an accident or a consequence of any specific recent events

The Azerbaijani economy can get good dividends from rising oil prices and especially gas prices on the world markets and trends suggesting that the process will continue, Vasily Koltashov, a Russian economist and head of the IGSO Center for Economic Research said.

"Oil and gas export will have a positive effect on Azerbaijan's economy. However, there are some difficulties here, since there is a factor of general inflation. That is, there is a need for correct monetary policy and control over inflation," he said.

According to the expert, the state of the world economy, contrary to public opinion, is not an accident or a consequence of any specific recent events: “The rise in European oil and gas prices is the result of 12 years of a special type of monetarist anti-crisis Western policy, which was primarily pursued by the US Federal Reserve System. The policy of pumping money into the financial sector and the policy of zero rates, that is, unprecedentedly cheap money, could not but lead to a surge in inflation."

Koltashov noted that the rise in prices has a two-fold effect on the CIS economy: "On the one hand, we are under pressure from inflation, and on the other hand, the rise in commodity prices significantly increases the status of industrial economies, including the Russian economy, in the global system."