Assessment of the Next Round Sanctions Package Against Russia on the Economy of Azerbaijan

This article analyzes the 12th package of sanctions adopted by the European Union against Russia and its possible effects on Russian-Azerbaijani economic relations. The importance of the research is that Russia is one of Azerbaijan's main partners in trade relations, and in terms of exports of non-oil sector products, Russia is Azerbaijan's main partner. So far, 11 sanctions packages have been applied against Russia, and the 12th package has already been adopted. As in the 11th package, the list of entities operating in the 3rd country and indirectly contributing to Russia's evasion of sanctions is further expanded and the trade of a number of products is further restricted. The main point of the 12th package is the introduction of restrictions that prevent the diamond trade. So, diamonds produced in Russia make up 31% of global diamond production, and this production brings Russia 4 billion dollars in annual income. Belgium has a 40% share in Russia's diamond exports, and with the imposition of sanctions, Russia may be deprived of significant income. In addition to diamond exports, a number of products are added to the sanctions list and one more country is added to the list of countries that restrict the import of a number of specific products. Traditionally, individuals, legal entities and a number of institutions (mainly of Russian origin operating in the 3rd country) are added to the sanctions package. The statistical indicators of trade relations between Azerbaijan and Russia continue with an increasing trend, and in the first 11 months of 2023, a record level of the independence period was recorded in the volume of inter-country trade turnover. In conclusion, considering the commodity category of trade relations between Azerbaijan and Russia, the package of sanctions is not expected to affect the course of inter-country trade relations.