By Tomas Baranec

September 28, 2020, the CACI Analyst

On August 1, 2020, Sukhumi reopened its border with Russia. The border had been closed since early April to halt the spread of the new coronavirus SARS-CoV-2. The decision was driven by Abkhazia’s economic concerns, given the region’s heavy dependence on the flow of Russian tourists. However, the development of the epidemiological situation in Abkhazia in the first three weeks after the border reopened indicated that the combination of a massive influx of tourists from the world’s third most infected country and a lack of medical infrastructure in the region could have a negative impact overriding any economic gains from tourism. 

By Natalia Konarzewska 

September 15th, 2015, The CACI Analyst

Armenia’s economy is currently experiencing a significant decline, which is primarily caused by spillover from Russia’s recession. At the end of 2014, Armenia’s national currency, the dram, saw rapid depreciation, which boosted inflation. Falling remittances from Russia are putting additional pressure on the dram, negatively affecting the livelihood of many ordinary citizens. Additionally, export volumes to Russia, which is Armenia’s top export destination, have decreased significantly. Armenia currently has few options to boost its faltering economy due to a falling number of foreign direct investments, high national debt and a shortfall of budget revenue. Economic forecasts for Armenia remain grim and since June the country has seen a wave of protests over the price hike on electricity.