The August 2008 Conflict: Economic Consequences for Russia

Author (Person)
Series Title
Series Details September 2008
Publication Date 2008
Content Type

The recent war in Georgia will have both positive and negative consequences for Russia's economy. Doubts over the future viability of energy transit routes through Georgia should assist Russia's market power in Europe, and strengthen its bargaining power vis-à-vis neighbouring oil and gas suppliers. In the longer term, however, the conflict may increase the perceived risk of conducting business in Russia and deter foreign investment. A best guess at the overall economic impact has a long-run net negative effect, superimposed on other factors slowing Russian growth.

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Related Link(s)
ESO: Background information: Conflict history: Georgia
ESO: Background information: Where Does Georgia Go From Here?

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