Rising oil prices provide fiscal support for Azerbaijan, Mikhail Shipilov, Vice President of Moody's International Rating Agency, told APA-Economics.
Speaking about the possible effects of the Israeli-Iranian conflict on the Caucasus countries, Mikhail Shipilov said that this conflict is not expected to have direct effects on Azerbaijan in the short term.
"However, the increased volatility in global oil prices — particularly short-term price spikes — could have a positive fiscal effect for Azerbaijan," M. Shipilov emphasized.
He added that this development could boost the country’s state revenues derived from oil exports and support the State Oil Company of the Azerbaijan Republic (SOCAR).
Shipilov emphasized that, for now, there are no disruptions in Azerbaijan’s oil and gas supply, allowing the country’s energy exports to continue unaffected.
According to Moody's assessment, against the backdrop of current geopolitical risks, oil-exporting countries, including Azerbaijan, may benefit from short-term price increases in fiscal and trade terms, but these effects may be variable depending on the sustainability of the situation and the development of risks in the region.
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