Both sides of Caucasus Ridge have reserves for economic growth – expert

Ruslan Grinberg, Director of the Institute for Economy of the RAS, said that funds the federal center grants republics of the North Caucasus were not a problem for Russian economy. He noted that the region had such reserves as workplaces to prevent off-target expenditures.

Commenting on development of the South Caucasus, Grinberg pointed out Azerbaijan and its intensive economic development. He believes that the government has enough funds for both the elite and a wide range of social layers. The expert called the situation in Georgia and Armenia tense, although better than before. He expressed joy over improvement of relations between Georgia and Russia and called sales of Borjomi and Georgian wines in Russia an example.

The official said that the economic situation in Russia was not a problem. He believes that there should not be panic over reduction of economic growth rate and possible recession. Grinberg reminded that the prices for oil were high and added that there should be not worries if the prices stay at $105-115. The situation in Syria and Iran keeps the prices high, the expert supposes.