EU sanctions to diversify Russian exports - analyst

Alexander Buzgalin, a Professor of the MSU Economic Faculty co-chairing the Moscow Economic Forum that has opened today, said that EU sanctions against Russia over Crimea will encourage it to diversify exports and intensify cooperation with South Caucasus. Russia will cooperate with countries willing to take part in Eurasian integration more actively, he said.

Ruslan Grinberg, Director of the RAS Institute for Economy co-chairing the Forum, noted that activeness of South Caucasus states in the new economic dialogue with Russia would depend on the political factor. Georgia will most likely work with the NATO, Azerbaijan will traditionally stay neutral and Armenia will support Russia, its guarantor of security within the framework of the CSTO.

Both experts called annexation of Crimea a controversial historic event. Buzgalin called it a very rich and beautiful territory that needed financial and infrastructure reconstruction. It will have many expenditures and will hopefully give a positive effect in the future, speculates Buzgalin.

Grinberg reminded that Crimea had problems with electricity, water and infrastructure. Reconstruction would be expensive. The expert noted that living standards in Ukraine were 3 times lower than average in Russia. Balancing the local standards would need billions of dollars. Grinberg said that investments and modern tourism facilities could help Crimea gain income.

Alexander Buzgalin, a Professor of the MSU Economic Faculty co-chairing the Moscow Economic Forum that has opened today, said that EU sanctions against Russia over Crimea will encourage it to diversify exports and intensify cooperation with South Caucasus. Russia will cooperate with countries willing to take part in Eurasian integration more actively, he said.Ruslan Grinberg, Director of the RAS Institute for Economy co-chairing the Forum, noted that activeness of South Caucasus states in the new economic dialogue with Russia would depend on the political factor. Georgia will most likely work with the NATO, Azerbaijan will traditionally stay neutral and Armenia will support Russia, its guarantor of security within the framework of the CSTO.Both experts called annexation of Crimea a controversial historic event. Buzgalin called it a very rich and beautiful territory that needed financial and infrastructure reconstruction. It will have many expenditures and will hopefully give a positive effect in the future, speculates Buzgalin.Grinberg reminded that Crimea had problems with electricity, water and infrastructure. Reconstruction would be expensive. The expert noted that living standards in Ukraine were 3 times lower than average in Russia. Balancing the local standards would need billions of dollars. Grinberg said that investments and modern tourism facilities could help Crimea gain income