Weak Russian ruble threatens Georgia's economy

/By AzerNews/

By Mushvig Mehdiyev

The Russian ruble's recent crisis poses a threat to nine countries in terms of remittances including Georgia, according to one of the influential British newspapers.

Nine countries including Georgia, which rely heavily on cash transferred from Russia amid their economic buoyancy, could collectively lose more than $10 billion in 2015 due to the weakening Russian currency, reported the Guardian based on World Bank figures.

Twelve percent of Georgia’s economy rely on private transfers from Russia, while the figure is 21 percent for Armenia’s, 31.5 percent for Kyrgyzstan, 25 percent for Moldova, 42 percent for Tajikistan, 5.5 percent for Ukraine, 4.5 percent for Lithuania, 12 percent for Uzbekistan and 2.5 percent for Azerbaijan, according to the World Bank data.

Money sent by emigrants in Russia comprises a significant portion of total inflows in these countries. For instance, about 40 percent of the overall remittances to Georgia, Armenia, Moldova and Ukraine are from Russia, while the number jumps to 79 percent for Kyrgyzstan.

Drop in ruble's value not is only decimating the amount of money transfers to the Caucasus and Central Asia, but could also lead to a political unrest, believes the Guardian.

The tendency could be problematic for Russia either, which is expected to count considerably on immigrant labor for the formidable building projects, as the country is in a preparation to host the 2018 World Cup.