The deterioration in the Russian-Turkish relations will not turn into a military clash but will have a significant influence on the South Caucasus where the interests of Moscow and Ankara meet. In this situation Armenia should have a cautious and circumspect policy in order to reduce the negative consequences of Russian-Turkish conflict. On the other hand, it is not excluded that Turkey will try to open the second front against Russia by the escalation of NKR conflict via Azerbaijan.
Armenia’s external debt has mounted by roughly 7 percent since 2011, and now given the country’s Gross Domestic Product has not actually increased, the situation appears risky. If the growth rates remain slow, the Armenian Government is likely to cover the foreign debt service with difficulty, said economist Artak Manukyan.