The Central Bank of Azerbaijan (CBA) announced the impact of the Russia-Ukraine conflict on the banking system of Azerbaijan.

According to the information given to "APA-Economics" by the CBA, the lack of funds of local banks in sanctioned Russian banks limited the impact of sanctions on the financial stability of the Azerbaijani banking system in the first half of this year.

"As a result of the Russia-Ukraine conflict, banks face certain obstacles in conducting operations with correspondent accounts, but the impact of this conflict on the operations of Azerbaijani banks with correspondent accounts was limited," CBA said.

It was noted that as a result of the current geopolitical tension, the price increase in the global energy carrier market has a positive effect on the country's balance of payments as an oil and gas exporter.

Rising energy prices and potential growth opportunities in gas exports to Europe could boost exports and fiscal revenues in the medium term.

Rising food prices due to geopolitical processes and difficulties in the supply chain continue to increase the level of global inflation.

The increase in global food prices increases the transmission of high inflation to domestic prices through the import channel.

CBA also emphasized that although our country has close trade relations with Russia and Ukraine, currently geopolitical processes do not have a significant impact on the trade and economic relations of Azerbaijan with these two countries.