Caucasus economy · October 2026

Armenian Prime Minister Nikol Pashinyan said on October 1 that Armenia has received no indication of a Russian gas price increase, and separately addressed rising rental costs and high real estate prices in Yerevan. He also commented on U.S. aviation sanctions against Iran. His remarks came as the government allocated funds for road construction and as he said a planned modular nuclear power plant may not meet the country's growing energy needs. SpaceXAI signed an agreement for the Azerbaijani government to trial Grok. Azerbaijan increased oil exports to Bulgaria 4.5-fold. The World Bank issued recommendations on what Azerbaijan needs to do to benefit from the Middle Corridor, while an Azerbaijani minister highlighted new economic opportunities across the CAMCA region and the CACI Chairman pointed to cooperation challenges facing Central Asia and the Caucasus. The Belgian-Azerbaijani Chamber opened an office in Baku and plans new business missions. The UK sanctioned the brother-in-law of the Tbilisi Mayor and others over a trip to Russian-occupied Donetsk.