Russia and Iran’s declining influence reshapes South Caucasus
Russia’s full-scale invasion of Ukraine in 2022 marked a turning point not only for Europe’s security order, but also for Russia’s long-term geopolitical trajectory. More than four years into the war, the Kremlin continues to project resilience. Yet beneath that posture, structural constraints are increasingly visible. Even in a scenario where active hostilities were to end in the near term, Russia would not easily revert to its pre-war economic or political position. The combination of sanctions, capital restrictions, and technological isolation has reshaped its development path in ways that are unlikely to be quickly reversed.
The most immediate effect has been economic recalibration. Cut off from much of Western investment and advanced technology, Russia has become more dependent on a narrower set of partners and markets. Growth has not collapsed, but it has become less dynamic and more uneven. Over time, this has contributed to a broader erosion of Russia’s attractiveness as a destination for skilled labor and regional migration. Historically, Russia functioned as a key labor magnet for workers from Central Asia and the South Caucasus. That role is now increasingly contested, with labor flows diversifying toward Turkiye, parts of the Gulf, and, where possible, the European Union. This shift carries long-term geopolitical implications, since labor........
