The rapidly changing security environment has brought a plethora of non-military measures to the fore. These measures have completely changed the nature of hostilities by giving them a hybrid character. With regard to the South Caucasus region, the chasm among the political courses pursued by particular states makes the overall region more susceptible to diverse external threats of a political, economic, military and cultural nature. This paper focuses on the economic component of the hybrid warfare in the South Caucasus region. The issues are considered from a security point of view and not from an economic perspective. The vulnerabilities of particular nations in the region to economic coercion are highlighted in the paper and suggestions for improving them made. The authors underscore the regional unity in the South Caucasus as a prerequisite for eliminating or at least mitigating economic dependence and healing the “regional fracture” that has lasted for decades.