The changes taking place in the global and regional markets, which are linked with softening sanctions against Armenia’s neighbor Iran, open new opportunities and field for cooperation of the two countries’ business environments.

This week, the Armenian-Iranian business forum held in Yerevan is the new stimulus, which, observers expect, will strengthen business ties, and create new opportunities for more sustainable arrangements.

“In terms of activation of bilateral transportation, the construction of the highway of the North-South Corridor is an important project, which is already underway. Another project is Armenia-Iran railway construction. I must also discuss our cooperation in the energy sector, in particular, the construction project of the third Iran-Armenia electricity transmission line and the Meghri hydropower plant,” said Prime Minister of Armenia Hovik Abrahamyan at the Armenian-Iranian business forum.

During his official visit to Armenia Iran’s First Vice President Eshaq Jahangiri, referring to Armenia’s membership of the Eurasian Economic Union (EEU), said that Armenia could become a platform for Iranian goods to be exported to EEU countries, and for its implementation only political will is needed.

“Besides, Armenia has an important role in terms of being a transit area. We have the North-South corridor, and now we should solve the issue of the railway construction, which can have regional significance. Iran is willing to carry out these two programs. We must do everything possible to eliminate all obstacles. In this regard, we should sign several agreements of mutual understanding: a preferential tariff agreement, for example, to set up a bilateral committee for addressing these issues,” said the Iranian vice-president.

Arsen Ghazaryan, chairman of Armenia’s Union of Industrialists and Entrepreneurs, says that the Armenian side has been trying for several years to prove the Iranian side that Armenia is a very good business platform to transfer goods and services to the CIS area, and today already to Europe.

“We hope that this understanding will take place: to bring goods to Armenia through joint ventures, to reproduce, to re-label and take out to markets where we have a privileged tax status both in the EEU area, and through our GSP + system in Europe, which is extremely important,” says Ghazaryan.

However, Iranian businessmen point out that their problems in Armenia are caused by the taxation field, which has already forced many to move their businesses to neighboring Georgia, while they prefer to work in Armenia, with Armenians.

“A man comes from a foreign country and invests money in this country. It means the way for that person should be comfortable and without obstacles. The state should take measures so that foreign investors are not afraid of investing.

This is no problem in Georgia,” says Bitum-Armenia-Iran company founder Javid Zabihollahin, who plans to open a concrete works in Armenia.

According to Iranian businessman Danish Var, in case of public policy implementation, the results of the business environment will be more visible.

“We usually face difficulties in the investment field, because we are not familiar with the field and are not fully aware of the Armenian laws. The good business consultant is necessary for starting a business in Armenia,” said the Iranian businessman.

Arsen Ghazaryan said that during 24 years of Armenia’s independence Armenia has been regarded as a consumer market for Iran, but already today Armenia should be viewed as an investment and production platform.

According to the National Statistical Service, 4.9 percent of Armenia’s foreign trade turnover in 2014 comes from trade with Iran. The main part of the turnover comes from imports from Iran: $206.5 million out of $291 million.

 

Source:   Gayane Mkrtchyan ArmeniaNow reporter