Economic Archives

Armenian Newspaper Haykakan Zhamanak: Armenia’s new premier to initiate business redistribution process?

September 24, 2016 By administrator

Shortly after taking the office of prime minister, Karen Karapetyan is said to be considering serious plans for business and economic redistribution.
Citing its sources close to the government, the paper claims that his statements promising active efforts towards the economy’s development and liberalization are aimed at realizing the said objectives. Karapetyan intends particularly to focus on quotas and control mechanisms to rule out absolute monopolies by major businesses owned by government-linked entrepreneurs.

The paper notes that earlier calls by top government figures for eradicating corruption and shadow economy never ended in mass redistributions.

Armenia Hosted Eurasian Economic Union Meeting to Discuss Cooperation

May 24, 2016 By administrator

Eurasian Intergovernmental Council Meets to Discuss Furtherance of Cooperation between EAEU Member States (Photo: Press Office of the Government of Armenia)

YEREVAN (News.am)—A regular meeting of the Eurasian Intergovernmental Council was held on May 20 in Yerevan to discuss economic cooperation between the coalition’s member states.

The Prime Minster of Armenia, Hovik Abrahamyan, welcomed those presented and noted the positive dynamics in the establishment of a common market of goods and services at the current stage of the Eurasian Economic Union’s (EAEU) development.

Abrahamyan also spoke about expansion of cooperation in international and other formats, as well as the closer trade and economic cooperation of EAEU with separate states, enabling to raise the EAEU development level.

In this context, Abrahamyan considered cooperation with China as one of the key issues on the meeting agenda. According to him, the establishment of legal framework of cooperation between EAEU and China will enable to not only increase the volume of trade, but also involve investments for large infrastructure projects and diversify logistical opportunities. The Prime Minster stressed the importance of the work aimed at establishing China’s Silk Road Economic Belt.

“Having a historical experience, and being the only EAEU country to have land border with Iran, Armenia is ready to implement that project,” Abrahamyan said.

The meeting also spoke about the formation of common markets in the EAEU, whose activity will enable to eliminate the obstacles on the way to the movement of goods, as well as increase the speed and volume of economic cooperation between the states.

Russian Prime Minister Dmitry Medvedev highlighted that regular meetings are imperative in the integration processes and solving the issues set before them. He considered it necessary to reinforce the legal framework of the Union, fully ensure the free movement of goods, services, capital and persons, eliminate the obstacles and limitations, as well as form common markets in key areas of economy.

Medvedev also attached importance to the speedy adoption of the EAEU Customs Code in order to ensure clear, foreseeable and favorable legal framework for the business community. He noted that it is necessary to develop trade and economic ties with the key partners, including China, Vietnam, Southeastern Asia and other states.

Kazakhstan’s Prime Minster Karim Massimov attached importance to the trade between EAEU and states such as India, Egypt, Iran, etc.

In his speech, Belarus Prime Minister, Andrei Kobyakov, considered formation of common markets of oil and oil products a priority, attaching importance to the adoption of the Eurasian Union Customs Code.

The session also addressed this issue, and suggested implementation of the provisions of the report on coordinated transportation policy, draft decisions of the Eurasian Economic Commission, etc.

During the meeting, Kyrgyzstan’s Prime Minister Sooronbai Zheenbekov stressed that targeted and consistent work with the EAEU countries is a key direction.

As a result of the session, the aforementioned documents, which strengthen the economic cooperation between the member states, were approved and signed. The document on the negotiations on signing a trade and economic agreement between EAEU member states and China was also signed.

The next session of the Eurasian Economic Commission will be held on August 12 in Sochi.

Turkey: Economic sanctions imposed by Russia, begun to take their toll on Turkey’s economy 8.3 Billion

March 7, 2016 By administrator

Economic sanctions imposed by the Kremlin after Ankara shot down a Russian warplane last year have begun to take their toll on Turkey’s economy, with the country’s set to lost upwards of $8.3 billion in 2016

After Turkey shot down a Russian war plane along the Syrian border on Nov. 24, 2015, the Russian administration decided on a series of economic sanctions against Turkey. Just three months on, this package is already starting to bite Turkey.

In a decree issued by the Kremlin toward the end of November 2015, certain goods from Turkey were restricted and all touristic trips to Turkey were suspended.

Mega energy projects in the energy sector were also mentioned among the economic sanctions but no official decisions have yet been made.

Exports

The first wave of economic sanctions was expected to affect Turkey’s exports to Russia and the tourism revenue from Russian tourists – expectations that were born out by reality. The losses from these sectors have started affecting Turkey’s economy. Tourism in Antalya and certain Aegean provinces, as well as agricultural produce earmarked for export have all been negatively affected by the embargo.

Russia’s share in Turkish exports was increasing until 2008; it decreased during the crisis but caught up again. In 2013, it reached $7 billion, 4.6 percent of Turkey’s total exports. In 2014, it had fallen to 3.8 percent and $5.9 billion. In 2015 it went down to 2.5 percent at $3.9 billion. Overall during this period, Turkish exports to Russia dropped almost 40 percent.

In 2014, at $25.2 billion, imports from Russia corresponded to 10.6 percent of total imports. In 2015, the share went down to 10 percent with $20.4 billion. In this, the fall in world energy prices played an important role.

Drop in suitcase trading

Suitcase trading is a type of trade that emerged to allow citizens to bring goods from other countries as hand baggage. The citizens of such countries can purchase goods at their destinations, for up to $2,000 for instance, and carry them in their suitcases or send them by cargo to their own countries.

This practice has been identified with Russian tourists in Istanbul’s Laleli district for a long time. At the beginning, the Russian government facilitated the practice but later it became difficult; the decision-making belongs entirely to the Russian government. Other alternatives such as Iran and Libya also emerged, but Russia has always maintained its importance.

With the embargo, a radical fall is expected in suitcase trading. In 2014, suitcase exports added up to $8.6 billion, but decreased 36 percent in 2015 to $5.5 billion.

Russia Imposes Economic Restrictions Against Turkey After Downing of Su-24

November 28, 2015 By administrator

Russian President Vladimir Putin signed a decree on Saturday to boost national security and introduce economic measures against Turkey, the Kremlin press service said.

“Russian President V.V. Putin has signed a Decree ‘On Measures to Guarantee National Security in the Russian Federation and Protect Russian Citizens Against Criminal and Other Illegal Actions, and on Special Economic Measures Against the Turkish Republic,” the statement said.

The visa-free regime between the countries will be partially suspended after January 1, 2016. The measure does not concern Turkish nationals who have a temporary or permanent resident permit, as well as Turkish staff of diplomatic or consular missions in Russia and their families.

The Russian Foreign Ministry has been ordered to notify Ankara about these changes, the statement added.

On Friday, Russian Foreign Minister Sergei Lavrov said that the Russian government had reached a decision to suspend the free-visa regime between Russia and Turkey due to security concerns.

The move comes as Russia started to question Ankara’s commitment to the fight against terrorism following the downing of a Russian Su-24 bomber on Tuesday by the Turkish Air Force over Syria.

Russian travel agencies will have to stop selling tours to Turkey, according to the Kremlin. The directive is part of a decree that aims to boost Russia’s national security.

“Travel operators and agencies should refrain from selling tourist products to Russian citizens that involves going to the Turkish Republic.”

Charter air transportation between Russia and Turkey will also be banned.

Earlier, the Russian Foreign Ministry stated that the incident would negatively affect all aspects of relations between Moscow and Ankara and recommended Russians to refrain from visiting Turkey. Cooperation in the tourism industry between Moscow and Ankara may be stopped, the Russian Federal Tourism Agency said.

Moreover, Russia will restrict import of certain Turkish goods except for the goods imported for personal use to an extent permitted by law of the Eurasian Economic Union (EEU), the statement said.

The activities of Turkish organizations in Russia will also be restricted, according to the Kremlin’s press service.

Moreover, Russian employers will not be allowed to hire Turkish citizens starting from January 1, 2016.

Source: sputniknews

Russia PM Medvedev orders retaliatory economic measures against Turkey

November 26, 2015 By administrator

Russia’s Prime Minister Dmitry Medvedev has ordered his government to draw up retaliatory economic measures against Turkey amid ongoing tensions between the two sides over Ankara’s downing of Russian military aircraft over Syrian skies.

“The government has been ordered to work out a system of response measures to this act of aggression in the economic and humanitarian spheres,” Medvedev told his cabinet in a meeting on Thursday in Moscow.

The Russian premier also called on his ministers to draw up plans that would include freezing some joint investment projects, restricting financial and trade transactions, changing customs duties and restrictions on food imports from Turkey.

The measures can also target the tourism and transport sectors as well as labor markets Medvedev also said during the meeting, adding, “I propose doing all this in a period of two days so that we can move to setting up the appropriate procedures as quickly as possible.”

During the meeting, Russian Economy Minister Alexey Ulyukaev said the TurkStream gas pipeline project may be subject to restrictions. The major gas pipeline project, whose construction began in June, would supply Russian natural gas to Turkey, when finished.

Ulyukaev further announced possible bans on civil flights to and from Turkey, and a halt to preparations for a free trade zone.

The Russian Ministry of Agriculture also said it has tasked food safety watchdog Rosselkhoznadzor with stepping up checks on food and agriculture imports from Turkey.

Earlier in the day, Russian President Vladimir Putin said Turkey is consciously attempting to bring Moscow-Ankara relations to a standstill.

Tensions between Moscow and Ankara skyrocketed after Turkey downed a Russian fighter jet conducting airstrikes against terrorists inside Syria near the Turkish border on Tuesday.

NATO member Turkey claims the aircraft was downed after it violated its air space, but Russia denies Ankara’s claim, maintaining that the jet was brought down in Syrian airspace.

Russia has been carrying out aerial operations against Takfiri terrorists in Syria since September 30 upon a request by the Damascus government.

Turkey has time and again been accused of aiding and abetting supporters of militant groups operating in Syria.

Iran FM: Eurasian Union an option for development of Iran-Armenia cooperation

January 27, 2015 By administrator

YEREVAN. – Armenia’s accession to the Eurasian Economic Union creates a good opportunity for development of cooperation between Iran and Armenia, Iranian Foreign Minister Mohammad Javad Zarif said in Yerevan on Tuesday.

The Minister said there is also a trilateral format of cooperation Iran-Armenia-Russia on communication.

“We are ready to work with Armenia and Russia in this field. There are many other areas for cooperation. We are neighbors and we have common interests. Our task is to use all opportunities, and the Eurasian Economic Union is one of them,” Zarif said during a joint press conference with his Armenian counterpart Edward Nalbandian.

Armenia became a full member of the Eurasian Union starting January 1.

Nagorno-Karabakh Strong Economic Growth Reported in (Artsakh)

December 27, 2014 By administrator

Increases in spending on public services, such as this newly opened hospital in Stepanakert, are planned in the Artsakh government’s 2015 budget, which foresees more economic growth in the country.

STEPANAKERT (RFE/RL)—Economic growth in Nagorno-Karabakh has averaged about 10 percent annually in the past several years and will continue unabated in 2015, according to the authorities in Stepanakert.

Ara Harutiunian, Artsakh’s Prime Minister, made upbeat macroeconomic forecasts on Thursday as his cabinet pushed through the republic’s parliament its budget for next year envisaging a sizable increase in public spending.

The spending target of 88.1 billion drams ($192 million) is based on a projection that the Karabakh economy will expand by 9 percent in 2015.

“A real GDP increase of 9 percent in 2015 and rapid growth in following years are expected to result from the development of energy, agriculture, light industry, food processing, mining, information technology and other sectors,” Harutiunian told lawmakers, according to the Artsakhpress news agency.

According to the most recent official data, Artsakh’s GDP, equivalent to over $410 million in 2013, increased in real terms by about 8 percent in January-September 2014 thanks to more than 21 percent rises in industrial output and construction. The two sectors generated between them 58 percent of GDP.

By contrast, the local agricultural sector contracted by as much as 23 percent in the nine-month period apparently because of severe consequences of a blizzard that swept through Armenia and Karabakh in late March. The sector accounted for only one-quarter of economic activity in Artsakh, which used to be heavily dependent on agriculture.

In Harutiunian’s words, recent years’ growth has translated into thousands of new jobs in republic still recovering from the 1991-1994 war of independence from Azerbaijan. “The total number of employed workers rose from 41,000 in 2007 to 50,300 in 2014,” he said.

Thousands of other, mostly male Karabakh Armenians are part of the local military closely integrated with Armenia’s armed forces.

Harutiunian emphasized that annual subsidies from the Armenian government will finance 52 percent of Karabakh’s 2015 budgetary spending, down from 60 percent in 2007 and 73 percent in 2000. He said that a large part of the budgetary transfers from Yerevan are taxes collected from goods imported to Artsakh from outside Armenia. This means, he said, that Artsakh is not as financially dependent on Armenia as many people think.

Harutiunian further stressed the fact that state revenue is projected to rise substantially in 2014 despite decreased tax contributions from Artsakh’s largest corporate taxpayer, the Base Metals company mining copper and gold in the northern Martakert district.

Base Metals, which is part of Armenia’s Vallex Group mining giant, is increasingly switching its operations to a new and larger ore deposit in Martakert. Its production volumes should therefore grow in the coming years.

According to official statistics, the average monthly salary in Karabakh rose by 20 percent year on year to 130,400 drams ($300) in September, compared with 173,000 drams in Armenia. The Armenian economy has grown far more slowly since 2010.

Germany is one of Armenia’s main economic partners in Europe

June 18, 2014 By administrator

June 18, 2014 | 08:10

YEREVAN. – Armenia and Germany Foreign Affairs Ministers Edward Nalbandian and Frank-Walter Steinmeier met Tuesday in Berlin.

Steinmeier expressed satisfaction by the active political dialogue between the two countries, and stressed that Germany looks toward further enhancing cooperation with Armenia, the Armenia MFA press service informed.

In turn, Nalbandian noted that Armenian-German relations have developed on a regular basis and gained new momentum. The minister stressed that Germany is one of Armenia’s main economic partners in Europe.

Subsequently, the two FMs highlighted that there is a solid legal and contractual framework between the two countries, their collaboration within international organizations is developing, the interparliamentary contacts are on a high level, and their business ties are expanding. The interlocutors noted that Armenia and Germany effectively cooperate also within the framework of peacekeeping operations.

Next, the Armenian and the German FMs reflected on several regional and international matters. Minister Nalbandian briefed his German colleague on the ongoing efforts by Armenia and the international community toward a pacific settlement to the Nagorno-Karabakh conflict.

The two ministers also discussed Armenia-European Union relations stressing that the both sides have expressed readiness to continue the comprehensive cooperation.

In addition, Nalbandian invited the German FM to visit Armenia.

Afterward, Edward Nalbandian and Frank-Walter Steinmeier held a briefing with reporters.

On the same day, Armenia FM Edward Nalbandian also met with Christoph Heusgen, German Chancellor Angela Merkel’s chief adviser on foreign policy and security matters. They conferred on a number of regional and international issues.

Nazarbayev offers Armenia to join Eurasian Economic Union without Karabakh

May 29, 2014 By administrator

May 29, 2014 | 16:08

President of Kazakhstan Nursultan Nazarbayev pointed at a political “incident” with Armenia’s accession to Customs Union, Izvestiya newspaper reported.

“There is an unpleasant topic. Not to instigate a person in Azerbaijan [Azerbaijani President Ilham Aliyev – Izvestiya], you joined the WTO this way, and you need to join the Eurasian Union within the borders recognized by the UN, with the reservation [without Nagorno-Karabakh and several other areas of the former Azerbaijan SSR – Izvestiya],” Nzarbayev said.

The treaty on establishment of Eurasian Economic Union was signed by the leaders of Russia, Belarus and Kazakhstan in Astana on Thursday. President Serzh Sargsyan participated in the meeting of Supreme Eurasian Economic Council and offered to sign a treaty on Armenia’s accession till June 15, 2014.