eeu Archives

Azerbaijan’s membership in EEU impossible without Armenia’s consent – Russian analyst

November 21, 2017 by administrator

Azerbaijan’s membership in the Eurasian Economic Union is practically ruled out without any consent by the Armenian authorities and the Armenian people, says a Moscow-based political analyst.

In an interview with Tert.am, Alexander Sobyanin, the director of the Association for Cross-Border Cooperation, highlighted the need of serious collaborative work before any decision-making “to understand that uniting economies under a common umbrella is a reality dictated by international developments”. In his words, such an approach would facilitate future peace efforts over Nagorno-Karabakh (Artsakh).

The Russian Foreign Minister recently said in Baku that they would hail Azerbaijan’s presence in the Eurasian Economic Union. Do you think it is a possible scenario? Azerbaijan has not kind of made any public statement in that connection.

Sergey Lavrov spoke not only of Azerbaijan but also Uzbekistan. I think those countries’ membership in the Eurasian Economic Union is really becoming inevitable, yet we shouldn’t make haste under any circumstances, as this kind of decisions have to consider also the member-states’ societies (not just the governments). It has to do particularly with Armenia. Those states’ membership efforts should contribute to the Eurasian Union’s development in general. In the case of Azerbaijan, a lot depends certainly on Armenia. It is a complicated issue as it is, so [the sides] need to carry out considerable work before any decision-making to reach agreements wieghing all the pros and cons.

You are aware that Armenia and Azerbaijan are in a de-facto war situation. So what is the expected outcome? What would be the motivating factor for Armenia to agree to Azerbaijan’s membership?

If there is a [mutual] desire, the sides will be able to reach an accord. Azerbaijan’s membership may facilitate the Nagorno-Karabakh conflict settlement efforts. At the same time, it is important to also maintain security and sovereignty in the two states not to allow any lowering of those criteria, and to avoid any loss of balance. The international community does not have common approaches with respect to the Karabakh conflict; there isn’t any single and universally acceptable position. So Russia’s presence in the conflict settlement process is really necessary in order to make the sides demonstrate enough willingness and desire to discuss the issue. This kind of problem requires a great responsibility as it is really very complicated. It is the international situation that practically makes our economies help one another.

So do you really think the Nagorno-Karabakh issue will be resolved after Azerbaijan and Armenia become members of a single union? For over 25 years, the sides haven’t been able to reach any accord, with each pursuing its own gains and interests. How are they expected to forget all this for the sake of Azerbaijan’s membership?

That doesn’t absolutely imply that Azerbaijan’s entry into the EEU would pave way to conflict settlement just within a fraction of the second. It is possible, of course, to establish historic sovereignty. We have seen Germany’s and France’s example, which is quite successful. Of pivotal importance is not only the consent by the political elite but also the civil society of Armenia. We need also consent by the [political] factions represented in the National Assembly, as this is really a complicated issue. I do not simply imagine that at least a small segment [of the Armenian society] would back Azerbaijan’s membership in the EEU. We probably need a referendum to identify the public sentiments. I don’t know whether Armenia’s Constitution allows for that, but public opinion surveys alone will not be enough to identify what the societies want and whether or not they agree [to such a plan]. The Armenian society’s position must be clearly expressed before such a decision-making. But that’s a time-consuming issue, not something to be settled in just a couple of days.

And what about situation with Nagorno-Karabakh (Artsakh) in that case? Will Karabakh also become an EEU member and if so, what will be its status?

Considering the developments over the past 10 years, this issue needs to be considered from the angle of the theory of relativity. I think that Karabakh will in most likelihood have its status approved, overcoming economic barriers. And the economy of Karabakh will reach a considerably advanced level to have its contribution to the Eurasian market’s development. That’s one option. And perhaps Karabakh will be granted a separate status, as they may decide that it should not be a Union member. I think the issue can be resolved through discussions.

The Eurasian Economic Union shows its economic growth

May 29, 2017 by administrator

For the first time since the establishment of the Eurasian Economic Union (EEU) in 2015, all of its member states have grown economically, Tigran Sargsian, chairman of the Eurasian Economic Commission, Of the prime ministers of the trade union led by Russia in Kazan.

Sargsian, who represents Armenia as the rotating presidency of the EUE, said that it was only in 2016-2017 that the Member States agreed to eliminate 60 obstacles from the internal market and concluded major agreements in The electricity, oil, gas and transport sectors.

The EEU, whose founding members are Russia, Belarus and Kazakhstan, also includes Armenia and Kyrgyzstan.

Some members of the opposition in Yerevan have criticized the government’s decision to join the EEU despite the fact that Armenia does not have a land border with the rest of the union. Moreover, some critics consider that Armenia, which has no energy resources, has no place in a customs union led by major oil and gas producers such as Russia and Kazakhstan. They highlighted Armenia’s poor economic performance after joining the EEU. The Armenian government, on the contrary, has always defended its decision on this accession, arguing that otherwise the country would have fared better in the face of the conditions of global economic turbulence.

Armenian Prime Minister Karen Karapetian attended the meeting of the Commonwealth of Independent States (CIS) Prime Ministers on 26 May, including the EEU member states. The meeting was held in the capital of Tatarstan, Kazan.

Russian Prime Minister Dmitry Medvedev said trade between member countries has almost tripled.

In Kazan, the leaders of the governments of the CIS member states signed a number of documents aimed at deepening cooperation in various fields, in particular those of innovative cooperation and international transport. The next meeting of the Council of Heads of Government of the CIS will be held in November.

The Armenian government delegation led by Prime Minister Karapetian also participated in the official reception given on behalf of the Russian Prime Minister.

The absence of the Moldovan Prime Minister, who boycotted the event due to some disagreements between Russia and Moldova, was noticed.

In Kazan, Karapetian also held a bilateral meeting with the Prime Minister of Belarus Andrei Kobyakov. According to a press release from the Armenian government, the prime ministers of the two countries discussed the agenda for economic relations between Armenia and Belarus and the prospects for their further development.

Monday, May 29, 2017,
Claire © armenews.com

Armenia’s exports of fresh fruits, vegetables to EEU member-states up 90%

August 12, 2016 by administrator

As of August 12, 2016, Armenia’s exports of fresh fruits and vegetables to the Eurasian Economic Union (EEU) member-states showed a 90% increase as compared with the corresponding period of last year, Armenia’s Deputy Minister of Agriculture Armen Harutyunyan told reporters on Friday.

“The EEU is the most convenient market for or agricultural produce now. The Ministry of Agriculture has focused on exports,” he said.

The ministry is working with the EEU in different formats.

“We are also improving our research institutes’ efficiency. We have recently discussed creation of produce exchanges. Moreover, free trade agreements with other states are being drafted,” Mr Harutyunyan said.

A free trade agreement was recently signed in Vietnam, but the document has not yet been published.

Asked whether the exports to Russia are the reason for the 90% export growth and what is being done to export agricultural produce to the other EEU member-states, Mr Harutyunyan said that exports of fresh fruits and vegetables are the major reason for the growth.

“And work to organize exports to the other member-states is in progress now. I think the reason for the growth is all types of procedures – food safety, customs control, and others – which enables small and medium-sized producers to enter the EEU market,” the official said.

An intergovernmental commission is to hold a meeting to discuss logistical issues.

“This is being done to ensure exports of Armenian agricultural produce to Kazakhstan,” Mr Harutyunyan said.

Work is being done to organize export of Armenian agricultural produce to other countries, and free trade agreements will soon be signed with ten countries.

Corruption And Business Oligarchs Are Major Obstacles For Armenian Companies To Enter Eurasian Economic Union Markets

June 18, 2015 by administrator

YEREVAN, June 18. / ARKA /. Corruption and business oligarchs are two major obstacles for Armenian companies to enter the huge markets of the Eurasian Economic Union, the chairman of the National Union of Employers Gagik Makaryan said in an interview with the local daily Hayots Ashkhar.

“Corrupt businessmen make huge profits by selling their goods in Armenia; they use their own rules of game to settle all their problems. These businessmen simply fear external markets, where they may encounter certain risks, where one needs to be more educated, to have an understanding of management, and where their methods simply will not work,’ he said.

“Having a market is one thing, but using it is quite a different thing,” said Makaryan, adding that one should not forget that these markets were available even before Armenia’s joining the EEU, and Armenian legislation did not prevent free trade with EEU member states.

“The quality of Belarusian goods is high enough, which means that not all of our products can be competitive there. Russia is Armenia’s second largest trade partner and most of Armenian products, except for metals which are sold to Europe, are sold in Russia. They are brandy, alcoholic beverages, jewelry, some devices, canned food, etc.”, said Makaryan.

With regard to the Kazakh market, he said, trade with this country leaves much to be desired, and there are several reasons.

“First of all, Kazakhstan is geographically quite distant from Armenia. Both countries are connected mainly by charter flights which complicates the development of their trade and economic relations,» he said.

“It is not a secret that the state of the Russian economy has a direct impact on Armenia, regardless of whether our country is a member of the EEU or not. Russia is our main partner. For example, Armenia’s trade with Belarus constitutes 0.8% of the total foreign trade, with Kazakhstan its 0.2%, while trade with Russia accounts for 24%,” he said.

According to the National Statistical Service, Armenia’s trade with Russia in 2014 amounted to $1.4 billion, having increased by 3.2% from 2013; trade with Belarus was worth $40.1 million, having slashed by 19% and that with Kazakhstan declined by 6.5% to $7.5 million.

Armenia’s foreign trade turnover with EEU member countries in January-April 2015 amounted to $223.9 million.

http://arka.am/en/news/economy/corruption_and_business_oligarchs_are_major_obstacles_for_armenian_companies_to_enter_eurasian_econo/#sthash.K9HiM53r.dpuf

Egypt to join EEU in 2016 – ambassador

June 2, 2015 by administrator

Egypt intends to establish a free trade zone with the Eurasian Economic Union (EEU), comprising Russia, Kazakhstan, Belarus and Armenia, by the end of 2016, the Egyptian ambassador to Russia told Sputnik.

A free trade zone deal between the sides was discussed in February during Russian President Vladimir Putin’s visit to Cairo. Egypt sent an official request to establish a free trade zone with the EEU last year.

“There is a kick-off already in the negotiation process and we estimate that it is going to take from 12-18 months,” Mohamed Elbadri told Sputnik.

At this stage of negotiations, the envoy added, each party will study the benefits of mutual cooperation before entering into direct talks regarding the details of the agreement.

The treaty should cover all trade in commodities between the countries.

The Russia-led EEU officially came into force on January 1. The bloc aims to achieve the free flow of goods, services, capital and labor across its member states, with provisions for a greater integration in the future.

Last week, Russian Prime Minister Dmitry Medvedev approved a free trade zone agreement between the EEU and Vietnam.

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Armenia picks Russian economic ties, but tries to keep foot in the West

January 6, 2015 by administrator

By Karoun Demirjian

YEREVAN, ARMENIA — When Armenia broke ranks last year with other former Soviet states marching toward Europe and pledged to join Russia’s new customs union instead, the goal of keeping a foothold in both the East and the West didn’t seem all that challenging.

It wasn’t the first time the country had pulled off such a high-stakes balancing act: For years, Armenia has been the only full member of the Russian-led Collective Security Treaty Organization military alliance to also participate in NATO peacekeeping missions. And with the United States and the European Union promising to continue economic development efforts, there seemed little to lose by joining Russia.

But that was before the Ukraine crisis, before Western-Russian relations sank to their lowest point since the Cold War, and before the ruble started plummeting erratically — pulling down currencies such as the Armenian dram along with it.

Now, as Armenia settles into its role as the smallest member of Russia’s new Eurasian Economic Union (EEU), the country is bracing for what even government officials admit could be a rough ride.

“I never heard of a situation where turmoil in a partner country was a helpful thing,” said Vache Gabrielyan, deputy prime minister and head of a new government ministry for international economic integration.

“The situation, of course, has changed,” he added. “But I don’t yet see any change that fundamentally alters the choice we made.”

Armenia’s decision to scrap negotiations with Europe over an association agreement — the sort that the E.U. recently signed with Ukraine, Georgia and Moldova — and join Russia’s nascent trade bloc was announced abruptly after a September 2013 meeting between the president, Serge Sarkisian, and Russian President Vladimir Putin in Moscow. Western diplomats said they were “surprised,” and some members of the opposition said the deal was “the result of Russian blackmail.”

Members of the Armenian government justified the decision as one that will give Armenia the opportunity to improve economic ties with both the E.U. and the EEU.

“In the framework of our humble abilities, we strive to serve as a bridge for these two organizations,” said deputy foreign minister Shavarsh Kocharyan, one of the key negotiators of the deal to bring Armenia into the EEU. Picking a side was simply a necessity, he added, because “nowadays, every state needs to be in an economic cooperation bloc. Germany, France – are they on their own? Heh.”

The idea that Armenia could help build E.U.-EEU economic ties appears to have some support in the Kremlin. Last week, Russia’s E.U. ambassador told the EU Observer, a news Web site, that Armenia was one of several countries that could facilitate trade between Russia’s new customs union and Europe.

What few in the Armenian government will admit, however, is that in choosing to side with Russia, they didn’t have much choice.

Armenia declared its independence from the Soviet Union 23 years ago. But Russia remains the tiny country’s most vital link to the outside world.

Russia hosts the largest population of Armenians outside of Armenia and is the largest source of remittances, which accounted for more than a fifth of Armenia’s national income last year. Russia has a monopoly on selling Armenia cheap gas through 2043, and Russian state-funded television broadcasts are how many Armenians get news and information.

While Europe remains Armenia’s largest export market, Russia is the key destination for non-raw material goods, which Gabrielyan says will help Armenia diversify its economy — especially, he said, because Armenia is not yet ready to compete in Europe.

Few public officials, even those who have criticized the president, discount those ties. Last month, Armenia’s parliament voted overwhelmingly to approve joining the EEU.

The EEU deal-making process “was misguided and should have been done differently,” said Vartan Oskanian, Armenia’s former foreign minister and a member of Prosperous Armenia, parliament’s second-largest party. But lawmakers backed EEU membership “given the importance we attach to Armenia’s relations with Russia.”

Yet the most important factor driving Armenia’s participation in Russia’s new economic union isn’t economic.

“We have a security issue which demands us to take faster steps,” Kocharyan said, explaining that benefits of European association would take longer to realize than joining the EEU. “Such long-term projects are very important, but we can never exclude the possibility that the day after tomorrow, we may have to impose peace on our neighbors.”

Russia is Armenia’s chief supplier of arms, at discounted prices, and maintains a military base in the country. Armenians consider that a vital asset in their two-decade-long, frozen conflict over the status of Nagorno-Karabakh, an ethnic Armenian enclave within Azerbaijan that declared independence as the Soviet Union was coming apart.

Russian Upper House Ratifies Armenia’s Entry to EEU

December 18, 2014 by administrator

MOSCOW—Russia’s parliamentary upper house, the Federation Council, ratified a treaty for Armenia’s accession to the Eurasian Economic Union on Wednesday, TASS reports.

The accord was signed at a meeting of the Supreme Eurasian Economic Union by the presidents of Russia, Belarus, Kazakhstan and Armenia in Minsk on October 10. The deal is a basic document determining agreements between Russia, Belarus and Kazakhstan on the terms of Armenia’s joining the Eurasian Economic Union seeking to lay a legal basis for functioning of the common Union.

The accord sets Armenia to become a full-fledged member of the Eurasian Economic Union, after all ratification procedures are complete by member states, no earlier than on January 1, 2015.

Armenia is also obligated to revise its agreements with the World Trade Organization (WTO) before joining, which could mean possible termination of its membership.

The Kazakh and Belarusian parliaments have yet to ratify the treaty, but are expected to approve it in the coming weeks. Armenia’s parliament approved the agreement earlier this month with an overwhelming majority of votes in favor.

Kazakh parliament lower house endorses Armenia’s EEU accession treaty

December 18, 2014 by administrator

The Majilis, which is the lower house of the Parliament of Kazakhstan, has ratified the treaty on Armenia’s accession to the Eurasian Economic Union (EEU), Kazakhstan News reported.

Kazakh Minister of National Economy Yerbolat Dossayev recalled that this document was signed in October in the Belarusian capital city of Minsk.

Once the treaty enters into force, Armenia will become an EEU member, and therefore it must meet the contract and legal norms of this Russia-led union and the Customs Union.

“Armenia’s accession to the Eurasian Economic Union plays a huge role, since we cooperate with Armenia, and this collaboration of ours contributes to economic development between the two countries,” Dossayev added.

The West must offer Armenia incentives rather than decry its ties with Russia

October 15, 2014 by administrator

By Harut Sassounian
TheCaliforniaCourier.com

On October 10, after lengthy heated debates, Armenia signed a treaty to join the Eurasian Economic Union (EEU), composed of Belarus, Kazakhstan and Russia. The agreement goes into effect on January 1, 2015, subject to ratification by parliaments of the four countries. Kyrgyzstan and Tajikistan have also expressed an interest in joining the Union.

The intended objective of forming EEU is to facilitate the free movement of goods, services, capital, and labor across member states, and to implement a coordinated policy in the energy, industrial, agricultural and transport sectors.

Views of analysts on the merits of Armenia’s membership in EEU diverge depending on whether they are proponents or opponents of the country’s leadership. The arguments advanced by opponents of EEU include the possible loss of Armenia’s independence and isolation of Artsakh (Karabagh) through the establishment of customs checkpoints at the border. EEU proponents, on the other hand, are stressing Armenia’s geostrategic and economic interests. It remains to be seen which of these arguments will eventually prevail.

Meanwhile, there are some basic facts that are self-evident. Armenia has had long-standing and multifaceted links to Moscow going back to the Tsarist era, the Soviet Union, and today’s Russian Federation.

It is imperative to recall that the livelihood of hundreds of thousands Armenian migrants in Russia will be impacted by Armenia’s EEU membership, in terms of their ability to reside and work in that country. Furthermore, Armenian businesses would be able to expand their small domestic market, exporting their products with favorable tax terms to over one hundred million potential consumers in Belarus, Kazakhstan, and Russia. Armenia would also serve as an easy gateway for foreign investors interested in entering the vast and complex EEU markets.

In the final analysis, three essential questions need to be raised on Armenia’s membership in EEU:

1) Given the ongoing Artsakh conflict and Azerbaijan’s multi-billion dollar military spending spree, which country has sold and will continue to sell Armenia advanced weapons to mitigate the growing threat from Baku? Not the Unites States, Great Britain or France, but Russia!

2) Which country can provide Armenia with desperately-needed natural gas at any price, let alone at subsidized prices? Russia and Iran to a lesser extent through a small pipeline.

3) Since Russia is Armenia’s largest trading partner, it makes more economic sense to have favorable tax terms with that country than with Europe. Not joining EEU would place Armenia at a serious tax disadvantage with devastating economic consequences.

While these are compelling reasons for Armenia’s decision to join EEU, no one should conclude that Yerevan has to remain exclusively in the Russian economic zone. Clearly, it is in Armenia’s interest to develop multilateral ties with the rest of the world, including Western Europe, North America, Middle East, and Asia. Armenian officials have repeatedly stated their interest in developing closer economic, political, and even military relations with Western countries, but not at the expense of Armenia’s historical ties with Russia.

Meanwhile, it would be far more productive if Western countries, particularly the United States, rather than urging Armenian leaders to cut off vital relations with Russia, would actually offer tax privileges and other incentives to their investors in Armenia, thus reducing Yerevan’s exclusive dependence on Russia. Similarly, U.S. criticism and warnings issued to Armenia for its commercial ties with Iran are manifestly counter-productive. It would be far more helpful if the Obama administration could muster the courage to press Turkey and Azerbaijan into lifting their joint blockade of the Armenian Republic which has been in effect for over 20 years.

In the light of the foregoing existential strategic and economic realities, Western countries would be better served to use carrots rather than sticks to help steer Armenia toward a more balanced relationship between East and West.