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Armenians Rally Against Customs Union As Putin Delivers Rewards

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  • Armenians Rally Against Customs Union As Putin Delivers Rewards

    ARMENIANS RALLY AGAINST CUSTOMS UNION AS PUTIN DELIVERS REWARDS

    Business New Europe
    Dec 3 2013

    bne
    December 3, 2013

    Armenians picketed a visit from Russian President Vladimir Putin on
    December 2, in protest over Yerevan's surprise decision in September
    to join the Customs Union. The Russian leader came bearing gifts,
    confirming a huge discount on gas prices.

    Around 500 people protested in Yerevan on December 2 over the plan for
    Armenia to enter the Russian-led Customs Union. Echoing the feelings
    of frustration at movement back towards the east being expressed
    on the streets of Ukraine, demonstrators carried banners demanding
    "Putin, go home," reports Reuters.

    Others insisted ""No to the USSR", in protest against Armenian
    President Serzh Sargsyan's decision to turn his back on closer
    integration with the European Union. His country had spent months
    negotiating an association and trade pact with Brussels, but that
    process was turned on its head by a surprise announcement - in the
    wake of another meeting with Putin - that Armenia would instead join
    the Customs Union on September 3.

    The protest march ended outside Sargsyan's residence, where
    demonstrators submitted a letter calling on the president to reverse
    the decision. Demonstrators also voiced solidarity with protesters in
    Ukraine, where mass protests have taken place in recent days after
    President Viktor Yanukovych failed to sign a similar agreement with
    Brussels, citing pressure from Moscow.

    Yerevan police blocked the protesters' way, saying their demonstration
    was unsanctioned and arrested around 110 people, ArmInfo reports.

    Opposition leaders claim that police beat several demonstrators.

    Members of the Aizan, Free Democrats and Heritage parties are believed
    to be among those arrested. Several leading anti-Russian activists were
    detained in Yerevan before the rallies started, according to RFE/RL.

    Speaking at a parliament session, Armenian National Congress MP Nikol
    Pashinyan criticised the arrests. He claims the demonstrators were
    "fighting to preserve the sovereignty and honour of Armenia", Hetq
    Online reported.

    Sargsyan's decision to move further into the Russian sphere of
    influence was a shock to many Armenians, coming just two months before
    the Eastern Partnership summit that took place last week in Vilnius.

    Pressure

    Under no little pressure from Russia, Armenia was the first of the
    six countries expected to initial or sign EU association agreement
    and trade pacts to drop out. In the end, only Georgia and Moldova
    made the commitment. Ukraine is the big fish however, and speculation
    swirls over Yanukovych's next move. Russia is pushing hard to swell
    the ranks of its own trade club, which it founded alongside Belarus
    and Kazakhstan in 2011. Critics have often accused Putin of trying
    to recreate the USSR.

    Yanukovych told the EU that he cannot sign the deal due to pressure
    from Russia, which openly threatened to erect trade barriers if he did
    so. At the same time, Ukraine is in a fiscal hole, and a cut in gas
    prices and cheap loan would help enormously. The Ukraine leader is due
    to meet Putin next week, but is also in close contact with Brussels.

    Any definite move towards the east would raise the tension on the
    streets, which are occupied by tens of thousands of protestors across
    the country.

    In Armenia, Sargsyan does not face similar pressure pushing westwards.

    A survey by the Eurasian Development Bank published in October found
    that 67% of Armenians were in favour of Customs Union membership.

    However, the opposition has accused Moscow of exerting heavy pressure.

    Armenian consumer gas prices spiked by 18% in July, following a
    price hike by Russian state-controlled export monopoly Gazprom. The
    previous month, Russia completed an arms delivery worth around $1bn
    to Armenia's long time rival Azerbaijan, potentially escalating the
    long-standing conflict over the breakaway Nagorno Karabakh Republic.

    Speaking at a Russian-Armenian regional forum in Yerevan during his
    visit, Putin stressed the importance of the South Caucasus region
    to the Russian government. "We are going to strengthen our position
    in the South Caucasus, drawing on the best of what we have inherited
    from ancestors and good relations with all countries in the region,"
    he said, according to Reuters.

    He also confirmed that Sarysyan's government will be rewarded for its
    decision to join the Customs Union. Putin announced the signing of
    an agreement under which Russia will give up its 30% export duties
    on gas sent to Armenia. Russia will export gas to Armenia at $189
    per 1,000 cubic metres, which is less than half the price charged to
    Ukraine and EU consumers.

    Armenia will also see the 35% duty on Russian exports of petroleum
    products scrapped. The charge is causing problems in more than one CIS
    country that is not currently part of the Customs Union. Uzbekistan
    and Tajikistan are currently facing fuel shortages.

    Gazprom also confirmed that it will acquire the Armenian government's
    20% stake in ArmRosgazprom, which will give it full control of the
    gas distribution company. Armenia will also be able to buy weapons
    from Russia at domestic prices, and oil at a 30% discount, Putin told
    the forum.

    http://www.bne.eu/story5577/Armenians_rally_against_Customs_Union_as_Putin_del ivers_rewards

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