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Russia Is Still One Of Main Trade-Economic Partners Of Armenia

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  • Russia Is Still One Of Main Trade-Economic Partners Of Armenia

    AZG Armenian Daily #053, 26/03/2005

    Armenia-Russia

    RUSSIA IS STILL ONE OF MAIN TRADE-ECONOMIC PARTNERS OF ARMENIA

    Vladimir Putin's Forth Visit to Armenia

    Vladimir Putin, RF President, arrived in Yerevan on March 24. Mr. Putin
    will officially open the arrangements of "The Year of Russia in
    Armenia." This is Putin's fourth visit to Armenia. He visited
    Armenia for the first time in 1999, then in 2001 and in the spring
    of 2002. Putin participated in the congress of CSTO in Yerevan.

    Robert Kocharian and other high-ranking officials met Mr. and
    Mrs. Putins at Zvartnots airport.

    Russia is still the key political, economic and strategic partner
    of Armenia. Yerevan and Moscow closely cooperate both bilaterally
    and within the framework of CSTO (Armenia, Russia, Byelorussia,
    Kazakhstan, Kyrgyzstan and Tajikistan). The Russian military station
    N102 is located in Gyumri and the Armenian and Russian frontier guards
    together watch the Armenian-Turkish and the Armenian- Iranian border.

    The Armenian-Russian trade-economic relations are still strong thought
    there are no common borders between the two countries and they are
    connected through Georgia. The latter has serious contradictions with
    Moscow that directly influence the Armenian-Russian relations. It's
    worth reminding the Upper Lars events when the blocking of the
    Russian-Georgian border directly hindered the Armenian goods and
    passengers to get to their destinations.

    The Armenian-Russian goods turnover amounted to $208 million in
    2004. Russia became the main trade-economic partner of Armenia after
    the collapse of the Soviet Union. On the other hand, Russia' s role in
    the foreign goods turnover of Armenia decreases year by year. Thus,
    it amounted to 19,2% in 2001, then to 17,4% in 2002, 15,2% in 2003
    and 12,9% in 2004.

    At present, there are 589 Russian companies registered in
    Armenia. About 300 of them effectively function. Igor Levitin, co-chair
    of the Armenian-Russian Cooperation Intergovernmental Committee,
    told Novosti agency that Armenal, Sibir air-company are among the
    most effectively working Russian companies in Armenia.

    The Armenian-Russian goods turnover and the Russian investments in
    Armenia could be larger, if Moscow launched the Armenian companied
    purchased within the framework of asset-for-debt 2002 program. Russia
    purchased Mathematical Machines Scientific-Research Institute ($2,75
    million), Management Automatic Systems SRI ($3,37 million), Mars plant
    ($56,29 million), and Hrazdan Hydro ($31 million) in 2002.

    After getting the Armenia companies, Russia almost hasn't made any
    investments and this caused the dissatisfaction of the Armenian
    side. The political experts who know Russia well say that in Russia
    such companies are collapsing and one shouldn't expect that Moscow
    will restore them and make serious investments in the Armenian
    companies. Recently, Victor Khristenko, RF energy minister, stated
    that $21 million will be needed for restoring "Mars" plant.

    Last year in Sochi the Russian President publicly expressed
    dissatisfaction with the Armenian-Russian economic cooperation and the
    goods turnover volumes. Armenia is not content, either. Particularly,
    in Moscow, in summer, Vartan Oskanian expressed concern about the
    current situation in the companies purchased within the framework
    of asset-for-debt program. Andranik Margarian, RA prime minister,
    expressed concern in February when Sergey Lavrov was in Yerevan. But
    the reason was quite a different one. Mr. Margarian stated that
    Russia is going to get connected with Iran through the territory of
    Azerbaijan, while a railway system is functioning in the territory
    of Armenia and it can connect all the countries of the region.

    Indeed, Kars-Gyumri-Tbilisi, Yerevan-Nakhijevan-Julfa railways
    stretch in the territory of Armenia but, for known reasons, they
    haven't functioned for years. Even if we want it very much, the road
    connecting Russia with the Persian Gulf can't pass through Armenia. One
    should take into account the fact that the unsettled Russian-Georgian
    relations hinder the implementation of this project.

    By Tatoul Hakobian
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