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  • Hopes to Break Armenia's Economic Blockade

    AZG Armenian Daily #054, 25/03/2006


    Armenia-Region

    HOPES TO BREAK ARMENIA'S ECONOMIC BLOCKADE

    Consortium on Abkhazian Railroad Rehabilitation Set Up

    "Setting apart political and economic issues" was the motto that
    united Russia, Georgia, Abkhazia and Armenia to begin the works of
    rehabilitation of Abkhazian railroad. An ad hoc four-sided consortium
    was set to carry out all works, Vladimir Badalian, representative of
    Armenia in the consortium, told daily Azg.

    A document signed at the session of the Russian-Georgian
    intergovernmental commission in December 2005 set in motion the
    creation of the consortium. Mr. Badalian says that thanks to the
    efforts of Armenian-Russian and Armenian-Georgian companies they
    managed to set apart economic and political issues. As a stumbling
    block in this regional initiative emerged first of all the
    Georgian-Abkhazian conflict. Tbilisi sought to get Georgian refugees
    back to the Abkhazian region of Gali against its consent to railroad's
    reopening. The return of refugees paved a way for negations. The next
    vital issue had to do with the customs station: should it be on
    Georgian-Abkhazian or Russian-Abkhazian border?

    Representatives of Russia, Armenia, Georgia and Abkhazia had their
    first meeting within the consortium format on March 15 in Moscow and
    agreed to meet again in Tbilisi in late March. After the mid-April
    meeting in Yerevan the consortium will be legalized after which it
    will engage in its activities. The consortium is also responsible for
    fund raising. Most of the finances will be directed to demine
    surrounding territories of the railroad, repair of bridges and
    rails. Vladimir Badalian says that a railroad link stretching 70-80 km
    is completely devoid of rails. The overall price of the project is
    $150-200 million. The Russian side will cover 50 percent of the sum,
    Georgia $30, Armenia and Abkhazia 10 percent. Mr. Badalian assures
    that the railroad will possibly function in 1 or 2 years.

    The consortium gives hope that the Abkhazian railroad will finally
    function spurring development of our economy. Besides it will break
    the economic blockade of Armenia by 60-70 percent opening a window not
    only to Russia but also to Europe. Experts claim that reopening of the
    railroad will bring new approaches in Armenian-Turkish relations - the
    closed Turkish border will hence be meaningless.

    By M. H
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