"MP entrepreneurs do not want to legalize the business and occupy
Russian market."

September 2 2014

When the shipment of a number of European, American and other
countries' products to Russia was embargoed, some Armenian officials,
economists and entrepreneurs announced with confidence that new
opportunities for Armenian manufacturers are opened up in the Russian
market. Meanwhile, the 2nd President of Armenia, Robert Kocharyan, had
expressed another opinion about the Russian embargo. In the interview
to Moscow-based "Noev Kovcheg" Armenian newspaper as of August 28, Mr.
Kocharyan, in particular, has said, "Generally, it's a great delusion
to think that Armenia's economy can benefit from the sanctions." Mr.
Kocharyan mentioned that, for instances, the Armenian exporters of
agricultural products can significantly expand the volume of exports
to Russia, but to be strengthen in the market for a long-run, they
must produce quality and cost competitive products. Chairman of
Republican Union of Employers of Armenia, Gagik Makaryan, was among
the first who announced that Russian sanctions provide new
opportunities to Armenian producers, so Aravot.am asked Mr. Makaryan
how he will comment on the 2nd president's opinion. "Our words do not
contradict each other, really, we should think about how to increase
the quantity and quality. Many of our products' quality is not bad, a
number of products have international certificates. However, there are
2 ways to attract the markets of big states: either low-cost,
high-quality and large quantity of goods, or the costly, less
quantity, but intellectual, value added products. Let's say, special
type of organic food, special food flavors, food, but when exporting
ordinary wine, soft drinks, canned food, and cognac, they must know
very well that there are products there imported from Chilly, Moldova,
Belarus, Turkey, and Azerbaijan, and how you can compete with them."
Under this type of competition, according to Gagik Makaryan, the
Armenian manufacturers should ensure a certain quantity because Russia
is a big country and their major supermarkets have monthly consumption
of Armenian quantity. And if our manufacturers do not ensure the
quantity for a moment, they no longer would be interested by Russia as
a partner. "So, my words and the words by the former president do not
contradict each other. Yes, he is right saying that these problems
should be solved. During our meeting, the Prime Minister, Hovik
Abrahamyan, was trying to motivate the manufacturers, if necessary,
they must increase the production volume, take loans, and the
producers must be flexible, not to stay idle, work quickly, and take
subsidized loans from the state," said Mr. Makaryan. To the question
of Aravot.am of whether our producers are encouraged and interested,
the economist said, "No, they are not particularly encouraged, because
some manufacturers are deputies of the National Assembly, or are
working under the cover of, let's say, brotherhood, friendship, and
party, and under the conditions of such "warmth", they feel good; they
are working in semi-shadow and semi-legal conditions, it is a hardship
for them to start legalizing and issuing a certification for the
product, they should make efforts, run back and forth, they do not
want it." Nevertheless, as said by Mr. Makaryan, there are some
manufacturers who are already taking steps to be expanded in the
Russian market, and the Employers' Union supports them in finding
partners.


Nelly BABAYAN
Read more at: http://en.aravot.am/2014/09/02/166740/