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Moscow's Decision Is Disaster For Armenia
Naira Hayrumyan, Political Commentator
Comments - 31 July 2014, 18:06
Russia is going to repeal the free trade agreement with Georgia. It
means that customs regulations will be enforced on the
Russian-Georgian border.
Armenian-Russian trade is administered via Georgia. Earlier it was
facilitated by free trade between Russia and Georgia, as well as
Georgia and Armenia.
The Georgian prime minister has already announced that Russia's move
will not be a tragedy for Georgia. However, he did not say that it may
be a tragedy for Armenia. Armenia will have to agree on preferences
for Armenian goods or put up with a new wave of soaring prices.
The elimination of free trade between Russia and Georgia may also
affect Russian gas and oil supplied to Armenia. Georgia consumes
Azerbaijani gas and may charge a higher price for transit. Will the
Armenian government be able to "persuade" Russia not to raise the
prices of oil and gas? If they grow expensive, people may refuse to
pay the bills or consumption will drop. Let alone the option that
Georgia may stop transit altogether.
Geopolitical developments prompt Armenia to give up on pro-Russian
projects and face Iran and try to compensate the losses from
"friendship" with Russia with Iranian gas. The elimination of free
trade between Russia and Georgia may be the last drop.
- See more at: http://www.lragir.am/index/eng/0/comments/view/32798#sthash.lUdUOk8e.dpuf
From: Emil Lazarian | Ararat NewsPress
Naira Hayrumyan, Political Commentator
Comments - 31 July 2014, 18:06
Russia is going to repeal the free trade agreement with Georgia. It
means that customs regulations will be enforced on the
Russian-Georgian border.
Armenian-Russian trade is administered via Georgia. Earlier it was
facilitated by free trade between Russia and Georgia, as well as
Georgia and Armenia.
The Georgian prime minister has already announced that Russia's move
will not be a tragedy for Georgia. However, he did not say that it may
be a tragedy for Armenia. Armenia will have to agree on preferences
for Armenian goods or put up with a new wave of soaring prices.
The elimination of free trade between Russia and Georgia may also
affect Russian gas and oil supplied to Armenia. Georgia consumes
Azerbaijani gas and may charge a higher price for transit. Will the
Armenian government be able to "persuade" Russia not to raise the
prices of oil and gas? If they grow expensive, people may refuse to
pay the bills or consumption will drop. Let alone the option that
Georgia may stop transit altogether.
Geopolitical developments prompt Armenia to give up on pro-Russian
projects and face Iran and try to compensate the losses from
"friendship" with Russia with Iranian gas. The elimination of free
trade between Russia and Georgia may be the last drop.
- See more at: http://www.lragir.am/index/eng/0/comments/view/32798#sthash.lUdUOk8e.dpuf
From: Emil Lazarian | Ararat NewsPress