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Armenia Rift Over Trade Deal Fuels EU-Russia Tension

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  • Armenia Rift Over Trade Deal Fuels EU-Russia Tension

    ARMENIA RIFT OVER TRADE DEAL FUELS EU-RUSSIA TENSION

    http://www.bbc.co.uk/news/world-europe-23975951
    5 September 2013 Last updated at 17:19

    Armenia's decision to join a Russian-led customs union has thrown EU
    plans to forge closer ties with the Caucasus republic into disarray.

    The EU plans to conclude association agreements with several ex-Soviet
    states in November, but Armenia is unlikely to be among them.

    Such agreements are seen as key steps on the path to eventual EU
    membership.

    Armenia's move has fuelled Western anxiety that Russia wants to exert
    control over ex-Soviet states.

    The European Commission is asking Armenia to clarify its position.

    Armenia had been preparing to initial the agreement with the EU in
    November, after more than two years of negotiations.

    The Commission says the agreement is "not a zero-sum game" - that is,
    not simply a choice between Russia or the EU.

    A statement from EU Enlargement Commissioner Stefan Fuele said "we
    take note of Armenia's apparent wish to join the customs union.

    "We look forward to understanding better from Armenia what their
    intentions are and how they wish to ensure compatibility between these
    and the commitments undertaken through the Association Agreement and
    DCFTA [Deep and Comprehensive Free Trade Area]."

    Energy leverage

    However, a foreign policy expert at the European Parliament,
    Conservative MEP Charles Tannock, told the BBC that Armenia could
    not operate two different sets of tariff rules.

    "If you join one customs union you can't have a free trade agreement
    with another jurisdiction," he said.

    The EU association agreements go beyond measures to ease trade -
    they also entail commitments to democratic standards, which are not
    part of Russia's customs union.

    For years the EU has been pursuing a new "Eastern Partnership" with
    Moscow's former Soviet allies.

    Moldova and Ukraine are on course to sign association agreements
    with the EU in November. But both have come under Russian pressure
    to remain in Moscow's sphere of influence - and their heavy reliance
    on Russian gas puts them in a vulnerable position.

    On Tuesday a senior Russian envoy, Dmitry Rogozin, told Moldovans that
    "energy supplies are important in the run-up to winter - I hope you
    won't freeze".

    Speaking later, Moldova's President Nicolae Timofti said his country
    would pursue integration with the EU and "cannot live under pressure
    or threats".

    Russian-speaking separatists - armed by Russia - still control
    Trans-Dniester, a large strip of land that broke away from Moldova.

    Russia and Armenia - former Soviet partners with shared Christian
    traditions - have long had close ties.

    Military tensions

    Armenia is still locked in a bitter territorial dispute with
    Muslim-majority Azerbaijan - and some observers have drawn a direct
    link between that dispute, over Nagorno-Karabakh, and the customs
    union plan.

    Mr Tannock said concern about Russian arms sales to Azerbaijan appeared
    to have influenced Armenian President Serge Sarkisian more than any
    other issue.

    Oil-rich Azerbaijan is receiving military equipment from Russia
    worth up to $1bn (£843m), including tanks and artillery, in a drive
    to modernise its armed forces, Russian media report.

    Since the 1990s Nagorno-Karabakh war Armenia has had close military
    co-operation with Russia, and without that "Armenia would be totally
    vulnerable to attack by Azerbaijan", Mr Tannock told the BBC.

    He said Russia "seems to be winning battles now" in its traditional
    sphere of influence and "has caught the EU a bit on the hop", he said.

    Mr Sarkisian held talks with Russian President Vladimir Putin in
    Moscow on Tuesday, and drew a direct link between trade ties and the
    security partnership between former Soviet states.

    Mr Sarkisian spoke of Armenia's "desire to join the customs union and
    get involved in the process of creating the Eurasian Economic Union".

    Mr Putin sees a future Eurasian union as an economic bloc pulling
    together former Soviet states. Currently Russia's customs union only
    embraces Belarus and Kazakhstan.

    "I have stated on many occasions that, since we share a system
    of military security, it is impossible and inefficient to isolate
    ourselves from the corresponding geo-economical space," Mr Sarkisian
    said.

    "This is a rational decision; it is a decision based on Armenia's
    national interests. This decision is not a rejection of our dialogue
    with European institutions."

    In a tweet on Tuesday Sweden's Foreign Minister Carl Bildt said
    "seems as if Armenia will break talks on free trade agreement with
    EU and integrate with Russia instead. U-turn."


    From: Baghdasarian
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