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  • "MP entrepreneurs do not want to legalize the business and occupy Ru

    "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/

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