As long as Armenia is a part of Russian political, economic and military space, economy diversification is impossible: Ashot Yeghiazaryan
“Armenia: Investment Forum 2016” was launched in New York in the period of October 10-11 under the patronage of Armenian president, during which Armenia’s president Serzh Sargsyan, as well as officials from the World Bank and Asian Development Bank, heads of organizations delivered speeches. This was a rather crucial Forum, to which the parties have prepared for a long period. However, on account of Armenia’s membership to EEU and fragility of Armenian investment field, some analysts cast doubt on productivity of likewise forums. 168.am talked to Ashot Yeghiazaryan on possible results of the Forum.
Mr. Yeghiazaryan, in your opinion which implications may attempts of Armenia’s economy diversification lead to, including such forums, on account of Armenia’s membership to EEU and existent obstacles in the field of investment?
The fact that the USA, in particular, the U.S. investors are rather well-disposed towards working in Armenia, making investments, is obvious. However, the point that they should be rather cautious, as investing in Armenia is risky, is also a fact. That risk is greatly conditioned by Armenia’s membership to EEU. Comprising a part of that economic space, basically, Armenia is a part of Russian political, military and economic space, and as international sanctions are being imposed, which already means that investments in Armenia are also risky. And investors in their calculations, certainly, consider these risks. In that sense I don’t consider that this moment is very beneficial for making investments. The situation may change in one case, when Armenia will be able to implement independent economic policy.
The Forum was also the initiative of the Armenian side, which means that Armenia intends to diversify political and economic fields, deepen relations with the USA. What do you think, how sincere is that intention?
Of course, there is a sincere intention, and logically, there is such a desire, otherwise it’s impossible to provide country’s development. But intention is one thing, and reality—another. I consider certain political steps will follow it, so that investments in Armenia were guaranteed, in that case the intention will be practicable. For this respective legal base should be established. Trade and Investments Framework Agreement with the USA is available, and the agreement on eliminating double taxation will be signed with the USA as well, these are steps, which should be taken. However, these aren’t enough either to establish a necessary atmosphere.
All guarantees may be complete, if Armenia signs a framework agreement with the EU as well, and would be able to be more independent in relations with Iran, i.e. become a participant in regional projects. In case of implementation of systemic actions, of course, we may touch upon diversification, which will be a powerful impetus for the U.S. and generally, for foreign investors. As long as these steps aren’t initiated, there are no guarantees for the investors. They, naturally, calculate their risks, and here risks linked to Russia’s economy are existent, as at the moment we are a part of Russia’s economic, political and military space.
Let’s accept that the Armenian party creates those guarantees. Generally in case of Armenia Russian restriction is observed in steps, aimed at weakening Russia’s impact in Armenia. However, some Russian experts consider that Russia, realizing complicacy of its economic condition, shakiness, won’t restrict Armenia. In your opinion won’t there really be restrictions?
I don’t believe in those allegations. I attempt to alienate Russian part of responsibility in this issue, they also attempt to prove, that they play a preventive, restricting role, however, they’ll continue playing, as Armenia is linked to Russia with legal-contractual liabilities. Accordingly, diversification becomes impossible. Thus, an attempt is made to show that it depends on Armenia, and it should solve its issues, i.e. they attempt to withdraw from that responsibility. However, corruption and other issues are an implication of the fact, that Armenia comprises a part of Russian economic, political and military space.
By Araks Martirosyan
