We intend to develop projects of bilateral investment attractiveness: Suren Karayan

On March 15 within Serzh Sargsyan’s official visit to Russia “SME Investments” UCO CJSC and Russian Direct Investment Fund (RDIF) have signed an agreement, by which establishment of Armenia Russia investment fund was heralded.

“SME Investments” Universal Credit Organization CJSC started its activity on the basis of license issued on August 07, 2009 by Central Bank of RA. Company was created within the frameworks of program “Crediting of economy stabilization” and has a purpose of promoting the development of small and medium-sized entrepreneurship. The Organization pursues the purpose to contribute to development of fields of strategic importance to Armenia’s economy and balanced development of Armenia’s regions.

RDIF was created in 2011 under the leadership of the President and Prime Minister of Russia to co-invest alongside top global investors, acting as a catalyst for direct investment in Russia. It cooperates with international great investors and is an authoritative investment fund in Russian business environment.

“168 Hours” interviewed Suren Karayan, Minister of Economic Development and Investments of Armenia, on Armenia-Russia investment fund.

Mr. Karayan, what perspectives does establishment of Armenia-Russia investment fund open before Armenia and its businessmen?

I’m sure it’ll open wide perspectives for economic development. On March 3 I met Denis Manturov, Minister of Trade and Industry of Russia, in Moscow and we discussed issues on bilateral cooperation on agricultural equipment, radio-electronic industry, as well as on establishment of Russia-Armenia fund.

We came to an agreement by the document signed yet on March 15 on creation of a joint investment platform, within which a separate “Armenia-Russia investment fund” will be established, as well as direct investments will be implemented by the Russian Direct Investment Fund in investment projects of strategic fields of Armenia’s economy. We intend to develop projects of bilateral investment attractiveness contributing to deepening of trade-economic and investment cooperation.

We have already provided accumulated investment projects to the Russian side. We also plan to inform Armenia’s business sector on this opportunity, and I’m sure it’ll be interesting and beneficial for our businessmen.

Based on reached agreements, in the future, together with the Russian side we’ll implement survey, analysis of introduced investment projects, as a result of which possibilities and priorities of financing the project will be clarified.

Which are the fields, financing of which will be a priority?

Priorities will be given to investment projects with export potential, also to those providing substitution of import of our country with local production. We observe such a potential, in particular, in agriculture, food and textile industry. Cooperation projects will be highlighted, which will provide production of goods developing an extra value and service provision. From this perspective knowledge-based industry and IT are observed.

Also implementation of projects targeted at development of logistics and infrastructures will be stressed, in particular, in the fields of transport and energy. I’m sure, joint investment platform will use the experience and resource of the two sides in favor of stabile development of our countries’ economies.

When do you anticipate funding of first investment project?

Currently active works are ongoing toward development of joint investment fund. We are about to finish works on development of investment fund regulations and we clarify the formula of development on public-private partnership basis of fund manager. I anticipate that our partners in private sector will have their participation in the fund, toward which already clear agreements have been reached. I consider in the upcoming 2 weeks we’ll finalize necessary preparations and work will be launched. I think in case of a joint and productive work already in summer we can state on funding of the first investment project. Both Armenian and Russian sides have big interest to start funding o mutually beneficial projects as soon as possible.

By Armine Vardanyan