Armenia's Economic Pulse

[Haykakan]

Re: Armenia's Economic Pulse

NEW ARMENIAN AIRLINE PLANS TO START OPERATION IN 2016 MARCH

YEREVAN, October 9. / ARKA /. A new Armenian airline called "Alliance"
plans to launch operation in 2016 March. The founder and chief
executive officer of the company, Ararat Sargsyan, told reporters
today that two days ago the airline had received the license of the
Chief Aviation Department and was now seeking to acquire membership
in IKAO in order to be allowed to operate flights.

Sargsyan said Alliance had leased two Russia-manufactured Sukhoi
Superjet - 100 (SSJ-100) aircraft which are now deployed in Zhukovsky
near Moscow, adding also that the airline plans to bring their number
up to six by 2017.

The first flight is scheduled for 27 March, 2016. The airline
personnel comprise 14 people, all of whom, like Sargsyan himself,
worked in the past for now defunct Armavia air carrier.

At the initial stage, the company plans to carry out flights to three
destinations: Moscow, Beirut and Tehran, and add later more routes
to other Russian cities and Ashgabat, the capital of Turkmenistan.

Sargsyan declined to name the investors of the airline, saying only
they were from Russia.

In 2013 October the Armenian government liberalized the domestic civil
aviation sector saying that all local and foreign airlines meeting
safety standards will be allowed to fly to and from Armenia without
special authorizations or other restrictions. - 0-

http://arka.am/en/news/business/new_armenian_airline_plans_to_start_operation_in_2016_march/#sthash.V9ZOpm0G.dpuf

[Haykakan]

Re: Armenia's Economic Pulse

EU AUTHORIZED AUTHORIZED TO START NEW TALKS WITH ARMENIA

by MassisPost October 12, 2015, 2:47 pm

YEREVAN -- The European Union and Armenia will start negotiations on
a new legal framework for their relations, it emerged on Monday.

Armenian Foreign Ministry spokesman Tigran Balayan wrote on his Twitter
account that "the EU Foreign Affairs Council has authorized the EU
Commission to launch negotiations with Armenia on a new legal base."

In a statement released today French Secretary of State for European
Affairs Harlem Desir welcomed the approval of the negotiating mandate
for an agreement of cooperation between the European Union and Armenia.

Brussels and Yerevan have been moving towards the opening of the
talks since 2013 when Armenia unexpectedly decided to withdraw from
the process of EU association following more than three years of
negotiations on a relevant agreement.

Instead, the government in Yerevan signed up to a Moscow-led customs
union and became a member of the Eurasian Economic Union (EEU) formed
by Russia, Belarus and Kazakhstan in January 2015.

It is expected that the new deal between the EU and Armenia will
cover concrete areas of political and economic cooperation, but,
as has repeatedly been stated by the two sides, will not contradict
Armenia's membership commitments to the EEU.

Hosting European Council President Donald Tusk in Yerevan in July
Armenian President Serzh Sarkisian said: "I can't imagine Armenia's
development without reforms and I can't imagine reforms in Armenia
without [use of] European experience and assistance... Therefore,
while being a member of the EEU, we will continue to closely cooperate
with the EU."

Tusk, for his part, then said: "Armenia can count on the European
Union's continued support to advance on a whole range of political
and social reforms, and to improve the protection and promotion of
human rights and fundamental freedoms."

http://massispost.com/2015/10/eu-authorized-authorized-to-start-new-talks-with-armenia/

[Haykakan]

Re: Armenia's Economic Pulse

ARMENIA'S EX-PRIME MINISTER TO HEAD EURASIAN ECONOMIC COMMISSION

October 16, 2015 - 17:21 AMT

PanARMENIAN.Net - Armenia's former Prime MinisterTigran Sargsyan will
replace the current head of theEurasian Economic Commission Viktor
Khristenko. The decision was made on Friday, October 16, at a meeting
of the Supreme Eurasian Economic Council in Burabai, Interfax reports.

"We have decided that Armenia will chair the EEC board starting
February, 2016, with Tigran Sargsyan chairing" Belarusian President
Alexander Lukashenko said. "Russian President, who has worked with
Sargsyan in the past, has supported the decision. Known to be an
experienced specialist, he will begin to work as the EEC head starting
February 1."

According to Lukashenko, the Board members reviewed all the 15 issues
on the agenda, "discussed the prospects of our economic union."

Belarus is currently chairing the EEC.

http://www.panarmenian.net/eng/news/199060/

[HyeSocialist]

Re: Armenia's Economic Pulse

NEW ARMENIAN AIRLINE PLANS TO START OPERATION IN 2016 MARCH

YEREVAN, October 9. / ARKA /. A new Armenian airline called "Alliance"
plans to launch operation in 2016 March. The founder and chief
executive officer of the company, Ararat Sargsyan, told reporters
today that two days ago the airline had received the license of the
Chief Aviation Department and was now seeking to acquire membership
in IKAO in order to be allowed to operate flights.

Sargsyan said Alliance had leased two Russia-manufactured Sukhoi
Superjet - 100 (SSJ-100) aircraft which are now deployed in Zhukovsky
near Moscow, adding also that the airline plans to bring their number
up to six by 2017.

The first flight is scheduled for 27 March, 2016. The airline
personnel comprise 14 people, all of whom, like Sargsyan himself,
worked in the past for now defunct Armavia air carrier.

At the initial stage, the company plans to carry out flights to three
destinations: Moscow, Beirut and Tehran, and add later more routes
to other Russian cities and Ashgabat, the capital of Turkmenistan.

Sargsyan declined to name the investors of the airline, saying only
they were from Russia.

In 2013 October the Armenian government liberalized the domestic civil
aviation sector saying that all local and foreign airlines meeting
safety standards will be allowed to fly to and from Armenia without
special authorizations or other restrictions. - 0-

http://arka.am/en/news/business/new_....V9ZOpm0G.dpuf

When Singapore government officials fly, they take Singapore airlines (55% owned by the Singapore government). I think Armenian government officials and the future Armenian airline should adopt this practice. If the government is going to be corrupt and use state money to fund their vacations, it should at least go to subsidizing a national air carrier.

[Mher]

Re: Armenia's Economic Pulse

armenia the only cis member state recording drop in consumer prices

http://armenpress.am/eng/news/823368/armenia-the-only-cis-member-state-recording-drop-in-consumer-prices.html

[HyeSocialist]

Re: Armenia's Economic Pulse

Doing Great in ‘Doing Business’: Armenia savors progress in annual WB rankings

The World Bank’s Doing Business 2016 report, ranking Armenia 3 positions higher than last year, will give a positive impetus to investors and will improve the country’s business environment, Armenian government officials believe.

The global rankings released earlier this week put Armenia in 35th place among 189 countries, while by the ease of starting business Armenia is ranked as high as fifth.

Prime Minister Hovik Abrahamyan dwelled on this progress in his opening remarks at a Cabinet meeting on Thursday. He said this progress was due to reforms carried out by his government recently.

“During the past year by the number of reforms Armenia was placed among the 14 percent of surveyed economies that carried out three or more reforms,” he noted.

“Armenia’s progress in the rankings is based on reforms carried out in three directions, in particular, the process connected with construction permits, reduction of time and costs connected with documents relating to trade and border crossing procedures, and the quality of contract enforcement,” Abrahamyan said.

The head of the Armenian government also said that due to the country’s membership in the Eurasian Economic Union, the time and cost for documentary and border compliance for trade with member states has been reduced. For example, now it takes only three hours for documentation procedures at the borders instead of 50 hours in the past.

“In terms of starting a business Armenia is among the best countries in the world, occupying 5th place among 189 economies, while in terms of property registration it is in 14th place. In Armenia it takes an entrepreneur three days to start his business. This is an index comparable to Denmark’s. While in the world on the average property is registered within 48 days, in Armenia it takes only seven days,” the prime minister said.

Armenian government officials believe that the World Bank evaluations will help promote Armenia’s business environment. “Businesses take World Bank as the most credible,” Armenian Economy Minister Karen Chshmarityan told journalists on Thursday, adding, however, that attraction of investments is not determined only by rating lists.

The minister also referred to another World Bank report, according to which Armenia is among the most monopolized countries among former Soviet and Eastern European countries.

“Of course, the presence of monopolies is a negative thing, but overall it is not the subject of this [Doing Business] report. If we talk about the overall investment climate, then, of course, the report reflects the true picture,” he said.

Economic analyst Hayk Gevorgyan, meanwhile, remains skeptical about the reported progress. He observes that the volume of direct foreign investments made in the Armenian economy keeps declining despite reports like Doing Business.

“When our triumphant ascent began, the volume of direct foreign investments into Armenia’s economy was at the level of $567 million. In 2013, the investments sharply fell by more than 50 percent, down to $271 million,” the analyst writing for the Haykakan Zhamanak daily said. He added that after that the National Statistical Service drastically changed its methodology for calculating the amount of investments.

“Already by the changed methodology it turned out that in 2013 the volume of investments was not $271 million, but nearly $1 billion. However, by the same methodology in 2014, the volume of direct foreign investment again fell by 14 percent. And in the first half of this year, compared to the same period last year, direct foreign investments fell nearly three times,” Gevorgyan concluded.

http://armenianow.com/economy/67380/armenia_doing_business_world_forum_success_government

---

If they could just tackle and reform Taxes in Armenia, flush out the corruption and make a fair and honest tax code, we'll be in the Top 30.

[londontsi]

Re: Armenia's Economic Pulse

Doing Great in ‘Doing Business’: Armenia savors progress in annual WB rankings

The World Bank’s Doing Business 2016 report, ranking Armenia 3 positions higher than last year, will give a positive impetus to investors and will improve the country’s business environment, Armenian government officials believe.

The global rankings released earlier this week put Armenia in 35th place among 189 countries, while by the ease of starting business Armenia is ranked as high as fifth.

Prime Minister Hovik Abrahamyan dwelled on this progress in his opening remarks at a Cabinet meeting on Thursday. He said this progress was due to reforms carried out by his government recently.

“During the past year by the number of reforms Armenia was placed among the 14 percent of surveyed economies that carried out three or more reforms,” he noted.

“Armenia’s progress in the rankings is based on reforms carried out in three directions, in particular, the process connected with construction permits, reduction of time and costs connected with documents relating to trade and border crossing procedures, and the quality of contract enforcement,” Abrahamyan said.

The head of the Armenian government also said that due to the country’s membership in the Eurasian Economic Union, the time and cost for documentary and border compliance for trade with member states has been reduced. For example, now it takes only three hours for documentation procedures at the borders instead of 50 hours in the past.

“In terms of starting a business Armenia is among the best countries in the world, occupying 5th place among 189 economies, while in terms of property registration it is in 14th place. In Armenia it takes an entrepreneur three days to start his business. This is an index comparable to Denmark’s. While in the world on the average property is registered within 48 days, in Armenia it takes only seven days,” the prime minister said.

Armenian government officials believe that the World Bank evaluations will help promote Armenia’s business environment. “Businesses take World Bank as the most credible,” Armenian Economy Minister Karen Chshmarityan told journalists on Thursday, adding, however, that attraction of investments is not determined only by rating lists.

The minister also referred to another World Bank report, according to which Armenia is among the most monopolized countries among former Soviet and Eastern European countries.

“Of course, the presence of monopolies is a negative thing, but overall it is not the subject of this [Doing Business] report. If we talk about the overall investment climate, then, of course, the report reflects the true picture,” he said.

Economic analyst Hayk Gevorgyan, meanwhile, remains skeptical about the reported progress. He observes that the volume of direct foreign investments made in the Armenian economy keeps declining despite reports like Doing Business.

“When our triumphant ascent began, the volume of direct foreign investments into Armenia’s economy was at the level of $567 million. In 2013, the investments sharply fell by more than 50 percent, down to $271 million,” the analyst writing for the Haykakan Zhamanak daily said. He added that after that the National Statistical Service drastically changed its methodology for calculating the amount of investments.

“Already by the changed methodology it turned out that in 2013 the volume of investments was not $271 million, but nearly $1 billion. However, by the same methodology in 2014, the volume of direct foreign investment again fell by 14 percent. And in the first half of this year, compared to the same period last year, direct foreign investments fell nearly three times,” Gevorgyan concluded.

http://armenianow.com/economy/67380/armenia_doing_business_world_forum_success_government

---

If they could just tackle and reform Taxes in Armenia, flush out the corruption and make a fair and honest tax code, we'll be in the Top 30.

.

[Haykakan]

Re: Armenia's Economic Pulse

IRAN MAY FORM ECONOMIC TIES WITH EEU COUNTRIES VIA ARMENIA: OFFICIAL

November 9, 2015 - 18:08 AMT

PanARMENIAN.Net - Tehran seeks to establish economic ties with the
EEU member states via Armenia, Iran's Minister of Information and
Communications Technology said, according to ISNA news agency.

Mahmoud Vaezi met Monday, November 9, with Armenian Economy Minister
Karen Chshmarityan in Tehran.

"Armenia is an EEU member, which gives us the opportunity to export
Iranian goods to Russia and other member states," Vaezi noted.

According to the chief of the Armenia-Iran Joint Chamber of Commerce
(AIJCC), Levon Aharonian, the visit aims to boost trade and business
cooperation.

Referring to the prospects of Tehran-Yerevan trade ties, Aharonian
noted that Iran-Armenia trade volume amounted to $400 million in March
21, 2014- March 21, 2015, expressing hope that the figures will be
improved in the future.

http://www.panarmenian.net/eng/news/200330/

[Haykakan]

Re: Armenia's Economic Pulse

BUSINESSES IN ARMENIA'S BORDER AREAS TO BE EXEMPTED FROM TAXES

YEREVAN, November 13. /ARKA/. The National Assembly of Armenia passed
Thursday at the first reading amendments to the tax privileges for
companies operating in border rural areas.

Emil Tarasyan, the deputy economy minister, said that the law was
adopted yet in 2014, but it applied only to villages, not cities.

In his words, the aim of the introduction of tax exemption for
businesses in border areas is to spur economic activities and enhance
investment attractiveness here.

The law exempts entrepreneurs in border areas from paying VAT as well
as income and profit taxes.

Now 450 organizations in 31 rural border communities enjoy this
preference. ---0----

http://arka.am/en/news/business/businesses_in_armenia_s_border_areas_to_be_exempted_from_taxes_/

[Haykakan]

Re: Armenia's Economic Pulse

ARMENIA TO RECEIVE $25 MILLION CHINESE LOAN TO IMPORT CUSTOMS CONTROL EQUIPMENT

YEREVAN, November 13. /ARKA/. The Armenian parliament ratified on
Friday a framework preferential loan agreement signed with China in
March 2015. According to deputy finance minister Vakhtang Mirumyan,
under the agreement Armenia will be provided with 56 million RMB
(about $25 million.). He said the loan is repayable within 20 years
with a 5-year grace period. The interest rate is 2% per annum.

Mirumyan said the funds will be provided exclusively in the form
of equipment for a program designed to modernize Armenia's customs
administration. According to him, it will help significantly increase
the productivity of the customs control and reduce the time of
customs clearance.

Mirumyan specified that China will provide equipment for the customs
control of goods shipped by rail, which currently Armenia does not
possess.

"This equipment will allow for customs clearance by means of X-ray
technology at the time of train movement at a speed of 30 km/h,'
Mirumyan said.

According to him, Armenia will also receive Chinese mobile scanners
which are required at customs warehouses enabling checks in customs
control zones without opening the cargo and physical control of
goods, which significantly reduce the time of inspection and customs
clearance.

"Continuous monitoring will considerably improve the efficiency of
customs control," he said. -- 0--

http://arka.am/en/news/technology/armenia_to_receive_25_million_chinese_loan_to_import_customs_control_equipment/