.
.
-
Re: Armenia's Economic Pulse
Diary Whodunit: Where Did Millions Worth of Missing Polish Cheese Exported to Armenia Wind Up?
Seda Hergnyan
16:57, March 4, 2017
This is a story of millions of dollars’ worth of missing Polish cheese and curds exports to Armenia.
According to data provided Hetq by Poland’s Central Statistical Service, Poland exported US$16.398 million worth of cheese and curds to Armenia in 2015.
In contrast, Armenia’s Customs Service claims that that the amount imported that year only amounted to a few thousand dollars - $32,000 worth.
In fact, according to data published by the Customs Service, Armenia only imported 1.1 million tons of cheese and curds globally, worth just $5 million.
Why such a large discrepancy? More importantly, where did all that cheese go?
First, some background.
2015 and 2016, weren’t the best of years for Armenian cheesemakers. The fall in the international price of powdered milk didn’t help. Cheese producers had a slew of complaints about the business.
Despite the anecdotal negative news, Armenia’s Customs Service claims that Armenia exported $23.6 million worth of cheese and curds in 2015; 9,100 tons to be exact. That’s 4.8 times more than was exported in 2014 in terms of worth.
What’s more than curious is that Armenia’s National Statistical Service says that domestic cheese production rose by a mere 1.5% in 2015.
98% of the cheese and curds that Armenia exports goes to Russia.
Things got noticeably better for Armenian cheesemakers in 2016. According to figures released by the Eurasian Economic Commission, Armenia exported $13.1 million worth of cheese and curds to Russia last year (5,600 tons). That’s 43.5% less, in terms of worth, than the previous year, and 38% less in terms of volume.
Data provided by the statistical services of Armenia and Poland regarding 2016 cheese and curds trade volumes also greatly differ.
A month ago, Poland’s statistical service wrote Hetq that Poland exported $7.5 million worth of cheese and curds to Armenia in the first three quarters of 2016.
Surprise, surprise – Armenia’s Customs Service claims that only $15,000 of the dairy products entered the country from Poland in the first half of 2016.
In a response to Hetq as to why the data diverges so, Armenia’s State Revenue Committee suggested that we study, in detail, the methodology used by the two countries.
“Based on a difference in methodology, it is possible for essential (objective) disparities to appear when comparing data. (In particular, import data is per the place of origin, while export data is per the destination country.) Thus, when comparing data, it is necessary to lift comparable data.” - Armenia’s State Revenue Committee
Readers will be excused for not making heads or tails of the above.
To get more clarification as why discrepancies may appear, one only has to Armenia’s National Statistical Service (NSS).
The NSS states that the reasons may be objective and subjective.
1- Discrepancy in the methodology. But this can hardly explain the great discrepancies cited above. Furthermore, the NSS, in its explanation, clearly states that all countries use UN approved definitions and to gauge external trade volumes.
2- The NSS also cited “technical” reasons. For example, there can be differences in registration dates, or, in certain cases, the exporting country’s items never reach its destination. The NSS says that the partner nation may not intentionally register the items exported or imported, whereas the other may register such goods.
3- Finally, data may be intentionally altered by one or the other trading partner. For example, an importing country may intentionally decrease the volume of goods in order to lessen customs fees. An exporter may undervalue goods sent to later use the difference to increase VAT.
This third explanation most probably refers to contraband smuggling.
Which of the above three explanations operated in terms of trade between Poland and Armenia can only be verified by the parties involved.
If it’s a case of contraband, as Armenian cheesemakers claim, then large amounts of tax were never levied on a vast amount of imported Polish cheese and curds.
Armenian cheese and curd makers say that just a fraction of the Polish exports cleared customs in Armenia. The remainder, they claim, was then exported to Russia as cheese produced in Armenia.
This, they say, explains why cheese exports from Armenia to Russia rose so dramatically in the official data from 2015-2016.Leave a comment:
-
Re: Armenia's Economic Pulse
.
10 million-euro bridge to be built on Georgian-Armenian border
Construction of a bridge across the Debed River situated at a section in the borderland between Georgia and Armenia will start in 2017 and is scheduled to be completed in 2018, the press office of Georgian Prime Minister announced on Monday, Interfax news agency reports.
A plot of land allotted to the bridge construction named “Bridge of Friendship” has been inspected by Georgian Prime Minister, Giorgi Kvirikashvili, and Armenian President, Serzh Sargsyan.
The project is estimated at 10 million euro and will be funded by European Bank for Reconstruction and Development by means of granting a credit to Georgia and Armenia.
The intergovernmental agreement between two countries over the bridge construction was signed in December 2014.Leave a comment:
-
Re: Armenia's Economic Pulse
YEREVAN. – Huawei corporation of China signed a memorandum with the Ministry of Transport, Communications and Information Technologies of Armenia.
After welcoming the participants, the minister discussed with the company representatives cooperation programs, including the project of “a smart city.”
The memorandum was signed by the deputy head of the Ministry of Transport Boris Demirkhanyan Huawei Technologies deputy Cao Chun.
Leave a comment:
-
Re: Armenia's Economic Pulse
Another mine being built and this one is in Jermuk...there goes the tourism business there..
Leave a comment:
-
Re: Armenia's Economic Pulse
Vestnik Kavkaza
Jan 26 2017
Armenian-Russian investment fund to be established within months
Jan 26 - 6:00 pm
The Armenian-Russian investment fund will be established in the coming
months, the economic development and investment minister Suren Karayan
said today, Arka news agency reports.
It was Armenian Prime Minister Karen Karapetyan who proposed that an
Armenian-Russian investment fund to be set up with a view to funding
Armenia’s priority economic sectors.
According to the Armenian government, the Russian side positively
assessed the proposal.
Speaking to local reporters today, Suren Karayan said the main purpose
of the fund is financing and investment in sectors that will lead to
growth of trade turnover between the countries, substitution of
imported goods, development of industrial cooperation and growth of
exports.
Leave a comment:
-
Re: Armenia's Economic Pulse
EU releases record high assistance to Armenia in 2016
YEREVAN, January 24. /ARKA/. Last year was a record year in terms of European Union’s financial assistance to Armenia, the head of EU Delegation to Armenia, Ambassador Peter Switalski, said today.
Speaking at a news conference he said the total amount of financial assistance of the EU released to Armenia in 2016 amounted to 62 million euros. For comparison, in 2014 Armenia received 25 million euros from the European Union. He added that the EU is Armenia's number one donor."
According to him, the past year was notable also because of intensive political dialogue between Armenia and EU throughout the year, including a visit to Yerevan by Federica Mogherini EU, the EU's high representative for security and foreign policy, in March and an informal ministerial meeting of the Eastern Partnership held in Yerevan. He expressed hope that the cooperation in 2017 will not only continue, but also come to a new level.
"The EU will continue to provide assistance to Armenia for improving its business environment, xfighting against corruption, protection of human rights and development of the judicial system", Switalski said. -0--
Leave a comment:
-
Re: Armenia's Economic Pulse
[Next Article][Previous Article][Main Index]
Armenia may launch own flag carrier flying Russian SSJ 100 jets
From: Mihran Keheyian <[email protected]>
Date: Tue, 24 Jan 2017 12:30:17 +0000
Armenia may launch own flag carrier flying Russian SSJ 100 jets
January 24, 2017 - 13:01 AMT
PanARMENIAN.Netx- Armenia's Minister of Economic Development and InvestmentsxSuren Karayanxand Russia's Minister of Industry and TradexDenis Manturovxhave discussed the issue of establishing a newxair companyxon the basis of SSJ 100 aircraft in Armenia.
"I'd like to first and foremost discuss the cooperation in the area of agricultural equipment," Karayan said.
"The second issue concerns the creation of a new company on the basis of SSJ 100 planes. Also, I'd like to weigh in on the establishment of a joint foundation, which would be aimed at import substitution and development of joint export."
A corresponding task force already formed, measures are currently underway for launching the Armenian flag carrier.
Armenian and Russian Prime Ministers are meeting in Moscow on January 24-25 and are set to sign a memorandum of understanding between the two ministries.
Leave a comment:
-
Re: Armenia's Economic Pulse
It would have been useful to see the breakdown of those qualities.....The report ranks 118 countries according to their ability to grow, attract and retain talent. ....
Specifically Armenia and see where emphasis could be put to improve things.
.Leave a comment:
Leave a comment: