Armenia's Economic Pulse

[Haykakan]

Re: Armenia's Economic Pulse

YEREVAN (Armenpress)—Prime Minister of Armenia Karen Karapetyan on November 18 received the Iranian delegation led by Deputy Minister of Economy and Finance, Head of Iran’s Customs Administration Masoud Karbasian, press service of the Government said.
“The Islamic Republic of Iran is not only a friendly country with Armenia, but also it is one of the key partners, and our political dialogue is at the highest level. However, we have a potential to further expand and develop our economic relations. The harmonious works of the customs offices of the two states will also contribute to the development of trade-economic ties,” Karapetyan said.
He informed that on Friday at the Government’s session he instructed the respective Ministries to form a working group and work with the Iranian side towards boosting the export of Armenian products, in particular, the food and agricultural products, from Armenia to Iran, as well as to discuss with the businessmen the prospects of establishing a free economic zone in the territory bordering Iran. Karapetyan said this is a mutually beneficial chance for the businessmen of the two states, and works must be carried out on that path.
The Iranian official congratulated Karapetyan on his appointment and wished him success.
Presenting the results of working talks with the Chairman of the State Revenue Committee under the Armenian Government Vardan Harutyunyan, Masoud Karbasian said a number of agreements were reached at the meeting. In particular, a Memorandum of understanding was signed on cooperation in customs administration, the both sides attached importance to the online exchange of information, as well as informing the Armenian and Iranian societies about the customs procedures.
“We can establish cooperation towards the Eurasian Economic Union market through the free economic zone. Armenia, as a linking bridge, can play a decisive role in this sector, which in its turn will contribute to implementing joint investment projects,” Karbasian said.
In response, Karapetyan said Armenia is ready to form a respective platform towards the EAEU market.
The sides also discussed a number of issues of bilateral interest, related to the cooperation development in transportation and transit infrastructures sectors.

[Haykakan]

Re: Armenia's Economic Pulse

Corruption is the biggest obstacle to foreign investments in Armenia


YEREVAN, November 21. /ARKA/. Corruption and unhealthy atmosphere in the domestic business are xthe biggest obstacle to foreign investments xin Armenia, xthe head of the National Union of Employers xGagik Makaryan said today citing data of the Transparency International organization which rates Armenia as a regional leader in terms of corruption.

According to the latest xstudy of Transparency International - Global Corruption Barometer, Armenia is one of the most corrupt countries in Europe and Central Asia.x

The respondents of the survey singled out the xhigh level of corruption in government institutions and the insufficient efforts of the authorities to combat xit.x

Makaryan believes that a special investment fund should be established and a working group that will support investors from abroad.x

"The working group will make recommendations to investors, helping them to adapt to the local xenvironment and enforce their rights. Even the example of Syrian Armenians who have decided to invest in Armenia, shows that we" speak different languages "and perceive many things xdifferently,"- Makaryan said.x

According to Makaryan, Armenia’s most important economic sector is agriculture, as there is always a great demand for fresh fruits, vegetables, and dried fruits.

"Modern fruit gardens, new greenhouses - all this will create great opportunities for exporting quality agricultural products", - he said.

Makaryan said the second important branch is energy. In his words, traditional energy sources in Armenia have been exhausted, but instead there are good prospects for the development of alternative energy. And the third, the most attractive sector for foreign investors is engineering and IT technology.x

"Armenia demonstrates quite a good performance in this area. Our advances in technology can really attract investors, " he said. -0-

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

[Zeytun]

Re: Armenia's Economic Pulse

Armenia, Iran Sign Deal To Increase Gas Imports, Power Flows


November 03, 2016
RFE/RL's Armenian Service

http://www.rferl.org/a/armenian-iran-sign-deal-increase-gas-imports-power-flows/28092312.html

Armenia’s Ministry of Energy, Infrastructure, and Natural Resources reported on November 2 that representatives of Armenia’s Energaimpex company and the National Iranian Gas Export Company signed a document authorizing the purchase of more Iranian natural gas during a visit to Iran on October 31 and November 1.

Armenia currently imports up to 500 million cubic meters of Iranian gas annually through a pipeline built in 2008. By comparison, Russian gas supplies to the South Caucasus country total around 2 billion cubic meters.

Iranian gas has until now been purchased by a state-owned Armenian thermal-power plant. The plant pays for it with electricity delivered to Iran.

Recently, Yerevan reportedly offered to buy additional volumes of Iranian gas, some of which could be re-exported to Georgia, and the Iranian side is said to have accepted the proposal.

The Armenian Energy Ministry said that its delegation, led by Deputy Minister Hayk Harutiunian, discussed prospects of transiting Iranian gas to third countries via Armenia with Iran’s deputy oil minister and a senior National Gas Export Company representative.

The delegation also met with Iran’s Deputy Energy Minister Houshang Falahatian and an adviser to the minister, Homayoun Hayeri, and discussed increasing the volumes of electricity flows between the countries.

The parties discussed increasing power flows between Armenia, Iran, and Georgia within the current capacity of high-voltage lines, and also in the Iran-Armenia-Georgia-Russia regional cooperation format after the expected launch of new infrastructure, the ministry said.

The Armenian delegation members also visited the Iranian Mapna Company, which intends to invest in the construction of wind power stations in Armenia, as well as the Sanir Company, which is the general contractor for the construction of a third Iran-Armenia high-voltage line.

Artashes Tumanian, the Armenian ambassador to Iran, told RFE/RL’s Armenian Service last month that Russia will not object to the increased energy cooperation with Iran because the deal “does not run counter to anybody’s interests.”

[Zeytun]

Re: Armenia's Economic Pulse

Modern technology center opens in Armenia's Vanadzor

http://www.panarmenian.net/eng/news/224353/Technology_center_opens_in_Armenias_Vanadzor

Construction of new medical center in Vanadzor is at completion stage

https://armenpress.am/eng/news/865826/construction-of-new-medical-center-in-vanadzor-is-at-completion-stage.html

Football Academy opens in Vanadzor

http://armenpress.am/eng/news/865830/football-academy-opens-in-vanadzor-lori-province.html

[Haykakan]

Re: Armenia's Economic Pulse

A Large Business In A Small Village:

It’s always difficult to establish a new small or medium-sized enterprise or develop business production in rural areas, especially in the villages next to the border. The lack of communications, logistics, roads and resources often turns entrepreneurs away. However, a businessman from Tavush region managed to open a huge glove factory in Choratan, a village near the Armenia and Azerbaijan border. Now, there are 150 employees working there. Every day, they produce thousands of pairs of gloves to export to Russia.

Pretty cool news there. I hope more news like this can be had.

[Zeytun]

Re: Armenia's Economic Pulse

A Large Business In A Small Village:

It’s always difficult to establish a new small or medium-sized enterprise or develop business production in rural areas, especially in the villages next to the border. The lack of communications, logistics, roads and resources often turns entrepreneurs away. However, a businessman from Tavush region managed to open a huge glove factory in Choratan, a village near the Armenia and Azerbaijan border. Now, there are 150 employees working there. Every day, they produce thousands of pairs of gloves to export to Russia.

[Haykakan]

Re: Armenia's Economic Pulse

Open Letter Calls Upon Global Armenians to Unite and Together Enable a Better Future for Armenia
October 28, 2016
NEW YORK, YEREVAN – The global Armenian community must do more to deliver a successful future for the nation that is economically and socially secure, according to an open letter published today and signed by a group of high profile Armenians around the world.
The letter was issued on the occasion of the 110th anniversary celebrations of the Armenian General Benevolent Union (AGBU) in New York. The signatories include Ruben Vardanyan, Noubar Afeyan, Vartan Gregorian, Charles Aznavour, Lord Ara Darzi, Ambassador Edward Djerejian, the Honorable xxxxran Tevrizian, and Samvel Karapetyan, as well as a number of other supporters. Beyond noting the major milestone represented by this anniversary, the letter highlights the critical challenges ahead and the need for unprecedented action and commitment from Armenia and Armenian diaspora communities. The open letter was published in The New York Times, based in the U.S., and the Haiastani Hanrapetuthiun, based in Armenia.
The group called upon “Global Armenians” – those who consider themselves both Armenians and global citizens – to recognize that the Armenian community today stands at a crossroads. Twenty-five years into independence and 100 years after the devastating Genocide, Armenia remains vulnerable as a nation. Through investment and collaboration, this group believes that Global Armenians can play a transformative role in developing a prosperous, secure and peaceful region.
“Armenians around the world must work together to ensure that our Armenia can reach its full potential as a world-leading nation,” said Noubar Afeyan, member of the board of the IDeA Foundation of Armenia and of the AGBU. “This will require an unprecedented commitment from the global Armenian community. We need to invest time, expertise, relationships and money to create and champion initiatives that will drive Armenia into the future it deserves. Delaying action and investment will mean that a vulnerable state remains at risk – and the alternative, remaining unengaged, is indefensible.”
“Many great civilizations in the history of humanity have disappeared into oblivion. Each one of them represents a permanent loss of culture, language and religion for all humanity. We have to keep this in mind as it could happen to Armenians as well,” said international singer and diplomat Charles Aznavour. “This is the goal of our enemies whoever they may be, aided by those who make a profit or choose to turn a blind eye. However the greatest threat comes from within us, and it is through inaction.”
Inviting individuals as well as public and private organizations to join this commitment, the letter asks that institutions dedicated to the advancement of Armenia pool resources to continue the work laid by previous philanthropic initiatives that have built vital institutions and capabilities in the country.
“Armenia needs support from its worldwide community if it is to succeed. While a number of initiatives are underway by various groups that demonstrate a record of success, delivering programs that have impact on the people of Armenia and the Armenian diaspora, there is still a great deal of work left to be done,” said, Ruben Vardanyan, member of the board of the IDeA Foundation of Armenia and of the AGBU. “We ask all Armenians to join with us to advance our country’s culture and infrastructure, and propel Armenia into a successful and sustainable future.”
Global Armenian leaders see the challenges facing Armenia and Armenians today as an opportunity to pivot to a future of prosperity and transform the Armenian Republic into a thriving, secure, democratic homeland for a global nation. They believe that the time has come for the Armenian community to engage and unite to successfully secure long-lasting socio-cultural and economic improvement for the nation.

https://www.IDEA.am

x

[Zeytun]

Re: Armenia's Economic Pulse

Armenia embarks on construction of section of north-south transport corridor in Syunik






YEREVAN, October 27. /ARKA/. Armenian transport, communication and information technology minister Vahan Martirosyan told a government Q&A session in parliament today that the construction of a section of the North-South transport corridor stretching through the southern region of Syunik has begun.

Last year the Eurasian Economic Union’s Anti-Crisis Fund, managed by the Eurasian Development Bank (EDB), approved a $150 million loan for Armenia to build the 20.5 km section of the transport corridor from the town of Agarak to Kajaran in Syunik,

The implementation of this project is expected to cut by 50% transport costs on the rehabilitated road sections, increase the average speed of traffic by 40%, cut also operating costs for the maintenance of the highway in good condition, create about 1,750 new jobs, boost transit traffic through the territory of Armenia from India, Iran and Pakistan and help to partially overcome the consequences of the transport blockade of Armenia by Azerbaijan and Turkey.

The indirect effects include increased access of farmers from remote areas to the consumer markets, retail and warehouse infrastructure in the central part of the country. It will make also basic health and educational centers more accessible to population of remote regions.

The first two sections of the transport corridor were inaugurated on December 29 last year. The first, six-lane section stretches from Yerevan to Artashat and the second four-lane section runs from Yerevan to Ashtarak..

The goal of North-South Transport Corridor project is to upgrade Armenia’s main corridor road as part of a broader thrust to improve connectivity, and boost trade, growth and livelihood opportunities in the Caucasus and Central Asia sub-regions.

Funds are being released by the Asian Development Bank and the Eurasian Development Bank periodically through multi-tranche financing facilities. The transport corridor will stretch from the southern Armenian town of Meghri, on the border with Iran, to Bavra in the north on the border with Georgia.x

Currently the construction of the road is underway from Artashat to Ashtarak and from Ashtarak to Talin. The ministry xis planning the implementation of separate smaller projects at various sections of the road in order to end the construction both in southern and northern directions by 2019. --0--
http://arka.am/en/news/business/arme...dor_in_syunik/

http://northsouth.am/en/news/show/128/10

[Haykakan]

Re: Armenia's Economic Pulse

Armenia embarks on construction of section of north-south transport corridor in Syunik






YEREVAN, October 27. /ARKA/. Armenian transport, communication and information technology minister Vahan Martirosyan told a government Q&A session in parliament today that the construction of a section of the North-South transport corridor stretching through the southern region of Syunik has begun.

Last year the Eurasian Economic Union’s Anti-Crisis Fund, managed by the Eurasian Development Bank (EDB), approved a $150 million loan for Armenia to build the 20.5 km section of the transport corridor from the town of Agarak to Kajaran in Syunik,

The implementation of this project is expected to cut by 50% transport costs on the rehabilitated road sections, increase the average speed of traffic by 40%, cut also operating costs for the maintenance of the highway in good condition, create about 1,750 new jobs, boost transit traffic through the territory of Armenia from India, Iran and Pakistan and help to partially overcome the consequences of the transport blockade of Armenia by Azerbaijan and Turkey.

The indirect effects include increased access of farmers from remote areas to the consumer markets, retail and warehouse infrastructure in the central part of the country. It will make also basic health and educational centers more accessible to population of remote regions.

The first two sections of the transport corridor were inaugurated on December 29 last year. The first, six-lane section stretches from Yerevan to Artashat and the second four-lane section runs from Yerevan to Ashtarak..

The goal of North-South Transport Corridor project is to upgrade Armenia’s main corridor road as part of a broader thrust to improve connectivity, and boost trade, growth and livelihood opportunities in the Caucasus and Central Asia sub-regions.

Funds are being released by the Asian Development Bank and the Eurasian Development Bank periodically through multi-tranche financing facilities. The transport corridor will stretch from the southern Armenian town of Meghri, on the border with Iran, to Bavra in the north on the border with Georgia.x

Currently the construction of the road is underway from Artashat to Ashtarak and from Ashtarak to Talin. The ministry xis planning the implementation of separate smaller projects at various sections of the road in order to end the construction both in southern and northern directions by 2019. --0--

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

[Haykakan]

Re: Armenia's Economic Pulse

Sergey Avetisyan finds Russia’s Pobeda Air Company’s arrival in Armenia very important






YEREVAN, October 27. /ARKA/. Arrival of Pobeda, an air company of Russia’s Aeroflot Group, will become an important precedent, Sergey Avetisyan, head of the Armenia's General Department of Civil Aviation, told journalists on Thursday.x

Russia's Pobeda Air Company will start operating flights from Shirak Airport in Gyumri, the second biggest city in Armenia, to Russia's Vnukovo and back in late November 2016.

The cheapest air tickets will be available for AMD 10,000, he said, and the upper benchmark will be not so high, since Shirak Airport’s competitive advantage is affordability of its tickets.x

Since Shirak Airport differs from Zvartnots Airport in quality, services here cheaper and passengers are exempted from air tax. x x

Avetisyan said that the Armenian side is negotiating now with other air companies.x

“The problem is that every air company should gauge demand for entering market, and Russia is the destination number one for Armenia, he said adding that arrival of every new player to the market impacts prices,” he said.x

“I don’t think air tickets in Armenia are low and market is diversified and free from problems, but we are working intensively and prices will be going down and progress is already obvious here.”x

The company will operate three flights a week. The price of one ticket is $21 (around AMD 10,000).x
Russia's media resources reported last week referring to the information received from Rosaviation that Pobeda had received permission for seven Moscow-Gyumri flights a week.x

Earlier, it obtained permission for flights from Rostov-na-Don to Yerevan.x

Pobeda is a low-cost air company of Aeroflot Group. The company operates flights to 58 destinations, including 8 international, by using 12 Boeing-737-800 airplanes. x

Two airports function now in Armenia – Zvartnots in Yerevan and Shirak in Gyumri. Both airports are run by Armenia – International Airports CJSC in accordance with the agreement signed with the Armenian government in 2001. The agreement implies a 30-year concession management.x

The Armenia – International Airports CJSC is owned by American International Airports, which belongs to Eduardo Eurnekian, an Argentine entrepreneur of Armenian descent. ---0----x

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