Re: Armenia's Economic Pulse
Armenian Government Vows ‘Equal Conditions’ For Importers
Prime Minister Hovik Abrahamian on Wednesday effectively pledged to liberalize lucrative imports of fuel and other essential commodities to Armenia in the face of opposition skepticism about his government’s latest anti-corruption drive.
“There will be equal conditions, equal taxation,” Abrahamian said in the parliament. “Any citizen can import anything they want. There will be no artificial obstacles.”
Abrahamian made the assurances one week after announcing that the government will streamline its expenditures, step up its declared fight against corruption and radically improve the domestic business environment. He linked the move with “new challenges” facing Armenia as a result of the recent escalation of the Nagorno-Karabakh conflict.
The premier said the Armenian authorities will make tax administration less arbitrary and investigate de facto monopolies owned by wealthy businesspeople close to the ruling establishment. Most of them control imports of fuel and basic foodstuffs to the country.
Opposition parties and independent media outlets responded to the announcement with skepticism, saying that many senior government officials personally benefit from business “oligopolies.” One of those parties, the Armenian National Congress (HAK), rejected Abrahamian’s offer to submit concrete proposals to improve competition and the broader investment climate in the country.
Speaking during the government’s question-and-answer session in the National Assembly, the HAK’s parliamentary leader, Levon Zurabian, argued that the government has blocked anti-trust bills drafted by the HAK in the past.
Armenia - Prime Minister Hovik Abrahamian speaks in the parliament, Yerevan, 27Apr2016.
Armenia - Prime Minister Hovik Abrahamian speaks in the parliament, Yerevan, 27Apr2016.
“You are looking for excuses,” replied Abrahamian. “You all know that we can’t fix the problem with a magic wand.”
Khachatur Kokobelian, another opposition parliamentarian, challenged Abrahamian to explain why gasoline and diesel fuel are considerably cheaper in neighboring Georgia than Armenia. “Don’t you think that this has to do with monopolies and that if this sector is liberalized then the prices will be really market-based?” said Kokobelian.
“I discussed this issue with the president of the republic yesterday,” said Abrahamian. “We will be consistent and will do everything to generate price reductions in the market.”
The government came under fire when it emerged on Tuesday that the Armenian customs service has blocked the import of about 46 metric tons of Russian diesel fuel by a new and relatively small company called Rusarmoil. Heavy trucks carrying it had been held up at Armenia’s main border crossing with Georgia since May 1 on the grounds that the fuel does not meet Armenian quality standards.
The company’s representatives rejected the official explanation, alleging foul play and appealing to Abrahamian and the Russian Embassy in Yerevan for assistance. According to A1plus.am, the Rusarmoil trucks were allowed to cross into Armenia on Wednesday morning.
In what appeared to be a related development, Abrahamian met with several senior government officials later in the day to discuss the situation in the domestic fuel market. A government statement said they explored “possibilities of simplifying procedures” for fuel imports.
“The prime minister stressed the importance of ensuing free and competitive conditions for all business entities active in this sector in a manner defined by law,” said the statement.
The meeting took place shortly before Abrahamian answered lawmakers’ questions on the parliament floor.
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Re: Armenia's Economic Pulse
Vice PM: Armenia is more well-to-do than Russia in terms of living standard fluctuations
Armenia is in more favorable condition than Russia in terms of the fluctuations of living standards, Armenian Vice Prime Minister and Minister of International Economic Integration and Reforms, Vache Gabrielyan, stated in the parliament Wednesday.
It must be admitted that the 3.2 percent economic growth didn’t correspond to the welfare dynamics of households affected by the drop of transfers from Russia.
Nevertheless, this drop has stabilized now, Gabrielyan added.
“If we consider the dynamics of consumption and living standards in Russia, which we are closely linked with, the picture there is incomparable with ours,” he added.
According to the information of Russian Federal State Statistics Service (Rosstat), inflation in Russia constituted 12.9 percent in 2015, while in Armenia it made up minus 0.1 percent during the same period.
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Re: Armenia's Economic Pulse
Armenia economy ministry: Names linked to monopolies will be included in report
YEREVAN. – All the names, which are discussed in Armenia as monopolists, will be included in the Ministry of Economy report, but I would have to submit a reasoned analysis.
Minister of Economy Artsvik Minasyan told the aforementioned to reporters, and along the lines of Wednesday’s US-Armenia Business Conference being held in capital city Yerevan.
In the minister’s words, although the time period specified by the Prime Minister of Armenia is enough to outline the main issues, these problems require radical solutions.
“We [i.e. the Armenian government] must take numerous [respective] actions,” Minasyan noted. “We [also] have petitioned to international organizations.”
In the minister’s conviction, however, the three weeks specified by the PM are a very little time for the fight against monopolies in Armenia.
“But it is enough [time] for forming a level playing field, [and] developing a roadmap for the transformation of the entire monopolistic economic order [in the country],” Artsvik Minasyan added.
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Re: Armenia's Economic Pulse
PM: Armenian goods get expensive due to transit via Georgia
YEREVAN. - The transit via Georgia seriously influences the prices of goods delivered to Armenia, Armenian PM Hovik Abrahamyan stated in the parliament Wednesday.
The transit of goods from the Georgian ports to Armenian borders is almost equal by price to or even slightly exceeds the cost of the delivery to the Georgian ports from Europe or even China. This hinders the Armenian goods from being cheaper, Abrahamyan added.
But inside Armenia nobody interferes with doing business or makes raise the prices, the PM said.
“I will reiterate: anyone who wants to deal with import can do that. I will be consistent. No agency will create special privileged conditions for ones and artificial obstacles for others,” he noted.
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Re: Armenia's Economic Pulse
Economist: Armenia does not need diaspora, sport and youth affairs,
and economy ministries
14:57, 16.05.2016
YEREVAN. – Armenia needs to reduce the number of ministries,
opposition Armenian National Congress member, economist Vahagn
Khachatryan, who is former mayor of capital city Yerevan, said at a
press conference on Monday.
Reflecting on ineffective budget expenditures, he stressed that the
country does not need the Diaspora, Sport and Youth Affairs, and
Economy Ministries.
“We don’t need the Ministry of Economy in its current form,”
Khachatryan stated. “The Ministry of Diaspora may enter into the
Ministry of Foreign Affairs while the Ministry of Sport and Youth
Affairs—[into] the Ministry of Culture. But I believe that the
Ministry of Education and Science should be separated.”
Vahagn Khachatryan added that Armenia needs a very strong Ministry of
Nature Protection.
Several days ago, Prime Minister Hovik Abrahamyan stated that the
state apparatus of Armenia needs to be downsized, and the resultant
funds shall be used for increasing the defense capability of the
country.
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Re: Armenia's Economic Pulse
Armenia to open its own pavilion in Moscow’s Food City Center
YEREVAN, May 16. /ARKA/. Armenia’s commodity producers will expose
their products in one of those pavilions at Moscow’s Food City Center
intended for Eurasian Economic Union’s member countries, the Eurasian
Business Union of the Eurasian Economic Zone Entrepreneurs told ARKA
News Agency.
According to the press release, the Foods City Center has embarked on
arrangement of merchant rows, which are specially designed for
products from the Eurasian Economic Union member countries.
The ceremony of ‘Armenia’ platform opening will be held on May 28 as
part of the annual EXPO.
Exporters from Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia
will enjoy an opportunity to expose their products here directly,
without any mediator.
This is a joint project which is being implemented by the Eurasian
Business Union jointly with the Eurasian Economic Union countries.
The key aim of the Eurasian Business Union is to support small and
mid-scale businesses, agricultural farms and industrial companies as
well as to promote cooperation among commodity producers in the
Eurasian Economic Union territory and to form a clear commodity
distribution system among entities and the union member countries.
This 88-hectares Food City is Russia’s first agriculture cluster and
the biggest food wholesale center in Russia and in Europe.
The full range of services, including logistics, transport,
merchandizing and navigation are provided here. --0----
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Re: Armenia's Economic Pulse
Armenian Government Vows Major Reforms After Karabakh Escalation
Sargis Harutyunyan
Հրապարակված է՝ 12.05.2016
Citing “new challenges” emanating from the unresolved Nagorno-Karabakh conflict, the Armenian government pledged on Thursday to streamline its expenditures, step up its declared fight against corruption and improve the domestic business environment.
Prime Minister Abrahamian announced a push for major reforms as he opened a weekly session of his cabinet. He said that the increased risk of a full-scale war with Azerbaijan is forcing the government to “review” its policies.
“Are we developing?” Abrahamian told ministers. “Are we combatting corruption? Do we have a strong army? The answer is yes. But is that enough for us to confront the new challenges? I think I will express everyone’s view if I say no, it’s not.”
“We must redouble, multiply our efforts to become a more efficient state,” he said. To that end, the government will downsize many of its agencies through staff cuts and thus be able to spend more on the country’s more urgent needs, he said, hinting at defense and national security.
Abrahamian went on to promise a tougher fight against corruption which he said will be evaluated by ordinary Armenians’ perception of the scale of the chronic problem. The government, he said, will target widespread conflicts of interest among Armenian officials.
“We need to very quickly introduce tough mechanisms that would preclude the participation of individuals holding public posts and their relatives in state procurements,” declared the premier.
Armenia’s problematic business environment will be another focus of reforms promised by Abrahamian. The government, he said, will specifically make tax administration less arbitrary and investigate de facto monopolies.
“I admit that the government has not been consistent enough in getting to the bottom of this problem and not initiated an open public dialogue in a timely manner,” he added. “It’s time to rectify this shortcoming.”
Abrahamian told the Ministry of Economy and state anti-trust regulators to “analyze” within the next three weeks the monopolies’ impact on economic competition in Armenia.
“The key challenge is to ensure that all markets are open [to any entrepreneur,]” Economy Minister Artsvik Minasian told reporters after the cabinet meeting. He suggested that the regulators could be given more legal powers for that purpose.
As recently as in February, Minasian’s predecessor Karen Chshmaritian declared that the authorities in Yerevan are not seeking to eliminate the monopolies because their existence is inevitable in a country like Armenia.
Some lucrative forms of business in Armenia, notably imports of fuel and foodstuffs, have long been controlled by large companies belonging to government-linked individuals. Local and foreign economists say the resulting lack of competition in those sectors hampers faster economic growth.
Abrahamian as well as President Serzh Sarkisian have repeatedly pledged to tackle corruption and create a level playing field for all businesses in the past. Armenian businesspeople, economists and civil society members have reported no fundamental improvements in those areas so far.
Sarkisian has been facing growing calls for sweeping political and economic reforms since the April 2 escalation of the Karabakh conflict that nearly led to a full-scale war with Azerbaijan. Many think that Armenia needs such changes in order to be able to counter further Azerbaijani attempts to end the conflict militarily.Leave a comment:
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Re: Armenia's Economic Pulse
Armenia only EEU member-state with economic growth last year – EEU official
17:29 • 12.05.16
Last year Armenia was the only Eurasian Economic Union (EEU)
member-state that recorded economic growth Tatyana Valovaya, EEU Board
member, Minister in charge of the Development of Integration and
Macroeconomics, said during a multimedia broadcast.
According to her, Armenia’s EEU membership is one of the factors that
accounts for this consistent growth.
Economic effects are especially appreciable for new EEU members.
“Armenia saw this positive effect last year and continues seeing it
this year” she said.
As to what Armenia should do to increase exports Ms Valovaya said that
said all the conditions are available.
“No customs restrictions, and all conditions for expanding exports.
The question is business environment and ample opportunities are
available for exporting goods on easy terms to Russia and other
countries. Many Armenian economic entities have taken advantage of
these opportunities.”
Many Armenian products can be seen in Russia.
Armenia’s exports to Belarus showed a 45% increase this
January-February as compared with last January-February. Armenia’s
exports to Kyrgyzstan showed a four-fold increase, and exports to
Russia doubled.
“It suggests economic entities are aware of the market potential. They
should be more active,” Ms Valovaya said.
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Re: Armenia's Economic Pulse
Foreign Currency Reserves in Armenia Fall 10 Percent in First Quarter: Press
05.12.2016 12:36 epress.am
Armenia's foreign exchange reserves have dropped by US$172 million to
US$568 – a fall of 10% in total reserves – since the beginning of
2016, as reported by Haykakan Zhamanak daily newspaper. And although
the overall decline in foreign reserves is not unusual for Armenia,
according to the paper, such a rate can't be considered “traditional.”
The funds from the country's foreign reserves are usually used for
foreign debt repayments, and for carrying out currency interventions
in order to stabilize and maintain the exchange rate of dram.
“The simultaneous growth in Armenian's foreign debt is especially
alarming. In the first quarter of this year alone, our external debt
increased by 576 million dollars, standing at US$ 5.2 billion. In
other words, during these months, our foreign reserves have registered
a fall of 10%, while the debt has increased by 12%. Everything
indicates that the existing negative trends in the Armenian economy
will continue,” Haykakan Zhamanak writes.
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