Armenia's Economic Pulse

[Haykakan]

Re: Armenia's Economic Pulse

VOICE OF RUSSIA: TURKEY MAY OPEN BORDER WITH ARMENIA

by Ashot Safaryan

Thursday, February 13, 13:35

Turkey may open its border with Armenia shortly, according to an item
published on the website of the Voice of Russia Radio.

Referring to a Turkish newspaper Aksam, the author of the item says
that Turkey is going to open up-to- date border crossings on the
border with Armenia and Iran with the support of the EU. Demining
activities have been launched in the eastern direction of the border.

The project will cost nearly 52 million EUR. The Armenian-Georgian
border undergoes modernization simultaneously.

The Turkey-Armenia-Georgia route may become quite busy, because
Brussels never wastes money, though the Turkish-Armenian border is
so far closed and the two countries have no diplomatic relations.

Armenia and Turkey signed the "Protocol on the establishment
of diplomatic relations" and the "Protocol on the development of
bilateral relations" in Zurich on October 10 2009. Following Turkey's
unwillingness to ratify the protocols and attempts to link ratification
with the Karabakh conflict made President of Armenia Serzh Sargsyan
sign a decree on suspension of the procedure of ratification of the
Armenian -Turkish protocols. Nevertheless, the relations of the two
countries experience certain changes.

The author outlines the new geopolitical realities in the South
Caucasus, Armenia's accession to the Customs Union and then to the
Eurasian Economic Union (EAEU). For Turkey the border with Armenia
may get a status of the border with the EAEU.

"According to Today's Zaman, after the P5+1 and Iran agreed on
a landmark deal in Geneva, Tehran is gradually getting out of the
international isolation and becoming a big player in the region. Due
to its stable trade and economic relations with Armenia, Iran gets
a direct access to the Customs Union via Armenia - something that
Turkey lacks so far. Consequently, the closed border with Armenia
will no longer be a measure of political pressure for Turkey. It
may become a problem of the lost economic opportunities. As regards
Turkey's relations with Azerbaijan and its stance on the Karabakh
conflict, it would be right encouraging Baku and Yerevan to establish
a dialogue and achieve agreements. The experience of the so- called
Arab spring and the Syrian conflict shows that such policy of Turkey
just aggravates the situation and impedes the possibilities of the
Turkish diplomacy. It was not for nothing that Turkey welcomed the
meeting of the Armenian and Azerbaijani presidents after a two-year
interval, which may lead to a 'road map' on the Karabakh peace process.

Modernization of the Turkish-Armenian border and demining on the
near-border areas shows that Ankara has a positive scenario and seems
to be preparing to lift the blockade of Armenia," the author writes.

http://www.arminfo.am/index.cfm?objectid=8B051F50-949A-11E3-A6610EB7C0D21663

[bell-the-cat]

Re: Armenia's Economic Pulse

VOICE OF RUSSIA: TURKEY MAY OPEN BORDER WITH ARMENIA

So Arminfo got it from Voice of Russia radio who got it Aksam who got it from Today's Zaman. But I bet this unfounded claim would still be unfounded even if it had not gone through 4 or more stages of Chinese whispers (there has not been a single article on Today's Zaman in 2014 that has even mentioned the Armenian border).

[Haykakan]

Re: Armenia's Economic Pulse

FIRST CARPET MUSEUM TO OPEN IN ARMENIA

10:13, 17 February, 2014

YEREVAN, FEBRUARY 17, ARMENPRESS: The first carpet museum will
open in Yerevan after the completion of the final works in March
2014. Megerian Carpet Company took up the mission to popularize and
present the Armenian carpets in a single museum among the local and
international communities. The Production and Commercial Director of
the Company Leonid Andreasyan told the Armenpress correspondent that
the museum will have an area of 230 square meters. "The museum will
present Armenian ancient carpets having a history of about 200 years,
as well as exclusive samples from the personal collection of the
Megerian Family", - said Andreasyan. He informed that the exhibition
of the museum will be regularly refreshed, replenished and replaced by
new items. About 50 samples of the exhibited carpets will be brought
to Yerevan from New York.

The Megerian Family has been involved in selling, restoration, and
production of fine oriental rugs for over four generations. Originally
from Armenia, the Megerians established their rug trade business in
the United States in 1917, and quickly developed an expertise in rug
repairing and restoration. Over time, they began to realize the growing
demand for different trends and subtle design changes, and took their
well honed skills to the loom to create their own decorative rugs.

Megerian Oriental Rug family specializes in new and antique Oriental
rug sales and production. The Megerian Brother's tradition and
integrity in the fine craft of handmade rug making, and restoration
of rugs and tapestries is world renown. The Megerian Oriental Rug
family has been the benchmark producer of New York City's handmade
rugs and tapestries.

Initially, their enterprise in America focused on selling new and
antique rugs. However, the opportunity to apply their extensive skills
presented itself often, and the Megerians quickly gained a reputation
here in America as artisans accomplished in antique repair. More
and more, the Megerians found themselves applying their thorough
understanding of wool characteristics, natural dyes and Old World
knotting techniques to their customers' existing antique Persians,
Aubussons, Savonneries and Oriental rugs.

As time passed, the Megerians expanded their business to meet
the growing demand for fine rugs by buying antique rugs in need of
repair and selling them completely restored. Often, though, customers
would express their wishes for subtle design changes. Building on
their tradition of excellence, the Megerians took their knowledge and
well-honed skills to the loom and began creating their own rugs. Very
soon, they were meeting their customers' needs by delicately modifying
the original, antique designs in their own reproductions of superb
quality.

The Megerians continue to apply their unparalleled skill in the
creation of rugs and tapestries of uncompromising artistry and
workmanship.

Each signed piece represents a rare combination of Old World
craftsmanship and the design aesthetics of today's most discerning
clientele, and every Megerian design is copyrighted to ensure its
individuality. Each work is a product of the integrity of the Megerian
touch, from the discriminating selection of original materials and
dyes, to the painstaking attention to knotting technique, to the
completely thorough final inspection in the antique making. Of course,
the Megerians also continue to trade in the world's finest antique
rugs and tapestries, drawing inspiration for their own designs from
the classic beauty of the originals.

http://armenpress.am/eng/news/750278/first-carpet-museum-to-open-in-armenia.html

[Mher]

Re: Armenia's Economic Pulse

A solid detailed analysis on the inflation debate. Nice to a see a more thorough explanation with the various possibilities with postives/negatives than just throwing out random percentages with little meaning behind them.




Customs Union Consequences: Prices Will Rise in Armenia Absent a Market Reorientation
Samvel Avagyan

18:01, February 6, 2014

When the Customs Union was formed, everyone in Kazakhstan was surprised when prices for foodstuffs, cars and fuel immediately increased. The same situation awaits Armenia.

According to Armenia’s Ministry of the Economy, this situation will push up the overall inflation rate by 1.5%. This might well be the case, but certain commodities will see price rises of between 10 to 15%; these include dairy products, meat and sugar.

The reason can be found in the strong protectionist policies enacted by the Customs Union (CU) to defend the domestic market. Those sectors in the CU that are well developed are protected by specially placed high customs tariffs. There is nothing out of the ordinary in this. Numerous countries, including neighboring Turkey and Iran, enact such a policy. Other methods are used in order to protect the domestic market in developed countries; technical regulations and sanitary requirements, for example. The use of customs tariffs is a cruder form of protection and is employed in less developed states.

In any event, the CU employs the tariff method of defense, given that quality control systems aren’t that well developed. Belarus and Russia have well developed automobile, dairy and meat manufacturing sectors. Thus, these sectors fall under protectionist policies. As a rule, the tool used is a 25% customs tariff; although lower tariff rates also exist. Right now in Armenia, custom tariffs of 0% or 10% are in place. Consequently, we are confronted with 10-15% inflation for certain goods.

But this is the case if the goods are imported from countries other than those in the CU. For example, Toyota passenger cars are manufactured in Russia. If and when Armenia joins the CU, these auto imports, which are now slapped with customs tariffs, will be 10% cheaper. Cars imported from Georgia and Europe, on the other hand, will become more expensive; and dramatically so.

If the Armenian market were to be restructured so that the bulk of imports would come from the CU, the price rises would be limited. But the market has evolved in such a manner that foodstuffs, fuel and autos are basically not imported from the CU.

It’s difficult to imagine that Armenia’s business sector will undergo a reorientation to Russia and Belarus any time soon. This is especially the case with large oligarchs would import sizeable amounts of foodstuffs and fuel from Ukraine, Europe and South America.

Thus, if Armenia does eventually join the CU, the level of price hikes will mainly depend on how fast Armenian business can reorient itself.

http://hetq.am/eng/news/32424/customs-union-consequences-prices-will-rise-in-armenia-absent-a-market-reorientation.html

[Haykakan]

Re: Armenia's Economic Pulse

Hmm bad examples there i think Mher. Meat and dairy products are already being produced in Armenia by the Olis so there won't be a reason to rais those prices-not that the olis need a reason to raise prices ... Sugar is another story since it cannot be produced in Armenia nor in any of the CIS countries but i think you know sugar is already expencive since its supply is a monopoly in Armenia - but yeh it can get even more expensive if a customs tax is put on it for the oli is unlikely to eat the difference.

[Artashes]

Re: Armenia's Economic Pulse

Hmm bad examples there i think Mher. Meat and dairy products are already being produced in Armenia by the Olis so there won't be a reason to rais those prices-not that the olis need a reason to raise prices ... Sugar is another story since it cannot be produced in Armenia nor in any of the CIS countries but i think you know sugar is already expencive since its supply is a monopoly in Armenia - but yeh it can get even more expensive if a customs tax is put on it for the oli is unlikely to eat the difference.

Why can't sugar be produced in Armenia?
12 miles outside of Moses Lake Washington is a small (38 people) town call Ruff. I used to ride my bike to the sugar beet factory and back every day. They had at least one 70 ton silo (I think more) filled with sugar.
Temperatures are about the same as Armenia.
Much of what was advertised as "pure cane" sugar from Hawii was actually beet sugar from eastern Washington state.
Gotta watch the sugar dust though, as it's explosive.
Some welder screwed up fatally & tried to light his torch. Blew up one of the 70 ton silos. Big chunks of concrete were found almost a mile away.
Fortunately it occurred during shift change & only the welder (I think) got killed.

[UrMistake]

Re: Armenia's Economic Pulse

http://mobile.tert.am/en/news/2014/02/19/gagik-makaryan1/

Chairman of the Republican Union of Employers of Armenia (RUEA) Gagik Makaryan believes that the amended Russian law on migrants is a serious challenge to Armenia.

According to him, people’s incomes will decrease, while poverty and unemployment levels will rise in Armenia because of the law.

“Even if 100,000 people return to Armenia, it will seriously raise the unemployment rate and families’ incomes will decrease,” Makaryan told reporters.

With respect to the Customs Union, he said: “I am strongly against such negotiations. It seems that Russia has given us a summary to work at. But there is negotiation culture,” Makaryan said.

Russia has prepared a list of products liable to customs clearance, with nothing said of competition. So Armenia will have to import what it is offered.

According to Makaryan, last economic year was a year of uncertainty, and this uncertain situation will last until after the first half of this year.



In my book , we got failed goverment ..only MOD is doing fine ...for one they preach of our return and for the second is not profitable for our return ...imagine new ideas oppossing the criminals of goverment ..new young people with life and will for something new ...thats what they dont want ..our enemy is within our borders firtsly ....lie lie lie ....thy do nothing for the emmigration thats for sure ..

im greek citizen holding both armenian and greek passport, years now i try to make something in my homeland ... problem is i have done 9 months of military service in cyprus but the armenian MOD asks me to do 12 and more months in foreign foces ...not only that they dont accept my service they dont give alternative choices of 24 months service ...like in israel lets say !....im old guy now with family and my own bussinnes here i cant travel back or create something in yerevan only if i give in some MOD bank account 10.000 euros .....
will go for the accussation of new armament for our forces ... dont take an offence but i know at least 30 guys that are not willing to pay so much ..i am willing to invest that much for my project in armenia than piss them off in times of crisis ...we all have families to feed . all this BIG problems comes from our current goverment ...they dont have new ideas they dont think inventive ..thats how proggress is not comming ..they dont allow us to trow our little rock for our nationbuilding .

[londontsi]

Re: Armenia's Economic Pulse

Hmm bad examples there i think Mher. Meat and dairy products are already being produced in Armenia by the Olis so there won't be a reason to rais those prices-not that the olis need a reason to raise prices ... Sugar is another story since it cannot be produced in Armenia nor in any of the CIS countries but i think you know sugar is already expencive since its supply is a monopoly in Armenia - but yeh it can get even more expensive if a customs tax is put on it for the oli is unlikely to eat the difference.

Price rises of meat and dairy can easily justified if price of animal foodstuff goes up.
Rise in prices of animal food stuff can also justified if international market prices for cereals goes up.
It is also dependent on energy and fertilizer prices.

Of coarse It can also go up like you say if there is manipulation.






From recollection (old news) some foodstuff cannot be grown in Armenia so as not to damage certain oligarchs interest of importing it.

[londontsi]

Re: Armenia's Economic Pulse

Hmm bad examples there i think Mher. Meat and dairy products are already being produced in Armenia by the Olis so there won't be a reason to rais those prices-not that the olis need a reason to raise prices ... Sugar is another story since it cannot be produced in Armenia nor in any of the CIS countries but i think you know sugar is already expencive since its supply is a monopoly in Armenia - but yeh it can get even more expensive if a customs tax is put on it for the oli is unlikely to eat the difference.

Price rises of meat and dairy can easily justified if price of animal foodstuff goes up.
Rise in prices of animal food stuff can also justified if international market prices for cereals goes up.
It is also dependent on energy and fertilizer prices.

Of coarse It can also go up like you say if there is manipulation.

Why can't sugar be produced in Armenia?

From recollection (old news) some foodstuff cannot be grown in Armenia so as not to damage certain oligarchs interest of importing it.

[Haykakan]

Re: Armenia's Economic Pulse

Price rises of meat and dairy can easily justified if price of animal foodstuff goes up.
Rise in prices of animal food stuff can also justified if international market prices for cereals goes up.
It is also dependent on energy and fertilizer prices.

Of coarse It can also go up like you say if there is manipulation.

From recollection (old news) some foodstuff cannot be grown in Armenia so as not to damage certain oligarchs interest of importing it.

Good points you make there but fertilizer is subsidized by the Armenian government thus it is cheap-also Armenia gets gas at low prices thus energy also is cheap. The price of feed can make a difference of course and Oligarch greed of course is a factor. Most of the stuff we are discussing here belong in a perfect competition market-things like animal feed, meat, dairy..while other things like energy are in a monopoly or oligarchy(depending on where you are at). One of the big issues in Armenian farming has been water for irrigation which some oligarchs have tried to control and this has driven many farmers out of business and contributed to villages emptying out. The control of water is becoming a big issue not just for Armenia but everywhere else to. Here in Michigan we have Nestle pumping out huge quantities of water from our aquifer which is killing streams and causing sink holes all the while nestle pays no taxes nor does it compensate the state nor the residents..