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FLEXIBLE POLICY?: ARMENIA SUCCESSFULLY DIVIDES PROJECTS BETWEEN RUSSIA AND EU
By Naira Hayrumyan
ArmeniaNow
28.10.11 | 12:15
After the visit by President Serzh Sargsyan to Moscow it became
known not only that Russia will participate in the construction
of a new unit at the Armenian Nuclear Power Plant, but also that
through the stabilization fund of the Eurasian Economic Community
(EurAsEC) Moscow is going to allocate funds for the modernization of
the rubber-producing Nairit chemical plant in Yerevan.
Russia has agreed to lend $400 million to Armenia, reports the leading
Russian newspaper Izvestia, citing sources at the country~Rs Ministry
of Finance.
At the same time, Moscow has reportedly set a tough and principle-based
condition to Yerevan - to consolidate 100 percent of Nairit~Rs shares
into the hands of the Armenian government. In 2006, a 90-percent stake
of Nairit was acquired by the British-registered Rhinoville Property
Limited company, while the government remained in possession of a
10-percent stake. The chemical giant owes more than $100 million
to the CIS Interstate Bank. (The information was later refuted by
Armenia's Ministry of Finance).
Interesting is the motivation cited by the Russian newspaper, which is
sort of an answer to the question on why it was decided to issue the
loan now, even though an application for it was submitted nearly two
years ago, in February 2010. Izvestia writes that Moscow has decided
to grant the loan after ~Sforeign investors showed some interests in
the enterprise.~T
A week before Sargsyan~Rs visit to Moscow, French President Nicolas
Sarkozy paid a visit to Yerevan. Even though no specific statements
were made then, there was a reference to France~Rs interest in
participating in the development of nuclear energy in Armenia and
other strategic areas. Local media jumped to conclusions that France
had undertaken to build a new nuclear power plant in Armenia.
In general, analysts have recently talked about the link between
Armenia and Europe, about the West~Rs intention to include Armenia
in the area of not only its economic interests but also its security
system.
Apparently, Moscow does not particularly like this prospect. During a
meeting with Armenian Prime Minister Tigran Sargsyan in St. Petersburg
last week his Russian counterpart Vladimir Putin said that Moscow is
not going to let either the nuclear or the rest of Armenia~Rs energy
sector slip through its fingers, moreover, that it is considering
participation in the laying of transport communications.
The Armenian authorities insist that the establishment of a Free Trade
Zone of the Commonwealth of Independent States, a Russia-dominated
loose alliance of former Soviet republics, does not create obstacles to
relations with the European Union. The agreement on the CIS free trade
zone signed in St. Petersburg on October 18 does not run contrary to
Armenia~Rs World Trade Organization agreements or the process of the
country~Rs European integration, said Premier Sargsyan.
Still, analysts notice an interesting pattern ~V in concluding
cooperation agreements with Armenia, international institutions put
strict conditions of reforming the country~Rs economic governance
system and improvement of democratic institutions. Russia does not
set any conditions, as if saying that it is quite comfortable with
the current system.
From: A. Papazian
By Naira Hayrumyan
ArmeniaNow
28.10.11 | 12:15
After the visit by President Serzh Sargsyan to Moscow it became
known not only that Russia will participate in the construction
of a new unit at the Armenian Nuclear Power Plant, but also that
through the stabilization fund of the Eurasian Economic Community
(EurAsEC) Moscow is going to allocate funds for the modernization of
the rubber-producing Nairit chemical plant in Yerevan.
Russia has agreed to lend $400 million to Armenia, reports the leading
Russian newspaper Izvestia, citing sources at the country~Rs Ministry
of Finance.
At the same time, Moscow has reportedly set a tough and principle-based
condition to Yerevan - to consolidate 100 percent of Nairit~Rs shares
into the hands of the Armenian government. In 2006, a 90-percent stake
of Nairit was acquired by the British-registered Rhinoville Property
Limited company, while the government remained in possession of a
10-percent stake. The chemical giant owes more than $100 million
to the CIS Interstate Bank. (The information was later refuted by
Armenia's Ministry of Finance).
Interesting is the motivation cited by the Russian newspaper, which is
sort of an answer to the question on why it was decided to issue the
loan now, even though an application for it was submitted nearly two
years ago, in February 2010. Izvestia writes that Moscow has decided
to grant the loan after ~Sforeign investors showed some interests in
the enterprise.~T
A week before Sargsyan~Rs visit to Moscow, French President Nicolas
Sarkozy paid a visit to Yerevan. Even though no specific statements
were made then, there was a reference to France~Rs interest in
participating in the development of nuclear energy in Armenia and
other strategic areas. Local media jumped to conclusions that France
had undertaken to build a new nuclear power plant in Armenia.
In general, analysts have recently talked about the link between
Armenia and Europe, about the West~Rs intention to include Armenia
in the area of not only its economic interests but also its security
system.
Apparently, Moscow does not particularly like this prospect. During a
meeting with Armenian Prime Minister Tigran Sargsyan in St. Petersburg
last week his Russian counterpart Vladimir Putin said that Moscow is
not going to let either the nuclear or the rest of Armenia~Rs energy
sector slip through its fingers, moreover, that it is considering
participation in the laying of transport communications.
The Armenian authorities insist that the establishment of a Free Trade
Zone of the Commonwealth of Independent States, a Russia-dominated
loose alliance of former Soviet republics, does not create obstacles to
relations with the European Union. The agreement on the CIS free trade
zone signed in St. Petersburg on October 18 does not run contrary to
Armenia~Rs World Trade Organization agreements or the process of the
country~Rs European integration, said Premier Sargsyan.
Still, analysts notice an interesting pattern ~V in concluding
cooperation agreements with Armenia, international institutions put
strict conditions of reforming the country~Rs economic governance
system and improvement of democratic institutions. Russia does not
set any conditions, as if saying that it is quite comfortable with
the current system.
From: A. Papazian