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ARMENIANS RALLY AGAINST CUSTOMS UNION AS PUTIN DELIVERS REWARDS
Business New Europe
Dec 3 2013
bne
December 3, 2013
Armenians picketed a visit from Russian President Vladimir Putin on
December 2, in protest over Yerevan's surprise decision in September
to join the Customs Union. The Russian leader came bearing gifts,
confirming a huge discount on gas prices.
Around 500 people protested in Yerevan on December 2 over the plan for
Armenia to enter the Russian-led Customs Union. Echoing the feelings
of frustration at movement back towards the east being expressed
on the streets of Ukraine, demonstrators carried banners demanding
"Putin, go home," reports Reuters.
Others insisted ""No to the USSR", in protest against Armenian
President Serzh Sargsyan's decision to turn his back on closer
integration with the European Union. His country had spent months
negotiating an association and trade pact with Brussels, but that
process was turned on its head by a surprise announcement - in the
wake of another meeting with Putin - that Armenia would instead join
the Customs Union on September 3.
The protest march ended outside Sargsyan's residence, where
demonstrators submitted a letter calling on the president to reverse
the decision. Demonstrators also voiced solidarity with protesters in
Ukraine, where mass protests have taken place in recent days after
President Viktor Yanukovych failed to sign a similar agreement with
Brussels, citing pressure from Moscow.
Yerevan police blocked the protesters' way, saying their demonstration
was unsanctioned and arrested around 110 people, ArmInfo reports.
Opposition leaders claim that police beat several demonstrators.
Members of the Aizan, Free Democrats and Heritage parties are believed
to be among those arrested. Several leading anti-Russian activists were
detained in Yerevan before the rallies started, according to RFE/RL.
Speaking at a parliament session, Armenian National Congress MP Nikol
Pashinyan criticised the arrests. He claims the demonstrators were
"fighting to preserve the sovereignty and honour of Armenia", Hetq
Online reported.
Sargsyan's decision to move further into the Russian sphere of
influence was a shock to many Armenians, coming just two months before
the Eastern Partnership summit that took place last week in Vilnius.
Pressure
Under no little pressure from Russia, Armenia was the first of the
six countries expected to initial or sign EU association agreement
and trade pacts to drop out. In the end, only Georgia and Moldova
made the commitment. Ukraine is the big fish however, and speculation
swirls over Yanukovych's next move. Russia is pushing hard to swell
the ranks of its own trade club, which it founded alongside Belarus
and Kazakhstan in 2011. Critics have often accused Putin of trying
to recreate the USSR.
Yanukovych told the EU that he cannot sign the deal due to pressure
from Russia, which openly threatened to erect trade barriers if he did
so. At the same time, Ukraine is in a fiscal hole, and a cut in gas
prices and cheap loan would help enormously. The Ukraine leader is due
to meet Putin next week, but is also in close contact with Brussels.
Any definite move towards the east would raise the tension on the
streets, which are occupied by tens of thousands of protestors across
the country.
In Armenia, Sargsyan does not face similar pressure pushing westwards.
A survey by the Eurasian Development Bank published in October found
that 67% of Armenians were in favour of Customs Union membership.
However, the opposition has accused Moscow of exerting heavy pressure.
Armenian consumer gas prices spiked by 18% in July, following a
price hike by Russian state-controlled export monopoly Gazprom. The
previous month, Russia completed an arms delivery worth around $1bn
to Armenia's long time rival Azerbaijan, potentially escalating the
long-standing conflict over the breakaway Nagorno Karabakh Republic.
Speaking at a Russian-Armenian regional forum in Yerevan during his
visit, Putin stressed the importance of the South Caucasus region
to the Russian government. "We are going to strengthen our position
in the South Caucasus, drawing on the best of what we have inherited
from ancestors and good relations with all countries in the region,"
he said, according to Reuters.
He also confirmed that Sarysyan's government will be rewarded for its
decision to join the Customs Union. Putin announced the signing of
an agreement under which Russia will give up its 30% export duties
on gas sent to Armenia. Russia will export gas to Armenia at $189
per 1,000 cubic metres, which is less than half the price charged to
Ukraine and EU consumers.
Armenia will also see the 35% duty on Russian exports of petroleum
products scrapped. The charge is causing problems in more than one CIS
country that is not currently part of the Customs Union. Uzbekistan
and Tajikistan are currently facing fuel shortages.
Gazprom also confirmed that it will acquire the Armenian government's
20% stake in ArmRosgazprom, which will give it full control of the
gas distribution company. Armenia will also be able to buy weapons
from Russia at domestic prices, and oil at a 30% discount, Putin told
the forum.
http://www.bne.eu/story5577/Armenians_rally_against_Customs_Union_as_Putin_del ivers_rewards
Business New Europe
Dec 3 2013
bne
December 3, 2013
Armenians picketed a visit from Russian President Vladimir Putin on
December 2, in protest over Yerevan's surprise decision in September
to join the Customs Union. The Russian leader came bearing gifts,
confirming a huge discount on gas prices.
Around 500 people protested in Yerevan on December 2 over the plan for
Armenia to enter the Russian-led Customs Union. Echoing the feelings
of frustration at movement back towards the east being expressed
on the streets of Ukraine, demonstrators carried banners demanding
"Putin, go home," reports Reuters.
Others insisted ""No to the USSR", in protest against Armenian
President Serzh Sargsyan's decision to turn his back on closer
integration with the European Union. His country had spent months
negotiating an association and trade pact with Brussels, but that
process was turned on its head by a surprise announcement - in the
wake of another meeting with Putin - that Armenia would instead join
the Customs Union on September 3.
The protest march ended outside Sargsyan's residence, where
demonstrators submitted a letter calling on the president to reverse
the decision. Demonstrators also voiced solidarity with protesters in
Ukraine, where mass protests have taken place in recent days after
President Viktor Yanukovych failed to sign a similar agreement with
Brussels, citing pressure from Moscow.
Yerevan police blocked the protesters' way, saying their demonstration
was unsanctioned and arrested around 110 people, ArmInfo reports.
Opposition leaders claim that police beat several demonstrators.
Members of the Aizan, Free Democrats and Heritage parties are believed
to be among those arrested. Several leading anti-Russian activists were
detained in Yerevan before the rallies started, according to RFE/RL.
Speaking at a parliament session, Armenian National Congress MP Nikol
Pashinyan criticised the arrests. He claims the demonstrators were
"fighting to preserve the sovereignty and honour of Armenia", Hetq
Online reported.
Sargsyan's decision to move further into the Russian sphere of
influence was a shock to many Armenians, coming just two months before
the Eastern Partnership summit that took place last week in Vilnius.
Pressure
Under no little pressure from Russia, Armenia was the first of the
six countries expected to initial or sign EU association agreement
and trade pacts to drop out. In the end, only Georgia and Moldova
made the commitment. Ukraine is the big fish however, and speculation
swirls over Yanukovych's next move. Russia is pushing hard to swell
the ranks of its own trade club, which it founded alongside Belarus
and Kazakhstan in 2011. Critics have often accused Putin of trying
to recreate the USSR.
Yanukovych told the EU that he cannot sign the deal due to pressure
from Russia, which openly threatened to erect trade barriers if he did
so. At the same time, Ukraine is in a fiscal hole, and a cut in gas
prices and cheap loan would help enormously. The Ukraine leader is due
to meet Putin next week, but is also in close contact with Brussels.
Any definite move towards the east would raise the tension on the
streets, which are occupied by tens of thousands of protestors across
the country.
In Armenia, Sargsyan does not face similar pressure pushing westwards.
A survey by the Eurasian Development Bank published in October found
that 67% of Armenians were in favour of Customs Union membership.
However, the opposition has accused Moscow of exerting heavy pressure.
Armenian consumer gas prices spiked by 18% in July, following a
price hike by Russian state-controlled export monopoly Gazprom. The
previous month, Russia completed an arms delivery worth around $1bn
to Armenia's long time rival Azerbaijan, potentially escalating the
long-standing conflict over the breakaway Nagorno Karabakh Republic.
Speaking at a Russian-Armenian regional forum in Yerevan during his
visit, Putin stressed the importance of the South Caucasus region
to the Russian government. "We are going to strengthen our position
in the South Caucasus, drawing on the best of what we have inherited
from ancestors and good relations with all countries in the region,"
he said, according to Reuters.
He also confirmed that Sarysyan's government will be rewarded for its
decision to join the Customs Union. Putin announced the signing of
an agreement under which Russia will give up its 30% export duties
on gas sent to Armenia. Russia will export gas to Armenia at $189
per 1,000 cubic metres, which is less than half the price charged to
Ukraine and EU consumers.
Armenia will also see the 35% duty on Russian exports of petroleum
products scrapped. The charge is causing problems in more than one CIS
country that is not currently part of the Customs Union. Uzbekistan
and Tajikistan are currently facing fuel shortages.
Gazprom also confirmed that it will acquire the Armenian government's
20% stake in ArmRosgazprom, which will give it full control of the
gas distribution company. Armenia will also be able to buy weapons
from Russia at domestic prices, and oil at a 30% discount, Putin told
the forum.
http://www.bne.eu/story5577/Armenians_rally_against_Customs_Union_as_Putin_del ivers_rewards