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ARMENIA TAKES ANOTHER STEP TOWARDS CUSTOMS UNION
Business New Europe
Nov 7 2013
bne
November 7, 2013
Armenia signed a memorandum on deeper cooperation with the Eurasian
Economic Commission on November 6. The agreement paves the way for
Armenia's planned entry to the Customs Union, at a crucial time for
the Russian-led project.
EEC chairman Viktor Khristenko said after the signing ceremony that
the document "ensures involvement of all Armenian institutions in the
activity of the Customs Union". It will also see the appointment of an
Armenian permanent representative to the trade bloc, which currently
features Russia, Belarus and Kazahkstan.
"We should also assess the activity to be done for Armenia to become
a full-fledged member of the union," Armenian Prime Minister Tigran
Sargsyan told a press briefing.
President Serzh Sargsyan surprised on September 3 when he told
journalists that Armenia would join the Custom Union. The announcement,
which came following a meeting with Russian President Vladimir Putin,
was unexpected since previously Yerevan had been increasing ties with
the European Union.
However, the decision followed heavy pressure from Russia, including
a substantial hike in gas prices. The likes of Ukraine and Moldova,
which insist they will continue on a route towards the EU, continue
to feel the weight of gas prices and trade restrictions.
The crunch comes at summit in late November, with Ukraine - as the
second largest economy in the former Soviet space a vital lynchpin in
construction of the Customs Union - set to sign off on an association
and trade pact with Brussels.
Moscow says it will be forced to implement strict trade restrictions
on Kyiv should it open its markets to the EU. However, since Armenia
plumped for the east rather than west, Moscow has turned generous
benefactor.
The latest bonus came in the form of a soft loan - expected to total
up to $160m - from Russia to help Yerevan with efforts to extend the
life of the Metsamor nuclear power plant. Armenia wants to keep the
Soviet built plant operating until it can build a replacement.
However, it has been struggling to raise the $5bn or so it would need
to finance a new facility.
The secretary of the Nuclear Energy Safety Council of Armenia said
on November 6 that the government will be able to confirm the cost
of renovating Metsamor as soon as the project has been approved. The
project will allow the reactor to continue operation until 2016.
Russia's Rosatomservice is expected to sign a contract to take part
next year.
http://www.bne.eu/story5504/Armenia_takes_another_step_towards_Customs_Union
From: A. Papazian
Business New Europe
Nov 7 2013
bne
November 7, 2013
Armenia signed a memorandum on deeper cooperation with the Eurasian
Economic Commission on November 6. The agreement paves the way for
Armenia's planned entry to the Customs Union, at a crucial time for
the Russian-led project.
EEC chairman Viktor Khristenko said after the signing ceremony that
the document "ensures involvement of all Armenian institutions in the
activity of the Customs Union". It will also see the appointment of an
Armenian permanent representative to the trade bloc, which currently
features Russia, Belarus and Kazahkstan.
"We should also assess the activity to be done for Armenia to become
a full-fledged member of the union," Armenian Prime Minister Tigran
Sargsyan told a press briefing.
President Serzh Sargsyan surprised on September 3 when he told
journalists that Armenia would join the Custom Union. The announcement,
which came following a meeting with Russian President Vladimir Putin,
was unexpected since previously Yerevan had been increasing ties with
the European Union.
However, the decision followed heavy pressure from Russia, including
a substantial hike in gas prices. The likes of Ukraine and Moldova,
which insist they will continue on a route towards the EU, continue
to feel the weight of gas prices and trade restrictions.
The crunch comes at summit in late November, with Ukraine - as the
second largest economy in the former Soviet space a vital lynchpin in
construction of the Customs Union - set to sign off on an association
and trade pact with Brussels.
Moscow says it will be forced to implement strict trade restrictions
on Kyiv should it open its markets to the EU. However, since Armenia
plumped for the east rather than west, Moscow has turned generous
benefactor.
The latest bonus came in the form of a soft loan - expected to total
up to $160m - from Russia to help Yerevan with efforts to extend the
life of the Metsamor nuclear power plant. Armenia wants to keep the
Soviet built plant operating until it can build a replacement.
However, it has been struggling to raise the $5bn or so it would need
to finance a new facility.
The secretary of the Nuclear Energy Safety Council of Armenia said
on November 6 that the government will be able to confirm the cost
of renovating Metsamor as soon as the project has been approved. The
project will allow the reactor to continue operation until 2016.
Russia's Rosatomservice is expected to sign a contract to take part
next year.
http://www.bne.eu/story5504/Armenia_takes_another_step_towards_Customs_Union
From: A. Papazian