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COLLAPSING MONOPOLY OF ARMENIA
Several important things took place during the U.S. Armenian economic
cooperation taskforce. First, Contour Global, an American company
with a big experience in water energy, is ready to invest 180 million
dollars in Armenia. Most probably, the cascade over the Vorotan
is meant.
A few months earlier the minister of energy of Armenia had announced
that the American company is interested in the cascade of the Vorotan
River. In fact, the investment of the American company will be
significant for several reasons.
First, it will be a big American investment in the Armenian economy.
It is important to have this investment in the energy sector where
Russian capital is predominant. American capital will not help
diversify the sector but it will be a significant step in that
direction. Besides, the engagement of the American company may lead
to technological modernization in Armenia's energy sector.
Another circumstance comes up, the water plant on the Armenian-Iranian
border. And the important question is whether the American company
will be interested later on. A few months ago the Armenian government
exempted the construction of the water power plant on the border
of Iran from taxes. It followed the election of reformer Hassan
Rowhani in Iran, which was hailed by the West. At the same time,
after his election Rowhani touched upon the Armenian-Iranian relations
several times, hinting Yerevan's passive posture to joint projects and
programs. Then the parliament approved exemption of the construction
of the water power plant from taxes pending for discussion for a
long time.
It is very important what Russia thinks.
For example, Russia expected to get the last energy generation units
of Armenia, the Cascade of the Vorotan River. Rumors appeared in the
press every now and then for years. It is interesting to know why
Russia decided to hand over the Cascade of the Vorotan. Perhaps Moscow
thinks that it has got enough levers of influence on Armenia, and it
can skip one since it is short of money for the time being. It is not
ruled out that after the decision on joining the Customs Union Moscow
granted Armenia quotas of economic cooperation with the United States.
>From this point of view the issue of prospects of investments
in aviation raised at the meeting of the U.S.-Armenian taskforce
is interesting. In the TV report on the meeting the American side
mentioned the possibility of operation of a private American airline
in Armenia.
In fact, the United States displays interest in aviation, welcoming
the open sky policy of Armenia. In Armenia aviation used to be one
of the pillars of monopoly, and this initiative would symbolize the
end of monopoly and establishment of competitiveness in Armenia,
producing both economic and psychological effects.
Apparently, after a failure of political u-turn in the relations with
Armenia Washington opts for economic activities. The United States
seemed to combine options until 2008, trying to understand where
a breakthrough would be more probable but the breakthrough did not
take place.
Now there is a transformation to the economic option but boring
has replaced breakthrough. The political aspect is ceded to Russia,
instead economic quotas are gained where politics is not tangible,
is a strategic component and therefore will not cause a prompt and
tough counteraction by Russia.
Hakob Badalyan 22:23 25/11/2013 Story from Lragir.am News:
http://www.lragir.am/index/eng/0/comments/view/31381
Several important things took place during the U.S. Armenian economic
cooperation taskforce. First, Contour Global, an American company
with a big experience in water energy, is ready to invest 180 million
dollars in Armenia. Most probably, the cascade over the Vorotan
is meant.
A few months earlier the minister of energy of Armenia had announced
that the American company is interested in the cascade of the Vorotan
River. In fact, the investment of the American company will be
significant for several reasons.
First, it will be a big American investment in the Armenian economy.
It is important to have this investment in the energy sector where
Russian capital is predominant. American capital will not help
diversify the sector but it will be a significant step in that
direction. Besides, the engagement of the American company may lead
to technological modernization in Armenia's energy sector.
Another circumstance comes up, the water plant on the Armenian-Iranian
border. And the important question is whether the American company
will be interested later on. A few months ago the Armenian government
exempted the construction of the water power plant on the border
of Iran from taxes. It followed the election of reformer Hassan
Rowhani in Iran, which was hailed by the West. At the same time,
after his election Rowhani touched upon the Armenian-Iranian relations
several times, hinting Yerevan's passive posture to joint projects and
programs. Then the parliament approved exemption of the construction
of the water power plant from taxes pending for discussion for a
long time.
It is very important what Russia thinks.
For example, Russia expected to get the last energy generation units
of Armenia, the Cascade of the Vorotan River. Rumors appeared in the
press every now and then for years. It is interesting to know why
Russia decided to hand over the Cascade of the Vorotan. Perhaps Moscow
thinks that it has got enough levers of influence on Armenia, and it
can skip one since it is short of money for the time being. It is not
ruled out that after the decision on joining the Customs Union Moscow
granted Armenia quotas of economic cooperation with the United States.
>From this point of view the issue of prospects of investments
in aviation raised at the meeting of the U.S.-Armenian taskforce
is interesting. In the TV report on the meeting the American side
mentioned the possibility of operation of a private American airline
in Armenia.
In fact, the United States displays interest in aviation, welcoming
the open sky policy of Armenia. In Armenia aviation used to be one
of the pillars of monopoly, and this initiative would symbolize the
end of monopoly and establishment of competitiveness in Armenia,
producing both economic and psychological effects.
Apparently, after a failure of political u-turn in the relations with
Armenia Washington opts for economic activities. The United States
seemed to combine options until 2008, trying to understand where
a breakthrough would be more probable but the breakthrough did not
take place.
Now there is a transformation to the economic option but boring
has replaced breakthrough. The political aspect is ceded to Russia,
instead economic quotas are gained where politics is not tangible,
is a strategic component and therefore will not cause a prompt and
tough counteraction by Russia.
Hakob Badalyan 22:23 25/11/2013 Story from Lragir.am News:
http://www.lragir.am/index/eng/0/comments/view/31381