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Armenia To Join Russia Trade Bloc, Surprises EU

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  • Armenia To Join Russia Trade Bloc, Surprises EU

    ARMENIA TO JOIN RUSSIA TRADE BLOC, SURPRISES EU

    EU Observer
    Sept 3 2013

    'Normal' shooting resumes in Armenia-Azerbaijan conflict Ukraine
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    paints rosy picture on EU visit

    By Andrew Rettman

    BRUSSELS - Armenian President Serzh Sargsyan has said he wants to join
    a trade and political union with Russia instead of an EU alternative.

    The decision was announced in a statement on the Kremlin's website
    during his visit to Moscow to meet Russian leader Vladimir Putin on
    Tuesday (3 September).

    The Kremlin communique said: "The presidents reaffirmed the focus
    of the Russian federation and the Republic of Armenia on the further
    development of economic integration in the Eurasian territory ... In
    this context, Mr Sargsyan said Armenia had decided to join the
    Customs Union and take the necessary practical steps to subsequently
    participate in the formation of the Eurasian Economic Union."

    Sargsyan, before flying back to Yerevan, confirmed the news.

    But he added, in a statement on his own website, that he still wants
    good EU relations.

    "This decision is not a rejection of our dialogue with the European
    institutions. During recent years, Armenia, with the support of
    European partners held a number of important institutional reforms.

    And today's Armenia, in this sense, is considerably a more effective
    and competitive state than years ago. We intend to continue these
    reforms also in the future," he said.

    The news came as a surprise to EU officials.

    The EU has concluded negotiations on a political association and free
    trade pact with Armenia and expected to initial it at an EU summit
    with former Soviet states in Vilnius in November.

    If Armenia does become a full member of the Russian-led customs bloc,
    along with Belarus and Kazakhstan, it cannot sign the EU pact at the
    same time.

    But Sargsyan might be trying to cherry pick bits of the Russian offer
    which are compatible with the EU deal.

    EU diplomats in Yerevan held crisis meetings on Tuesday evening to
    get an insight into events.

    A European Commission spokesman told this website: "We are consulting
    closely with our Armenian partners. When we have all the information,
    we will, of course, examine all the potential implications of what
    was announced today."

    Sargsyan's u-turn was made in the context of tricky developments
    on Nagorno-Karabakh.

    Russia is Armenia's main security guarantor in its frozen conflict
    with Azerbaijan over the breakaway territory.

    It has a military base in Armenia itself.

    But in June this year Russia began delivery of some $1 billion of
    tanks, artillery and rocket launchers to Azerbaijan.

    Russia in recent weeks has also threatened Moldova and Ukraine, two
    other former Soviet states which are seeking deeper ties with the EU.

    It told Moldova that if it inks an EU deal in Vilnius it will cut
    trade relations and make it harder to solve its conflict with the
    breakaway territory of Transniestria.

    It told Ukraine it will take "protective measures" on trade.

    Putin has said he wants all former Soviet republics, except the Baltic
    states, which are EU members, to join his customs bloc.

    He plans to transform it into a political union, the Eurasian Union,
    in 2015.

    "There is a saying in Russia: It takes a long time to saddle a
    horse, but no time at all to make it gallop," a Russian diplomat
    told EUobserver, referring to the pace of progress on Russia's
    Eurasian plan.

    http://euobserver.com/foreign/121304

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