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OPINION: ARMENIA TURNS ITS EYE TO THE EAST
Lithuania Tribune
Sept 5 2013
The Lithuania Tribune presents an opinion article by an American
journalist Steven G. Traylor on Armenia's decision to join the
Customs Union.
The European Union received somewhat disturbing news this week,
when it was announced in Moscow that the President of Armenia, Serzh
Sarksyan and the President of Russia, Vladimir Putin have signed
agreements between the two; signalling that Armenia will likely join
the counterpart of the European Union, the Customs Euro Asia Economic
Community (EurAsEC).
The EurAsEC has become a top priority since 2008 for Russia to offset
the expansion of the European Union into what is believe to be Russia's
"sphere of influence" especially in the Eastern and Central Europe.
While the EU, as a unified 28 member economic power-house, is rivalling
the biggest economy in the world - the United States, Russia is
seeking to rekindle its dwindling influence since the demise of the
Soviet Union as a world player both politically and economically.
Today, the only former Soviet Republics that border on Russia are
the three Baltic States.
"Russia supports the decision by Armenia to enter the Customs Union
(EurAsEC). We will fully work for this to happen," Putin said regarding
the bilateral talks conducted at his country house outside of Moscow.
Russia is Armenia's largest trading partner and the largest foreign
investor in the landlocked country. Trade between the two reached
$1.2 billion in 2012 and Russian capital investment was over $3
billion, nearly half of Armenia's foreign investment, Putin said
during the talks.
Back in July, Armenia concluded talks with the EU regarding a deep
and comprehensive free trade agreement. Political observers fully
expected the country to initiate a free trade agreement with the EU
this November in Vilnius, site of upcoming European Union Summit,
as Lithuania holds the revolving Chairmanship of the EU currently.
However, the European Union does not allow member-states to participate
in other non-EU memberships, as it is considered "incompatible"
with the EU's Charter.
Armenia is now an invited guest to Vilnius.
Armenian President Sarkisian said: "this decision is not a rejection
of our dialogue with the European institution. Armenia is considerably
more effective and competitive state than it was years ago", hinting
it being a result of negotiations with the EU.
"We intend to continue these reforms also in the future," he said.
Reaction in Yerevan and Brussels
>From Yerevan, Hovhannes Igityan, former Chairman of the National
Assembly Foreign Relations Committee said: "I consider the statement
made during Sargsyan-Putin meeting retarded and a big mistake".
"I do not know the response of Europe, but I think it is an economic
and political mistake. To our question of what the Customs Union will
give Armenia and what we were deprived of not joining the EU deep
and comprehensive free trade area. We have a contract with Russia
on free interactions and trade, and time showed that it does not
provide us with economic growth, while Russia is number one investor
country for Armenia, and Armenia's only chance of quick development
was the development of economic relations with the European Union
which failed".
Vice-Chairman of Heritage political party, and Yerevan City Council
Armen Martirosyan has been quoted as saying, "I will stay away from
giving the final assessment, because it is possible that a short
while later, after meeting with the high-ranking European officials,
such statements (coming out of Moscow) is possible to sound again
that we will be signing the Association Agreement. I think I still
have time and the final word will be known in the near future. In
any case, if we are going to join the Customs Union, I think we would
have a system of governance that we have so far. However, after the
decision to join the Customs Union, we would have the same corrupt,
rotten systems of governance. Nothing will change," according to
local press reports www.en.aravot.am.
EU Enlargement Commissioner Stefan Fuele's spokesman Peter Stano
has said: "currently consulting our Armenia partners on the latest
developments and the potential implications would be examined when
all necessary details were at hand."
Mother Russia still to be reckoned with
For President Putin, this move is considered a political victory.
Former member-states of the Soviet Union have tasted independence and
found that not all is in harmony with the way it is done in the west.
Economic considerations are always in play when political decisions
are made.
Armenia, for example, has no adequate oil reserves or natural gas, and
most of its energy demands are met through cheap imports from Russia.
Nearly 80 per cent of Armenia's energy system is estimated to be
under Russian control according to www.eurasianet.org.
Ukraine, another potential aspiring member to the EU expected in
Vilnius in November, has felt recently political pressure as well.
Officials are accusing Russian customs of discriminating against their
export with tighter customs inspection that potentially could run
up billion of dollars in losses. Kiev sees this bilateral trade war
designed to discourage Ukraine for signing the Association Agreement
with the EU.
Sergey Glazyev, a senior economic adviser to President Putin has been
quoted by RIA Novosti: "we are preparing to tighten customs procedures
in case Ukraine suddenly makes this suicidal step of signing the EU
Association Agreement". Ukraine's export to Russia totalled over $16
billion in 2012, nearly a quarter of all goods, and export to Europe
were just over $17 billion according to EU trade data.
Georgia likewise is an interested member in joining the European Union,
and only recently resumed trade following the contentious war with
Russia, of which each side accuses the other of starting.
So, who will show up?
For Lithuanian President Dalia GrybauskaitÄ-, who is fresh from the
Baltic Summit with President Obama in Washington D. C., the task of
the EU leadership is daunting. The political landscape can and does
change on a daily basis, while the G20 currently underway in St.
Petersburg, Russia - statements and agreements reached there can have
an effect on the EU decisions.
Vilnius will be an interesting place to be come in November, and see
who's there and who's not from the South and East of Lithuania.
http://www.lithuaniatribune.com/49639/opinion-armenia-turns-its-eye-to-the-east-201349639/
Lithuania Tribune
Sept 5 2013
The Lithuania Tribune presents an opinion article by an American
journalist Steven G. Traylor on Armenia's decision to join the
Customs Union.
The European Union received somewhat disturbing news this week,
when it was announced in Moscow that the President of Armenia, Serzh
Sarksyan and the President of Russia, Vladimir Putin have signed
agreements between the two; signalling that Armenia will likely join
the counterpart of the European Union, the Customs Euro Asia Economic
Community (EurAsEC).
The EurAsEC has become a top priority since 2008 for Russia to offset
the expansion of the European Union into what is believe to be Russia's
"sphere of influence" especially in the Eastern and Central Europe.
While the EU, as a unified 28 member economic power-house, is rivalling
the biggest economy in the world - the United States, Russia is
seeking to rekindle its dwindling influence since the demise of the
Soviet Union as a world player both politically and economically.
Today, the only former Soviet Republics that border on Russia are
the three Baltic States.
"Russia supports the decision by Armenia to enter the Customs Union
(EurAsEC). We will fully work for this to happen," Putin said regarding
the bilateral talks conducted at his country house outside of Moscow.
Russia is Armenia's largest trading partner and the largest foreign
investor in the landlocked country. Trade between the two reached
$1.2 billion in 2012 and Russian capital investment was over $3
billion, nearly half of Armenia's foreign investment, Putin said
during the talks.
Back in July, Armenia concluded talks with the EU regarding a deep
and comprehensive free trade agreement. Political observers fully
expected the country to initiate a free trade agreement with the EU
this November in Vilnius, site of upcoming European Union Summit,
as Lithuania holds the revolving Chairmanship of the EU currently.
However, the European Union does not allow member-states to participate
in other non-EU memberships, as it is considered "incompatible"
with the EU's Charter.
Armenia is now an invited guest to Vilnius.
Armenian President Sarkisian said: "this decision is not a rejection
of our dialogue with the European institution. Armenia is considerably
more effective and competitive state than it was years ago", hinting
it being a result of negotiations with the EU.
"We intend to continue these reforms also in the future," he said.
Reaction in Yerevan and Brussels
>From Yerevan, Hovhannes Igityan, former Chairman of the National
Assembly Foreign Relations Committee said: "I consider the statement
made during Sargsyan-Putin meeting retarded and a big mistake".
"I do not know the response of Europe, but I think it is an economic
and political mistake. To our question of what the Customs Union will
give Armenia and what we were deprived of not joining the EU deep
and comprehensive free trade area. We have a contract with Russia
on free interactions and trade, and time showed that it does not
provide us with economic growth, while Russia is number one investor
country for Armenia, and Armenia's only chance of quick development
was the development of economic relations with the European Union
which failed".
Vice-Chairman of Heritage political party, and Yerevan City Council
Armen Martirosyan has been quoted as saying, "I will stay away from
giving the final assessment, because it is possible that a short
while later, after meeting with the high-ranking European officials,
such statements (coming out of Moscow) is possible to sound again
that we will be signing the Association Agreement. I think I still
have time and the final word will be known in the near future. In
any case, if we are going to join the Customs Union, I think we would
have a system of governance that we have so far. However, after the
decision to join the Customs Union, we would have the same corrupt,
rotten systems of governance. Nothing will change," according to
local press reports www.en.aravot.am.
EU Enlargement Commissioner Stefan Fuele's spokesman Peter Stano
has said: "currently consulting our Armenia partners on the latest
developments and the potential implications would be examined when
all necessary details were at hand."
Mother Russia still to be reckoned with
For President Putin, this move is considered a political victory.
Former member-states of the Soviet Union have tasted independence and
found that not all is in harmony with the way it is done in the west.
Economic considerations are always in play when political decisions
are made.
Armenia, for example, has no adequate oil reserves or natural gas, and
most of its energy demands are met through cheap imports from Russia.
Nearly 80 per cent of Armenia's energy system is estimated to be
under Russian control according to www.eurasianet.org.
Ukraine, another potential aspiring member to the EU expected in
Vilnius in November, has felt recently political pressure as well.
Officials are accusing Russian customs of discriminating against their
export with tighter customs inspection that potentially could run
up billion of dollars in losses. Kiev sees this bilateral trade war
designed to discourage Ukraine for signing the Association Agreement
with the EU.
Sergey Glazyev, a senior economic adviser to President Putin has been
quoted by RIA Novosti: "we are preparing to tighten customs procedures
in case Ukraine suddenly makes this suicidal step of signing the EU
Association Agreement". Ukraine's export to Russia totalled over $16
billion in 2012, nearly a quarter of all goods, and export to Europe
were just over $17 billion according to EU trade data.
Georgia likewise is an interested member in joining the European Union,
and only recently resumed trade following the contentious war with
Russia, of which each side accuses the other of starting.
So, who will show up?
For Lithuanian President Dalia GrybauskaitÄ-, who is fresh from the
Baltic Summit with President Obama in Washington D. C., the task of
the EU leadership is daunting. The political landscape can and does
change on a daily basis, while the G20 currently underway in St.
Petersburg, Russia - statements and agreements reached there can have
an effect on the EU decisions.
Vilnius will be an interesting place to be come in November, and see
who's there and who's not from the South and East of Lithuania.
http://www.lithuaniatribune.com/49639/opinion-armenia-turns-its-eye-to-the-east-201349639/