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ISTANBUL: Russia plays, Europe pays: Armenia's Customs Union adventu

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  • ISTANBUL: Russia plays, Europe pays: Armenia's Customs Union adventu

    Today's Zaman, Turkey
    Sept 15 2013

    Russia plays, Europe pays: Armenia's Customs Union adventure (1)

    ZAUR SHIRIYEV
    [email protected]



    Armenian President Serzh Sarksyan's declaration that Yerevan will join
    the Russian-led Customs Union (CU) has unseated an enduring and
    continuing debate both domestically and internationally.

    Undoubtedly, the decision has come as a surprise to the wider public
    -- but not to high-level European Union officials. As stated by EU
    Commissioner for Enlargement and European Neighborhood Policy Stefan
    Füle, Armenia only informed the EU about the possibility of its
    accession to the CU on Aug. 31, just three days before the official
    declaration of the decision. It seems likely that President Sarksyan
    made his final decision during an unexpected visit to Croatia on Aug.
    28, where he met with Ara Abrahamyan, a Russian-Armenian businessman
    and president of the Union of Russian Armenians. According to
    speculation in the Armenian media, Abrahamyan arranged for Sarksyan to
    meet with Putin, and while still in Croatia, Sarksyan notified the EU
    of his decision.

    What is now clear is that an EU Association Agreement is no longer on
    the table with Yerevan at the November Vilnius Summit. Armenia's
    decision will have important consequences for both the EU and the
    South Caucasus region.

    >From the EU's perspective, Armenia has ended its `either-or' dilemma
    between the EU and the Russian-sponsored CU and Eurasian Union. On
    Sept. 12, the European Parliament passed a resolution proclaiming
    Russia's actions towards the Eastern Partnership (EaP) countries
    `unacceptable,' and called upon the European Commission to take
    definite action. In reality, this resolution is merely a demonstration
    of political frustration and is unlikely to influence Moscow's
    behavior. In another statement, the EU has said that it is trying to
    draft a workable road map for EaP countries to finalize an agreement
    with the EU while also meeting Moscow's demands.

    According to Füle, `it may certainly be possible for members of the
    EaP to increase their cooperation with the CU, perhaps as observers;
    and participation in Deep and Comprehensive Free Trade Area (DCFTA)
    agreements is of course fully compatible with our partners' existing
    free trade agreements with others in the Commonwealth of Independent
    States (CIS).' Ukraine has already taken this middle path by signing a
    deal to become an observer in the CU trade bloc while still hoping to
    finalize an EU Association Agreement in Vilnius.

    Armenia has not yet declared the specifics of its CU alignment, i.e.,
    whether it will hold observer status, or full membership -- but the
    latter seems more likely.

    However, the EU has not abandoned all hope. During his visit to
    Armenia on Sept. 12-14, Füle insisted that the EU will seek
    possibilities for a continued partnership with Yerevan through a new
    legal framework for cooperation.

    Armenia has long struggled with the EU-Russia dilemma; Yerevan found
    itself in a situation wherein `Russia plays, Europe pays.' It relied
    on the EU's high-profile financial support in harsh economic
    conditions, while at the same time Russia continued to bolster its
    political and economic influence in the country.

    On the eve of the Vilnius Summit in November, the EU-Russia-Armenia
    triangle looks set to open up several short and long-term political
    questions.

    First of all, Armenia may suggest that it can still sign the
    Association Agreement without its economic component, and, apparently,
    the EU might agree to this solution to avoid losing all ties with
    Armenia. Armenia in this regard is likely to play for time, because
    under normal regulations, such agreements -- including CU accession or
    EU alignment -- must be approved by parliament. And for now, no formal
    agreement has yet been negotiated on the CU accession, which requires
    a full assessment of the current customs regulations before the CU
    regulations can be implemented. President Sarksyan is unlikely to risk
    his personal reputation and relationship with Moscow by putting the
    decision on CU membership to referendum, but he could arrange this by
    some behind-the-scenes management of political groups in parliament.
    By doing this, Sarksyan could avoid burning his political capital,
    allowing him to say that the decision was reached democratically, by
    the public.

    The second possibility, which is unlikely, is that Armenia will rely
    on dissent from the current members of the CU, Kazakhstan and Belarus.
    However, there is no obvious argument that Belarus or Kazakhstan could
    or would raise, and the timeline is very short: In October the CU
    summit will take place, during which its three members are supposed to
    approve Armenia's membership. But it will not be a final decision;
    Armenian Speaker of the National Assembly Hovik Abrahamyan announced
    that the possible dates for signing the Treaty of Accession to the CU
    could be arranged for 2014. Not surprisingly, as stated above,
    Abrahamyan also acknowledged that there is still no final text of the
    treaty, and it is likely that Armenia will not accept the text or that
    parliament will vote against it.

    The third possibility, which was on the European agenda, is to win
    Armenia back to EU orientation by revitalizing the Turkish-Armenian
    rapprochement process, which collapsed in 2009 for various reasons,
    but mainly the unresolved Nagorno-Karabakh conflict. Some political
    experts have suggested that the last-ditch attempt to rescue Yerevan
    from Moscow's domination will be by trying to open the
    Turkish-Armenian border. But taking into account the stalemate on the
    Nagorno-Karabakh conflict, the current passivity in the
    conflict-resolution process, and the fact that after its CU decision
    Armenia is more dependent on Moscow, the unfortunate conclusion is
    that the conflict-resolution process has ended up in the hands of
    Russia. This will affect Azerbaijan's role and strategy towards Russia
    as well as the conflict-resolution process itself.

    In the next section of this column, I will discuss the potential
    impact of Armenia's CU decision on Yerevan's domestic policy along
    with the Azerbaijani and Georgian positions.

    http://www.todayszaman.com/columnistDetail_getNewsById.action?newsId=326433

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