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US expert: Armenia ideally situated to benefit because Kremlin sanctions
23:20, 21.08.2014
Armenia is ideally situated to benefit from Russia's ban on Western
foodstuffs, Chris Weafer, a founding partner at Moscow-based
Macro-Advisory consultancy, toldArmenia News - NEWS.am in an emailed
comment.
This is because the Kremlin would very much like to have the country
join the Eurasian Union rather than to drift closer to Europe.
Increasing economic ties via a higher volume of food imports is one
way to achieve that, he told. Russia is also expected to encourage
more imports from within the C.I.S. countries "so as to better
consolidate its economic and political relationships in its so-called
near abroad", the expert added.
The same type of policy will be applied - or is already in progress -
to the states, with which Russian authorities want to build a closer
long-term relationship, including large emerging markets.
"We already know that imports are being sourced from Latin America as
part of the initiative," the analyst told.
One of the rationales for that strategy is the fact that Russia will
not be able to move to self-sufficiency in food: moving to
self-sufficiency will take many years, at best.
"The industry has suffered a lack of investment and a loss of skilled
workers for more than two decades. It has structural and efficiency
problems which will not solved easily or quickly," Weafer told.
That's why Russia will try to reap the best possible advantage in
choosing its supply mix. There will also be room for more reliable
food sources from countries deemed to be part of Russia's area of
special interest, e.g. the Eurasian Union countries, the exert added.
This does not mean that increasing local production is off the agenda.
"Longer term the government will use this crisis to try and boost
investment into the agriculture and food production sectors. President
Putin has been complaining for many years that Russia should be more
self-sufficient in key areas such as food and medicine consumption,"
the analyst remarked.
Longer term the government will use the recent crisis in trade
relations to try and boost investment into the agriculture and food
production sectors, he concluded.
http://news.am/eng/news/225025.html
From: Baghdasarian
23:20, 21.08.2014
Armenia is ideally situated to benefit from Russia's ban on Western
foodstuffs, Chris Weafer, a founding partner at Moscow-based
Macro-Advisory consultancy, toldArmenia News - NEWS.am in an emailed
comment.
This is because the Kremlin would very much like to have the country
join the Eurasian Union rather than to drift closer to Europe.
Increasing economic ties via a higher volume of food imports is one
way to achieve that, he told. Russia is also expected to encourage
more imports from within the C.I.S. countries "so as to better
consolidate its economic and political relationships in its so-called
near abroad", the expert added.
The same type of policy will be applied - or is already in progress -
to the states, with which Russian authorities want to build a closer
long-term relationship, including large emerging markets.
"We already know that imports are being sourced from Latin America as
part of the initiative," the analyst told.
One of the rationales for that strategy is the fact that Russia will
not be able to move to self-sufficiency in food: moving to
self-sufficiency will take many years, at best.
"The industry has suffered a lack of investment and a loss of skilled
workers for more than two decades. It has structural and efficiency
problems which will not solved easily or quickly," Weafer told.
That's why Russia will try to reap the best possible advantage in
choosing its supply mix. There will also be room for more reliable
food sources from countries deemed to be part of Russia's area of
special interest, e.g. the Eurasian Union countries, the exert added.
This does not mean that increasing local production is off the agenda.
"Longer term the government will use this crisis to try and boost
investment into the agriculture and food production sectors. President
Putin has been complaining for many years that Russia should be more
self-sufficient in key areas such as food and medicine consumption,"
the analyst remarked.
Longer term the government will use the recent crisis in trade
relations to try and boost investment into the agriculture and food
production sectors, he concluded.
http://news.am/eng/news/225025.html
From: Baghdasarian