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ARMENIA MUST SETTLE ACCOUNTS IN AMD-RUB TERMS - ARTVIK MINASYAN
15:21 * 23.12.14
In an interview with Tert.am, Armenian Revolutionary Federation
Dashnaktsutyun (ARF-D) parliamentary group member Artsvik Minasyan
commented on the latest developments on Armenia's financial market
last week.
According to him, the government should draw a number of lessons. He
proposed certain solutions.
One of the solutions is that, with 70% dollarization of Armenia's
economy, should use AMD-RUB principle in effecting payments for a
number of products, including gas, which could prevent a rise in the
gas price on the border.
"Solution one: we all have made sure that it is the Russian ruble
that caused the greatest shock. It means that we should use AMD-RUB
principle in the case of substantial part of our trade with Russia.
Specifically, with respect to gas import, it is obvious that our
intergovernmental agreement must envisage deals in RUB and AMD terms,
not in USD terms.
"Secondly, Armenian-Russian trade turnover. In the case of essential
products for Armenia, we must achieve the aim of settling accounts
in RUB terms," Mr Minasyan said.
"Gas imports are anchored to the USD formula, which must be replaced
with the RUB formula, which will not have any effect inside our
country. Gas-filling stations settle accounts in USD terms, which
affects ordinary Armenian citizens. And since an amount of currency
comes to Armenia, it can be predictable. But when we arrange deals
in terms of a third currency - the US dollar or Euro - we actually
shift the global economic burden onto our economy."
Asked to comment on Gazprom Armenia's earlier promise to ask the
Public Services' Regulatory Commission to revise the tariffs, Minasyan
said he expect such a move to prevent a possible hike. "With this,
we'll prevent a hike in the natural gas prices, at least in the short
run. Gazprom has to nonetheless raise the gas price for Russia to
justify the reasons behind the increased price for Armenia. We are,
after all, in the same economic area. And that means Gazprom cannot
raise the price on its own because of changes in the Dollar rate. This
offers advantages to our country and state.
Addressing the need to recover the economy, Minasyan stressed the need
of investments as a sustainability tool. "Hence, our country has to
create an investment protection committee to make foreign currency
investments possible. Stock companies today cannot release shares
in a foreign currency. As a result, a foreign investor who wants to
make a payment for a share in Euros or [US] Dollars in the frameworks
of an investment project has to exchange with Drams in order to pay
the money. He or she thus actually incurs the risk and has to either
insure it by paying more for the investment or remain in the risk
zone. All two scenarios result in a negative decision in terms of
investments. We have sectors which we have artificially restricted.
And those restrictions have caused a 70% dollarization, which means
70% of our economy is based on a foreign currency. This implies that
we ourselves have weakened the Dram. So it fulfills no function as
a matter of fact. And if a currency fulfils no function at all, it
easily assumes the function of a weak means of overturn," he explained.
Asked to comment on Gazprom Armenia's earlier promise to ask the
Public Services' Regulatory Commission to revise the tariffs, Minasyan
said he expect such a move to prevent a possible hike. "With this,
we'll prevent a hike in the natural gas prices, at least in the short
run. Gazprom has to nonetheless raise the gas price for Russia to
justify the reasons behind the increased price for Armenia. We are,
after all, in the same economic area. And that means Gazprom cannot
raise the price on its own because of changes in the Dollar rate. This
offers advantages to our country and state.
Addressing the need to recover the economy, Minasyan stressed the need
of investments as a sustainability tool. "Hence, our country has to
create an investment protection committee to make foreign currency
investments possible. Stock companies today cannot release shares
in a foreign currency. As a result, a foreign investor who wants to
make a payment for a share in Euros or [US] Dollars in the frameworks
of an investment project has to exchange with Drams in order to pay
the money. He or she thus actually incurs the risk and has to either
insure it by paying more for the investment or remain in the risk
zone. All two scenarios result in a negative decision in terms of
investments. We have sectors which we have artificially restricted.
And those restrictions have caused a 70% dollarization, which means
70% of our economy is based on a foreign currency. This implies that
we ourselves have weakened the Dram. So it fulfills no function as
a matter of fact. And if a currency fulfils no function at all, it
easily assumes the function of a weak means of overturn," he explained.
Asked to comment on Gazprom Armenia's earlier promise to ask the
Public Services' Regulatory Commission to revise the tariffs, Minasyan
said he expects such a move to prevent a possible hike. "With this,
we'll prevent a hike in the natural gas prices, at least in the short
run. Gazprom has to nonetheless raise the gas price for Russia to
justify the reasons behind the hike for Armenia. We are, after all,
in the same economic area. And that means Gazprom cannot raise the
price on its own because of changes in the Dollar rate. This offers
advantages to our country and state.
Addressing the need to recover the economy, Minasyan stressed the need
of investments as a sustainability tool. "Hence, our country has to
create an investment protection committee to make foreign currency
investments possible. Stock companies today cannot release shares
in a foreign currency. As a result, a foreign investor who wants to
make a payment for a share in Euros or [US] Dollars in the frameworks
of an investment project has to exchange with Drams in order to pay
the money. He or she thus actually incurs the risk and has to either
insure it by paying more for the investment or remain in the risk
zone. All two scenarios result in a negative decision in terms of
investments. We have sectors which we have artificially restricted.
And those restrictions have caused a 70% dollarization, which means
70% of our economy is based on a foreign currency. This implies that
we ourselves have weakened the Dram. So it fulfills no function as
a matter of fact. And if a currency fulfils no function at all, it
easily assumes the function of a weak means of overturn," he explained.
http://www.tert.am/en/news/2014/12/23/artsvik-minasian/1544060
15:21 * 23.12.14
In an interview with Tert.am, Armenian Revolutionary Federation
Dashnaktsutyun (ARF-D) parliamentary group member Artsvik Minasyan
commented on the latest developments on Armenia's financial market
last week.
According to him, the government should draw a number of lessons. He
proposed certain solutions.
One of the solutions is that, with 70% dollarization of Armenia's
economy, should use AMD-RUB principle in effecting payments for a
number of products, including gas, which could prevent a rise in the
gas price on the border.
"Solution one: we all have made sure that it is the Russian ruble
that caused the greatest shock. It means that we should use AMD-RUB
principle in the case of substantial part of our trade with Russia.
Specifically, with respect to gas import, it is obvious that our
intergovernmental agreement must envisage deals in RUB and AMD terms,
not in USD terms.
"Secondly, Armenian-Russian trade turnover. In the case of essential
products for Armenia, we must achieve the aim of settling accounts
in RUB terms," Mr Minasyan said.
"Gas imports are anchored to the USD formula, which must be replaced
with the RUB formula, which will not have any effect inside our
country. Gas-filling stations settle accounts in USD terms, which
affects ordinary Armenian citizens. And since an amount of currency
comes to Armenia, it can be predictable. But when we arrange deals
in terms of a third currency - the US dollar or Euro - we actually
shift the global economic burden onto our economy."
Asked to comment on Gazprom Armenia's earlier promise to ask the
Public Services' Regulatory Commission to revise the tariffs, Minasyan
said he expect such a move to prevent a possible hike. "With this,
we'll prevent a hike in the natural gas prices, at least in the short
run. Gazprom has to nonetheless raise the gas price for Russia to
justify the reasons behind the increased price for Armenia. We are,
after all, in the same economic area. And that means Gazprom cannot
raise the price on its own because of changes in the Dollar rate. This
offers advantages to our country and state.
Addressing the need to recover the economy, Minasyan stressed the need
of investments as a sustainability tool. "Hence, our country has to
create an investment protection committee to make foreign currency
investments possible. Stock companies today cannot release shares
in a foreign currency. As a result, a foreign investor who wants to
make a payment for a share in Euros or [US] Dollars in the frameworks
of an investment project has to exchange with Drams in order to pay
the money. He or she thus actually incurs the risk and has to either
insure it by paying more for the investment or remain in the risk
zone. All two scenarios result in a negative decision in terms of
investments. We have sectors which we have artificially restricted.
And those restrictions have caused a 70% dollarization, which means
70% of our economy is based on a foreign currency. This implies that
we ourselves have weakened the Dram. So it fulfills no function as
a matter of fact. And if a currency fulfils no function at all, it
easily assumes the function of a weak means of overturn," he explained.
Asked to comment on Gazprom Armenia's earlier promise to ask the
Public Services' Regulatory Commission to revise the tariffs, Minasyan
said he expect such a move to prevent a possible hike. "With this,
we'll prevent a hike in the natural gas prices, at least in the short
run. Gazprom has to nonetheless raise the gas price for Russia to
justify the reasons behind the increased price for Armenia. We are,
after all, in the same economic area. And that means Gazprom cannot
raise the price on its own because of changes in the Dollar rate. This
offers advantages to our country and state.
Addressing the need to recover the economy, Minasyan stressed the need
of investments as a sustainability tool. "Hence, our country has to
create an investment protection committee to make foreign currency
investments possible. Stock companies today cannot release shares
in a foreign currency. As a result, a foreign investor who wants to
make a payment for a share in Euros or [US] Dollars in the frameworks
of an investment project has to exchange with Drams in order to pay
the money. He or she thus actually incurs the risk and has to either
insure it by paying more for the investment or remain in the risk
zone. All two scenarios result in a negative decision in terms of
investments. We have sectors which we have artificially restricted.
And those restrictions have caused a 70% dollarization, which means
70% of our economy is based on a foreign currency. This implies that
we ourselves have weakened the Dram. So it fulfills no function as
a matter of fact. And if a currency fulfils no function at all, it
easily assumes the function of a weak means of overturn," he explained.
Asked to comment on Gazprom Armenia's earlier promise to ask the
Public Services' Regulatory Commission to revise the tariffs, Minasyan
said he expects such a move to prevent a possible hike. "With this,
we'll prevent a hike in the natural gas prices, at least in the short
run. Gazprom has to nonetheless raise the gas price for Russia to
justify the reasons behind the hike for Armenia. We are, after all,
in the same economic area. And that means Gazprom cannot raise the
price on its own because of changes in the Dollar rate. This offers
advantages to our country and state.
Addressing the need to recover the economy, Minasyan stressed the need
of investments as a sustainability tool. "Hence, our country has to
create an investment protection committee to make foreign currency
investments possible. Stock companies today cannot release shares
in a foreign currency. As a result, a foreign investor who wants to
make a payment for a share in Euros or [US] Dollars in the frameworks
of an investment project has to exchange with Drams in order to pay
the money. He or she thus actually incurs the risk and has to either
insure it by paying more for the investment or remain in the risk
zone. All two scenarios result in a negative decision in terms of
investments. We have sectors which we have artificially restricted.
And those restrictions have caused a 70% dollarization, which means
70% of our economy is based on a foreign currency. This implies that
we ourselves have weakened the Dram. So it fulfills no function as
a matter of fact. And if a currency fulfils no function at all, it
easily assumes the function of a weak means of overturn," he explained.
http://www.tert.am/en/news/2014/12/23/artsvik-minasian/1544060