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ARMENIA SET TO BECOME MORE DEPENDENT ON RUSSIA
Journal of Turkish Weekly
Dec 29 2014
29 December 2014
Armenia is expected to be more dependent on Russia after its accession
into the Eurasian Economic Union, known by initials EEU, on Jan. 1,
2015.
Armenia, accepted in the last week of 2014, has become the fifth member
of the union following Russia, Kazakhstan, Belarus and Kyrgyzstan. This
could increase Armenia's dependence on Russia in political, economic
and security matters.
Last year, Armenia refused to sign a partnership agreement with the
European Union and took sides with the EEU, which raised questions
over whether Russia pushed it to participate in its union.
In an interview to The Anadolu Agency, Richard Giragosian, the founding
director of the Yerevan-based think-tank Regional Studies Center, said
there were key internal issues -- besides Russia's influence -- that
made Armenian President Serzh Sargsyan distance his nation from the EU.
Yerevan is the capital and largest city of Armenia. Serzh Sargsyan
is the third and current President of Armenia and took office in
April 2008.
Giragosian said that Armenian opposition parties strongly criticized
the government over what they said would endanger Armenia's vital
alliance with Russia.
"The government thought not to jeopardize its security relations with
Russia by signing a partnership agreement with EU," he said.
Giragosian emphasized that Armenia houses a Russian military base
in the region and is a member of Commonwealth of Independent States,
a regional organization of former Soviet Republics which coordinates
trade, finance, lawmaking and security in member states.
Dependence on Russia
Over the past two decades, following the fall of the Soviet Union,
Armenia has been one of the most Russia-dependent countries in the
region. Russian businessmen control many parts of Armenia's private
sector, from energy to infrastructure, and railway to communications.
The energy sector in particular reveals Armenia's dependence on
Russia. All natural gas imports are under the control of Russian
state-run energy company Gazprom.
Russia sells its gas to Armenia with a 50 percent discount in
comparison to other European countries, thus making Armenia dependent
on Russia with regards to its energy sector.
"Armenia's dependence has gradually been increasing over the last ten
years, which has impacted Sargsyan's decision," said Giragosian, adding
that economic relations between the two were unilateral and asymmetric.
EEU's economic and political impact
Armenia's membership of the EEU also raised questions over how the
country's economy would be impacted. Giragosian agrees with other
experts who think membership would harm Armenia's economy.
Membership would increase Armenia's attachment to Russia, he said,
adding: "It will have negative impacts on Armenia's economy, there
will be increases in prices and the country's internal market will
be under the control of Russian businessmen."
Armenia's renunciation of a partnership with the EU will undermine
reforms in the country as well as undermine cooperation with European
countries in the field of defense, Giragosian said.
"Armenia, for now, has closed its doors to EU, but it has not locked
them," he said, urging Europe to find new alternatives to boost ties
with Armenia.
29 December 2014
AA
http://www.turkishweekly.net/news/177834/armenia-set-to-become-more-dependent-on-russia.html
From: A. Papazian
Journal of Turkish Weekly
Dec 29 2014
29 December 2014
Armenia is expected to be more dependent on Russia after its accession
into the Eurasian Economic Union, known by initials EEU, on Jan. 1,
2015.
Armenia, accepted in the last week of 2014, has become the fifth member
of the union following Russia, Kazakhstan, Belarus and Kyrgyzstan. This
could increase Armenia's dependence on Russia in political, economic
and security matters.
Last year, Armenia refused to sign a partnership agreement with the
European Union and took sides with the EEU, which raised questions
over whether Russia pushed it to participate in its union.
In an interview to The Anadolu Agency, Richard Giragosian, the founding
director of the Yerevan-based think-tank Regional Studies Center, said
there were key internal issues -- besides Russia's influence -- that
made Armenian President Serzh Sargsyan distance his nation from the EU.
Yerevan is the capital and largest city of Armenia. Serzh Sargsyan
is the third and current President of Armenia and took office in
April 2008.
Giragosian said that Armenian opposition parties strongly criticized
the government over what they said would endanger Armenia's vital
alliance with Russia.
"The government thought not to jeopardize its security relations with
Russia by signing a partnership agreement with EU," he said.
Giragosian emphasized that Armenia houses a Russian military base
in the region and is a member of Commonwealth of Independent States,
a regional organization of former Soviet Republics which coordinates
trade, finance, lawmaking and security in member states.
Dependence on Russia
Over the past two decades, following the fall of the Soviet Union,
Armenia has been one of the most Russia-dependent countries in the
region. Russian businessmen control many parts of Armenia's private
sector, from energy to infrastructure, and railway to communications.
The energy sector in particular reveals Armenia's dependence on
Russia. All natural gas imports are under the control of Russian
state-run energy company Gazprom.
Russia sells its gas to Armenia with a 50 percent discount in
comparison to other European countries, thus making Armenia dependent
on Russia with regards to its energy sector.
"Armenia's dependence has gradually been increasing over the last ten
years, which has impacted Sargsyan's decision," said Giragosian, adding
that economic relations between the two were unilateral and asymmetric.
EEU's economic and political impact
Armenia's membership of the EEU also raised questions over how the
country's economy would be impacted. Giragosian agrees with other
experts who think membership would harm Armenia's economy.
Membership would increase Armenia's attachment to Russia, he said,
adding: "It will have negative impacts on Armenia's economy, there
will be increases in prices and the country's internal market will
be under the control of Russian businessmen."
Armenia's renunciation of a partnership with the EU will undermine
reforms in the country as well as undermine cooperation with European
countries in the field of defense, Giragosian said.
"Armenia, for now, has closed its doors to EU, but it has not locked
them," he said, urging Europe to find new alternatives to boost ties
with Armenia.
29 December 2014
AA
http://www.turkishweekly.net/news/177834/armenia-set-to-become-more-dependent-on-russia.html
From: A. Papazian