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COGNAC SALES FALL IN ARMENIA
The Conway Bulletin
July 9 2014
Jul 9, 2014 by the editor
LONDON, July 2 (The Conway Bulletin) -- The impact of sanctions on
Russia is hitting all the economies of the South Caucasus and Central
Asia but none more so than Armenia.
Armenia is particularly reliant on Russia for both financial support
and as a market for its export. Last month, the Armenian Central Bank
said it would cut interest rates for the third time this year to a
four year low to try and curb falling inflation.
The latest inflation numbers show just how much work the Central Bank
needs to do to prop up the economy. Armenia's statistics agency said
that inflation for the first half of the year was 4%, at the bottom
end of its range.
But even this figure hides the really worrying data. Average prices
in June fell 1.8% against May.
For more evidence of Russia's faltering economy hitting the more
outlying regions of the former Soviet Union, cognac is as good a
place to look as any other. Armenian cognac is famous around the
former Soviet Union and Russia is its biggest export market.
The latest data showed that cognac production fell for the first five
months of May by 11.1% to just over 5.5m litres compared to the same
period in 2013 (June 30).
Although no official explanation has been given, the message is still
fairly clear.
"In the first quarter of 2014 Armenia exported to Russia half the
amount of cognac compared with the the same reporting period in 2013,"
an Armenian business website reported.
"They [Russian cognac importers] are in an unstable financial
situation and do not know what will the political conflict between
Russia and Ukraine."
http://newsdesk.theconwaybulletin.com/cognac-sales-fall-armenia140709/
The Conway Bulletin
July 9 2014
Jul 9, 2014 by the editor
LONDON, July 2 (The Conway Bulletin) -- The impact of sanctions on
Russia is hitting all the economies of the South Caucasus and Central
Asia but none more so than Armenia.
Armenia is particularly reliant on Russia for both financial support
and as a market for its export. Last month, the Armenian Central Bank
said it would cut interest rates for the third time this year to a
four year low to try and curb falling inflation.
The latest inflation numbers show just how much work the Central Bank
needs to do to prop up the economy. Armenia's statistics agency said
that inflation for the first half of the year was 4%, at the bottom
end of its range.
But even this figure hides the really worrying data. Average prices
in June fell 1.8% against May.
For more evidence of Russia's faltering economy hitting the more
outlying regions of the former Soviet Union, cognac is as good a
place to look as any other. Armenian cognac is famous around the
former Soviet Union and Russia is its biggest export market.
The latest data showed that cognac production fell for the first five
months of May by 11.1% to just over 5.5m litres compared to the same
period in 2013 (June 30).
Although no official explanation has been given, the message is still
fairly clear.
"In the first quarter of 2014 Armenia exported to Russia half the
amount of cognac compared with the the same reporting period in 2013,"
an Armenian business website reported.
"They [Russian cognac importers] are in an unstable financial
situation and do not know what will the political conflict between
Russia and Ukraine."
http://newsdesk.theconwaybulletin.com/cognac-sales-fall-armenia140709/