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RUSSO-UKRAINIAN STANDOFF: EXPERTS SEE CONSEQUENCES FOR ARMENIAN ECONOMY
http://armenianow.com/economy/52450/armenia_ukraine_events_russia
ECONOMY | 05.03.14 | 12:52
By Gohar Abrahamyan
ArmeniaNow reporter
The escalation of tensions between Russia and Ukraine, according to
experts, will also affect the Armenian economy as remittances wired
by migrant workers abroad are likely to reduce.
After the ouster of President Viktor Yanukovych and the formation of
a pro-Western government in Kyiv late last month Russia effectively
moved to establish its military control over Crimea, an autonomous
republic in the south of Ukraine with a predominantly ethnic Russian
population that hosts Moscow's strategic naval base on the Black Sea.
The Russian parliament also empowered President Vladimir Putin to
use military force as appropriate to defend the ethnic Russian and
Russian-speaking population elsewhere in the territory of Ukraine.
About 100,000 Armenians live in Ukraine, according to official
figures, but unofficial accounts put their number at between 400,000
and 600,000.
According to the Armenian National Statistical Service, in 2012,
among former Soviet countries the top trade partner of Armenia was
Russia, followed by Ukraine. According to the data of the Central Bank
Bulletin, in 2013 alone, Armenia received $1 billion, 607 million via
the banking system through individuals, with the bulk of the transfers
made from Russia. Some of the transfers were also made from Ukraine.
Member of the opposition Armenian National Congress party, economist
Vahagn Khachatryan says that Ukraine is an important partner for
Armenia and any event taking place there will also have its impact
on Armenia. The economist says that at this moment the situation
is still uncertain, there is no publication about how the events of
recent days will impact the Ukrainian economy.
The economic situation appears to be worsening in Russia, too.
Armenian oppositionist David Shahnazaryan says in the last couple of
days the country lost more on its stock exchanges than it spent during
the recent Olympics in Sochi that cost the Russian budget $52 billion.
During a meeting with journalists on Tuesday Shahnazaryan said that
the main reason for that is that "the accounts of Russia's political
elite have already been frozen in Western banks."
A devaluation of securities by some 13 percent has been observed
on Russia's stock market, which also led to the depreciation of the
Russian ruble. The Russian currency also lost its grounds in Armenia.
Since February 24, it depreciated by about 4 percent against the dram.
Economist Vahagn Khachatryan believes that the devaluation of the
ruble will also have a negative impact on Armenia.
"There was a similar thing happening during the 2009 crisis,
when Russia was in trouble and the amount of transfers from there
dramatically decreased, and Armenia's construction sector then also
shrank significantly. And now there are two compelling circumstances -
one is the tightening of immigration laws in Russia, and the other is
the policy of the Russian Central Bank regarding the national currency
exchange rate, which will result in the reduction of remittances from
Russia," says the economist.
From: Baghdasarian
http://armenianow.com/economy/52450/armenia_ukraine_events_russia
ECONOMY | 05.03.14 | 12:52
By Gohar Abrahamyan
ArmeniaNow reporter
The escalation of tensions between Russia and Ukraine, according to
experts, will also affect the Armenian economy as remittances wired
by migrant workers abroad are likely to reduce.
After the ouster of President Viktor Yanukovych and the formation of
a pro-Western government in Kyiv late last month Russia effectively
moved to establish its military control over Crimea, an autonomous
republic in the south of Ukraine with a predominantly ethnic Russian
population that hosts Moscow's strategic naval base on the Black Sea.
The Russian parliament also empowered President Vladimir Putin to
use military force as appropriate to defend the ethnic Russian and
Russian-speaking population elsewhere in the territory of Ukraine.
About 100,000 Armenians live in Ukraine, according to official
figures, but unofficial accounts put their number at between 400,000
and 600,000.
According to the Armenian National Statistical Service, in 2012,
among former Soviet countries the top trade partner of Armenia was
Russia, followed by Ukraine. According to the data of the Central Bank
Bulletin, in 2013 alone, Armenia received $1 billion, 607 million via
the banking system through individuals, with the bulk of the transfers
made from Russia. Some of the transfers were also made from Ukraine.
Member of the opposition Armenian National Congress party, economist
Vahagn Khachatryan says that Ukraine is an important partner for
Armenia and any event taking place there will also have its impact
on Armenia. The economist says that at this moment the situation
is still uncertain, there is no publication about how the events of
recent days will impact the Ukrainian economy.
The economic situation appears to be worsening in Russia, too.
Armenian oppositionist David Shahnazaryan says in the last couple of
days the country lost more on its stock exchanges than it spent during
the recent Olympics in Sochi that cost the Russian budget $52 billion.
During a meeting with journalists on Tuesday Shahnazaryan said that
the main reason for that is that "the accounts of Russia's political
elite have already been frozen in Western banks."
A devaluation of securities by some 13 percent has been observed
on Russia's stock market, which also led to the depreciation of the
Russian ruble. The Russian currency also lost its grounds in Armenia.
Since February 24, it depreciated by about 4 percent against the dram.
Economist Vahagn Khachatryan believes that the devaluation of the
ruble will also have a negative impact on Armenia.
"There was a similar thing happening during the 2009 crisis,
when Russia was in trouble and the amount of transfers from there
dramatically decreased, and Armenia's construction sector then also
shrank significantly. And now there are two compelling circumstances -
one is the tightening of immigration laws in Russia, and the other is
the policy of the Russian Central Bank regarding the national currency
exchange rate, which will result in the reduction of remittances from
Russia," says the economist.
From: Baghdasarian