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RUSSIAN COMPANIES TOLD ARMENIAN COMPANIES TO WAIT
Roza Hovhannisyan, Reporter
Business - 13 February 2015, 12:45
The minister of economy Karen Chshmarityan told Lragir.am after the
meeting of government that problems have occurred within the Eurasian
Economic Union which are being attended to at this stage.
Commenting on complaints of companies, Chshmarityan said: "Introduction
of a new system or changes in any system... We informed companies,
almost every day but after the roadmap available there are activities
to carry out, which are now going on.. If we compare in terms of
change of regulations, their simplification and introduction of new
regulations, I think we are not in a bad but in a very good situation
because the impression was that problems would have been many more
but they are not as many as we had expected," the minister said.
He noted that as part of the EEU Armenia is facing problems with
regulations which are objective problems.
"But I think that they will be resolved shortly. Problems are addressed
with Russia, Belarus and Kazakhstan on a daily basis, they are mostly
technical issues," he said.
In answer to our question that aside from technical issues the Armenian
companies are facing serious problems with exports, in fact exports
have been brought to a halt, Karen Chshmarityan said it was expected
until Russia finalizes adjustments.
"It is not so that the Russian companies told our companies to stop
exports. If deals were made in dollars, and our deals were made mainly
in dollars, it was not profitable for them. They had not adjusted
prices, if they bought in dollars, they would suffer losses. Deals
in Russian rubles were not profitable for our companies. Now this
adjustment is underway. They say wait, they don't say we don't want
your products because our products are competitive by their kind,
uniqueness. There will be demand, and if we can, we will support,"
he said.
The minister could not estimate losses the Armenian economy will bear
until these problems are overcome. He noted that nobody can provide
exact numbers.
In answer to the observation that the Armenian government used
to hail the huge market and opportunities that would open up in
the EEU but apparently the picture is opposite, Karen Chshmarityan
said simplification of any trade relations will definitely produce
a positive impact. "Whether the EEU or the European Union. The real
picture of that impact will be visible when the situation stabilizes,
and the signals are already in place in our partner countries. It is
too early to make a forecast today," he said.
In answer to our question why they hurried to join the EEU in such
uncertainty, he said we are already a member.
The minister denies there is economic crisis. "One cannot say that
there is an economic crisis as such. I can justify. The factors that
you are mainly trumpeting, I mean the impact of the Russian economy,
it tends to stabilize already. Prices are up, of course, but over
the past 1-2 months there were no big fluctuations, there are no bug
fluctuations of currency rates, the oil price, if you have noticed,
does not have big fluctuations, it is even rising," he noted.
As to problems in the Armenian banking sector, and rumors that
banks refuse loan applications, the minister said: "It is not true
that banks refuse everyone. I am saying this as a representative of
economic entities, not banks. With some limited quantity... you know
when the rate of refinancing rises, when collateral loan rate rises,
or reserve ratio rises, loans grow expensive, this is a process which
will undergo adjustments. Along with stabilization demand and supply
will get closer."
The minister economy says the Economic Activity Index in 2014 is not
low, considering the external negative factors. "Where did you learn
that the economic activity was low, it was 3.9% despite such external
impact, fluctuations. You are saying low. First remove that impact
and see what it would be like," he said.
Karen Chshmarityan said gas supply to Armenia was not discussed in
the latest EEU conference.
http://www.lragir.am/index/eng/0/economy/view/33629#sthash.PpBEFMoq.dpuf
Roza Hovhannisyan, Reporter
Business - 13 February 2015, 12:45
The minister of economy Karen Chshmarityan told Lragir.am after the
meeting of government that problems have occurred within the Eurasian
Economic Union which are being attended to at this stage.
Commenting on complaints of companies, Chshmarityan said: "Introduction
of a new system or changes in any system... We informed companies,
almost every day but after the roadmap available there are activities
to carry out, which are now going on.. If we compare in terms of
change of regulations, their simplification and introduction of new
regulations, I think we are not in a bad but in a very good situation
because the impression was that problems would have been many more
but they are not as many as we had expected," the minister said.
He noted that as part of the EEU Armenia is facing problems with
regulations which are objective problems.
"But I think that they will be resolved shortly. Problems are addressed
with Russia, Belarus and Kazakhstan on a daily basis, they are mostly
technical issues," he said.
In answer to our question that aside from technical issues the Armenian
companies are facing serious problems with exports, in fact exports
have been brought to a halt, Karen Chshmarityan said it was expected
until Russia finalizes adjustments.
"It is not so that the Russian companies told our companies to stop
exports. If deals were made in dollars, and our deals were made mainly
in dollars, it was not profitable for them. They had not adjusted
prices, if they bought in dollars, they would suffer losses. Deals
in Russian rubles were not profitable for our companies. Now this
adjustment is underway. They say wait, they don't say we don't want
your products because our products are competitive by their kind,
uniqueness. There will be demand, and if we can, we will support,"
he said.
The minister could not estimate losses the Armenian economy will bear
until these problems are overcome. He noted that nobody can provide
exact numbers.
In answer to the observation that the Armenian government used
to hail the huge market and opportunities that would open up in
the EEU but apparently the picture is opposite, Karen Chshmarityan
said simplification of any trade relations will definitely produce
a positive impact. "Whether the EEU or the European Union. The real
picture of that impact will be visible when the situation stabilizes,
and the signals are already in place in our partner countries. It is
too early to make a forecast today," he said.
In answer to our question why they hurried to join the EEU in such
uncertainty, he said we are already a member.
The minister denies there is economic crisis. "One cannot say that
there is an economic crisis as such. I can justify. The factors that
you are mainly trumpeting, I mean the impact of the Russian economy,
it tends to stabilize already. Prices are up, of course, but over
the past 1-2 months there were no big fluctuations, there are no bug
fluctuations of currency rates, the oil price, if you have noticed,
does not have big fluctuations, it is even rising," he noted.
As to problems in the Armenian banking sector, and rumors that
banks refuse loan applications, the minister said: "It is not true
that banks refuse everyone. I am saying this as a representative of
economic entities, not banks. With some limited quantity... you know
when the rate of refinancing rises, when collateral loan rate rises,
or reserve ratio rises, loans grow expensive, this is a process which
will undergo adjustments. Along with stabilization demand and supply
will get closer."
The minister economy says the Economic Activity Index in 2014 is not
low, considering the external negative factors. "Where did you learn
that the economic activity was low, it was 3.9% despite such external
impact, fluctuations. You are saying low. First remove that impact
and see what it would be like," he said.
Karen Chshmarityan said gas supply to Armenia was not discussed in
the latest EEU conference.
http://www.lragir.am/index/eng/0/economy/view/33629#sthash.PpBEFMoq.dpuf